Trump turns U.S. farmers into trade-war fertilizer 9 Aug 2019 The president is using China’s stance on American agricultural products to escalate the conflict. Beijing is willing to egg him on. There are domestic political reasons for the White House to make just $20 bln of goods the crux of the battle. But it increases farmers’ suffering.
Viewsroom: Vicious trade cycle traps U.S., China 8 Aug 2019 The White House’s decision to brand Beijing a currency manipulator is the latest move in a conflict riven by miscommunication, unrealistic expectations and no obvious way out. Plus: Why the LSE is paying $27 bln for Refinitiv, and which of the data firm’s owners comes out on top.
African swine fever nudges China towards peak pork 25 Jun 2019 The outbreak has sent prices of the meat up 18% in May from a year earlier. The surge is likely to get worse, even if overall inflation remains stable. It is already encouraging a lasting shift among the world’s top buyers - one that might even complicate a trade war compromise.
India Insight: Not enough water for 1.3 bln people 10 Jun 2019 Maharashtra boasts one-tenth of the country’s population and the biggest economy of any state, but it is parched. Beyond the capital, Mumbai, a cattle camp offers a window into India’s struggle with water. Skewed incentives need to be reset, and more, to avert a stirring crisis.
Beyond Meat’s green IPO could still burn buyers 30 Apr 2019 The plant-based burger maker is seeking a $1.5 bln valuation after raising its IPO target price by 20 pct. The eco-friendly business has developed a following among consumers. But with former investor Tyson entering the alternative-meat space, investors may have tastier options.
Canola exposes Beijing’s blunt diplomatic tools 4 Apr 2019 Officials are scrutinising Canadian exporters of the stuff on quality concerns. China’s status as a giant trader is one of its few real geopolitical levers. But using health and safety for political ends also hampers watchdogs doing much-needed work to improve standards at home.
Roundup crisis could snarl Bayer in activist weeds 29 Mar 2019 The chemicals maker has lost 40 bln euros in value since U.S. juries said its glyphosate herbicide causes cancer. With science on Bayer’s side, delaying any settlement makes sense. But the longer the German group’s shares remain low, the more vulnerable it looks to interlopers.
Swine fever tests China’s transparency credentials 29 Mar 2019 Grains trader Cargill is the latest company to cite outbreaks of the highly contagious hog disease as a drag on business. It’s likely to fuel fears that the world's biggest pork producer may be under-reporting the issue. The taint adds to Beijing's fast-spreading problem.
U.S. floods add new twists to 2020 elections 21 Mar 2019 Several midwestern states have suffered some of their worst deluges on record, raising more climate-change fears. That could influence voters in Iowa, where presidential candidates face their first test. And the floods’ financial toll may prompt underwater farmers to dump Trump.
China’s trade problems go well beyond Trump 21 Feb 2019 Beijing hopes harsh terms in any tariff pact could be undone if the U.S. president loses re-election. But Democratic White House hopefuls like Sherrod Brown and Bernie Sanders are also tough on China. No matter who wins in 2020, bashing the People’s Republic is here to stay.
U.S. soy farmers will suffer trade war shell shock 20 Feb 2019 Midwestern producers will place a bet on talks between Washington and Beijing, when planting begins. Even with a deal, they face stockpiles and fewer soy-eating pigs in China, after an outbreak of disease. Worse, the spat has taught their top buyer it can live without U.S. supply.
Financing drought cracks farmers’ loyalty to Trump 24 Dec 2018 The U.S. president’s trade war has evaporated export markets for soy beans and other crops, leaving growers struggling even more than before. Yet they’re mostly sticking by Trump. If he can’t strike a good deal, farmers’ faith will erode when credit dries up for the next harvest.
Approach of peak chicken brings vat meat closer 12 Dec 2018 Today’s bird weighs up to five times as much as 60 years ago, putting it on track to be the world’s protein of choice. Yet the rate of growth is slowing because of the fowl’s physical limits. That’s a recipe for lab-grown alternatives, just as regulators clarify the rules.
Beyond Meat IPO could go from rare to charred 19 Nov 2018 Investors who take a bite of the plant-based meat maker could get a taste of rapid growth, top-notch leaders and a way to address the looming food crisis. But the company is restricting some shareholder rights and faces competition from traditional and fellow upstart firms alike.
Trade and pig diseases infect China’s pork giant 31 Oct 2018 WH Group, $11 bln owner of U.S.-based Smithfield, is fighting a losing battle on two fronts. Deadly swine fever is sweeping China, while tariffs hammer its American market. Quarterly earnings fell by almost a third from a year earlier. It will get worse before it gets better.
Louis Dreyfus showcases downside of being private 10 Oct 2018 The commodity trader’s dividends are a bigger proportion of net profits than rival Cargill. The latter is demonstrating that non-listed status and success are compatible. But the short-term needs of Margarita Louis-Dreyfus jar with those of the French company that she controls.
Bayer’s lowly valuation lacks positive catalyst 5 Sep 2018 The German drugs-to-seeds maker’s sales rose 9 pct in the second quarter, helped by its pricey acquisition of Monsanto. That deal is tarnished by lawsuits, while Bayer’s consumer and pharma units also face challenges. Though the bad news is priced in, the discount will persist.
South Africa has thin defense against Trump thump 24 Aug 2018 The U.S. president’s complaint about the killing of white farmers didn’t much rattle markets, but South Africa’s trade-dependent economy can’t afford a fight with the White House. The only comfort: leader Cyril Ramaphosa is more business-friendly than his ousted predecessor.
White House’s small trade deals don’t add up 7 Aug 2018 U.S. officials hailed Morocco’s opening to U.S. poultry, just as they did recent moves by Colombia on rice and Argentina on pork. But projected export gains of $35 mln are chicken feed relative to the $114 bln in American goods threatened by other countries’ retaliatory tariffs.
Indian buyer sows better outbound M&A seeds 23 Jul 2018 In the country’s biggest overseas deal in years, UPL will double in size acquiring Platform Specialty’s agrochemicals unit for $4.2 bln. Backing from TPG and ADIA help, and there’s no risky bridge loan. The Shroff family may outdo other local tycoons who have ventured abroad.