Global Business Development

Biweekly Global Business Newsletter Issue 115, Tuesday, August 20, 2024

Posted on Aug 19th, 2024 in Asia Pacific, Europe, India, Miscellaneous, Predictions and Trends, Professional Development, World Culture, World Economy | Comments Off

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Commentary about the 115^th Issue: Big tech is beginning to use more electricity than whole countries. How the world’s stock markets and the Magnificent 7 have changed in value over time. generative AI (gen AI) is here to stay, and its business potential is massive. Unexpectedly rapid declines in fertility suggest the population will peak this century. Country GDPs are growing…overall. China is now the world leader in coffee shops….really!!! US Retail Sales Chugging Along. Indonesian fishermen use AI to increase their catches. Starbucks replaces it CEO with a work from home CEO 1,000 miles away. ure hold for India? And Texas’ own Dickey’s Barbecue Pit is ‘hot’ in Lahore, Pakistan.

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Editor’s Note: This is the 115^th edition of our biweekly global business update newsletter that started in March 2020. Each edition takes 20-23 hours to create and publish. And we subscribe to ~30 paid information sources to bring this truly diverse, non-partisan global business trends newsletter to 4,600 subscribers around the world. Recently we considered making this a paid subscriber or ad supported newsletter to help recover some of the costs to bring you the latest global trends that can impact your business and even your lives. We chose to make this newsletter ad supported. You will see small ads in each edition for organizations that serve international businesses. We ask that our subscribers click on the ads or use the QR code to see what each of our carefully chosen advertisers can do to make doing global business easier.

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 we welcome contributions.

Bedwards@edwardsglobal.com, +1 949 375 1896

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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.

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

“To succeed, work hard. Never give up and above all cherish a magnificent obsession.”, Walt Disney

“The best way to persuade people is with your ears.”, Dean Rusk, U.S. Secretary of State, 1961-1969

“Not everything that is faced can be changed, but nothing can be changed until it is faced.”, James Baldwin. Compliments of Linda DiMario

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Highlights in issue #115:

GDP Growth Projections for Key Economies (2024-2025)
Big Tech Uses More Electricity Than Entire Countries
What does the future hold for India?
The Surging Value of the Magnificent Seven (2000-2024)
The Fight Against Global Hunger – Is food insecurity a political issue, or an existential one?
The World’s Largest Stock Markets (1900 vs. 2023)
Brand Global News Section: Dickey’s Barbeque®, Popeyes®, Starbucks® anmd Tropical Smoothie®

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B2B Payments Platform For Global Businesses

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Interesting Data, Articles and Studies

“GDP Growth Projections for Key Economies (2024-2025) – In this graphic, we summarize the latest GDP growth projections from the International Monetary Fund (IMF), which are as of July 2024. The U.S. has been one of the strongest advanced economies since the COVID-19 pandemic, though the IMF believes growth will taper off in 2025. This will be due to slower job growth and tighter fiscal policy (less government spending and/or higher taxes). In Europe, the IMF believes GDP growth will bottom out in 2024, and pick up in 2025. Germany in particular has struggled due to weakness in the manufacturing sector.” Visual Capitalist and the IMF, August 14, 2024

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“The Fight Against Global Hunger – Is food insecurity a political issue, or an existential one? Last year, approximately 30 percent of the world’s population experienced moderate to severe food insecurity. This means some 2.3 billion people “compromised on the quality and quantity of their food” or simply could not eat for a day or more, according to the U.N. Food and Agriculture Organization. An additional 500 million people – that’s roughly 50 percent more than the population of the United States – could not afford nutritious food. Yet only a quarter of global development assistance is used to fund the fight against hunger. This raises the question of whether food insecurity is a social, economic and political problem or an existential one.”, Geopolitical Futures, August 7, 2024

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“Gen AI’s next inflection point: From employee experimentation to organizational transformation – After nearly two years of debate, the verdict is in: generative AI (gen AI) is here to stay, and its business potential is massive. We’ve already witnessed an exponential rate of gen-AI-related innovation, which promises to accelerate automation and enhance productivity, innovation, and the quality of work, as well as the employee and customer experience. The companies that fail to act and adapt now will likely struggle to catch up in the future. Despite all the buzz, most companies have yet to scratch the surface of gen AI’s promise. A recent McKinsey Global Survey reveals that employees are far ahead of their organizations in using gen AI,¹ as companies have been slow to adopt in ways that could realize gen AI’s trillion-dollar opportunity.”, McKinsey & Co., August 7, 2024

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“The World’s Largest Stock Markets (1900 vs. 2023) – Data for 1900 comes from the DMS Database, accessed via the UBS Global Investment Returns Yearbook 2024. Figures for 2023 are based on the FTSE Russell All-World Index Series Monthly Review (Dec 2023). Starting with 1900, we can see that the UK accounted for nearly one quarter of global market cap. Overall, European countries accounted for over 67% of global market cap in 1900. Looking at 2023’s data, we can see that much has changed since then.”, Visual Capitalist, DMS Database 2024 and FTSE Russell All-World Index Series Monthly Review, August 6, 2024

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“Tracking Changes in Global Demographics – Unexpectedly rapid declines in fertility suggest the population will peak this century. The latest edition of the U.N. World Population Prospects covers changes in demographic data after the COVID-19 pandemic. Life expectancy is rising, contributing to population growth, especially in developed countries. Despite falling fertility rates globally – down by one child per woman on average since 1990 – migration now plays a key role in sustaining population levels, particularly in developed regions. But while immigration helps the economy, it also risks social friction due to cultural clashes, forcing governments to balance the need for population growth with potential public resistance. Developed nations face tough decisions about supporting or limiting migration as other demographic solutions dwindle.”, Geopolitical Futures, August 16, 2024

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

“America’s Resilient Oil Drillers Pump Out Another Record……the U.S. Energy Information Administration (EIA) reported Thursday that domestic oil and gas producers set another new record high in oil production during the week ended August 4. U.S. producers pumped out an amazing 13.4 million barrels per day (bpd) for the week, an increase of 800,000 bpd from the same week a year ago. This latest record represents the highest level of oil ever produced by any nation on earth. For context, this weekly production record is more than 3 times the 3.794 million bpd the U.S. produced in September 2008, just 16 years ago, and more than double the volume produced in September 2012.”, Forbes, August 11, 2024

Editor’s Note: 50 years ago the USA had to import 6 million barrels a day mostly from the Middle East and Venezuela. Today, The U.S. is one of the top suppliers of crude oil globally, and its export levels are expected to remain strong due to the ongoing high production rates and relatively stable domestic demand.

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“A man, a plan, a canal, Panama – On top of the partial blockage of Suez Canal trade by attacks from the Houthi militants, the world’s other great artificial waterway, the Panama Canal, has also been suffering. In this case it’s been a drought, most likely related to climate change, which reduced water levels in the canal from last July onwards. The FT reported last week that the bulk carriers that transport low-value, time-insensitive commodities such as grain and liquefied natural gas are unlikely to return to the canal, even though higher rainfall should restore its carrying capacity in September. Having adjusted to longer journeys to Asia around the southern tip of Africa rather than through the canal, they’re not in a hurry to pay the high transit fees and face the risk of renewed disruption. (The Suez Canal LNG trade had already shifted to the Cape of Good Hope route thanks to the Houthis, of course.)”, The Financial Times, August 19, 2024

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“Big Tech Uses More Electricity Than Entire Countries – Big Tech’s AI dreams are coming with a big energy price tag—technology companies and their data centers are consuming more electricity than countries with many millions of people. We compare Google, Microsoft, Meta, and Apple’s 2023 electricity use against select countries. Data sourced from company reports and the U.S. Energy Information Administration (2022). Google and Microsoft both consume more electricity (24 TWh) than countries like Jordan (population: 11 million) and Ghana (34 million).”, Visual Capitalist, U.S. Energy Information Administration, World Bank, Microsoft, Google, Apple, Statista and Forbes.”, August 12, 2024

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Global & Regional Travel & Living

“Delta takes fast, free Wi-Fi international – Delta’s industry-leading Wi-Fi rollout is taking off internationally. Starting this summer, customers on select Viasat-equipped long-haul international flights can enjoy fast, free Wi-Fi presented by T-Mobile – bringing the airline one step closer to recognizing its goal of offering free Wi-Fi on its entire global fleet. Today, free, streaming-quality connectivity is available on nearly 700 aircraft – more than 90% of Delta’s domestic mainline fleet – and the airline expects the vast majority of customers will have access to the product by the end of the year.”, Delta News Hub, August 12, 2024

Editor’s Note: A year and a half ago if there was wi-fi available (and it worked!!!) on long hall international flights it was slow and US$35-60 per trip.

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Book Review

“High Performance Through Happy People” by Elaine Jobson explores the direct correlation between employee happiness and organizational success. Jobson argues that a thriving workplace culture, where employees feel valued and fulfilled, leads to increased productivity, innovation, and overall business performance. The book provides actionable insights for leaders on how to cultivate happiness within their teams, emphasizing the importance of trust, recognition, and empowerment. By focusing on employee well-being, organizations can achieve sustainable high performance. Jobson’s approach offers a compelling case for prioritizing happiness as a core business strategy.

Elaine Jobson is the CEO and Managing Director of the Australia-based Jetts Fitness® franchise. She was2017 Outstanding Business Woman of the Year and Jetts Fitness® is consistently ranked as one of the top places to work in Australia.

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Country & Regional Updates

Australia

“Generative AI: How will it affect the future of work in Australia? With between 79 and 98 percent of jobs in Australia predicted to be automated by 2030, enabling vast productivity gains, how will this change the nature of work? Generative AI (gen AI) will have different effects on different sectors; however, early adopters in any sector can drive positive change—at the company and employee level—not only in productivity but also in the quality of work. Top-down thinking will be critical for a tech strategy that delivers value and enables an organization to scale. But where will this leave the individual? There will be an increasing demand for people with technical skills, social-emotional competencies, critical thinking and complex problem-solving capabilities, and good interpersonal skills; basic digital literacy will be necessary for almost every job.”, McKinsey & Co., August 9, 2024

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“Westpac Profit Rises – Westpac’s profit edged higher as pressure on margins eased and mortgage lending grew faster than the wider industry, offsetting a fragile outlook for the nation’s economy. The RBA remains some way off easing monetary policy, Governor Michele Bullock told a parliamentary panel in Canberra on Friday, as inflation is proving persistent and will only return back to the target range late next year.”, Bloomberg, August

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China

“China is now the world leader in coffee shops – But the average Chinese person still guzzles much less than a typical American. Between 2010 and 2022 coffee consumption per person in China rose fourfold (see chart), according to the International Coffee Organisation, a group of producer and user countries. (China’s GDP per person doubled over the same period.) The average Chinese person still drinks a fraction of the amount of coffee guzzled by the typical American: 0.1kg per year compared with 4.7kg. But last year China surpassed America, becoming the country with the most branded coffee shops (places like Starbucks) in the world, as the World Coffee Portal, a research firm, reported. China is home to nearly 50,000 such outlets., The Economist, August 8, 2024

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“GM Cuts China Jobs as It Resets in World’s Biggest Car Market – Carmaker eyeing production capacity cuts, people familiar say Long-anticipated restructuring targets once-flush business. The reassessment represents a major shift in strategy for GM, which earned billions of dollars in China as recently as 2018. The automaker is pulling back as many foreign brands are struggling with a profusion of local competitors in the world’s largest car market, which is now facing massive overcapacity. The reset involves a shift to producing electric vehicles, focusing on more upscale models and importing premium vehicles, these people said. GM and its joint ventures in China employ more than 58,000 people, according to a GM website.”, Bloomberg, August 12, 2024

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Czech Republic

“Semiconductor Factory Reshapes Czech Region’s Industrial Past – In the Czech town of Roznov pod Radhostem, a $2 billion investment by a US company promises to create a tech hub and help modernize the country’s stagnating economy. It’s the biggest bet by a foreign company in the Czech Republic in three decades. Arizona-based ON Semiconductor, or Onsemi, is expanding an existing operation, where about 2,200 employees in the Eastern European country make 10 million chips a day for customers such as BMW, Mercedes-Benz, Siemens, Apple and Samsung Electronics. The planned investment will create 800 new jobs over the next seven years, Bloomberg’s Krystof Chamonikolas and Michal Kubala report on Tuesday.”, Bloomberg, August 13, 2024

Editor’s Note: I lived in Prague from 1999-2001 while being the COO of a U.S. franchise licensee for the Czech Republic, Hungary and Poland. 10 years out of communism the Czech people were very hard-working capitalists and still are.

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France

“Olympics Lift French Employment – Based on second-quarter data, however, the bump looks temporary. Employment levels in France have fluctuated significantly in 2024. In the first quarter, the private sector added 61,100 jobs, but in the second quarter, it lost 7,900 jobs. A likely contributing factor was a first-quarter surge in demand for workers during preparations for the Olympics. In another noteworthy development, the employment rate for those aged 50-64 – a group that faces heightened challenges in securing jobs – increased significantly. The key question now is whether these employment gains will persist after the Olympics, capitalizing on seasonal trends, or if they were merely temporary. The job losses in the second quarter suggest the need for caution in assessing the long-term impact of these jobs.”, Geopolitical Futures, August 9, 2024

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India

“What does the future hold for India? This may be India’s century. We look ahead at seven trends likely to shape the country for years to come—and help it achieve its development goals. India is a place of superlatives. It’s home to the world’s fifth-largest economy. Its population, at over 1.4 billion people, has surpassed China’s to become the largest in the world. And that population is young: at a median age of 27.6, Indians are on average more than ten years younger than the citizens of most other major economies. In 2024, India also held the world’s largest democratic elections, in which 642 million people cast their ballots., McKinsey & Co., July 3, 2024

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Indonesia

“Indonesian fishermen are using a government AI tool to find their daily catch – Unlike wealthier nations where startups and Big Tech take the lead on AI, an Indonesian government agency is leading the charge and focusing on practical applications. The NN Marlin application can locate the densest fishing grounds based on the sea surface temperature and the level of chlorophyll. The app uses machine learning to crunch satellite data and remote sensing to identify schools of fish within a certain radius. ‘Now, catching fish is much more certain and efficient,’ 42-year-old Dedi told Rest of World. ‘We are guaranteed to get fish every day, and the use of fuel is also more efficient.’”, RestOfWorld.org, August 9, 2024

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Japan

“Japan’s Economy Sees Consumption-Led Rebound in Tailwind for BOJ – Private spending rebounds, suggesting virtuous cycle emerging. Data create positive backdrop ahead of LDP leadership election. apan’s economy rebounded to growth in the second quarter on the back of an increase in private consumption, in a sign that a virtuous cycle long sought by the central bank linking rising incomes to increased spending may be starting to emerge. Gross domestic product expanded at an annualized pace of 3.1% in the three months through June versus the prior period, the Cabinet Office reported Thursday. The reading, which exceeded the 2.3% consensus estimate, came after the economy contracted by a revised 2.3% in the first quarter.”, Bloomberg, August 14, 2024

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United Kingdom

“Restaurant sector shakes off blues with return to growth – The number of outlets is rising again with three net new sites a week opening in first half of 2024. The fortunes of the casual dining sector, which suffered under the twin pressures of Covid and soaring inflation, have taken a turn for the better. The number of midmarket restaurants is up for the first time since the pandemic. According to Hospitality Market Monitor, the number of outlets had reached 6,696 when lockdown was imposed in March 2020. That had tumbled to 5,082 by June 2023, equivalent to more than one closure a day. Now there is a modest return to growth, with a 1.7 per cent increase in the number of casual dining venues in the past 12 months, an average of three net new sites a week in the first half of 2024. Hospitality Market Monitor suggests that the turnaround applies to the wider industry, with the number of licensed premises up by 0.5 per cent between March and June, comprising 462 net new openings, or five a day.”, The Times of London, August 19, 2024

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United States

“The Surging Value of the Magnificent Seven (2000-2024) – The Magnificent Seven are some of the largest companies in the U.S. stock market today, but things looked quite different back in 2000. At that time, Apple, Microsoft, Amazon, and Nvidia had a combined value of just $244 billion. Alphabet (Google) was still a private company, and Meta (Facebook) and Tesla weren’t even founded yet. In this visualization, creator Ehsan Soltani looks at the market capitalization of these prominent technology companies over the last few decades using data from CompaniesMarketCap.com as well as Yahoo Finance. As of July 2024, the Magnificent Seven companies are worth $15.4 trillion combined. The below table shows their market capitalization from 2000 to 2024 in billions of dollars.”, Visual Capitalist, CompaniesMarketCap, Yahoo Finance, August 14, 2024

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“US Retail Sales Chugging Along – Brisk July retail sales along with fewer applications for unemployment benefits underscored a US economy with staying power as inflationary pressures gradually subside. Across the Atlantic, the UK jobless rate fell and wage growth cooled, while euro-zone productivity dropped for a sixth straight quarter and job growth slowed. Meanwhile, foreign direct investment in China slumped on investor concerns about the economy. The value of retail sales increased in July by the most since early 2023 in a broad advance and firmer sales guidance by Walmart Inc., a barometer of growth, also indicated that shoppers are becoming more selective but are still spending.”, Bloomberg, August 17, 2024

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Bill Edwards and Keith Gerson Announce the Formation of The Franchise Consortium

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Brand & Franchising News

“Tropical Smoothie Eyes $610 Million Securitization – Whole-business deals are popular among franchise-heavy firms. Such transactions have surged this year in a hot ABS market. Tropical Smoothie Café is attempting to raise $610 million in its first-ever securitization, just two months after Blackstone Inc. funds acquired the drinks-and-food chain. The funds’ acquisition of Tropical Smoothie was valued at around $1.7 billion, according to a Kroll Bond Rating Agency pre-sale report for the securitization dated Monday. The chain has more than 1,400 locations, all but one franchised, according to Kroll, up nearly 500 since December 2020. Blackstone said when the deal closed that it planned to accelerate Tropical Smoothie’s national expansion. Revenue topped $1.3 billion for the year through March 2024 and same-store sales have climbed 12 consecutive years, Kroll’s report said.”, Bloomberg, August 12, 2023

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“Starbucks replaces CEO with Chipotle CEO after coming under activist investor pressure – Starbucks replaces CEO with Chipotle CEO after coming under activist investor pressure: Starbucks has hired Chipotle chief executive Brian Niccol to replace Laxman Narasimhan, who leaves the business with immediate effect. Niccol joined Chipotle as chief executive and a director in March 2018, and became chairman in March 2020. Before joining Chipotle, he served as chief executive of Taco Bell.”, Propel, August 13, 2024

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“M.U.M.B.O.s: Franchising’s New Heavyweights – In the franchise development world, not all prospective franchisees are alike. And in case you’ve been stranded on an island, the whale of all prospects for many franchisors is called a M.U.M.B.O. – a multi-unit, multi-brand operator. That’s code for well-capitalized, diversified, experienced and in need of very little hand-holding on the part of franchisors. These franchisees are savvy. They hire well. They employ strong teams. They know their way around an FDD(Franchise Disclosure Document). And best of all, they tend to execute on time to achieve strong track records and top accolades for the brands they champion.”, By Monica Feid, FranchiseWire, August 10, 2024.

Editor’s Note: Please also see “MUMBO-fication, Multi-branding grows across international borders” published in 2022 in ‘Franchise Update’ magazine by your Editor.

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“Protection of Intellectual Property in Franchise Systems – Intellectual property (IP) covers a wide range of information, such as trade marks, confidential information, the manuals, trade secrets, know how, business systems, company names, logos, symbols, insignia, email addresses, business know how, client lists and client information. Prior to issuing franchise agreements, the franchisor should register all trade marks that will be used in the system.”, Corporate LiveWire, Export Guide 2024, Compliments of Khushbu Sundarji, Stewart Germann Law Office, Auckland, New Zealand

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“Popeyes Fuels Growing Demand Across The World – The chicken chain’s international business now earns more than $1 billion in systemwide sales. Since RBI acquired the brand in March 2017, it has grown from more than 500 international restaurants generating roughly $300 million in annual system sales to nearly 1,300 restaurants and over $1 billion in systemwide sales. Same-store sales rose 19.4 percent in the second quarter. In 2019, Popeyes entered Spain with the help of a Burger King operator. Now there are close to 140 restaurants in the market, with clear runway for future development. In the U.K. and India, there are 50 stores each—achieved in less than three years. Popeyes sees more growth in those trade areas, as well as France, which has 16 units in about a year. The chain also recently debuted in New Zealand, and that restaurant is projected to earn $6 million in annual sales. That’s one of the strongest country debuts the brand has ever experienced.”, QSR magazine, August 9, 2024

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“Q&A: offer and sale of franchises in Japan – Franchising is very widespread in Japan. According to the data published by the Japan Franchise Association, for the period from April 2022 to March 2022, the number of chains operating in Japan stood at 1,282 with 249,316 stores and a total turnover of approximately ¥27 trillion. Among other sectors, convenience stores are particularly common in Japan, with a total of 57,451 outlets as at 2022…..franchisors whose businesses fall under the definition of a specified chain business are required to provide a written document that describes prescribed items and to explain the contents of the written documents prior to executing a franchise agreement with prospective franchisees.”, Lexology, July 4, 2024

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“The Dickey’s Barbecue Pit in Lahore Is Just the Latest Example of Pakistanis Embracing Texan Culture – Texas-style barbecue is very popular in the country better known for charcoal-grilled meats. But it’s been obsessed with all things Texas since the nineties. On a hot June afternoon, Mazhar Zaidi is sitting at one of the dining tables on the ground floor of Dickey’s Barbecue Pit in Lahore, Pakistan. The top floor has a few families and groups of friends occupying the tables, enjoying some of Dickey’s specialties, such as the brisket and the short ribs. Zaidi offers barbecue platters to the candidates he is interviewing to help market the Dallas-based franchise he brought to the food capital of Pakistan three years ago. Texas’ trademark pit-smoked barbecue is in stark contrast to the traditional tikka, meat grilled usually over coal, that Lahore is renowned for. Also, unlike Texas, the meat barbecued in Dickey’s Lahore outlet is predominantly beef, since pork, which is forbidden in Islam, isn’t consumed in the 97 percent, Muslim-majority country. The location also offers chicken and mutton.”, Texas Monthly, August 12, 2024

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Our Mission, Information Sources & Who We Are

Our biweekly global business update newsletter focuses on what is happening around the worldthat 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. We do not get involved in or report on politics!

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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 into new countries and make money doing it. For a complimentary call with Bill Edwards click on the QR code or contact Bill at bedwards@edwardsglobal.com and +1 949 375 1896

www.edwardsglobal.com

And download our latest chart ranking 40+ countries as places to do business, used by many companies for strategic planning, at this link:

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Biweekly Global Business Newsletter Issue 114, Tuesday, August 6, 2024

Posted on Aug 5th, 2024 in Asia Pacific, Europe, India, Miscellaneous, Predictions and Trends, Professional Development, World Culture, World Economy | Comments Off

Commentary about the 114th Issue: Vistage CEO Confidence Index took a dip in Q2 2024 while U.S. consumer confidence was up in June. Three of every four employers globally reported difficulty finding the talent they need. The U.S. and Canada lead G7 country wage growth from 2020-2022. Singapore is the safest city in Asia. A Big Mac® costs US$5.69 in the U.S., US$8.17 in the Czech Republic and US$2.39 in Taiwan. U.S. importers are rushing goods in early ahead of shipping disruptions. 7 ways AI is changing business travel. A look at real GDP growth in European countries in 2023. Jamie Diamond says businesspeople need to travel more. The United Kingdom’s consumer inflation falls to 2%. And is Paris ready for Wingstop® restaurants?

Reports in this edition from Australia, Canada, China, Europe, Mexico, Turkey, the United Kingdom and the USA.

Bedwards@edwardsglobal.com, +1 949 375 1896

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

“The battleline between good and evil runs through the heart of every man.”, Alexander Solzhenitsyn

“For the only way in which a durable peace can be created is by worldwide restoration of economic activity and international trade.”, James Forrestal

“You must be the change you wish to see in the world.”, Mahatma Gandhi

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Highlights in issue #114:

Vistage Q2 2024 CEO Confidence Index Highlights
2024 Global Talent Shortage
JPMorgan CEO Jamie Dimon says travel is essential for business leaders
U.S. Importers Are Rushing Goods in Early Ahead of Shipping Disruptions
7 Ways AI Is Changing Business Travel
The 10 Busiest Ports in the World, by Cargo Traffic
This Asian City Was Crowned World’s Safest Destination For Travelers
Coal’s Asian Comeback
Is Paris ready for Wingstop?
Brand Global News Section: 7-11®, Carl’s Jr®, Guzman Y Gomez®, Luckin Coffee®, Taco Bell®, McDonalds® and Wingstop®

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Interesting Data, Articles and Studies

“Vistage Q2 2024 CEO Confidence Index Highlights – The Vistage Confidence Index provides a quarterly report on the outlook CEOs of SMB companies have about the economy, hiring, and profitability. CEO confidence takes a dip”, Vistage, August 2024

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“2024 Global Talent Shortage – Three of every four employers globally reported difficulty finding the talent they need, with the biggest impacts being felt in Japan. Employers in the Health Care and Life Sciences industry reported the most difficulty. IT & Data skills are the most challenging to find, regardless of industry and geography. Today, 75% of employers report difficultly in filling roles.”, The Manpower Group, July 31, 2024

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“Massive appropriation of labor from the Global South enables high consumption in rich countries – The high levels of consumption enjoyed by wealthy countries in the Global North are only possible because of mass appropriation of labor from the population of the Global South….. the Global North imported 906 billion hours of embodied labor from the South while exporting only 80 billion hours in return. In other words, for every hour of labor the Global South imports from the Global North, they must export 11 hours to “pay” for it. The wage value of this net-appropriated labor was equivalent to €16.9 trillion in 2021, in Northern prices. In other words, this is how much the appropriated labor would be worth if it was paid at prevailing Northern wages, with equal wages for equal work.”, Phys.org, July 29, 2024

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“WTO (World Trade Organization) Members Signal Progress on Draft E-Commerce Deal – Pact is designed to ban tariffs on fast-growing digital trade. List of participants doesn’t include India and South Africa. About half of the World Trade Organization’s members reached a preliminary deal on e-commerce to permanently ban tariffs on digital transactions that are zipping across borders at twice the growth rate of physical merchandise. Among the 91 participants were the US, China, Japan, the UK and the major economies of the European Union — although Washington also signaled a reluctance to fully endorse it.”, Bloomberg, July 27, 2024

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

“Wage Growth In G7 Countries – 2020-2022 – Average wage growth is a key sign of how well a country’s economy is doing. When wages rise, it typically signals that businesses are thriving and can afford to pay their employees more, which in turn boosts consumer spending and stimulates further economic growth. On the other hand, stagnant or declining wages can indicate economic challenges, such as high unemployment, low productivity, or weak business performance. This graph shows the average annual real wage growth for full-time workers of G7 countries from 2000 to 2022. The data comes from the OECD and is updated as of March 2024. Data is in U.S. dollars and adjusted for purchasing power parity (PPP), which equalizes the purchasing power of different currencies. Wages are adjusted for inflation to reflect 2021 prices.”, Visual Capitalist and OECD, July 15, 2024

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“The Price of a Big Mac Across the World – The Big Mac Index, created by The Economist in 1986, started out as a simple tool to make currency theory more digestible. Now, it’s a widely-known measure in popular economics to assess and compare currency valuations. In short, the Big Mac index compares the purchasing power parity (PPP) of currencies using the price of a Big Mac in the U.S. as the benchmark. It shows how much a Big Mac costs in various countries compared to the U.S., but it also works as a way to assess exchange rates. In this graphic, we visualize the price of a McDonald’s Big Mac in U.S. dollars between 13 different countries around the world, the eurozone, and the United States, using the latest January 2024 data from The Economist’s Big Mac Index dataset.”, The Economist, July 22, 2024

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“Coal’s Asian Comeback – Southeast Asia’s renewable energy potential is some of the greatest in the world. In bold pursuit of renewable energy, Vietnam is undertaking an unorthodox but promising green hydrogen strategy, Thailand’s Prime Minister has promised to explore the cutting edge of nuclear power, and the Philippines has received broad praise for its commitment to renewables and regional trend-setting. Indonesia and the Philippines, for example, are increasing their dependence on coal. The share of power generated by coal in both the Philippines and Indonesia both recently surpassed China, becoming some of the world’s most coal-dependent countries. According to the London-based think tank Ember, coal generation in the Philippines grew much faster than the rise in electricity demand in 2023 – coal generation grew by about 9.7%, while electricity demand grew by 4.6%. Both Indonesia and the Philippines reached over 61% coal generation.”, Forbes, July 28, 2024

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“U.S. Importers Are Rushing Goods in Early Ahead of Shipping Disruptions – The strategy comes as freight rates are rising and new tariffs are set to hit some goods from China. Import containers have been landing at American seaports in far bigger numbers than usual since the late spring, marking an early start to the annual peak shipping season leading into the fall. It also marks a big bet for importers who risk being stuck with excess inventories if consumers don’t pick up their spending. Paul Bingham, director of transportation consulting at S&P Global Market Intelligence, said U.S. retailers and manufacturers don’t want to risk lost sales, even though they are paying a steep price as shipping disruptions drive up container rates to levels not seen since the Covid pandemic. ‘A natural reaction of supply-chain managers in the face of potential further disruption, even though the rates are higher, has been to advance the shipping times,’ Bingham said. Supply-chain executives see warning signs flashing around the globe, from drought-triggered limitations at the Panama Canal to the threat of a strike by dockworkers at U.S. East Coast and Gulf Coast ports this fall.”, The Wall Street Journal, July 23, 2024

Editor’s Note: A TEU (twenty-foot equivalent unit) is a measure of volume in units of twenty-foot long shipping containers.

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“New Labor Unrest Hits U.S. Ports – The peak shipping season is getting underway with another threat of labor disruption at American ports. The union representing about 45,000 workers at ports from Maine to Texas and the seaport employers are in a standoff with no negotiations on the calendar and the current longshore contract due to expire in a little over two months. German port workers are considering a “final offer” from employers after staging several walkouts in recent weeks. (Maritime Executive). A vote at a Coventory warehouse to force Amazon to recognize a union for the first time in the U.K. fell just short of a majority. (Financial Times).”, The Wall Street Journal, July 2024

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“The 10 Busiest Ports in the World, by Cargo Traffic – In 2024, nine of the world’s 10 busiest ports are located in Asia, underscoring the eastward shift in global trade flows. Due to supply chain shifts and deeper integration, intraregional trade within Asia has grown significantly. In the 1990s, over 70% of Asian exports by value went beyond the region, with containers being shipped back mostly empty. By comparison, roughly 60% of exports in Asia are traded within the region today. As we can see, seven out of the 10 busiest ports in the world are located in China, illustrating its central role in global manufacturing and trade. Since 2009, the country has been the largest exporter of goods in the world.”, Visual Capitalist, July 26, 2024

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“In the U.S., the AI Revolution Could Create Localized Power Crunches – The growth of U.S. data centers will run into power availability issues and permitting bottlenecks, spurring more technology companies to secure access to electricity directly from renewable power generators, though any systemic risks to electrical grids will likely be localized. The ongoing surge of demand from data centers, as well as from the electrification of many sectors amid the energy transition and intermittent renewable energy sources, will aggravate the challenges for interconnection grids. Facing power availability and permitting bottlenecks risks, technology companies setting up large data centers will be increasingly creative in trying to buy on a long-term basis reliable renewable energy power, even if at a relatively high cost.”, Worldview Rane, July 26, 2024

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Global & Regional Travel & Living

“JPMorgan CEO Jamie Dimon says travel is essential for business leaders – Business travel, long a vital part of a CEO’s job, is rebounding to pre-pandemic norms despite the increased use of videoconferencing tools. And for good reason, says JPMorgan CEO Jamie Dimon, who admits he’s constantly on the road because executives must prioritize face-to-face interactions with their employees, customers, and clients. ‘Leaders have to get out. They have to get out all the time. They have to be curious; ask a million questions,’ he recently said on LinkedIn’s This is Working series. Corporate travel, according to Dimon, also allows leaders to identify and learn from competitors about their company’s market position, as well as client needs and criticisms. he CEO said he’s often amazed by how many leaders lack a realistic assessment of what’s going on beyond their limited scope in both the public and private sectors. This leads to the creation of poor policies.”, Fortune, July 29, 2024

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“7 Ways AI Is Changing Business Travel – Someday a computer-generated avatar may explain why you can’t fly business class to Dubai. In the meantime, travel management and travel tech companies are testing how to apply Gen AI to various parts of business travel. Travelport, a tech company that provides reservation software for travel agents, this month introduced a feature called the Content Curation Layer (CCL). This feature uses AI to improve travel searches by quickly sorting through billions of options to find the best matches for customers. Business travelers dread filing expense reports. When various tools sync, though, the process can be simpler. Tech integrations can enable suppliers, such as airlines and hotels, to send electronic receipts straight to the expense reports required by companies. Travelers can ideally just click to submit items via travel management software. Skift, July 26, 2024

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“This Asian City Was Crowned World’s Safest Destination For Travelers – According to a new Forbes Advisor survey, Singapore is the world’s safest tourist destination, a remarkable feat for the city-state. The comprehensive analysis evaluated 60 international destinations and placed Singapore at the top of the list, cementing its reputation as a secure location for global travelers. The research examined various safety parameters, including crime rates, healthcare quality, infrastructure, and risks related to natural disasters and digital security. It assigned safety rankings ranging from 0 to 100, with the safest cities earning the lowest scores. Singapore achieved a perfect score of 0 points in the study, indicating the lowest possible risk across all categories assessed.”, Travel & Noire, August 2, 2024

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Book Review

“Own the AI Revolution” by Neil Sahota and Michael Ashley is a guide for leveraging artificial intelligence to drive business growth and innovation. The book offers practical insights into integrating AI into various industries, emphasizing its potential to transform operations, enhance customer experiences, and create competitive advantages.

It includes real-world case studies, strategies for AI adoption, and discussions on ethical considerations and future trends. The authors aim to demystify AI, making it accessible for business leaders and entrepreneurs to harness its power effectively and responsibly in their organizations.

Editor’s Note: Neil Sahota was a keynote speaker at the May 23rd, 2024 Orange County World Trade Week conference in Irvine, California. Neil simpllfies AI for the audie

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Country & Regional Updates

Australia

“Small business confidence dips amid economic strain – Small businesses in Australia are feeling the pinch, with financial confidence significantly lagging behind their big business counterparts, according to CreditorWatch’s latest Business Sentiment Survey. The survey highlights the unique challenges faced by small businesses in the current economic climate. CreditorWatch’s survey results show that 82 per cent of decision-makers in large businesses feel confident about their financial health, rating it as ‘good’ or ‘very good’. This drops slightly to 76 per cent among medium-sized businesses but plummets to just 45 per cent among small businesses. This gap in financial sentiment highlights just how vulnerable small businesses are to the ups and downs of the economy.”, Australian Business Builders, July 30, 2024

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Canada

“American invasion: Why so many U.S. fast food chains are charging into Canada – Here are the chains making a run for the northern border and why they believe Canadians have a growing appetite for fast food. In relatively short order, Canada has become a hotbed for fast foodexpansion from the United States. Shake Shack opened its first Canadian location in Toronto last week, with plans for 34 more restaurants by 2035. Sandwich shops Jimmy John’s and Jersey Mike’s are also among the American chains with sights set on the Canadian market. The Canadian restaurant market is quite different than what Shake Shack is used to in the U.S., said Robert Carter, a food industry analyst with StratonHunter Group, in an interview held before Shake Shack revealed its first Toronto location. ‘They’re coming from a market that’s $800 billion in size to a market that’s $90 to $100 billion in size here in Canada,’ he said. ‘Too many times we’ll have a U.S. brand that’ll come into the market and think just because it’s a smaller market or they’re just close to the U.S., it’s going to be the same strategy or marketing plan, when in fact there’s nuances they’ll have to address.’”, The Financial Post, April 30, 2024

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China

“China’s non-financial debt growth slows with firms and households unwilling to leverage up – ‘China’s macro leverage ratio is now higher than other major economies, which is due to years of persistently weak price increase,’ the report published by the Beijing-based National Institute for Finance and Development said on Monday. ‘We need to crank up countercyclical adjustment to bring about inflation to counter the rising leverage trend, boost business confidence and tackle risks’. Growth of debt within China’s non-financial sectors fell to the lowest level in more than two decades in the second quarter as corporations and households remained reluctant to borrow, according to a Beijing-based think tank.”, South China Morning Post, July 23, 2024

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“China looks for new ways to boost spending on services, from senior care to tourism – China is pinning more hopes on the services sector to lift demand and breathe new life into the economy, with a raft of new measures to boost spending in areas ranging from tourism to care for the elderly. In a 20-point directive released on the weekend, the State Council, the country’s cabinet, said it would increase support for nursing care, consider extending visa-free policies to more countries, and encourage “low-altitude tourism” to spur spending on services, a sector that is growing faster than goods. In the first half of 2024, 14.64 million overseas visitors entered the country, roughly 2½ times the number for the same period last year, as authorities reinstated the 144-hour free transit visa to cover 54 countries and 37 entry points, according to the most recent official data. In addition, services related to basic home-based needs such as catering, elderly care, childcare and housekeeping should also be expanded, it said.”, South China Morning Post, August 4, 2024

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Europe

““Real GDP Growth Rate in European Countries – 2023 – The economic landscape in Europe during 2023 presented a fascinating mix of rapid growth and unexpected downturns, reflecting the continent’s complex and varied economies. In a surprising turn, Montenegro emerged as the fastest-growing economy in Europe in 2023. This small Balkan country’s gross domestic product (GDP) surged by 4.5%, outpacing other nations in the region. Montenegro’s growth was driven by a booming tourism sector, investments in infrastructure, and a strong rebound from the pandemic’s economic impacts. Turkey and Malta also posted impressive growth rates, with Turkey growing at 4% and Malta at 3.8%. Turkey’s economy benefited from robust export performance and a resilient domestic market, while Malta saw gains from its financial services sector and a recovering tourism industry. Estonia experienced the largest negative growth, with its economy shrinking by 2.3%. Germany, Europe’s largest economy, also faced challenges, experiencing slightly negative growth at -0.5%.”, Statista and World Bank, August 3, 2024

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Mexico

“Assessing Mexico’s Post-Election Economic Outlook – Mexican President-elect Claudia Sheinbaum’s pledge to pursue a constitutional reform that would overhaul the country’s judicial and institutional systems could diminish Mexico’s attractiveness as a destination for foreign investment at a time when the country stands to benefit from global supply chain restructuring. In recent weeks, president-elect Sheinbaun has promised to pass a wide-ranging constitutional reform that would affect labor rights, environmental issues, and independent government regulatory bodies, including the National Electoral Institute, among other agencies. Some of these proposals have heightened domestic and foreign investor concerns about Mexico’s institutional stability and predictability.”, Worldview Stratfor, August 1, 2024

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Turkey

“Corporate Turkey’s patience in economic reboot wanes – While a shift to a more rational strategy has support, the impact of moves to tame inflation are biting. Corporate Turkey is finally feeling the pinch of President Recep Tayyip Erdoğan’s radical departure from years of unconventional economic policies. Not everyone is happy with the new normal. The central bank, which is now run by former US Federal Reserve economist Fatih Karahan, has lifted its main interest rate from 8.5 per cent last June to 50 per cent in March. The mechanism for the transmission of monetary policy to the economy that was severed by the previous unorthodox measures appears now to be more functional, meaning once-easy financial conditions are tightening.”, The Financial Times, July 30, 2024

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United Kingdom

Economist Business Section – Britain’s headline annual rate of inflation stayed at 2% in June, slightly above analysts’ forecasts. Services inflation remained sticky at 5.7%. The figures caused some traders to reduce their bets that the Bank of England will cut interest rates in August.”, The Economist, July 18, 2024

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“Growth of UK economy upgraded but falls short of Labour’s target – Bank of England forecasts that GDP will expand by 1.25 per cent this year, while sterling and markets fell in response to the interest rate cut. Downward pressure on the pound was fuelled by the Bank of England’s monetary policy committee voting 5-4 in favour of reducing the UK base rate by 0.25 percentage points to 5 per cent from 5.25 per cent.

Andrew Bailey, the governor of the Bank, hinted that interest rates are unlikely to fall rapidly over the coming months. However, analysts doubted that assumption, intensifying the sterling sell-off.”, The Times of London, July 22, 2024

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United States

““(US) Consumer Confidence Jumps in June – Consumer confidence increased in June with households feeling more confident in their ability to make ends meet and more confident in the job market, according to the Numerator Consumer Sentiment Tracker. The report also showed an increased comfort with nonessential spending. The June Consumer Confidence Score was 57.1 (+0.3 vs. May), which is an average of how consumers feel about the job market, their household finances, and their spending comfort levels. 40% of consumers think it’s very or somewhat easy to find employment in the current job market. Meanwhile, 27% think it’s somewhat or very difficult. 49% of consumers say their household’s financial situation is currently good or very good. 41% of consumers are very or somewhat comfortable spending money on discretionary purchases right now. Consumers with spare cash say they’re putting it in savings (36.2%) and paying down debts (33.3%). 13.2% of consumers say they do not have any spare cash (-2.9 points vs. May).”, Franchising.com, August 2024

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Brand & Franchising News

““Carl’s Jr (Australia) franchisees set to meet with US parent – The parent of US burger chain Carl’s Jr is holding talks about directly licensing its brand to the 25 burger shops still trading in Australia, after the local master licensee and 24 restaurants entered voluntary administration. CJ’s QSR Group, which is the corporate entity that rules Carl’s Jr’s brand in Australia, appointed KPMG as voluntary administrators on Monday. A creditor meeting will be held next week and administrators said they will conduct an immediate sale process of the stores caught up in the administration. The move surprised other franchisees, said BKG Group’s Lindsay Brennan. The BKG Group…….opened Carl Jr’s first Australian store in Bateau Bay in 2016. It still owns two Carl Jr’s stores, Mr Brennan said.”, Australian Financial Review, July 30, 2024

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““Chicken chain Wingstop fires up sale of British operation – The trio of entrepreneurs behind the UK’s fastest-growing restaurant chain have hired Goldman Sachs to explore a sale after six years of rapid growth, Sky News learns. The sale is being launched as Wingstop prepares to launch its 50th outlet in the UK. It is aiming to have 57 sites open by the end of the year, with substantial room for further growth even in a market saturated by competitors. Sources said the company believed it could ultimately reach between 400 and 500 sites in Britain. Wingstop has also become one of the industry’s biggest employers in the UK, with a workforce of about 2,200 people.”, Sky News, August 3, 2024

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““Is Paris ready for Wingstop? – Piggybacking on the Olympics, the fast-casual chicken chain is opening a pop-up restaurant in the French capital, a teaser to what could become 200 restaurants in the country. Dallas-based chicken-wing slinger Wingstop will debut its Maison des Saveurs (that’s “House of Flavor” for the uncultured among us) in the heart of Paris, a pop-up restaurant tied to the opening of the Summer Olympics that also serves as an amuse bouche of sorts for the chain’s planned official entry into Paris later this year. The fast casual opened its first (and, so far, only) French location in 2019 in Toulon, more than 500 miles south of Paris. At that time, French franchisee Brescia Investissement SAS said it planned to open 75 Wingstops in France by 2029.”, Restaurant Business, July 24, 2024

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““We’re literally going to need a bigger burrito: can Guzman y Gomez crack the crowded US market? – The chain’s much-hyped expansion plan includes selling meatier burritos than in Australia for a lower price, but marketing Mexican-themed food in the Americas is a tough ask. When the Mexican-themed food chain Guzman y Gomez listed on the Australian stock market in June, its share price rocketed by more than one-third in a single day of trading, creating a $3bn company. One factor that won over investors was a pledge to aggressively expand in Australia and push deep into the lucrative US market.

GyG plans to increase the number of its Australian stories from less than 200 to more than 1,000, a figure chosen to rival McDonald’s, and build on its international network, which now includes four outlets in the Chicago area.”, The Guardian, August 2, 2024

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” “Competition differentiation in the (Mainland China) coffee market different approaches of Starbucks Luckin Coffee and Coodi – Luckin Coffee, Starbucks, and Kudi Coffee are the top three companies in terms of the number of coffee shops in China. Under the fierce market competition, each has chosen a different business path. Luckin Coffee’s revenue still exceeded that of Starbucks China, and Starbucks China’s operating profit margin was higher. While Starbucks cut its prices, Luckin Coffee also fell into the dilemma of price war. Luckin Coffee’s performance in the first quarter of this year turned from profit to loss, with a net loss of 71.42 million yuan, compared with a net profit of 564 million yuan in the same period last year. The drop in product prices did not bring an increase in transaction volume for Starbucks China. The financial report shows that during the reporting period, Starbucks China’s same-store sales fell by 14%. Kudi Coffee is positioned as a store opening platform, and its core lies in the conversion of store business. Kudi Coffee does not charge franchise fees, and the collection of service fees also adopts a gradient model.”, Economic Observor, August 2, 2024. English translation and article provided by Paul Jones, Jones & Company, Toronto

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““Taco Bell set to roll out automated drive-thru ordering at many restaurants – Taco Bell aims to complete its expansion by the end of the year. Taco Bell is set to add AI drive-thrus at many of its restaurants. it already has the system at eateries in 13 states. (Copyright 2019 The Associated Press. All rights reserved) Taco Bell is looking to roll out artificial technology at hundreds of drive-thrus across the country, parent company Yum! Brands announced Wednesday. Yum! Brands, which currently operates voice AI technology in over 100 Taco Bell drive-thrus across 13 states, aims to complete its expansion by the end of the year. The company said the rollout ‘is designed to enhance back-of-house operations for team members and elevate the order experience for consumers.’ The potential benefits, the company says, include easier workdays for employees, improved order accuracy, more consistent, friendly experience, reduced wait times and higher profit growth.”, The Independent, July 31, 2024

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“7-Eleven Philippines targets 450 new stores in two regions – 7-Eleven operator PSC (Philippine Seven Corp) is planning to open 450 new stores in Visayas and Mindanao as part of an aggressive expansion in the country. Since its establishment in the Philippines in 1984, the convenience store network has expanded to 3829 branches nationwide. 7-Eleven expects to reach its 4000th store milestone by the end of Q4 this year.”, Inside Retail (Australia), July 23, 2024

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Biweekly Global Business Newsletter Issue 113, Tuesday, July 23, 2024

Posted on Jul 22nd, 2024 in Asia Pacific, Europe, India, Miscellaneous, Predictions and Trends, Professional Development, World Culture, World Economy | Comments Off

Commentary about the 113th Issue: Average salaries in 30 countries. Regenerative AI and the world’s software market. Microsoft orders all China staff to use iPhones. U.S. fast food chains raise prices more then 50% in the last ten years. Canada set to be the fastest growing G7 country in 2025. How to stay healthy at 35,000 feet.Commentary about the 113th Issue: Average salaries in 30 countries. Regenerative AI and the world’s software market. Microsoft orders all China staff to use iPhones. U.S. fast food chains raise prices more than 50% in the last ten years.

How to stay healthy at 35,000 feet. Saudi Arabia allows first sale of alcohol (really!). U.S. must add 290 terawatt hours of electricity by 2030. Olive Garden® parent buys Chuy’s®. McDonald s plans to have more than 10,000 restaurants in mainland China by 2028. Fossil fuels made up 81% of global energy consumption in 2023. India projects growth of 6.5%-7% vs 8.2% last year. And the United States and China combine for a massive 43.2% share of the global economy.

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

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

“Train people well enough so they can leave, treat them well enough so they don’t want to.”, Richard Branson, business magnate and founder of Virgin Group

“Get the right people. Then no matter what all else you might do wrong after that, the people will save you. That’s what management is all about.”, Tom DeMarco, software engineer

“Of all the things I’ve done, the most vital is coordinating the talents of those who work for us and pointing them toward a certain goal.”, Walt Disney

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Highlights in issue #113:

Average Annual Salaries by Country
Economic conditions outlook, June 2024
Microsoft Orders China Staff to Use iPhones for Work and Drop Android
Inflation Across U.S. Fast Food Chains (2014-2024)
Small Businesses Still Struggling
Staying Healthy at 35,000 Feet
Brand Global News Section: Chuy’s®, Dominos®, Herbalife®, McDonalds®, Olive Garden® and Sol Bowl®

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Interesting Data, Articles and Studies

“Software’s byte of the gen AI apple – Generative AI’s (gen AI’s) quick adoption over the past year suggests that the global software sector will undergo a major change, senior partner Jeremy Schneider and coauthors note. But based on a McKinsey survey of software leaders and executives, it is anticipated that gen AI will affect each software category to a different degree. Content creation is one of three areas expected to see a very high level of disruption, while system infrastructure is on the other end of the disruption spectrum. Overall, gen AI could spark almost $300 billion in new software spending over the next few years.”, McKinsey & Co., July 9, 2024

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“Economic conditions outlook, June 2024 – Executives’ views on the world economy remain more positive than negative, though they believe a recession is increasingly likely. In their own economies, concerns over unemployment are growing. So far in 2024, survey respondents seem more sanguine about the economy than they were for much of 2023. In our newest McKinsey Global Survey on economic conditions,¹ respondents tend to say that conditions in their countries and globally are improving rather than declining and will continue to improve in the months ahead. Yet they also foresee a few clouds gathering on the horizon.”, McKinsey & Co., June 27, 2024

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“Help wanted: Charting the challenge of tight labor markets in advanced economies – Labor markets in advanced economies today are among the tightest in two decades, not merely a pandemic-induced blip but rather a long-term trend that may continue as workforces age. Tightness means forgone economic output. We estimate that GDP in 2023 could have been 0.5 percent to 1.5 percent higher across these economies if employers had been able to fill their excess job vacancies. Companies and economies will need to boost productivity and find new ways to expand the workforce. Otherwise, they will struggle to exceed—or even match—the relatively muted economic growth of the past decade.”, McKinsey & Co., June 28, 2024

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“WORLD ECONOMIC OUTLOOK UPDATE – Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025. However, varied momentum in activity at the turn of the year has somewhat narrowed the output divergence across economies as cyclical factors wane and activity becomes better aligned with its potential. Services price inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher-for-even-longer interest rates, in the context of escalating trade tensions and increased policy uncertainty. To manage these risks and preserve growth, the policy mix should be sequenced carefully to achieve price stability and replenish diminished buffers.”, International Monetary Fund, July 2024

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

“Average Annual Salaries by Country – There are many reasons for why salaries vary between countries: economic development, cost of living, labor laws, and a variety of other factors. Because of these variables, it can be difficult to gauge the general level of income around the world. With this in mind, we’ve visualized the average annual salaries of 30 OECD countries, adjusted for purchasing power parity (PPP). This means that the values listed have taken into account the differences in cost of living and inflation between countries. This data was sourced from the OECD (Organisation for Economic Co-operation and Development), an international organization that promotes policies to improve economic and social well-being. It has 38 member countries, though in this instance, data for all of them was not available.”, OECD & Visual Capitalist, July 17, 2024

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“The world population is projected to peak slightly earlier than in previous projections – The United Nations doesn’t only publish historical estimates of how population and demographic trends have changed in the past; it also makes projections for what the future might look like. To be clear, these are projections, not predictions of changes in the future. In its 2022 publication, the UN estimated that, in its medium scenario, the global population would peak in 2086 at around 10.4 billion people. This year’s edition brings this peak forward slightly to 2084, with the population topping at just under 10.3 billion.”. Our World In Data, July 11, 2024

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

“Inflation Across U.S. Fast Food Chains (2014-2024) – Fast food joints were once the go-to option for quick, cost-friendly meals, but now, they’re starting to pinch the budget.

Inflation has hit fast food chains hard in the past decade, with many restaurants seeing an average price increase on menu items of more than 50%. This graphic visualizes the average price increase of 10 core menu items from select American fast food chains, as well as the change in the consumer price index (U.S. city average) for food away from home, from 2014 to 2024.”, FianceBuzz and the Federal Reserve, July 12, 2024

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“Maersk says Red Sea shipping disruption having global effects – DENMARK’S AP Moller-Maersk said on Wednesday (Jul 17) that disruption to its container shipping via the Red Sea had extended beyond trade routes in the far east of Europe to its entire global network. Shipping groups have diverted vessels around Africa’s Cape of Good Hope since December to avoid attacks by Iran-aligned Houthi militants in the Red Sea, with the longer voyage times pushing freight rates higher. “Ports across Asia, including Singapore, Australia, and Shanghai, are experiencing delays as ships reroute and schedules are disrupted, caused by ripple effects from the Red Sea,” it said in a statement.”, The Business Times, July 17, 2024

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“2024 Statistical Review of World Energy – What Powered the World in 2023 – Fossil fuels continue to power the world. While a lot of spotlight in the energy industry is on the clean energy transition to renewable sources, fossil fuels continue to reign supreme when it comes to the world’s production and consumption of energy. Global production and consumption of coal, oil, and natural gas all increased in 2023, and as a result fossil fuels made up 81% of global energy consumption as shown above.”, Visual Capitalist & Energy Institute, July 2024

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Global & Regional Travel & Living

“Staying Healthy at 35,000 Feet – With the summer travel season in full swing, board-certified infectious disease physician Carl Abraham, M.D., assistant professor at the College of Osteopathic Medicine’s Jonesboro location (NYITCOM-Arkansas), arms passengers with information to stay healthy at 35,000 feet. Abraham notes that some people may be surprised about the risk of germ spread on most airplanes. ‘Disinfecting touched objects, like seatbelts or trays, won’t hurt, although airlines are supposed to make sure areas are cleaned thoroughly between flights,’ he adds. But, the real hotspot might be the airplane lavatory.”, New York Tech news, July 2, 2024

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Book Review – New Section

“The Fast Future Blur: Discover Transformative Interconnections Shaping the Future – Fast Future Blur provides invaluable insights and strategic frameworks to navigate the complexity of our current period of rapid and radical transformation (‘Fast Future’ phase). Focused on the interconnected nature of the evolution underway, the book serves as an eye-opener for business leaders, providing guidance in understanding this dynamic and complex landscape. Fast Future Blur delves into 12 key areas of change, including platform businesses, regenerative innovation, artificial intelligence, the future of healthcare, the future of work, the future of mobility, blockchain, metaverse, virtual & augmented reality, leadership, agility, fintech, and the impact from 6 inter-connections. With compelling, powerful, and timely insights from the Fast Future Executive faculty ― a global consortium of experts and industry leaders, many of whom are associated with the World Economic Forum, top business and technology schools and leading global companies.”, Amazon, July 2024

Editor’s Note: I attended a session of The Fast Future Blur 2024 Summit on June 11^th at the Executive Next Practices event at the University of California, Irvine, Beall Center for Innovation. We had 19 speakers from the Fast Future Executive faculty who came in from around the world. Wow!

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Book Review – New Section

Editor’s Note: I attended a session of The Fast Future Blur 2024 Summit on June 11^th at the Executive Next Practices event at the University of California, Irvine, Beall Center for Innovation. We had 19 speakers from the Fast Future Executive faculty who came in from around the world. Wow!

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Country & Regional Updates

Canada

“Canada set to be fastest growing economy in G7 in 2025, IMF forecasts – Latest outlook puts this country ahead of United States and United Kingdom. The IMF predicts the global economy is headed toward a “soft landing,” but warns risks remain for the inflation outlook, especially in advanced economies. ‘The good news is that, as headline shocks receded, inflation came down without a recession’, wrote Pierre-Olivier Gourinchas, economic counsellor and the director of research at the IMF, in a blog post accompanying the release. “The bad news is that energy and food price inflation are now almost back to pre-pandemic levels in many countries, while overall inflation is not.”, International Monetary Fund, July 2024

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China

“Microsoft Orders China Staff to Use iPhones for Work and Drop Android – Company will block corporate access from Android in China Microsoft has been tightening cybersecurity following attacks. Microsoft has been ramping up security worldwide after incurring repeat attacks from state-sponsored hackers. Microsoft Corp. told employees in China that starting in September they’ll only be able to use iPhones for work, effectively cutting off Android-powered devices from the workplace. The US company will soon require employees based there to use Apple Inc. devices to verify their identities when logging in, according to an internal memo reviewed by Bloomberg News.”, Bloomberg, July 8, 2024

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“Comparing the Economies of U.S. and China in 3 Key Metrics – Starting with GDP, we used 2024 estimates from the latest edition of the IMF’s World Economic Outlook (April 2024). Based on these figures, the United States and China combine for a massive 43.2% share of the global economy. It’s also interesting to note that America’s share of global GDP has actually been increasing in recent years, from a low of 21.1% in 2011. This is partly due to its relatively strong recovery from the COVID-19 pandemic. The U.S. dominates when it comes to stock market valuation, accounting for 61% of the global total as of Feb. 29, 2024.”, Visual Capitalist & International Monetary Fund, June 3, 2024

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India

“India Sets Subdued Economic Growth Forecast as Risks Mount – Government projects growth of 6.5%-7% vs 8.2% last year Finance minister to give annual budget speech on Tuesday. India’s government set a fairly conservative economic growth forecast for the current fiscal year, concerned about mounting global risks. The economy will likely expand 6.5%-7% in the year through March 2025, the Ministry of Finance said its Economic Survey report released Monday. That compares with 8.2% in the past financial year and the central bank’s projection of 7.2% for the current year. Modi must also balance demands from his coalition allies to spend billions of dollars in their states, with pressure from credit rating companies to curb government debt.”, Bloomberg, July 22, 2024

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Japan

“More than 40% of Japanese companies have no plan to make use of AI – The survey, conducted for Reuters by Nikkei Research, pitched a range of questions to 506 companies over July 3-12 with roughly 250 firms responding, on condition of anonymity. About 24% of respondents said they have already introduced AI in their businesses and 35% are planning to do so, while the remaining 41% have no such plans, illustrating varying degrees of embracing the technological innovation in corporate Japan. Asked for objectives when adopting AI in a question allowing multiple answers, 60% of respondents said they were trying to cope with a shortage of workers, while 53% aimed to cut labour costs and 36% cited acceleration in research and development.”, Reuter, July 17, 2024

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Saudi Arabia

“Saudi Arabia takes first step towards relaxing alcohol laws – Saudi Arabia has opened an off-licence in the diplomatic quarter of its capital, Riyadh, which is the kingdom’s first commercial outlet for the sale of alcohol beverages since a ban on the public sale and consumption of alcohol was imposed in 1952. We expect further relaxation of alcohol laws, together with the implementation of other social reforms and initiatives, in the years ahead as the government pushes ahead with its transformative Vision 2030 development plan, which includes the creation of a tourism offering that boasts major hotels, resorts, entertainment venues, sporting locations and (currently alcohol-free) restaurants and bars.”, Economist Intelligence Unit, February 23, 2024

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“One crucial piece of advise for business in Saudi – Landing that lucrative contract or big deal in Saudi Arabia requires much more than an impressive pitch deck and competitive pricing. One of the most crucial pieces of advice for doing business in the Kingdom is this: take the time to deeply understand the culture and build strong relationships before ever pitching your products or services. Why is this so important? Saudi Arabian culture places an extremely high value on personal connections, trust, and commitment. Saudis want to work with those they know and have established a bond with. Attempting to jump straight into business negotiations without first investing in relationship building is a surefire way to be met with skepticism and difficulty gaining traction.”, Middle East Sunday Pages by Corina Goetz, July 21, 2024

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Southeast Asia

“Southeast Asia’s economies continue to sustain their growth momentum in the first quarter 2024. GDP grew in all economies, with growth in Indonesia, Malaysia, the Philippines, and Singapore increasing during this period, while Thailand and Vietnam recorded slower growth. Southeast Asia’s economies continue to sustain their growth momentum in the first quarter 2024. GDP grew in all economies, with growth in Indonesia, Malaysia, the Philippines, and Singapore increasing during this period, while Thailand and Vietnam recorded slower growth.”, McKinsey & Co., June, 2024

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Turkey

This country has seen its wealth growth explode since 2008. It’s not the U.S. – Individual wealth has been soaring since 2008 in places some might find surprising, such as Turkey. That’s according to UBS’s 2024 Global Wealth Report, released on Wednesday. The report shows that globally, people have been getting progressively wealthier, with dramatic rises in some places. This chart shows average wealth growth from 2022 to 2023 in local currencies. On this metric, Turkey has surged above the rest at more than 157% (in dollar terms, that growth is 63%).”, MarketWatch, July 10, 2024

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United States

“U.S. will fall behind in the AI race without natural gas, Williams Companies CEO says – ‘The only way we’re going to be able to keep up with the kind of power demand and the electrification that’s already afoot is natural gas,’ Williams Companies CEO Alan Armstrong said in an interview Thursday. ‘If we deny ourselves that we’re going to fall behind in the AI race.’ The tech sector’s expansion of data centers to support AI and the adoption of electric vehicles is projected to add 290 terawatt hours of electricity demand by the end of the decade in the U.S., according to a recent report by the energy consulting firm Rystad. This load growth is equivalent to the entire electricity demand of Turkey, the world’s 18th largest economy.”, CNBC, July 19, 2024

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“Small Businesses Still Struggling – Small business (SMB) owners continue to face economic headwinds, including rent delinquency and revenue loss and stress around high interest rates and spiking labor costs. That’s according to Alignable’s June Revenue & Rent Report. The report was based on 3,690 responses to a poll of randomly selected small business owners in June. It also drew information from past survey responses. 72% of SMBs are earning less now monthly than pre-Covid, a slight increase from May’s 71%, breaking a 2024 record. Post-pandemic businesses are also struggling with 72% earning less than last year. Cumulative inflation—35% of SMB owners cite this as their top worry, up from 33% in May. Rising labor costs—79% of SMB employers are paying more for labor, up nine percentage points from May. Cash crisis—38% of SMBs have one month or less of cash on hand.”, Franchising.com, July 18, 2024

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Brand & Franchising News

“Olive Garden parent Darden Restaurants is buying Chuy’s for $605M – It will be the second acquisition for Darden in as many years and brings Mexican cuisine to its portfolio for the first time. Chuy’s has 101 restaurants and specializes in Tex-Mex cuisine. Darden Restaurants, the parent of Olive Garden, LongHorn Steakhouse and other casual-dining brands, is acquiring Chuy’s Tex-Mex for $605 million in cash, the company announced Wednesday. The 101-unit, Austin-based Chuy’s is known for its scratch-made Tex-Mex cuisine and the funky, eclectic atmosphere of its restaurants.”, Restaurant Business, July 17, 2024

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“China Isn’t Done Tormenting Nike or Starbucks – Global Brands Hit Local Competition. China has become a more challenging market for global consumer brands like Nike and Starbucks, and investors are beginning to rethink the value of their Chinese business, according to a new report from TD Cowen analysts. Chinese consumers still like global brands like Nike, Adidas, Skechers andLululemon, which each generate a midteen share of their sales from China. But investors are beginning to discount the cash flows that companies generate from China as domestic competition and geopolitical risks intensify, TD Cowen analyst John Kernan, who co-wrote the report, tells Barron’s. Shares of some of these companies have already taken a hit as China’s economic recovery has sputtered, making consumers reluctant to spend as the property market—a major store of household wealth—is still struggling.”, Barron’s, July 18, 2024

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“Aussie boxing franchise UBX to enter United Arab Emirates – Brisbane-based boxing franchise UBX has announced its eighth international expansion with 18 locations planned in the United Arab Emirates (UAE), adding to an existing 100-plus gyms globally and hot on the heels of its recent campaign launch “Boxing is for Everyone” with adidas.

The company has appointed Mohsan Bari as the master franchisor for UBX UAE with initial sites being sourced in Dubai and Abu Dhabi. ‘In recent years, the Middle East has become a hotspot for combat sports, and the UAE’s enthusiasm for boxing makes it the perfect next step for UBX as interest in the sport is followed by participation,’ says UBX co-founder and managing director Tim West.”, Business New Australia, July 17, 2024

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“Domino’s to shutter 100 stores – The board of Domino’s Pizza Enterprises (Australia) waited until after the market closed yesterday to announce store closures in two of its largest markets, Japan and France, which will almost entirely offset the net effect of planned store growth globally over the course of FY25.”, Business News Australia, July 18, 2024

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“Herbalife expects China to become its largest market – China is expected to double the size of Herbalife’s India market in about five years, which is currently its largest in terms of sales, Herbalife President Stephan Gratziani said in Shanghai. The United States-based nutrition product manufacturer is confident in the Chinese market given the growth potential in the country’s health and well-being sector. ‘In 5-7 years, China is expected to double the size of our India market, which is currently its largest market in terms of sales followed by the US and Mexico,’ Gratziani said in a recent interview. Currently, Herballife service providers operate about 3,200 community health-care and nutritional advisory clubs in China, and the number could grow significantly in the coming years given the potential, especially in lower tier cities.”, Shine, July 17, 2024. Compliments of Paul Jones, Jones & Co., Toronto

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“McDonald s plans to have more than 10,000 restaurants in mainland China by 2028 with more than 60 percent of employees born after 1995 – McDonald’s entered the Chinese mainland market in 1990. In 2017, McDonald’s China became McDonald’s largest international franchise market in the world, and CITIC Consortium became the controlling shareholder. Before the “Golden Arches” era, McDonald’s focused more on market development in first- and second-tier cities. Now, about 50% of McDonald’s restaurants are located in third-, fourth- and fifth-tier cities.”, Yicai, July 17, 2024

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“Piccolo Me parent plans 100 stores for Sol Bowl acquisition – Piccolo Me parent company FABE (Food and Beverage Enterprises) has added Sydney-based Sol Bowl to its portfolio of food brands. FABE has big goals for its newest addition: 100 stores, international expansion and co-branding with Piccolo Me. There are another five Sol Bowl sites planned for New South Wales and ACT before FABE takes the brand interstate. Sol Bowl founder Lilly Semaan launched the healthy-fast-food business as Soul Bowl in Parramatta in 2017. She has since refined the branding and added locations in Baulkham Hills and Rosehill.”, Inside Retail (Australia), July 17, 2024

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Biweekly Global Business Newsletter Issue 112, Tuesday, July 9, 2024

Posted on Jul 8th, 2024 in World Economy | Comments Off

Edited and curated by: William (Bill) Edwards, CFE, CEO of Edwards Global Services, Inc. (EGS)

Commentary about the 112^th Issue: The world’s most livable cities, the countries preferred by expats, the world’s richest countries, the corporate tax rates for the G20 countries (the USA is near the bottom!) and European’s are the happiest in the world. Which young consumers are the most optimistic in the world. Greece starts 6 day work weeks. Pan Am Airlines is making another comeback. The young and rich in China are trying to leave. And we are adding a book review to each newsletter going forward.

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

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

“For the only way in which a durable peace can be created is by world-wide restoration of economic activity and international trade.”, James Forrestal

“Laws are like sausages, it is better not to see them being made.”, Otto von Bismarck

“If you don’t know where you are going, you might wind up someplace else.”, Yogi Berra

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Highlights in issue #112:

The world’s most liveable cities

The world’s richest countries in 2024

State of the Consumer 2024: What’s now and what’s next

Which Countries Have the Highest Corporate Tax Rates in the G20?

American stocks are consuming global markets

Europeans feel the happiest and most respected in the world.

Brand Global News Section: Burritobar®, Little Caesars®, Mod Pizza® and Tim Hortons®

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Interesting Data, Articles and Studies

“State of the Consumer 2024: What’s now and what’s next – Amid massive shifts in the consumer landscape, companies can’t afford to rely on yesterday’s consumer insights. Here are nine trends that merit close attention. Middle-income consumers are feeling the squeeze and worrying about inflation but aren’t holding back on splurges. Rather than sticking to tight budgets in retirement, aging consumers are splurging too. Speaking of older shoppers, it turns out that the brand loyalty they’ve long been known for is a thing of the past. And young consumers in Asia and the Middle East are more likely than those in Western markets to switch to higher-priced brands.”, McKinsey, June 10, 2024

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“The world’s richest countries in 2024 – Sorting Countries into rich and poor can be difficult. Measures such as GDP are affected by population size (more people generally mean more output). But adjusting for population alone is not enough. Dollar income per person does not account for differences in prices between countries (a Big Mac, for example, will set you back more in some places than in others, even after converting into dollars). Nor does it account for productivity (overall output per hour worked). To get a fuller picture, The Economist therefore ranks countries by three measures: dollar income per person, income adjusted for local prices (known as purchasing-power parity, or PPP) and income per hour worked. Take America first. Its GDP has been the largest at market exchange rates for over a century. But by income per person it falls to sixth, behind Luxembourg (first) and Switzerland (second). The results for China—the world’s second-largest economy in nominal terms—are even starker: it falls to 69th by GDP per person, 75th at local prices and 97th after accounting for hours worked.”, The Economist, July 4, 2024

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“Which Countries Have the Highest Corporate Tax Rates in the G20?– In the wake of the 1999 Asian financial crisis, government representatives from the 20 largest economies in the world decided to informally gather to coordinate policy on trade. Thus began the G20. Together the bloc accounts for more than 85% of the world economy and has been credited with unified policy action in response to world events. However, despite this shared affiliation, this group is still made of fundamentally different economies with varied policies towards their business entities.”, Visual Capitalist, June 26, 2024

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“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

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

“Dollar Dominance Monitor – The US dollar has served as the world’s leading reserve currency since World War II. Today, the dollar represents 58 percent of the value of foreign reserve holdings worldwide. The euro, the second-most-used currency, comprises only 20 percent of foreign reserve holdings. Over the past twenty-four months, the members of BRICS (a grouping of Brazil, Russia, India, China, and South Africa that recently added Egypt, Ethiopia, Iran, and the United Arab Emirates; Saudi Arabia is considering joining) have been actively promoting the use of national currencies in trade and transactions. During this same time, China has been expanding its alternative payment system to its trading partners and seeking to increase international usage of the renminbi. But in recent years, and especially since Russia’s invasion of Ukraine and the Group of Seven (G7)’s subsequent escalation in the use of financial sanctions, some countries have been signaling their intention to diversify away from dollars.”, Atlantic Council, July 7, 2024

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Global & Regional Travel & Living

“The world’s most liveable cities – Which city is the most liveable in the world? Hint: it’s the historic capital of the Babenberg dynasty and the birthplace of the snow globe. This week EIU (Economist Intelligence Unit), our sister company, crowned it the world’s most liveable city for a third consecutive year. EIU’s index measures liveability using criteria like good schools, access to health care and so on. These are all relevant factors if you’re considering a move. But if you ask me, some important qualities of a city can’t be easily quantified. The general buzz and unpredictability can be what makes it exciting. “, The Economist (LinkedIn post), July 3, 2024

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“Dream of moving abroad? This Central American destination is the No. 1 country for expats – Panama was named the No. 1 country for expats out of 53 countries in this year’s report, which surveyed more than 12,500 people in February about how satisfied they feel with their lives in a foreign country. The InterNations report ranked 53 global countries across five indices: quality of life, ease of settling in, working abroad, personal finance and an “expat essentials” index, which covers housing, administration, language and digital life. These are the top 10 countries for expats to live and work abroad, according to InterNations data: Panama, Mexico, Indonesia, Spain, Colombia, Thailand, Brazil, Vietnam, Philippines and the United Arab Emirates. (The USA ranks 35^th).”, CNBC Make It, July 4, 2024

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“Marriott International opens its 100th Sheraton Hotel in China – Marriott International is accelerating investment in China’s booming hospitality industry with the announcement of more than 40 new upper upscale hotels by the end of 2025. Sheraton Hotels & Resorts, part of Marriott Bonvoy’s global portfolio of more than 30 hotel brands, announced the opening of Sheraton Lanzhou Anning in Lanzhou, northwest China’s Gansu Province, on Monday, which marks the 100th Sheraton Hotel in China, where the brand made its market debut 50 years ago. Marriott International operates nearly 270 upper upscale hotels in China at present.”, Shine, July 3, 2024. Compliments of Paul Jones, Jones & Co., Toronto

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“New Pan Am Soars, Reviving The Golden Age Of Air Travel – Under new ownership, Pan American World Airways has announced the first in a series of planned themed journeys that harken back to its heyday. For decades, the Pan Am brand and its distinctive blue and white logo symbolized the excitement and elegance of air travel’s golden age. Even after the airline ceased operations in 1991, memories of its attentive service, gourmet meals, impeccably dressed crew, and spacious seating endure. Now, Pan Am is ready to take flight once more. Its inaugural journey will be a 12-day commemorative voyage limited to 50 guests. Craig Carter, CEO of Pan American World Airways and owner of Pan Am Brands, will host the trip, which will fly round-trip to Europe from New York City with stops in Bermuda, Lisbon, Marseille, London, and Foynes in Ireland.”, Forbes, July 7, 2024

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Book Review – New Section

“’No One Left: Why the World Needs More Children’ by Paul Morland – A population calamity is unfolding before our eyes. It started in parts of the developed world and is spreading to the four corners of the globe. There are just too few babies being born for humanity to replace itself. Leading demographer Paul Morland argues that the consequences of this promise to be calamitous. Labour shortages, pensions crises, ballooning debt: what is currently happening in South Korea – which faces population decline of more than 85% within just two generations – threatens to engulf us all, and sooner than we think. In the developed world we may be able temporarily to stave off the worst of its effects with immigration, but many countries, including those the immigrants come from, will get old before they get rich. ‘No One Left’ charts this future, explains its causes and suggests what might be done.”, Hachelle Australia, July 4, 2024

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Country & Regional Updates

Canada

“For the first time in more than 150 years, Alberta’s electricity is coal free – At 10:57 p.m. on Sunday, June 16, Alberta’s last coal plant went offline. An official announcement shortly followed, quietly signalling the end of coal-fired electricity in Alberta. Coal accounted for 80 per cent of Alberta’s electricity grid in the early 2000s and it still amounted to 60 per cent just 10 years ago. Rapidly growing, low-cost renewable energy further supported the phase-out, along with companies investing in gas-fired electricity. All these actions accelerated the transition away from coal at a faster rate than anticipated.”, The Globe and Mail, July 6, 2024

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China

“Decathlon, Lululemon and other sportswear brands accelerate store openings and adjust China store strategies – Sports fashion brands are considering opening larger stores or upgrading services as brand upgrading strategies. Since the beginning of this year, many sports and fashion brands such as Decathlon, lululemon, Zara, and Arc’teryx have opened large stores or upgraded store services, such as creating sports communities, in order to enhance user experience and improve brand positioning. On June 27, yoga wear brand Lululemon opened its first store in North China in Beijing Sanlitun Taikoo Li. The brand’s store in this business district was originally very small and located on the underground floor of the shopping mall. After the upgrade, it became a large street-side store covering three floors.”, Caixin, July 5, 2024. Compliments of Paul Jones, Jones & Co., Toronto

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“China’s Population Density Visualized Using a 3D Map– For seven decades, China’s population was the world’s largest until India took that particular crown in 2023. Still, 1.4 billion people live in the country that stretches across 3.7 million square miles (9.6 million km²). However, as seen in the map above, 94% of the Chinese population lives east of the Heihe-Tengchong line, which is only 43% of the country’s area. Here are all of China’s cities with at least one million residents, from the 2020 census. Clearly noticeable are the provinces they are found in—on the eastern edge of the country, matching the population spikes seen above.”, Visual Capitalist, July 3, 2024

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“Young, Rich and Restless in China – Economic conditions and draconian regulatory campaigns have led to record breaking levels of emigration. China is at the top of the list, having already seen an exodus of millionaires thanks to the COVID-19 pandemic and its economic discontents – not to mention President Xi Jinping’s anti-corruption campaign. All told, H&P estimates that China is set to lose some 15,200 of its most wealthy people this year, up from 13,800 the year before. (According to one estimate, there were in 2023 roughly 1.7 million people in China with personal wealth worth over 10 million yuan, or $1.4 million.) Importantly, young Chinese are starting to follow suit.”, Geopolitical Futures, June 28, 2024

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Egypt

“Cairo Inks $72.4 Billion in Agreements and MOUs at Egypt-EU Investment Conference – Following the expanded agreement between Cairo and the International Monetary Fund (IMF), in which Egypt has largely aligned with IMF recommendations, investor confidence in Egypt has increased and will continue to draw in similar agreements and MOUs. Gaining additional investment is essential for boosting private sector growth and expanding jobs in Egypt. The Egypt-EU Investment Conference follows a March 2024 agreement between the European Union and Egypt in which they agreed to a financing package worth 7.4 billion euros ($8.1 billion) between 2024 and 2027 to support Egypt’s economic reforms, boost energy exports from Egypt to Europe and curb irregular migration through Egypt.”, Worldview Stratfor, July 1, 2024

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European Countries

“Europeans feel the happiest and most respected in the world. Will the threat of an aging population change everything? When it comes to a life well-lived, there’s no beating Europe. For years, its countries have ranked among the highest in many lifestyle metrics. In 2024 and for the six years prior, Finland has held the crown as world’s happiest country, according to the World Happiness Report. Its other European peers followed—such as Denmark, Iceland, and the Netherlands. There’s more—Europeans felt respected and well-rested at varying degrees, pointing to an overall higher living standard and stronger social networks around people, according to Gallup’s Global Emotions Report. That scale varied from country to country—for instance, 97% of Portuguese respondents said they felt respected, while that figure dropped to 58% in Romania. Meanwhile, 75% of those in Ireland felt well-rested compared to just 53% in Greece.”, Fortune, July 5, 2024

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“Crushing Debts Await Europe’s New Leaders – Planned largess by election winners in Britain and France is on a collision course with soaring debts and deficits. Public debt is close to multidecade highs on both sides of the English Channel, where voters this week were electing new parliaments. In both France and the U.K., government spending and budget deficits as a share of gross domestic product are significantly above prepandemic levels. Economic growth remains lackluster, borrowing costs have surged, and demands on the public purse are rising, from defense to old-age pensions. All that means fiscal restraint—less spending or higher taxes—will be necessary, economists say. But politicians haven’t prepared electorates for that. On the contrary, they have signaled bold new spending plans.”, The Wall Street Journal, July 7, 2024

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“Eurozone inflation slows to 2.5% – Lower rises in energy and fresh food costs are offset by persistently high services prices. Please use the sharing tools found via the share button at the top or side of articles. The figure for the year to June marked a slowdown from 2.6 per cent in the previous month. It was in line with economists’ forecast of 2.5 per cent in a Reuters poll. Please use the sharing tools found via the share button at the top or side of articles. Economists said the figures made it likely that the ECB would keep its benchmark deposit rate at 3.75 per cent at its next meeting on July 18 and further reductions in borrowing costs could hinge on how quickly services inflation comes down.”, The Financial Times, July 2, 2024

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Greece

“Greece starts six-day working week for some industries – New legislation, which came into effect at the start of July, allows employees to work up to 48 hours in a week as opposed to 40. It only applies to businesses which operate on a 24-hour basis and is optional for workers, who get paid an extra 40% for the overtime they do. However, the move by the Greek government is at odds with workplace culture elsewhere in Europe and the US, where four-day working patterns are becoming more common.”, BBC, July 3, 2024

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India

“Accenture taps Indian talent to take on the Big Four in consulting – Amid a downturn in the sector, using highly qualified Indian staff for complex tech work allows the consultancy to cut its prices when pitching to clients. There was a time when companies outsourced only their simpler work to India, but now Accenture is using the growing number of people there with MBAs and PhDs to do its highest-level advisory work for British and European clients. The consultancy is turning to top-ranking workers in India so it can cut its prices when pitching to clients, especially for IT-based work. In some cases, where the firm is bidding to transform or upgrade companies’ IT systems, up to 95 per cent of the skilled consultancy teams are based in India.”, The Times of London, June 23, 2024

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“India’s big fat wedding industry is a US$130 billion gold mine for the economy – While many Indian weddings are elaborate affairs, there has been a notable shift in the scale of such ceremonies in recent years, according to industry observers. More couples are opting for intimate affairs that involve increased spending per guest. The sector is worth US$130 billion annually and is an immense driver of economic activity, according to a recent market report by the brokerage and investment research firm Jefferies. India holds more wedding ceremonies each year than any other country, with between 8 million and 10 million – or nearly 25 per cent of the global total. In comparison, about 2 million weddings and 8 million weddings take place annually in the United States and China, respectively. The value of India’s wedding industry is about twice that in the US, according to the report.”, The South Morning Post, July 6, 2024

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Indonesia

“‘Not enough jobs’: Indonesia’s 10 million Gen Z face looming unemployment crisis – With so many young Indonesians neither working nor studying, experts warn of a demographic challenges in the coming years……..according to a recently released report by Statistics Indonesia (BPS), unemployment among those aged 20 to 24 had been on the rise in recent years, climbing from 12.86 per cent in 2015 to 17.02 per cent in 2022. This figure is significantly higher than the country’s average unemployment rate, which in February 2023 stood at 5.45 per cent, meaning that unemployment is particularly high for the younger age bracket. Jakarta is hoping to reach the status of a developed country in the next two decades, under its “Golden Indonesia 2045” vision, and the government is counting on young people to drive economic growth.”, (Edited for length), The South Morning Post, July 5, 2024

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The Philippines

“Philippines overtakes China and Indonesia to be most dependent on coal-generated power – The Philippines’ dependency on coal-fired power surged 62% last year, overtaking China, Indonesia and Poland, according to London-based energy think-tank Ember. The Philippines was also the most coal-dependent country in Southeast Asia in 2023, as adoption of renewable electricity generation remained low. The share of electricity generated from coal in the country climbed to 61.9% last year compared to 59.1% in 2022. ‘Indonesia and the Philippines are the two most coal dependent countries in Southeast Asia and their reliance on coal is growing fast,’ the report said, adding that the Southeast Asian region saw a 2% uptick in coal reliance from 31% in 2022 to 33% last year.”, CNBC, July 3, 2024

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South Korea

“South Korea Hikes Growth Forecast Sharply as Demand for AI Booms – South Korea revised its economic growth forecast sharply higher as booming global demand for artificial intelligence drives its semiconductor exports to record levels. The government sees gross domestic product expanding 2.6% this year, an upward revision from its previous forecast of 2.2%, according to a statement Wednesday from the Finance Ministry. The inflation forecast has been kept unchanged at 2.6%, matching an estimate by the Bank of Korea. The pick-up in economic projections underscores optimism about an economy that has bounced back from last year’s slump in semiconductor demand even as interest rates have stayed elevated.”, Bloomberg, July 2, 2024

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Turkey

“Turkish inflation cools for first time in 8 months – Consumer prices increased 71.6 per cent in June from the same month in the previous year, a slower rate than expected and down from a nearly two-year high of 75.5 per cent in May, according to official data. The decline in inflation is one of the strongest signs to date that Turkey’s pivot away from unconventional monetary policy following President Recep Tayyip Erdoğan’s re-election in May last year is starting to bear fruit. The centrepiece of the new programme, which is slowly drawing back foreign investors who deserted the market in recent years, has been huge increases in borrowing costs. The central bank raised its main interest rate from 8.5 per cent in June last year to 50 per cent by March in an attempt to stomp out runaway price growth.”, The Financial Times, July 3, 2024

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United Kingdom

“U.K. tech overtakes China, cementing its position as the world’s second-largest ecosystem by funding – China may be the world’s second-largest economy, but when it comes to startup funding, the U.K. is punching above its weight. Startups in the U.K. raised $6.7 billion in funding during the first half of 2024, helping dethrone China and propelling the U.K. to second place globally for funds raised, according to a new report. While the overall U.K. figure was down 2% year on year, according to data from global market intelligence platform Tracxn, it remained more robust than that of China, whose funding sat at $6.1 billion in H1 2024, helping the U.K. move into the No. 2 spot globally.”, Fortune, July 5, 2024

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United States

“Empty Offices Risk Wiping Out $250 Billion in Commercial Property Value – US office vacancy rate is forecast to hit a peak of 24% by 2026. Nearly one-quarter of all US office space will be vacant by 2026 as working from home persists, slicing commercial-property values by as much as $250 billion, according to a report from Moody’s. Office-vacancy rates are expected to rise to 24% from 19.8% in the first quarter of this year in the US, reducing revenue for office landlords by between $8 billion and $10 billion when combined with the impact of lower rents and lease turnovers, the authors of the report said.”, Bloomberg, June 27, 2024

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“American stocks are consuming global markets– That does not necessarily spell trouble. America’s share of the world’s stockmarket capitalisation has climbed pretty consistently over the past decade and a half, and sharply this year. It now stands at 61%. That is astonishing dominance for a country which accounts for just over a quarter of global gdp. The extent of market concentration is all the more extreme given what is happening within the American stockmarket itself. Just three companies—Apple, Microsoft and Nvidia—make up a tenth of the market value of global stocks.”, The Economist, June 27, 2024

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Brand & Franchising News

“Leveraging AI in franchising: opportunities and legal considerations – In the context of franchising, AI presents opportunities to streamline operations, automate tasks and promote data-driven decision-making. The following are examples of several current and potential use cases of AI in franchising: Automation, Supply chain, Customer support and Personalized marketing. Franchisees are increasingly leveraging AI to tailor marketing strategies, optimize product assortments and create targeted promotions that would improve consumer conversion rates and bolster the bottom-line profitability of the franchise system.”, Osler law firm. July 5, 2024

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“63 years of progress distilled into one eye-opening video – What fascinated me was observing the constant churn. Brands rose, fell, and then completely disappeared over the decades, a harsh reality of how brutal the food industry can be. But among this sea of change, a few exceptional companies thrived and fought their way to the top. That meteoric rise wasn’t pure luck – it was the result of a laser focus on quality, an uncanny ability to tap into evolving customer tastes, and treating their people as the cornerstone of their success. Today, let’s recognise that an unwavering drive for excellence and a willingness to adapt can transform even the simplest ideas into enduring legacies.”, From a LinkedIn post by Akshay Jatia, with the video by Justin Fischer, July 2, 2024.

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“2024 AFDR Data – The Use of Social Media with (U.S.) Franchise Recruitment – Franchise Update Media has been researching franchise lead generation and franchisee recruitment processes for more than a decade. An annual in-depth online survey queries franchise development professionals about a number of issues related to their lead generation and recruitment strategies. All the responses are collected, aggregated, and analyzed to produce a detailed look into the recruitment and development practices, budgets, spending allocations, and strategies of a wide cross-section of franchisors. The results are presented each year in the Annual Franchise Development Report (AFDR), which can be ordered online at afdr.franchiseupdate.com. The 2024 AFDR report is a valuable resource that can provide crucial insights on franchise development lead generation and recruitment best practices. It’s the kind of information that can help brands assess what they are doing right, and what needs improvement.”, Franchising.com, July 8, 2024

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“Fast-Growing (Canadian) Burrito Chain Plans to Open 750 Restaurants In the U.S. – Burritobar, a Toronto-based Tex-Mex chain that offers classics like burritos, tacos, and bowls, just announced a franchise agreement with U.S. partners in New Jersey, planning for 93 new franchised restaurants across the state within the next two decades. The new agreement follows similar franchise plans in Michigan, Florida, Virginia, Maryland, Tennessee, Iowa, Nebraska, North Texas, Illinois, and Ohio, totaling 750 Burritobar restaurants planned for opening in the United States in the near future. Known as BarBurrito in Canada, the chain first opened in Toronto in 2015, quickly becoming a go-to for fast-casual Tex-Mex food across Canada. With 325 restaurants, the brand is Canada’s fastest-growing Mexican food franchise. In 2020, BarBurrito changed its name to Burritobar for its debut in the American market, with new franchise agreements opening two locations in Michigan and one in Delaware.”, Eat This, Not That!, July 5, 2024

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“National pizza chain based in the Northwest reportedly on brink of bankruptcy– A national fast-casual pizza chain is exploring a potential bankruptcy filing as the company looks for a buyer, according to several report…..people familiar with MOD Pizza say the Seattle chain with 512 locations across the country has hired legal and financial advisers to work on a possible sale of the business or bankruptcy filing. ‘We’re working diligently to improve our capital structure and are exploring all options to do so. Since this is an ongoing process, it would be inappropriate to speculate about an outcome,’ a MOD representative shared with Nation’s Restaurant News in a statement. MOD was founded in 2008 as part of a wave of build-your-own pizza places. It currently has 32 locations in Oregon.”, Oregon Live, July 6, 2024

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“Q&A with Little Caesars International Franchisee Leo Gonzalez – Was the process of acquiring a franchise in another country more difficult than in the United States? No, it wasn’t more difficult to build a franchise in Mexico. It’s actually easier to find the space to build out new franchise locations and also more cost effective. Mexico has a lot more space to franchise with restaurants that are bigger in size. About 65% of our Little Caesars there are free-standing with drive-thrus. These tend to do well with our guests and provide the convenient dining experience the brand is known for at all hours of the day.”, Franchising.com, July 2024

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“Tim Hortons’ parent company inks two deals to bolster presence in China – Restaurant Brands International says it’s spending up to $45 million on two deals intended to boost its presence in China and spur growth in what the company sees as a promising market. The parent company behind Tim Hortons, Burger King, Popeyes Louisiana Kitchen and Firehouse Subs says the first deal will see it acquire Popeyes China from Tims China, which operates Tim Hortons franchises in the country. RBI values the purchase at $15 million, noting Popeyes China has opened 14 restaurants in Shanghai since initially launching in August 2023.”, CTV, July 2, 2024

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

Our Mission, Information Sources & Who We Are

For a complimentary 30-minute consultation on how to take your business into new countries and make money doing it, click on the QR code for a complimentary call with 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 111, Tuesday, June 25, 2024

Posted on Jun 24th, 2024 in World Economy | Comments Off

Edited and curated by: William (Bill) Edwards, CFE, CEO of Edwards Global Services, Inc. (EGS)

Commentary about the 111^th Issue: The USA now gets a third of all global capital flows while China inbound investment craters. Birth rates in rich countries halve to hit record low. Norway discovers a huge source of rare minerals. The Philippines becomes the world’s hottest luxury housing market. The new owner of the chicken Big Mac trademark will expand into Europe. Southeast Asia is the go to place for companies leaving China. Managers around the world are learning Gen Z is different. Starbucks® and Hilton® ‘marry’. The top 20 tech companies control almost 20% of the world’s stock market value. India will need 100 million new homes in the next decade. India’s stock market out grows China. And KFC® is selling panini sandwiches, wagyu burgers and hot bagels in their new ‘healthy’ brand in Shanghai.

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

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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

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®

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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

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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

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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

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“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

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“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

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“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

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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

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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

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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

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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

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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

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“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

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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

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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

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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

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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

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“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

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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

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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

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“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

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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

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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

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“‘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

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“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

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“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

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“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

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“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

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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.

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

Posted on Jun 12th, 2024 in World Economy | Comments Off

Edited and curated by: William (Bill) Edwards, CFE, CEO of Edwards Global Services, Inc. (EGS)

Comments About This 110^th Issue: Countries – other than the USA – begin to cut interest rates. McDonald’s loses the right to call a chicken Big Mac, a Big Mac. The almost continually strong US$ is not helping US exports of products and services. Heathrow is like a Second World War airport (but we knew that!). The world’s biggest shopping center is getting bigger. A query into ChatGPT requires about 10 times as much electricity to process as a Google search

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

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“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

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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

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