The smartphone market highlights how companies are responding very differently to the economic slowdown. Samsung is adding features such as ‘foldables’. But Apple is building services business to provide annuity revenue for the future.
Chemicals and the Economy
Asia’s debt crisis starts to approach its endgame as the yen continues to tumble
Last week, the Japanese yen fell through the US$ : ¥150 level for the first time since 1990. It has now fallen by nearly 50% against the US$ in the past two years. The currency is behaving as if Japan were a 3rd world country – whereas it is actually the 3rd largest economy in the world. Clearly, something is very wrong.
Companies must be bold and transform, as paradigm shifts reshape the business world
The paradigm shifts are already starting to impact most businesses. China is also changing, and will no longer power global growth. So there are no ‘Business as Usual’ options for the future. Instead, companies have to develop new business models for today’s New Normal world.
Asia’s debt crisis edges nearer, as Japan’s interest rates rise and China’s property bubble bursts
Bubbles are great fun while they last. But they are much less fun when they burst. For the past 20 years, central bank stimulus has created some of the largest bubbles ever seen. But now, led by developments in Japan and China, they are bursting
Smartphone decline highlights the end of the profitable BabyBoomer-led ‘middle-market’
The downturn in the global smartphone market highlights the need for companies to focus on the Value segment and Services as the Middle Market disappears. iPhones are now 49% of the booming second-hand market, allowing Apple to gain more Services revenue via its App Store.
Chemicals confirm deflationary pressures are building around the world
Taylor Swift’s concerts are creating massive short-term demand as people reconnect after lockdowns. But the chemical industry is warning that deflation could be round the corner, due to the over-capacity created by 20 years of stimulus
Bond yields start to go back to the future as stimulus policies unwind
Central banks have spent 15 years telling us that debt and demographics “don’t matter”. They claimed they could always create demand via stimulus. But now the policy has run out of road. Homeowners and stock traders who thought rates would stay low forever, will be the ones to suffer
It’s our 16th birthday – and the chemical industry remains the best leading indicator for the global economy
The Ukraine war highlights how the real world can often be a very messy place. Issues such as geopolitics and demographics aren’t easy to understand. It can be hard to understand the detail of how key industries and markets are operating.
So it’s no surprise that most policymakers have preferred to stay in the world of theory.
Food prices set to remain volatile as the war continues and fertilizer costs remain high
Food prices have stayed high due to the disruption caused by the war. They are unlikely to fall back quickly as the war continues and economic volatility intensifies.
“Houston, we have a problem” – China’s move to self-sufficiency a game-changer for the plastics industry
Essentially, China’s move to self-sufficiency, and the need to deal with the issue of plastic waste, means there is no ‘business as usual’ option. Winners and Losers are already starting to emerge, as companies react to the challenges of today’s New Normal world.