There is a lot of capital management currently underway in the US, with US share buybacks occurring at the fastest pace in history and likely to be around...

There is a lot of capital management currently underway in the US, with US share buybacks occurring at the fastest pace in history and likely to be around USD630 billion this year, with 78% of S&P 500 companies currently undertaking transactions, given record total earnings and limited growth prospects. Meanwhile, the level of M&A transactions continues to grow with firms seemingly focused on return of capital, rather than return on capital, which is likely to continue to weigh on business investment and US economic growth. Nevertheless, with 18 economic sectors signalling expansion in the latest ISM manufacturing survey (which is a ten-year high), the increased use of buybacks suggests that more positive revisions to US earnings per share are likely ahead, which will continue to support share prices and market sentiment. (VIEW LINK)