Shein’s fast fashion comes with fast-finance risks 28 Mar 2024 Influencers and US shoppers love the online retailer, but the one product that’s not yet for sale is the company’s shares. If all goes very right, a $200 bln valuation in a mooted IPO isn’t unthinkable. Yet Shein’s business model may shift as quickly as its cut-price clothing.
LNG angst seeps from consumers to producers 27 Mar 2024 A few years ago, supplies of liquefied natural gas were scarce and prices sky-high. Extra capacity arriving this decade means there could soon be a price-sapping glut. Big suppliers like Qatar and Shell have long-term contracts that can ease the pain, but only up to a point.
Lower taxes would cripple Europe’s growth 26 Mar 2024 The bloc needs new public investment of about 3% of GDP for the green transition, defence, infrastructure, education and health. High debt loads limit borrowing and spending cuts hurt the economy. Instead of pledging lower levies, governments have to raise them.
Middle East AI dream depends on luring brainpower 22 Mar 2024 An abundance of cheap energy to power data centres gives artificial intelligence startups reason to consider the Gulf. But to become a force in AI, Saudi Arabia and the UAE will have to design their own advanced chips. Attracting talent to the region will require more than money.
Japanese investors becoming the life of the party 21 Mar 2024 ValueAct, Elliott and Berkshire Hathaway have deployed some $16 bln to uncover value in Tokyo-listed stocks. They’re receiving warmer welcomes than raider T. Boone Pickens did in 1989. Even better, the US trio’s success is helping inspire local funds to sustain the momentum.
China’s automakers try turning Japanese 20 Mar 2024 Efforts to block Chinese auto exports are inspiring BYD and rivals to set up factories overseas. Their journey is reminiscent of Toyota and Nissan’s drive into the US and Europe. But Washington and Beijing’s fraught ties and new tech portend a different ending to this road trip.
Mexican wave of nearshoring firms is all at sea 19 Mar 2024 The country’s proximity to the US could make it a preferred destination as multinationals move away from Asia. Companies like Merck and Tesla are building factories there but, so far, manufacturing is not growing. With relocations costs soaring, an economic boom looks elusive.
Only an oil slump can stop Vladimir Putin 18 Mar 2024 To keep pumping money into his Ukraine war, the newly re-elected president will have to squeeze Russians. Nobody can prevent him from further unpopular measures. A sharp drop in oil revenue might force him to change course, but that is hard and risky for the West to bring about.
Credit Suisse carcass feeds many hungry mouths 15 Mar 2024 In the year since it collapsed, competitors have carved up the Swiss bank’s employees and clients. UBS grabbed most of the spoils, but Santander, Deutsche Bank and others have also moved in. Lasting benefits, though, depend on survivors showing restraint when activity picks up.
Buyout shops take risky exit to bypass deal crash 14 Mar 2024 A lack of M&A and IPOs has left private equity portfolios with $3 trln of companies, many past their sell-by dates. As a result, firms are increasingly cashing out backers while keeping assets. There are guardrails on the structures now, but they could easily spin out of control.