Is the World Moving On to Trade Without the U.S.?

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Many nations have been responding to Trump tariffs not by retaliating but by courting other trade partners.  Is this the beginning of a new era of globalization?

The writer, Ruchir Sharma, of this global trade opinion piece is chair of Rockefeller International.  His latest book is What Went Wrong With Capitalism. 

The lingering fear is that the US president’s aggressive trade posture will sow global disorder, depressing growth and roiling markets, particularly if targeted nations retaliate. But retaliation is not the only or even the most likely response to Trump, no matter how broadly he finally delivers on his threats.

Read the Financial Times's opinion piece by Ruchir Sharma.

When Your Home Market Weakens, Expand Overseas

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In an interview with the Financial Times, chief financial officer Eason Zhang said low-cost China-based retailer Miniso plans to open roughly 400 stores in China, but this year would be the first since at least 2019 that most of its new outlets were outside the country.

Minis will shift its focus of rapid expansion away from a domestic market – China – plagued by weak consumption.  Further, the falling cost of goods produced in China’s factories is also making them more competitive abroad.

Read the entire article here.

Japan Is Red Hot With Tourists and Investors

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Japan, declares tourist after tourist, investor after investor, is red hot. The yen is tumbling, the shopping is amazing, the stock market is flying, the sushi is cheap. It is also, perhaps, the only place in the world right now where you can buy a globally successful $20bn company for free.

Like all good tricks, this so-far-hypothetical $20bn great gratis grab takes a bit of setting-up. For a start ...

The Big Awakening Caused By Two Words: Transformation and Resilience

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Financial Times editor and founder of FT Forums, John Thornhill, spoke with Microsoft chief executive and the FT's Person fo the Year for 2019, Satya Nadella.  Below is the edited transcript of their discussion but here is a quick snippet of one of Satya's many comments:

These two words “transformation” and “resilience” through digital tech have [been] the big awakening . . . whether it’s a retailer or even a small retailer, who is able to now do curbside pick-up as a way to continue their business operations or a manufacturer or even a midsize manufacturer being able to do lights-out [fully automated] manufacturing.

Read the full interview here.

How One Small Business Owner is Navigating the Current Economic Crisis (Podcast)

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From the Financial Times:

"Mauren Pereira's drapery business was on track for its most financially successful year to date. That was until the coronavirus outbreak reached Virginia."

Behind the Money reports on how one small business owner is navigating the current economic crisis. With Brendan Greeley, US economics editor for the Financial Times.

Listen to the Behind the Money podcast.

Emerging Nations Proceed With Caution

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Andrew Burns, head of macroeconomics at the World Bank, told journalists in London: “Developing countries should hope for the best and prepare for the worst.”

Predicting significantly slower global growth in 2012 than it expected last summer even if the eurozone muddles through its crisis, World Bank economists said that if financial markets deny funds to eurozone economies, global growth would be about 4 percentage points lower than even these figures with poorer economies far from immune.

Read the entire article: World Bank Warns Emerging Nations

eBay: Fight For Growth in Asia Is Just Beginning

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Will eBay make it in China?

The company argues that what matters is making money, and that it is building a much more viable business by exploiting its lead in the global market.

Is that all that matters in terms of running a global business: making money?

Well eBay plans to focus on that and reinventing its China business by helping local companies sell to consumers overseas.

Read the entire article here.

Big Emerging Markets Matter

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While en route to the World Entrepreneurship Forum in Evian, France, I read about eight different newspapers on the plane. One, the Financial Times, published a great article on Disney on how the studio is finding success in specifically targeting new markets.

One statement caught my eye:

The film’s success (referring to Roadside Romeo -- first animated movie aimed specifically at the Indian market) confirmed what Disney and its rivals in Hollywood have long suspected: Hollywood’s best prospects for growth are in emerging theatrical markets such as India, China and Russia.

And another point that relates to our blog:

“We’ve been very successful with our big global productions, such as Pirates of the Caribbean and National Treasure,” says Mr Reed. “But we think there’s a natural way to supplement these films in areas like China, Russia and India – areas that have built-in film traditions.”

Key takeaway: Tailor your message to the market.

Read the entire article, "Disney Indian Adventure Rewarded," here.