The Economist (July 27)
“After a decade of surging growth, in which they led a global boom and then helped pull the world economy forwards in the face of the financial crisis, the emerging giants have slowed sharply.” This slowdown in emerging markets “is not the beginning of a bust. But it is a turning-point for the world economy.”
Tags: Boom, Bust, Emerging markets, Financial Crisis, Growth, Slowdown, Turning-point, World economy
Euromoney (July issue)
“June was the worst month for emerging markets since at least 2008. What about the next five years?… Growth prospects in the US and Japan are improving, just as those in the emerging markets are worsening. That is a fundamental switch to what markets have been used to.” Investors will “no longer ignore China’s lower growth rate, or the simmering political confrontations in Turkey and some other emerging markets.”
Tags: China, Confrontations, Emerging markets, Growth, Investors, Japan, Turkey, U.S.
The Economist (June 22)
“The past 20 years have seen a massive redistribution of economic power to the emerging world. But so far there has been no comparable redistribution of brand power.” While Chinese firms account about a sixth of the globes largest companies by revenue, “Interbrand’s 2012 list of the 100 ‘best global brands’ included not one Chinese firm.” This could change quickly. “Emerging-market contenders are mounting their warhorses and readying their battering-rams.”
Economist (March 3)
A new kind of global company is on the rise. Diversified multinationals from emerging markets are challenging long-held business principles. In the West, companies with strategic focus are considered more competitive than conglomerates. Yet diversified multinationals, such as India’s Tata Group, are competing successfully on a global level. These companies developed, in part, “to deal with the problems of operating in places where governments are frequently incompetent and markets are hopelessly underdeveloped.” Western businesses may have much to learn from this new breed of company.
Tags: Conglomerates, Diversified, Emerging markets, Tata
Economist (December 9)
A divergence in growth between “the world’s big three” during 2011 may “compound the risks in each one.” In Europe, growth will slow as governments tighten spending. The euro zone will also face continued stress over both its currency and banking model. The U.S. could grow at a rapid 4% thanks to new tax cuts, but face inflationary pressure and even “a bond-market bust” as the deficit soars. Emerging markets will walk a tight-rope between risking inflation by doing too little and dampening growth by doing too much. “Either way, the chances of a macroeconomic shock emanating from the emerging world are rising steeply.” For the record, the Economist still views Japan as “an economic heavyweight,” but believes Japan is less likely to impact the global economy with surprises in 2011.
Tags: 2011, Economic outlook, Emerging markets, Europe, Japan, U.S.
Institutional Investor (June)
Emerging countries are increasingly driving the global economy. The U.S. subprime crisis and the European debt crisis have accelerated a “new world order.” Investors who used to look to the U.S. for leading indicators now “find themselves monitoring Shanghai apartment prices and Chinese iron ore imports.”
Emerging countries are increasingly driving the global economy. The U.S. subprime crisis and the European debt crisis have accelerated a “new world order.” Investors who used to look to the U.S. for leading indicators now “find themselves monitoring Shanghai apartment prices and Chinese iron ore imports.”
Tags: China, Debt crisis, Emerging markets, Europe, Subprime crisis, U.S.
