The smartphone market highlights how consumers are refocusing on ‘value for money’. New product sales are slowing in response to the cost-of-living crisis. More people are now happy buying a used model.
And global brands no longer have the same attraction if the local brand works as well, and is cheaper.
Chemicals and the Economy
Trump launches trade war with US’s top 3 trade partners; says Europe & key business sectors are next
“The Dumbest Trade War in History. Trump will impose 25% tariffs on Canada and Mexico for no good reason.” Wall Street Journal editorial
Europe’s chemical industry, and its economy, face an existential challenge
Time is not on Europe’s side. Hopefully, this crisis will now lead policymakers to take the urgent actions that are now essential.
La Niña effect increases natural gas prices as colder weather forecast for N America & Europe
Europe is also in the midst of what is forecast to be its coldest winter since Russia’s invasion of Ukraine, with the continent already dipping deeper than usual into gas storage as temperatures plummet.
Europe’s economy loses its “engine”, as France follows Germany into political turmoil
Europe has been built through crisis since the end of World War 2. Today’s economic and political crises require a similar focus on reinvention.
Smartphone markets could see major changes as Trump rolls out his tariffs
The world’s most successful investor, Warren Buffett, has been selling his shares. Apple was once half of his equity portfolio. But over the past year, he has sold 2/3rds of his holding. And Buffett doesn’t normally sell shares when he thinks the company will do well.
Deflation risks rise as OPEC aims to regain market share and cut oil prices
Oil market developments need very careful attention. If prices do now fall below $50/bbl, then central banks will likely rush to make major cuts in interest rates. And that will make deflation even more likely.
China’s economy risks heading into recession as Producer Prices enter deflation
China’s problems are spreading to the rest of the world. Not only is it exporting deflation, as its Producer Prices fall. But also, and understandably, consumer countries are introducing trade barriers to protect their own industries
The time for action to protect European chemicals is now
The critical test is now ahead – making it happen. Companies, investors and policymakers need to borrow Winston Churchill’s famous motto, “Action this Day”. As Sir Jim Ratcliffe has highlighted, the penalty for doing nothing will be closure.
Hurricanes and Houthis pressure global supply chains and add to inflation risk
The Houthi attacks and increased hurricane risks highlight how geopolitics are replacing economics as the key driver for decisions. Global supply chains are increasingly being replaced by local-for-local operations as producers aim to improve reliability and control costs.