Biweekly Global Business Newsletter Issue 111, Tuesday, June 25, 2024

---

Edited and curated by: William (Bill) Edwards, CEO & Global Advisor, Edwards Global Services, Inc. (EGS), Irvine, California, USA. Contact Bill with any questions, comments and contributions.

Bedwards@edwardsglobal.com, +1 949 375 1896

===================================================================

The mission of this newsletter is to use trusted global and regional information sources plus our network of 20+ in-country Associates to update our global readers on key global and local trends that can impact the success of their businesses at home and abroad. We subscribe to about 40 international information sources to keep our readers up to date on the world’s business.  Some of the information sources that we provide links to require a paid subscription for our readers to access.  

===================================================================

First, A Few Words of Wisdom From Others For These Times

“The biggest threat to your organization is the lack of imagination in your leadership” Hari Abburi .

“One day you will wake up and there won’t be any more time to do the things you’ve always wanted. Do it now.”, Paul Coelho

“Only those who will risk going too far can possibly find out how far one can go.”, T. S. Eliot

Highlights in issue #111:

• The 20 Biggest Tech Companies by Market Cap

• We’re in a new era’ of supply chain disruption, HSBC analyst says
• Southeast Asia is a top choice for firms diversifying supply chains amid U.S.-China tensions

• How the US Mopped Up a Third of Global Capital Flows Since Covid

• What managers are getting wrong about early career Gen Z talent

• India Will Need to Build 100 Million Homes This Decade Amid Rising Household Incomes

• How China’s Human Capital Impacts Its National Competitiveness

Brand Global News Section: Guzman y Gomez®, Hilton®, KFC®, Mathnasium®, McDonalds®, Quiznos®, Starbucks® and Supermac®

==================================================================

Interesting Data, Articles and Studies

“The 20 Biggest Tech Companies by Market Cap – The world’s 20 biggest tech companies are worth over $20 trillion in total. To put this in perspective, this is nearly 18% of the stock market value globally. This graphic shows which companies top the ranks, using data from Companiesmarketcap.com. Market capitalization (market cap) measures what a company is worth by taking the current share price and multiplying it by the number of shares outstanding. Here are the biggest tech companies according to their market cap on June 13, 2024.  It’s clear from the biggest tech companies that involvement in AI can contribute to investor confidence. Among S&P 500 companies, AI has certainly become a focus topic. In fact, 199 companies cited the term “AI” during their first quarter earnings calls, the highest on record. The companies who mentioned AI the most were Meta (95 times), Nvidia (86 times), and Microsoft (74 times).”, Visual Capitalist, June 17, 2024

“Europe’s EV Battery Plans Are Getting Crushed by China, US – As electric-vehicle sales slow, companies including Volkswagen, Stellantis and Mercedes-Benz are scaling back or refocusing battery projects. Chinese manufacturers are slashing costs and the US is drawing away investment with lucrative subsidies. China already has excess battery-making capacity, can make cells at a fraction of the cost it takes in Europe, and has a head start on the next generation of cell technology.”, Bloomberg, June 20, 2024

==================================================================

Number of Children Per Woman

“Birth rates in rich countries halve to hit record low – Steep decline in fertility will ‘change face of societies’ and affect growth prospects, says OECD Steep decline in fertility will ‘change face of societies’ and affect growth prospects, says OECD. The average number of children per woman across the 38 most industrialised countries has fallen from 3.3 in 1960 to 1.5 in 2022, according to a study by the OECD published on Thursday. The fertility rate is now well below the “replacement level” of 2.1 children per woman — at which a country’s population is considered to be stable without immigration…”, The Financial Times, June 20, 2024

==================================================================

“Top 10 most expensive cities for expats in 2024 – Hong Kong retained its pole position as the world’s most expensive city for expats in 2024, according to Mercer. Asia’s biggest financial hubs have once again clinched the top spots for being the costliest cities for international workers to live in, according to Mercer.  Hong Kong was ranked as the most expensive city for expats to live in, followed by Singapore and Zurich, according to the Cost of Living City Ranking 2024. Cities in Switzerland — Zurich, Geneva, Basel and Bern — snagged four out of 10 spots. New York City ranked No. 7. The top five spots had no change from the year before, but London climbed 9 positions from No. 17 to 8. The survey compared the costs of more than 200 items in each of the 226 cities studied — including the price of housing, transportation, food, clothing, household goods and entertainment. New York City was used as the benchmark and currency fluctuations were measured against the U.S. dollar.”, June 18, CNBC

==================================================================

Global Supply Chain, Energy, Commodities, Inflation, Taxes & Trade Issues

“This Mexican Port Is Angling to Be a Nearshoring Gateway – The Guaymas Port in Mexico is looking to reposition itself as a transport hub that officials say will accelerate nearshoring in the region. Sonora Governor Alfonso Durazo announced this week that the port in the northwest region of Mexico would be revamped under a deal signed with the Port of Antwerp-Bruges International in Belgium and backed by a $220 million investment from the federal government. Ford Motor is one of the first companies looking to take advantage. The carmaker will kick off a pilot out of Guaymas starting this week— some 2,000 cars will make their way out of the port to Chile by the end of the year. Ford estimates that switching to exporting from Guaymas will reduce highway transport by 3,300 kilometers (2,050 miles) per vehicle.”, Bloomberg, June 19, 2024

==================================================================

“Ocean Shipping Prices Are Pushing Toward Pandemic-Era Highs as Congestion Swells – Disruptions from the diversions around the Red Sea violence are backing up vessels with the peak shipping season still looming. The Port of Singapore, a global hub for container lines, has been swamped, leading to long wait times for a berth and increased shipping costs. Ship backups that plagued seaports during the Covid pandemic are making a comeback, as vessel diversions because of attacks in the Red Sea trigger gridlock and soaring costs at the start of the peak shipping season. Flotillas of containerships and bulk carriers are growing off the coasts of Singapore, Malaysia, South Korea and China while ports in Spain and other parts of Europe look to dig out from container piles. Houthi rebel attacks on commercial shipping in the Red Sea, which have effectively closed the Suez Canal since the end of last year, are being felt at faraway ports as the disruptions extend voyage times, throw ships off schedule and strand sea containers. T he average worldwide cost of shipping a 40-foot container hit $4,119 the week ending June 14, according to Freightos, more than triple the cost in June last year and the highest rate since September 2022.”, The Wall Street Journal, June 24, 2024

==================================================================

“Is nearshoring in fashion? Nearshoring—locating production close to consumer markets—has been a top priority for US and European apparel executives since 2016, according to McKinsey surveys. But in practice, nearshoring has remained flat, senior partner Karl-Hendrik Magnus and colleagues find. Although apparel companies are shifting sourcing away from China, production has moved primarily to other Asian countries.”, McKinsey & Co., June 12, 2924

==================================================================

“Norway just loosened China’s stranglehold on rare minerals critical to the global economy—and it’s a huge win for Europe and the U.S. Norway just struck a gold mine. Well, a rare mineral mine – The Norwegian mining company, Rare Earths Norway, just uncovered the largest deposit of rare earth elements in Europe. The discovery has major implications not just for the company, which is certainly poised for a windfall, but for global geopolitics. Norway’s discovery would finally make Europe a player in the industry.   In January, the Norwegian parliament voted 80–20 to allow offshore, deep-sea mining of rare minerals in remote waters to the north of the country. Norway, which is already a major producer of oil and natural gas, would become the first country to allow its seabed to be mined for rare minerals.”, Fortune, June 11, 2024

“We’re in a new era’ of supply chain disruption, HSBC analyst says – After a series of COVID-19 pandemic disruptions, ongoing geopolitical conflicts, and now a historic year in which more than 60 countries are holding elections, supply chain managers face a growing number of challenges. ‘I would actually say that we’re in a new era,’ HSBC Americas head of global trade solutions Marissa Adams told Yahoo Finance in a video interview. ‘I don’t think that there is a normalization anymore. I think that what companies are now facing is that supply chain disruption is the new norm.’ Supply chain disruptions have always been a part of global trade, even dating back to the Silk Road, which connected trade routes in Europe, the Middle East, and Asia. However, companies in the current market are more exposed to unexpected global events, which impacts their ability to trade effectively.”, Yahoo Finance, June 16, 2024

==================================================================

Global & Regional Travel

“Thailand is still attracting fewer visitors than before COVID – But its tourism sector is thriving thanks to AI, savvy marketing, and Season 3 of ‘White Lotus’. “There are three reasons for the slow recovery,” says Bill Barnett, founder and managing director of C9 Hotelworks, a Phuket-based hospitality consultancy: “China, China, and China.” The country was the largest source of tourists for Thailand in 2019, sending 11 million. But just 3.5 million Chinese visited in 2023, mostly because of China’s gloomy economy. Hotels have also cut costs by choosing not to restore positions slashed during COVID. They’ve automated repetitive tasks like check-ins. Chatbots can answer many guest inquiries, and existing staff have learned to multitask.”, Fortune, June 17, 2024

Country & Regional Updates

BRICS Countries

“Malaysia, Thailand Declare Intentions to Join BRICS Ahead of Russia Summit – (Malaysia) Prime Minister Anwar Ibrahim declared his intention to apply to the bloc after it doubled in size this year by luring Global South nations — partly by offering access to financing but also by providing a political venue independent of Washington’s influence. 

Thailand — a U.S. treaty ally — last month announced its own bid to join BRICS, named after members Brazil, Russia, India, China and South Africa. The bloc “represents a south-south cooperative framework which Thailand has long desired to be a part of,” Foreign Minister Maris Sangiampongsa told reporters last week. For countries seeking to mitigate the economic risks of intensifying U.S.-China competition, joining BRICS is an attempt to straddle some of those tensions. In Southeast Asia, many nations depend economically on trade with China while also simultaneously welcoming the security presence and investment Washington provides.”, Caixin Global, June 21, 2024

==================================================================

Brazil

“Market conditions drive international airlines away from Brazil, Airbus says – Airbus executive Gilberto Peralta said in an interview last week that the reluctance from international airlines to enter Brazil was mainly due to judicial uncertainty, citing a high number of legal actions taken by Brazilian customers against airlines, as well as high fuel prices. ‘Capital barriers are gone, a foreigner could come and set up a company in Brazil, but they don’t… It’s a lot of trouble,’ he said. Brazil’s strong consumer protections make it easy for flyers to sue carriers for a range of issues, including delayed or canceled flights.”, Reuters, June 17, 2024

==================================================================

Canada

“What managers are getting wrong about early career Gen Z talent – Generation Z, the demographic cohort born between 1997 and 2012, may be the most misunderstood generation in the work force. Despite their dynamic capabilities and intelligence, Gen Z professionals have gained a reputation for being ‘difficult.’ Consider a recent survey by online resume platform Resume Builder, 40 per cent of hiring managers self-reported a bias against hiring Gen Z workers. But to address these issues, a recent panel of experts at the University of British Columbia found Gen Z needs empowerment that meets their needs as individuals, rather than criticism. In this case, generational prejudice, may, more than anything, be a sign that this is a cohort of early career workers unlike any the workplace has seen before.”, The Globe and Mail, June 18, 2024

==================================================================

China

“How China’s Human Capital Impacts Its National Competitiveness – China’s efforts to maintain economic growth, strengthen supply chains, develop strategic science, technology, engineering, and mathematics (STEM) sectors, and secure a modern military edge hinges on the ability to cultivate and utilize human capital. China’s ability to cultivate, attract, and retain human capital—or as Beijing more commonly puts it, national “talent”—will shape its competitiveness vis-à-vis the United States as a global power and impact the future of innovation and talent on the world stage. Inequality between urban and rural populations in China presents a critical challenge to the country’s economic productivity and opportunities to develop human capital.”, Center for Strategic and International Studies, June 17, 2024

==================================================================

India

“India Beats China in Stock Performance – India’s market has boomed while China’s has slumped, and their wide valuation gap seems justified. Not many stock markets can hold a candle to the red-hot Nasdaq. India is an exception. Strong profit growth, geopolitical tailwinds and favorable demographics have presented a compelling investment case for the country. From the end of 2019 through Tuesday, the MSCI India Index surged 110%, ahead of the U.S. tech-heavy index’s 99% gain. Even more surprising, though, is how well India has fared compared with what is—for now, at least—the world’s largest emerging stock market: MSCI China is down by 30% over the same period.”, The Wall Street Journal, June 19, 2024

==================================================================

“India Will Need to Build 100 Million Homes This Decade Amid Rising Household Incomes – The nation’s property market has heated up since the pandemic. About 70 million Indian households will turn eligible for home ownership over the next 10 years, which, along with people seeking to upgrade their apartments, should create requirement for as many as 100 million new houses. Real estate consulting firm Knight Frank expects the demand for homes created by rising income levels to translate into $906 billion of economic output over the next ten years.’, Bloomberg, June 12, 2024

==================================================================

Malaysia

“Malaysia is emerging as a data center powerhouse amid booming demand from AI – Over the past few years, the country has attracted billions of dollars in data center investments, including from tech giants like Google, Nvidia and Microsoft.  Much of the investments have been in the small city of Johor Bahru, located on the border with Singapore, according to James Murphy, APAC managing director at data center intelligence company DC Byte. ‘It looks like in the space of a couple of years, [Johor Bahru] alone will overtake Singapore to become the largest market in Southeast Asia from a base of essentially zero just two years ago,’ he said.”, CNBC, June 16, 2024

==================================================================

The Philippines

“Philippines Becomes World’s Hottest Luxury Housing Market As Developers Push Million Dollar Homes – Major real estate companies are accelerating the development of luxury residential projects in the Philippines and introducing more million dollar homes to tap resilient demand from both affluent local and foreign buyers in the world’s best-performing prime housing market.Prime residential prices in the Makati financial district and nearby towns climbed 26% in the 12 months through March 2024, the biggest jump among 44 cities tracked by Knight Frank in the Prime Global Cities report published in May. The growth can be attributed to the Philippines’ robust economic performance (among Southeast Asia’s fastest growing economies), as well as significant infrastructure investments in and around Metro Manila, according to the British property consultancy.”, June 11, 2024

==================================================================

South Africa

“South Africa’s Big Chance to Move Beyond Its Past – Some South Africans are prone to saying that the country has a habit of rushing to the cliff’s edge, staring into the abyss and then stepping back.  Avoiding a civil war and negotiating the end of Whites-only rule in 1994 was one such moment. This month’s unlikely alliance between the African National Congress and its most implacable critic, the Democratic Alliance, may be another. The magnitude of the ANC’s decline in popularity means the only alternative would have been an alliance with one or both of its large populist rivals.  Negotiations over cabinet positions have only just started, and compromises need to be made in areas where the ANC and DA remain diametrically opposed.”, Bloomberg, June 22, 2024

==================================================================

Southeast Asia

“Fortune Southeast Asia 500 – The region’s GDP grew more than 56% to nearly $4 trillion between 2015 to 2023, according to the International Monetary Fund. The Fortune Southeast Asia 500 debuts right as global business is starting to pay closer attention to the region. Southeast Asian economies are benefiting from supply chain diversification as rapid domestic development builds the next wave of global middle-class consumers. Our new ranking reflects the rise and fall of energy markets, multinational supply chains, and tourism in some of the world’s most dynamic economies.”, Fortune, June 22, 2024

==================================================================

“Southeast Asia is a top choice for firms diversifying supply chains amid U.S.-China tensions – Southeast Asia has emerged as a top beneficiary of the “China Plus One” strategy where businesses seek to reduce the risks associated with full reliance on China’s market or supply chain. Companies, even as they maintain a presence in China, have been diversifying manufacturing operations by expanding into other countries such as Vietnam and Indonesia. ‘Southeast Asia is well-placed to benefit significantly from the China+1 phenomenon as both foreign and Chinese companies diversify their supply chains and operations,’ said Kuo-Yi Lim of Monk’s Hill Ventures. ‘Geopolitical [tensions have] accelerated these activities, which started during the Covid lockdowns’ Lim added. The ‘China Plus One’ strategy seeks to reduce the risks associated with total reliance on China’s market or supply chain through diversifying manufacturing operations, expanding into other countries even as companies’ maintain a presence in China.”, CNBC, June 23, 2024

==================================================================

United Kingdom

“UK inflation hits Bank of England’s 2% target in May – The figure marks a milestone for the UK economy after the worst inflationary upsurge in a generation. The Bank of England last hit its 2 per cent inflation target in July 2021. The Office for National Statistics data, which was in line with forecasts by economists polled by Reuters, means that headline inflation in the UK is now below that of the US and Eurozone. Core inflation, which strips out food and energy, fell to 3.5 per cent in May, down from 3.9 per cent in April but still relatively high.”, The Financial Times, June 19. 2024

==================================================================

United States

“How the US Mopped Up a Third of Global Capital Flows Since Covid – De-dollarization narrative swept aside by overseas investors Key question is whether policies shift, upending the dynamic. In the face of calls around the world to diversify out of the dollar in recent years, the US has nabbed almost one-third of all the investment that flowed across borders since Covid struck. An International Monetary Fund analysis sent by request to Bloomberg News shows that the share of global flows has climbed — not fallen — since a shortage of dollars in 2020 spooked global investors and the 2022 freezing of Russian assets stoked questions about respect for free movement of capital. The trend marks a major shift from the pre-pandemic days when capital poured into emerging markets, including a rapidly growing China. The big US geopolitical rival has seen its share of gross global inflows more than halve since the pandemic hit.”, Bloomberg, June 16, 2024

==================================================================

“California restaurants have lost traffic since the minimum wage increase – According to new data from Placer.ai, traffic patterns in California shifted to negative compared to the national average after the minimum wage increase went into place April 1. It’s probably still way too early to understand the full impact of California’s minimum wage increase to $20 an hour on April 1. But for now, we do know several chains have raised their prices in response to that 25% increase and, so far, those increases have led to lower foot traffic. It has also led to a perception shift among consumers, 78% of whom now think of fast food as a “luxury,” according to recent Lending Tree data. As such, several brands have adjusted their strategy to be more value focused and that value is defined differently depending on market.”, Nation’s Restaurant News, June 14, 2024

=================================================================

Vietnam

“Vietnam F&B industry in 2024 continues growth with new trends – The value of the Vietnamese F&B market is expected to grow by 10.92% this year compared to 2023. In 2024, the value of the food and beverage (F&B) market in Vietnam is expected to increase by 10.92% compared to 2023, generating revenues of over VND655 trillion (US$26.1 billion). Despite the economic challenges, the survey found that around 80% of businesses in Vietnam remain positive and have the resources to grow in the future, with nearly 52% planning to expand.”, VF Franchising, Ho Chi Min City, June 2024

==================================================================

Brand & Franchising News

“Gen Z demand makes Guzman y Gomez the hottest (Australian) retail stock – Guzman y Gomez accounted for nearly a third of all trades on some of the country’s most popular retail platforms after it hit the ASX on Thursday, as investors rushed to buy as many shares as they could in the Mexican-themed restaurant group. Guzman y Gomez has set a target of 1000 stores in Australia.”, Australian Financial Review, June 21, 2024

==================================================================

“‘Big Mac’ trademark win increases appetite for Supermac’s – as inquiries from potential franchisees in Europe flood in.  Supermac’s, the fast-food restaurant chain founded by entrepreneur Pat McDonagh, received around 50 enquiries from potential franchisees across Europe after winning a trademark case against McDonald’s. Any expansion into Europe or Great Britain would be Supermac’s first foray outside the island of Ireland.”, Irish Independent, June 15, 2024

“KFC explores new KPro store type in Shanghai focusing on healthy light meals with single items priced at 30 yuan (US$4) per person – It is reported that the menu of the Shanghai store mainly promotes five staple foods: panini, wagyu burger, energy bowl, hot bagel, and toto rolls. It also provides snacks such as chicken wings, and drinks such as yogurt shakes, coffee, cola, and lemon tea. Most of the single products are priced at more than 30 yuan, and some products are more than 40 (US$5) yuan. There are already many players in the healthy light food market, including Wagas, Super Bowl FOODBOWL, and Shaye Light Food, all of which have advantages in different price ranges. The new KPro store in Shanghai focuses on “five signature energy staple foods, all-time, easy”, “high-quality protein, frying and grilling, cooked to order”., Industry Caiking, June 17, 2024. Compliments of Paul Jones, Jones & Co., Toronto

==================================================================

“What Actually Caused The Downfall Of Quiznos – The reasons are complicated — while it does seem that sub sandwiches have declined in popularity, the reason for Quiznos’ precipitous downfall seems to be more about poor management rather than changing tastes. A big issue was that it expanded too fast — its initial decade was tame, starting from one Denver store in 1981, and only growing to 18 by 1991. Then it went public in 1994, and started expanding faster: Franchisees complained that there were too many locations too close together. The stores simply weren’t selling that many sandwiches: At the chain’s peak, Restaurant Business reports that the average per-restaurant revenue was $400,000 per year, a little over $1,000 per day.”, Chowhound, June 10, 2024

==================================================================

“McDonald’s scraps AI drive-thrus after customer complaints – The automated system struggled with accents and served the wrong food. McDonald’s partnered with IBM in 2021 to introduce the system, which promised to simplify and speed up operations with voice-activated ordering. It has been used in more than 100 restaurants in the US. There have been reports that the technology has struggled to differentiate between different accents, leading to incorrect orders. Customers shared videos online of the wrong orders, including the machine adding nine orders of sweet tea to one woman’s bill and adding bacon to another’s dessert. McDonald’s did not comment on accuracy or technology challenges. In a statement, IBM said its automated technology ‘is proven to have some of the most comprehensive capabilities in the industry’”., The Times of London, June 18, 2024

==================================================================

“Mathnasium Expands into Romania with New Master Franchise Agreement – Mathnasium, a prominent name in math education, is set to launch in Romania following the announcement of a master franchise agreement. Led by Ms. Dana Bănică, this agreement aims to establish a minimum of 25 Mathnasium Learning Centers across Romania within the next six years, marking a significant expansion into a new market for the brand.”, VF Franchising, June 2024

==================================================================

“Starbucks and Hilton marry (in mainland China) – Although they did not join the price war they rolled in the membership system. On June 20, Starbucks China announced that the Starbucks Rewards Club membership system has been upgraded. For the first time, Starbucks has joined hands with Hilton Group to jointly innovate the membership experience. From now on, members of both parties can join each other’s membership system through their respective apps and other channels to enjoy special benefits. Although it has its own rhythm, it is not difficult to see that Starbucks faces very fierce competition in the Chinese market. In the first fiscal quarter of 2024, Starbucks China’s same-store sales increased by 10% year-on-year, but the average customer spending decreased by 9% year-on-year.”, Yical. June 29, 2024. Compliments of Paul Jones, Jones & Co., Toronto

==================================================================

To receive our biweekly newsletter in your email every other Tuesday, click here –  https://insider.edwardsglobal.com

Our Mission, Information Sources & Who We Are

Our biweekly global business update newsletter focuses on what is happening around the world that impacts new trends, health, consumer spending, business investment, the franchise sector, economic development, and travel. We daily monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing business environment. And our GlobalTeam™ on the ground covering 25+ countries provide us with updates about what is actually happening in their specific countries. 

William “Bill” Edwards: Global Advisor Is Uniquely Qualified to Steer Sr. Executives Successfully Through the Complex Waters of Going Global.  With four decades of successful international business experience spanning virtually every corner of the world and many business sectors, Bill Edwards understands the global business landscape like no other.  He has been a County Master Franchisee in five countries in Asia, Europe, and the Middle East; the Senior VP for a franchisor operating in 15 countries and a full-service consultant since 2001 taking 40+ franchisors global.

For a complimentary 30-minute consultation on how to take your business global successfully, click on the QR code or contact Bill Edwards at bedwards@edwardsglobal.com or +1 949 224 3896. 

www.edwardsglobal.com

And download our latest chart ranking 40+ countries as places to do business at this link:

Our latest GlobalVue™ 40 country ranking

Biweekly Global Business Newsletter Issue 110, Tuesday, June 11, 2024

---

Edited and curated by: William (Bill) Edwards, CEO & Global Advisor, Edwards Global Services, Inc. (EGS), Irvine, California, USA. Contact Bill with any questions, comments and contributions.

Bedwards@edwardsglobal.com, +1 949 375 1896

---

The mission of this newsletter is to use trusted global and regional information sources plus our network of 20+ in-country Associates to update our global readers on key global and local trends that can impact the success of their businesses at home and abroad. We subscribe to about 40 international information sources to keep our readers up to date on the world’s business.  Some of the information sources that we provide links to require a paid subscription for our readers to access.  

---

First, A Few Words of Wisdom From Others For These Times

“Technological advancements are vastly overrated in the short term, and vastly underrated in the long term. All failure is failure to adapt, all success is successful adaptation.” ― Arthur C. Clarke

“Risk-taking is the cornerstone of empires.” — Estée Lauder

“The key is not to prioritize what’s on your schedule, but to schedule your priorities.” — Stephen Covey

---

Highlights in issue #110:

The Dollar Is at Its Strongest Since the 1980s. Can It Last?

The Great Global Rate Cut Cycle Is Going to Be a Bumpy Ride

China economy gathers pace on back of services growth

Asia and Mideast Dominate Latest Port Performance Ranking

The world’s largest shopping mall is about to get even bigger

Irish fast food chain’s victory over McDonald’s to use Big Mac name

Brand Global News Section: Anthony’s Coal Fired Pizza & Wings®, Jimmy Johns®, McDonalds® and Starbucks®

---

Interesting Data, Articles, and Studies

“The state of AI in early 2024: Gen AI adoption spikes and starts to generate value – As generative AI adoption accelerates, survey respondents report measurable benefits and increased mitigation of the risk of inaccuracy. A small group of high performers lead the way. If 2023 was the year the world discovered generative AI (gen AI), 2024 is the year organizations truly began using—and deriving business value from—this new technology. In the latest McKinsey Global Survey on AI, 65 percent of respondents report that their organizations are regularly using gen AI, nearly double the percentage from our previous survey just ten months ago.”, McKinsey & Co., May 30, 2024

=========================================================================

---

“The Great Global Rate Cut Cycle Is Going to Be a Bumpy Ride– After the steepest interest-rate tightening cycle in decades and a long holding cycle, how fast to unwind such settings is now a dominant theme. The Bank of Canada and European Central Bank both cut rates by 25 basis points in the Group of Seven’s first easing moves since the pandemic. They joined officials in Switzerland and Sweden who moved earlier this year.”, Bloomberg, June 7, 2024

---

“The U.S. Global Food Security and Global Water Strategies: Increasing Coherence and Navigating Challenges – Adequate supplies of clean water and nutritious food are vital to human well-being. They are also increasingly important to U.S. foreign policy. Globally, 71 percent of all the water withdrawn from the Earth’s rivers, lakes, and aquifers is devoted to agriculture. Worldwide, food production will have to rise 50 percent by 2050 to meet the increasing demands of growing populations, prospectively requiring global water withdrawals 30 percent greater than today.”, Center for Strategic and International Studies, May 30, 2024

Global Supply Chain, Energy, Commodities, Inflation, Taxes & Trade Issues

“Costs of Economic Fragmentation Include Moving to Hard-to-Work Places – Global supply chains are realigning through geopolitically neutral economies to boost resilience and hedge dependencies on the US and China. In some cases, though, shifting to new places comes with a costly drawback: extra red tape. Four of nine so-called bridge nations — a grouping Bloomberg dubbed “connectors” in an analysis last year — were among the world’s top 20 most complex jurisdictions in which to start and operate a business, according to TMF Group….Greece ranks as the most complex jurisdiction, according to TMF Group. The gauge, which ranks 79 economies based on 292 business indicators like the speed of obtaining a business license…..The ranking shows how re-globalization, while necessary to diversify sourcing in a world of geopolitical fragmentation, often moves operations to markets where companies might sacrifice productivity gains and back-office efficiencies.”, Bloomberg, May 30, 2024

---

“The mounting strains on global shipping – Pirate attacks, Middle East instability and drought are causing disruption and congestion at the world’s ports.  The problems follow many shipping lines’ decisions, at the end of 2023, to reroute voyages away from the waters off Yemen after facing attacks from Iran-backed Houthi militias. Container ship arrivals in the Gulf of Aden, at the entrance to the Red Sea, are down 90 per cent on the same period last year according to data from Clarksons, the shipping services provider. Diverting vessels from Asia and bound for Europe around the Cape of Good Hope adds an additional nine to 14 days to voyage times.”, The Financial Times, May 27, 2024

---

“Asia and Mideast Dominate Latest Port Performance Ranking – Global container ports got a breather in 2023 as the pandemic’s hit to supply chains eased and trade volumes stabilized after a few turbulent years. But even in a so-called normal year, labor issues, extreme weather and attacks on vessels near Yemen complicated operations at marine gateways all over the world. Despite that, more than 100 ports improved their efficiency ranking from the year before, according to a new report.”, Bloomberg, June 5, 2024

---

Global & Regional Travel

“Hyatt reaches record global pipeline of 129K rooms – Hyatt Hotels Corporation has revealed that its pipeline has grown by nearly 85% since 2017, reaching a record 129,000 rooms. The company said it has doubled its luxury rooms, tripled its resort rooms and quintupled its lifestyle rooms since 2017. Additionally, the World of Hyatt loyalty program has quadrupled its membership since 2017 and was up 22% as of the end of the first quarter compared to the same period last year, reaching 46 million members globally.”, Hotel Business, June 3, 2024

“Heathrow like a Second World War airport, laments Emirates chief – Airline president Sir Tim Clark says the airport is lagging behind in terms of customer experience. The president of Emirates airlines has likened Heathrow to a dilapidated Second World War airport in terms of the experience it offers customers.  Sir Tim Clark, the boss of the UAE flag-carrier, said the airport put its shareholders and paying dividends before running a world-class business. Clark said the terminal needs to be redesigned, with the plaza reduced in size to allow more room for security and check-in. He said: ‘It’s an old airport. I’m afraid it’s very difficult. You need to open up the whole terminal. Where we are based, new airports are being built employing the latest technologies to streamline the process of all the customer-facing elements. That is not the case at Heathrow.”, The Times of London, June 3, 2024

---

Country & Regional Updates

Canada

“Canada first major central bank to cut rates ahead of ECB – The Bank of Canada became the first major central bank among the Group of Seven countries to cut interest rates, opening the door for others to follow suit before the US Federal Reserve. While the Canadian central bank’s decision to cut its cash rate by a quarter of a percentage point to 4.75 per cent was widely expected, BoC governor Tiff Macklem flagged further reductions which bolstered market sentiment. Inflation in Canada has slowed this year to hit a three-year low of 2.7 per cent in April. While inflation has stayed below 3 per cent for four straight months, it is still above the central bank’s 2 per cent target.’, Australian Financial Review, June 6, 2024

---

China

“Hedge fund billionaire Ray Dalio says benefits of investing in China outweigh risks  – ‘Diversification and investment in China is desirable,’ Dalio said in a virtual presentation at the Greenwich Economic Forum in Hong Kong on Wednesday. ‘Chinese assets are very attractively priced.’  There are concerns among international investors about potentially being penalised by their governments for investing in the country, with anti-China policies set to gain bipartisan support in the US election this year, he said. Meanwhile, China’s own economic problems, including its protracted real estate crisis, debt issues and the knock-on effects of those, are also making investors anxious.”, South China Morning Post, June 5, 2024

---

“China economy gathers pace on back of services growth – Caixin services sector purchasing managers’ index for May jumped to 54, the highest reading since July 2023. Interest rates have been lowered, borrowing increased to lift public investment and taxes cut, all as part of a concerted effort to reverse slowing economic activity. The International Monetary Fund recently raised its GDP growth projection for China this year to 5 per cent from 4.6 per cent on the back of more policy support, matching Beijing’s 5 per cent annual target. The IMF urged the CCP to focus future policy on stimulating domestic demand rather than prioritising strategic industries.”, The Times of London, June 5, 2024

---

Euro Zone

“The Eurozone Has Come a Long Way Since the 2009 Debt Crisis, but Risks Remain – In the face of the quasi-existential debt crisis, the euro area has seen major institutional reform, which have helped make the single currency more resilient. Although the euro area proved resilient in the face of recent shocks brought on by the COVID-19 pandemic and the war in Ukraine, the current institutional architecture continues to make it vulnerable to severe shocks.”, Stratfor Worldview, June 6, 2024

---

Saudi Arabia

“Aramco Sale Set to Raise at Least $11.2 Billion for Saudi Arabia – Saudi Aramco’s mega stock offering is set to raise at least $11.2 billion, the biggest such deal globally in three years that will help fund the government’s multitrillion-dollar push to transform the kingdom’s economy. The proceeds will help Crown Prince Mohammed Bin Salman’s ambitious plans to revamp the economy with investments including in sports, artificial intelligence, tourism and the desert project of Neom. The kingdom’s budget has been in a deficit for six quarters, and it has raised over $40 billion from local and international markets this year to fill the gap.”, Bloomberg, June 6, 2024

==================================================================

United Arab Emirates

“The world’s largest shopping mall is about to get even bigger – United Arab Emirates real estate developer Emaar Properties announced Monday plans for a 1.5 billion dirham ($408 million) expansion of Dubai Mall. The 12-million-square-foot mall is already the largest shopping center in the world by total area, and the expansion will add a further 240 luxury stores, along with new food outlets. Last year, Dubai welcomed a record number of tourists, and the mall says it received 105 million visitors last year, up 19% from 2022.”, CNN, June 5, 2024

---

United Kingdom

“UK Survey of Executives Finds Confidence at Highest Since 2021 – UK businesses entered the general election campaign at their most optimistic in over 2 1/2 years after the economy quickly bounced back from recession, according to the Institute of Directors. The business lobby group said “green shoots” of recovery are “clearly visible” after its economic confidence index rose to minus 3 in May. It was up from minus 10 the previous month and the highest since September 2021 just after the economy emerged from lockdown. Business sentiment has moved into a ‘neutral phase’ after being relatively pessimistic for much of last year, said Roger Barker, director of policy at the IOD. ‘Green shoots are clearly visible, and the direction of travel is positive.’”, Bloomberg, May 31, 2024

---

United States

“The Dollar Is at Its Strongest Since the 1980s. Can It Last? – The greenback is historically very expensive amid a recovery in global growth and a fraught election campaign. The U.S. dollar has defied analysts’ expectations and appreciated again this year relative to a basket of other currencies. For a decade now, currency markets have been ruled by the strengthening dollar….. Contrary to what many on Wall Street expected, the U.S. dollar has gotten a fresh wind this year, as bumpy inflation data has prompted investors to dial back bets on rate cuts.  Perhaps more important, economic growth is accelerating beyond America’s borders. Recent economic data suggests that the eurozone and Japan are finally turning up, and China’s recovery seems to be building momentum. Beijing is actively intervening to push up the yuan. A fall in the dollar usually greases the wheels of global growth.” The Wall Street Journal, June 4, 2024

---

“Data Centers Are Driving An Electricity Demand Surge From AI Platforms Like ChatGPT – Did you know that every time you type a query into ChatGPT, it requires about 10 times as much electricity to process as a Google search? Did you know that every time you type a query into ChatGPT, it requires about 10 times as much electricity to process as a Google search? To help put things in perspective, ChatGPT currently has over 180 million users, but there are around 5.3 billion internet users around the world. Imagine if each of them became a regular user of energy-intensive ChatGPT, whose servers are located in the U.S., according to owner OpenAI.”, Forbes, June 3, 2024

---

Brand & Franchising News

“Irish fast food chain’s victory over McDonald’s to use Big Mac name – Galway-based Supermac’s hails ‘David v Goliath’ legal win after European court backs its fight to use the name on chicken products. “McDonald’s loses the EU trademark Big Mac in respect of poultry products,” judges ruled. “McDonald’s has not proved genuine use within a continuous period of five years in the European Union in connection with certain goods and services,” they said. Supermac’s chicken burger, which can now be sold as a Big Mac in Europe.”, The Times of London, June 5, 2024

---

“China’s Luckin Coffee Is Back From the Brink and Beating Starbucks – Consumers are getting hooked on cheap caffeine hits and coconut lattes, helping the chain overcome a scandal. Once derided as a cheap imitation of the Seattle-based giant, it’s now being emulated by other Chinese chains and even Starbucks appears to have taken a page or two from its playbook. The company’s focus on cashless, takeout kiosk counters, originally designed to save costs, paid off during the Covid years as strict lockdown policies restricted in-person exchanges.”, Bloomberg, June 6, 2024

---

“Jimmy John’s global expansion continues with Korea! Today Inspire announced an international franchise agreement with YeokJeon FnC — an experienced food and beverage operator and the number-one pub franchise in the Korean market. We are thrilled to work with such a strong operator to bring Jimmy John’s quality, convenience and delicious sandwiches to the Asian market for the first time. Many thanks to our VP of Asia, Paolo Nicolas, his team and our development team for making this happen. Korea is Jimmy John’s third international market. We kicked off the brand’s global journey earlier this year with the announcement of deals in Canada and Latin America.”, LinkedIn, June 5, 2024

---

“Another popular fast-food chain considers Chapter 11 bankruptcy – The fast-food brand’s sister company, a pizza chain, is also fighting for its survival. BurgerFi International (BFI) runs two brands: Anthony’s Coal Fired Pizza & Wings and its namesake burger chain. The company markets BurgerFi as being a superior product to traditional fast food (without directly calling out any competitors). Anthony’s currently has 60 locations; the company owns 59 and a franchisee runs one. BurgerFi has 102 locations, 75 franchised and 27 corporate-owned. The company said that it had filed documents with the Securities and Exchange Commission that acknowledge that there are situations where the company could not be able to survive.”, The Street, June 5, 2024

---

To receive our biweekly newsletter in your email every other Tuesday, click here – 

 https://insider.edwardsglobal.com

Our Mission, Information Sources & Who We Are

Our biweekly global business update newsletter focuses on what is happening around the world that impacts new trends, health, consumer spending, business investment, the franchise sector, economic development, and travel. We daily monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing business environment. And our GlobalTeam™ on the ground covering 25+ countries provide us with updates about what is actually happening in their specific countries.  

William “Bill” Edwards, Global Business Advisor Is Uniquely Qualified to Steer Sr. Executives Successfully Through the Complex Waters of Going Global.  With four decades of successful international business experience spanning virtually every corner of the world and many business sectors, Bill Edwards understands the global business landscape like no other.  He has been a County Master Franchisee in five countries in Asia, Europe, and the Middle East; the Senior VP for a franchisor operating in 15 countries and a full-service consultant since 2001 taking 40+ franchisors global.

“To his many clients who are going global, Bill oversees overseas.” — Franchise Times magazine

For a complimentary 30-minute consultation on how to take your business global successfully, click on the QR code or contact Bill Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.  

www.edwardsglobal.com

And download our latest chart ranking 40+ countries as places to do business at this link:

Our latest GlobalVue™ 40 country ranking