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185 posts categorized "News from Euromonitor"

August 31, 2015

Причины и риски девальвации в Казахстане

Национальный банк Казахстана объявил о переходе к политике инфляционного таргетирования и плавающего валютного курса, что мгновенно привело к более чем 20%-ому обесцениванию тенге по отношению к доллару США. Каковы причины, потенциальные цели и риски девальвации? Об этом смотрите в нашем видео.

Алексей Бакшаев, экономист

August 26, 2015

Spill-over Effects from China's Stock Market

Daniel SolomonAnalyst Insight by Daniel Solomon - Economist

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China’s stock market has plunged by more than 15% in the 2nd half of August, after the earlier 30% decline in June and July. The government responded on August 25th with another interest rate cut of 0.25 percentage points and a cut in the required reserves ratio of large banks of a further 0.5 percentage points. The situation is volatile and it is too early to tell if these measures will stabilise China’s stock market, or if the government will be pushed into more drastic measures such as restricting stock sales or even suspending trading. This note focuses on the potential spill-overs from the drop in the Chinese stock market.

Shanghai Composite Stock Market Index

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Source: Yahoo Finance

Note:  Closing price adjusted for dividends and stock splits. Last price is for August 25th.

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August 17, 2015

Liberty Interactive Media Acquires Zulily

Michelle GrantAnalyst Insight by Michelle Grant - Head of Retailing Research

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On 17 August 2015, Liberty Interactive Media, which owns the homeshopping brand, QVC, announced that it would acquire internet retailer, Zulily Inc, for US$2.4 billion.  With the homeshopping channel dying, this is an attempt for Liberty Interactive Media to stay relevant for the long term.  Similar moves in the travel industry, though, indicate that this acquisition will fail in positioning Liberty Interactive for the future.

Main goal: driving sales growth

The main goal of the acquisition is to drive sales growth for Liberty Interactive Media.  According to Euromonitor International, the sales via the homeshopping channel declined by 6% in 2014 and are expected to decline by 13% over the next five years. Because the companies have different types of customers, the hope is that they’ll be able to cross sell customers and perhaps, leverage Zulily’s experience in mobile transactions for growth:

 “With the two companies under one roof, “we can expose brands to more customers,” and there will also be opportunities to introduce QVC’s customers to Zulily and vice versa, Mr. George added. The two companies also are hoping to ride the growth of shoppers who increasingly buy on mobile devices.” –Wall Street Journal

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August 13, 2015

Nestlé 2015 H1 Results on Target yet Data Suggests it Needs a Reshuffle

Lianne van den BosAnalyst Insight by Lianne van den Bos - Food Analyst

View Lianne van den Bos's profile on LinkedIn

The results from Nestlé H1 are on track with 4.5% organic growth, on par with the group’s target of around 5% growth for 2015. The emphasis of today’s investor call was on portfolio management and more specifically how Nestlé is addressing known weaknesses in its portfolio. The group is struggling with weakening demand in China, the world’s second largest economy, and is facing the aftermaths of the Maggi scandal in India's instant noodles. Both resulted in a drop in trading operating profit margins for the AOA region by 80 basis points. Moreover, its stagnant frozen-food business is not helping things, despite a total rebranding of its Lean Cuisine products.

The appointment of new Chief Financial Officer François-Xavier Roger signals the group’s emphasis on portfolio management, in order to address its weaknesses. In a press release Paul Bulcke, CEO of Nestlé, stressed his confidence in the new CFO, who has vast experience in finance and control, mergers and acquisitions, and relations with regulators and investors. During his first investor call the Chief Financial Officer highlighted Nestlé’s model, designed to aid portfolio management, looking at profitability of brands amongst other things. With that in mind, Euromonitor assesses Nestlé’s current portfolio and where the group needs to rebalance.

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August 9, 2015

Changing Legislation on the Minimum Wage in the US and its Potential Impact on the Fast Food Industry

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Analyst Insight by Emily Balsamo - Research Analyst

Recently, a wage panel in New York State recommended that the minimum wage specifically for fast food chain restaurant workers be set at US$15 an hour by 2018 in New York City and by 2021 in the state. New York’s move to higher wages follows in the footsteps of Los Angeles, San Francisco and Seattle. Americans have become increasingly concerned about the social and governmental impact of the minimum wage, and fast food operators are central to the debate. Fast food companies will need to restrategise significantly in light of increased labour costs, to maintain both profits and a positive public image.

Public awareness of the issue

The issue’s prominence in the national consciousness was most apparent when nationwide protests and strikes occurred on 15 April 2015 – with 15 April being the day on which annual federal and state tax returns are due in the US. The “Fight for $15” campaign called for a US$15 per hour minimum wage for fast food workers and options for unionisation. Protests in 230 American cities centred on individual fast food establishments, as well as government buildings, with many fast food workers going on unofficial strike for the day. However, public awareness of the discrepancy between a living wage and the wages paid by fast food operators is not new. In 2013, McDonald’s released a highly publicised suggested budget for employees, which included income from a second full-job to fill basic financial needs. The budget outline has been seen as an admission by the company that surviving on a McDonald’s wage alone is not possible.

Continue reading "Changing Legislation on the Minimum Wage in the US and its Potential Impact on the Fast Food Industry" »

August 5, 2015

Doing Business in the Halal Market

What is the Halal market, and what potential opportunities lie there? Learn more about the Halal market in this video, and download Euromonitor's latest whitepaper today.

Watch this video on Youtube

July 30, 2015

The Rumour Mill Keeps Turning – Will Starwood Go Intercontinental?

Wouter GeertsAnalyst Insight by Wouter Geerts - Travel Analyst, Lodging

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Starwood Hotels and Resorts’s future is still uncertain, and while possible acquisition suitors have come and gone, the industry still believes that eventually some M&A developments will happen. In May I discussed what a takeover by Wyndham Worldwide would look like, but concluded that neither company would gain strategically in terms of geographical coverage from a takeover.

Some new developments have now put a possible merger between Starwood and Intercontinental Hotels Group on the cards. Intercontinental recently sold its Hong Kong flagship to a consortium for £604 million, rumoured to be an effort to bring in the cash needed for a merger. This briefing discusses how this scenario differs from the Wyndham case, and highlights again that the global hotel chains might be better off considering their options with local players.    

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July 28, 2015

Euromonitor International voted #1 British company for work/life balance

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According to the 2015 UK survey from career community website, Glassdoor, Euromonitor International ranked #1 across the UK for work-life balance based on reviews from current and former employees.

“We recognise our employees are our greatest assets,” said Lena Patel, HR Manager at Euromonitor International. “Our recently modernised London offices provide an environment that encourages breaks and ensures our employees have time to balance work because of our office opening times and enhanced holiday scheme, we are thrilled to be voted top British company for work-life balance.”

Diarmuid Russell, Glassdoor senior vice president and general manager, said: “What comes through clearly in the Glassdoor reviews for the employers on this list is that people feel empowered through technology and working practices to integrate work into their lives in a way that helps them be the best that they can be, both in the office and at home. Employees are increasingly looking to work for companies that genuinely offer a good work-life balance and it is clear that employers who understand this generate much higher loyalty and hold on to people for longer.”

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July 21, 2015

Apple Pay Enters the UK

This week, Apple Pay entered the UK after initial roll-out in the US. Though Apple holds a smaller share of the smartphone market in the UK than in the US, the UK's contactless network is more established. With this payments behavior laying the groundwork, Apple Pay will face lower barriers to adoption. Watch the video for complete insights.

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July 20, 2015

Takeaways from Soft Drink Company’s Earnings Reports

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PepsiCo recently released its earnings report, showing a massive strength in its snack food brands but a difficult second quarter performance for its beverages brands. Coca-Cola, on the other hand, will release its earnings report this week and does not have a snack foods brand to fall back on if weak performance arises. However, Coke has both a stronger market share and bigger business for its beverages brands.

Continue reading "Takeaways from Soft Drink Company’s Earnings Reports" »

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Recent Posts

Причины и риски девальвации в Казахстане

Spill-over Effects from China's Stock Market

Liberty Interactive Media Acquires Zulily

Nestlé 2015 H1 Results on Target yet Data Suggests it Needs a Reshuffle

Changing Legislation on the Minimum Wage in the US and its Potential Impact on the Fast Food Industry

Doing Business in the Halal Market

The Rumour Mill Keeps Turning – Will Starwood Go Intercontinental?

Euromonitor International voted #1 British company for work/life balance

Apple Pay Enters the UK

Takeaways from Soft Drink Company’s Earnings Reports