In an Interview with Fox Business Network, a division of News Corp (NASDAQ:NWSA) (NASDAQ:NWS) Gerri Willis, Duncan Niederauer, chief executive officer of NYSE Euronext (NYSE:NYX), said that both big businesses and most especially small businesses lack optimism for growth next year. According to him, most businesses are nervous. Business leaders need clarity about the tax rate, while small businesses want a simplified tax code next year.
Niederauer said small businesses are considered the jobs creation engine in the United States, but the majority are nervous this year. According to him, the response on small business on the Euronext report regarding the business growth is disturbing. He emphasized that it is the first time this year that small businesses overwhelmingly said not to expect a lot of jobs creation on their part. Many said they are planning to cut jobs, or they will not hire additional workers.
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Based on the NYSE Euronext (NYSE:NYX), report the outlook for growth in businesses next year, 50 percent of CEO and 46 percent of small business owners replied modest growth, while eighteen percent (18%) of CEO and 34 percent of small business owners said no change for their companies through 2013.
The report also revealed that both business leaders of public companies and small business owners believe that cutting business tax rates is the most effective way to increase the creation of permanent jobs.
When Gerri Willis asked Niederauer, “What’s holding small businesses?” He explained the primary problem of small businesses is the access to capital. He emphasized the capital issue is difficult to solve because every individual has a different view about it.
According to Niederauer, NYSE Euronext (NYSE:NYX) tried to help small businesses to find resolution about the problems, such as their involvement in the jobs act. Euronext also took the initiative to connect small businesses to get capital and get them connected with big public companies on Wall Street, but a majority said they just can’t get the capital they need to expand their businesses.
During the interview Willis asked Niederauer if the stock market is still safe for for individual investors, considering the recent devastating technical glitches that happened with Facebook Inc. (NASDAQ:FB) and Knight Capital Group, Inc. (NYSE:KCG). Willis also asked if they are doing something to resolve such problems in the stock market. Niederauer said they are working toward the solution of the problem. According him, it would be intellectually dishonest and impossible on their part to say that individual investors have the same confidence on Wall Street. He recognized the fact that the technical glitches have a great impact in the exchange industry and he said they take the problem seriously. He pointed out it is a call to action on their part, and it is their responsibility to improve and make the system better to gain back the confidence of individual investors.
In terms of the national debt of the country, he said it is a very important issue that cannot be ignored. He pointed out the people and the business community want to hear their political leaders, both Democrats and Republicans, to work together and reduce the national debt. He said it is a problem that can be resolved through bi-partisan leadership.