Mexican Media Brands
Europe’s Industrials Shun Emerging Markets for Slower Growth at Home
Europe’s largest industrial groups are swapping ambitious expansion plans in emerging markets for slower but more stable growth at home, says the Financial Times.
#economics
Share
Europe’s largest industrial groups are swapping ambitious expansion plans in emerging markets for slower but more stable growth at home, says the Financial Times.
“Europe is very stable,” explains Laurent Abadie, CEO of Panasonic Europe. “Growth of 1.9% is not so bad compared to Latin America or Asia.”
Europe’s chemical companies were channeling 80% of growth investments into emerging markets in 2010-2013, according to an analyst at Bank of America Merrill Lynch. Now, he says, the ratio is below 50%. The FT notes that chemical giant BASF describes Europe as its only stable market in 2016.
Researchers S&P Global Market Intelligence agrees. It points out that a common message in company earnings reports for 2015 is that sales have been stable in Europe and falling fast in Asia Pacific. Europe, adds the European economics director at Citigroup, has become “the safe haven” from volatility elsewhere.
RELATED CONTENT
-
Is The V8 Dead?
Tougher fuel economy standards may be the end of most V8s.
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.