Corporate US creates value through improved returns

A thirst for change has been a key driver of profit growth in the US, where the spread between corporate return on capital and the discount rate remains very favourable, and absolute levels of return are at an all-time high. This contrasts sharply with the corporate landscape 10 years ago, when most US businesses used any spare cash they had to expand. More efficient use of capital can only be good news at a time when investors are starting to fret about the possibility of rising inflation and taxes. After all, such a scenario would lead to a higher discount rate and consequently hurt US...