Wall Street Journal (August 17)
“Volkswagen, GM and other big brands are losing their grip on a once-lucrative market as Chinese consumers embrace homegrown electric vehicles.” The issue is broad ranging. “Manufacturers from China’s Asian neighbors aren’t faring better… Toyota’s Chinese JV income fell 73% in the quarter through June compared with the same period of 2023, while Honda’s equity income was all but wiped out.” China is turning into “a money pit for foreign automakers.”
Tags: Big brands, China, Consumers, Equity, EVs, GM, Homegrown, Honda, Income, JV, Manufacturers, Market, Money pit, Once-lucrative, Toyota, Volkswagen
Newsweek (May 11)
“Business leaders are particularly enthralled by AI’s growing capabilities,” but the general public is unsold. “Two-thirds of American adults—across all income and education levels—don’t trust generative AI and believe it presents a threat to humanity.” The urgent challenge must be addressed. “As was the case at the dawn of the nuclear age, we all have a role to play in demanding governance of this new technology. Scientists, along with society more generally, have made it clear that now is the time.”
Tags: AI, Business leaders, Education, Enthralled, General public, Generative, Governance, Growing capabilities, Humanity, Income, Scientists, Society, Technology, Threat, Trust
Investment Week (October 12)
Aside from shipping difficulties and “maritime headwinds” hitting China, “the property crisis, fuelled by debt defaults from property developers, has dented the likelihood of Chinese GDP hitting growth targets as local authority revenue takes a hit from land sale income decline. Sentiment has followed suit and many wonder when and where respite will arise.”
Tags: China, Debt defaults, Decline, GDP, Growth targets, Headwinds, Income, Land sale, Maritime, Property crisis, Property developers, Revenue, Sentiment, Shipping
Philadelphia Inquirer (June 1)
“After a year stuck at home, consumers who can afford it are ‘revenge spending’ – splurging on items and experiences they were deprived of during the pandemic…. More than half of U.S. consumers expect to spend extra by treating themselves, with higher-income millennials intending to spend the most.” It already shows. “Consumer spending is above pre-pandemic levels across the Philadelphia region and nation.”
Tags: Afford, Consumers, Deprived, Experiences, Home, Income, Millennials, Pandemic, Revenge spending, Splurging, U.S.
San Francisco Chronicle (May 16)
“Pandemic or not, restaurants can’t find rental space.” The real estate landscape is “nearly as heated as pre-pandemic levels.” One would expect “tons of options on the market at reasonable rates, but there are few deals—and competition for what’s available is intense…. Landlords, meanwhile, are hesitant to offer discounts because they’ve lacked income over the pandemic themselves.”
Tags: Competition, Deals, Discounts, Heated, Income, Landlords, Market, Pandemic, Pre-pandemic levels, Real estate, Rental space, Restaurants
Wall Street Journal (May 3)
“Global brands are hoping China’s gigantic consumer market will help rekindle growth as the world tries to recover from the coronavirus pandemic. They are facing an uphill battle.” Despite “seeing a solid bounceback in China… a full return to normal, much less growth, is proving harder because so many people have lost jobs and income, or want to save more.”
Tags: Bounceback, China, Consumer market, Coronavirus pandemic, Global brands, Growth, Income, Jobs, Normal, Recover
Seeking Alpha (April 6)
Recovery is not just a matter of overcoming the virus. In fact, the world faces an overhanging economic challenge. “We’re likely in the later stages of a global debt supercycle. The sheer amount of debt in the world makes temporary income disruptions a lot more financially impactful than they would be in a system with less leverage. As of 2019, global debt surpassed $250 trillion, which is more than 250% of the world’s GDP.”
Tags: Disruptions, Economic challenge, Global debt, Income, Leverage, Recovery, Supercycle, Virus
The Economist (September 19)
“Corporate profits more than tripled in 1980-2013, rising from 7.6% of global GDP to 10%, of which Western companies captured more than two-thirds. The after-tax profits of American firms are at their highest level as a share of national income since 1929.” Yet a recent study suggests “the golden age of the Western corporation may be coming to an end.” The McKinsey Global Institute projects “that corporate profits may fall from 10% of global GDP to about 8% in a decade’s time.”
Institutional Investor (March 2)
“OPEC members with little foreign currency reserves or alternate sources of income have been struggling to keep afloat during the global slump in oil prices.”
Tags: Foreign currency reserves, Income, Oil prices, OPEC, Slump, Struggling
Wall Street Journal (February 13)
“In 2013, the consumer item with the fastest sales growth was private jets. Last year: used cars and trucks.” As steady growth continues, the U.S. recovery “is now beginning to benefit the average consumer more than the few at the top of the income curve.”
Tags: Consumer, Income, Private jets, Recovery, Sales growth, Trucks, U.S., Used cars
