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79 articles found for us:

• Shrinkflation in the US

  Shrinkflation is a form of inflation where companies reduce the product size, quantity, or quality to maintain or increase their profit margins. A common practice during high inflationary periods, shrinkflation is preferred when companies are hesitant to raise product prices amid rising operating costs. To avoid facing consumer backlash, companies sneakily practice shrinkflation, which, coupled with consumer ignorance, makes it hard to detect. Consequently, consumers may end up purchasing two packets of a product, for example, if its size is reduced by fourth. Thus, shrinkflation may not only help in maintaining margins but also boost sales. When accused of shrinkflation, companies may give several reasons such as health, environment, and better value addition. Inflation is transparent, but shrinkflation is underhanded and thus could be difficult to calculate and tackle.

• US Pet Food Industry on the Rise

  Pet ownership increased during lockdown when people were confined to their homes. Pet humanization has led to owners treating pets as part of their family. Owners are increasingly concerned about their pets’ health and nutrition and are looking for high quality and nutrient-rich food products. Pet food manufactures have been quick to tap into this rising demand to develop organic, natural, and high nutrition products. According to the American Pet Products Association, pet food sales increased 19.3% year-on-year to USD123.6 billion in 2021. Large pet food and treat manufacturers are expanding their production lines to meet growing demand. The pet food industry has shown resilience during the recent economic downturn and is expected to grow further.

• Mexico – A Promising Sourcing Destination for US Procurement Organizations

  With the global supply chain disruptions, countries are looking to develop strong supply base near to them. For the US, Mexico has emerged as a strong contender. Many drivers contribute to the country being a preferred option. The number of collaborations and trading transactions between the two countries rose in the past year, and this will only increase further. In this article, we discuss why sourcing from Mexico is an attractive option for large US organizations to procure key categories such as metal & electronics components, automotive parts, and other manufacturing products.

• Impact of Biosimilars on Treatment Landscape in US and EU

  Rising healthcare costs vis-à-vis the expanding population and lifestyle-related diseases are some of the key areas of concern across the globe. Governments and the healthcare industry, in particular, have been exploring avenues to address these challenges while offering affordable healthcare services. Digital health users opted for online prescriptions and virtual consulting during the pandemic for faster transformation of the health care delivery. However, advances such as development of biosimilars are a key step toward addressing the concerns of the escalating cost of healthcare and patients' access to critical medicines.
  

• USMCA - A Three-Year Retrospective and its impact

  The US–Mexico–Canada Agreement (USMCA), implemented in 2020, replaced North American Free Trade Agreement (NAFTA) and has significantly benefitted North American trade. It led to a substantial surge in trade, with North American trade volume exceeding USD 1.5 trillion in 2022 led by double-digit growth in trade since 2022. This free trade environment created 9.5 million jobs, and the three countries now account for one-third of the world's GDP. Investments in the region posted remarkable growth, with capital investments increasing 134% to reach USD 219 billion. However, USMCA faces challenges, such as trade disputes, and public opinion on international trade has shifted with 66% of Americans now supporting restrictions on imported foreign goods. The agreement's future will depend on addressing these issues before the joint review in 2026. If successful, the agreement could boost trade relations, enhance digital trade, and promote economic growth in North America.

• Aranca: Driving Seamless Customer Experience in Purchase Price Allocation

  Aranca sets itself apart in the realm of Purchase Price Allocation (PPA) by seamlessly blending precision with exceptional customer service. From collaborative kick-off calls to customized information checklists and meticulous legal document reviews, Aranca ensures accuracy at every step. Proactively involving auditors and incorporating feedback from all stakeholders, Aranca fosters transparency and trust throughout the valuation process. With a commitment to minimizing client burden and delivering peace of mind, Aranca's customer-centric approach makes it the preferred partner in the high-stakes world of mergers and acquisitions.

• Purchase Price Allocation: One of the Largest Airport Services Deal

  This case study examines the key challenges and solutions while conducting a PPA for a notable acquisition within the aviation industry. Valued at approximately $1 billion, the acquisition aimed to expand the acquirer's presence in the aviation sector and enhance its comprehensive logistics solutions. 

• Reshoring in US: Need for Locally Resilient Supply Chains

  US companies are increasingly reshoring their operations from China in response to supply chain disruptions and global uncertainties. CEOs in the US are investing in emerging technologies to enhance productivity and gain a competitive edge. The reshoring movement aims to build locally resilient supply chains and mitigate future risks. By adopting reshoring, the US can strengthen its manufacturing sector, foster economic growth, and create sustainable jobs.

• US Economic Slowdown – An Opportunity for India?

  As the US economy edges toward recession, equity investors are seeking opportunities in other countries. The focus is on emerging economies, specifically in Southeast Asia, and the main contenders are China and India. Both countries have positive and negative factors influencing investor decision. Which country would attract the bulk of the diverted investments is yet to be seen.

• Shifting Tides: The Silent Rise of De-Dollarization

  The US dollar has been the world's dominant reserve currency for decades, with countries around the globe holding large amounts of it to facilitate international trade and investments. However, the trend toward de-dollarization has been growing recently, as countries seek to curtail their dependence on the US dollar and diversify their reserve holdings. Will the dollar be replaced as the global currency?

• Are Risk-Free Bonds Really “Risk-free”?: The Case of Silicon Valley Bank

  Silicon Valley Bank (SVB), one of the leading banks in the US and regarded as the banker for startups, was shut down on March 10, 2023, by regulators due to its heavy investment in bonds and agency-backed securities. SVB’s bonds fell when the Federal Reserve increased its interest rates, thus creating chaos. Can SVB be saved and regain its former glory? Are risk-free bonds really “risk-free”?

• Virtual Power Plants: The Way Forward

  Growth of distributed energy sources (renewable energy) and fluctuations in demand for electricity has led to the development of Virtual Power Plant (VPP) systems. A VPP is a cloud-based system that uses software and algorithms to integrate and manage distributed energy resources. Currently, most VPPs are being established in developed countries such as the US, the UK, Germany, and France. Over the past year or so, VPP’s growth has been fueled by COVID-19 and Russia’s invasion of Ukraine.

• Canned Cocktails: A Rising Trend

  The traditional practice of enjoying cocktails at bars or lounges limited their accessibility to special occasions and exclusive venues. The art of mixing cocktails required expertise and practice, making them less readily available everywhere. However, a new trend has emerged in recent years that has revolutionized the cocktail industry – canned cocktails. While Europe and the US had canned cocktails available since 2000, COVID-19 gave a boost to this segment in other regions as well. The product is slowly gaining popularity in Asia as well and is estimated to have a strong growth trend.

• Can GPT-4 Contribute to the Healthcare Industry Metamorphosis?

  According to Accenture's projections, the implementation of AI applications can reduce annual healthcare costs by USD 150 billion in the US by 2026. AI Chatbots, which are gaining popularity, can do more than just chat. They can potentially combine language skills with image and video recognition. Consequently, the next generation of large language models (LLMs), such as GPT-4, trained in multiple modalities, can become versatile AI capable of performing various tasks. The year 2023 has already brought exciting developments in healthcare AI, and the future promises technological interventions that will revolutionize the healthcare and life sciences industries. 

• Cell and Gene Therapy – The Next Frontier in Lifesciences

  In this era of rapid scientific and technological advancements, we are at the precipice of a healthcare revolution. Cell and Gene therapy (CGT), pioneering treatments that leverage our own biology, are poised to challenge traditional healthcare frameworks. CGT has been witnessing an expanding total addressable market and is expected to grow exponentially. However, the potential gains are not merely financial. Investments in this growing field also help propel the momentum of scientific and medical progress, funding vital research that brings us closer to a more efficient, personalized, and holistic healthcare future. This article attempts to present the current and future landscape of CGT, with a focus on the clinical pipeline evolution, strategic collaborations, and financing and investment environment globally. 

• Decarbonization of Natural Gas at Pre-Combustion Stage

  Decarbonization is becoming increasingly urgent because of the rise in global warming. Given the substantial utilization of natural gas by corporations in the US and Europe, this need has become notably more significant. Currently, the adoption of renewable energy sources stands out as the most relevant method for mitigating carbon emissions. However, limited availability of renewable energy supplies and declining levelized cost of energy (LCOE), has increased per unit cost of green energy, thereby compelling companies to sustain considerate consumption of natural gas. Companies can adopt other techniques for decarbonization, such as carbon capture storage/utilization (CCS/CCUS), as a feasible option to eliminate carbon dioxide content of natural gas. However, due to high costs associated with carbon capture and storage, evaluating certain other future ready techniques, such as methane processing, to decarbonize the balance usage of natural gas is necessary. 

• Mexico's Nearshoring Promise to Supply Chain Adversities

  As the world navigates a series of supply chain disruptions, staying ahead of the curve is crucial. Exploring nearshoring opportunities becomes increasingly important to mitigate risks and build resilience. Mexico is emerging as a promising nearshoring destination to global companies (especially in North America) due to inherent benefits such as logistical proximity, reduced lead times, cost efficiency, and strategic trade relations. Procurement organizations have actively embraced Mexico, making regular investments, expanding capacities, and fostering supplier partnerships to reap the benefits of nearshoring. Are you prepared for nearshoring to build a resilient supply chain strategy?

• Downward Spiral of Tech Industry Valuation

  The Indian tech industry has always been a strong player with consistent growth, but 2022 was a challenging year, and many companies saw a fall in their valuations. This was attributed to factors such as fear of recession fueled by rising interest rates in developed markets, which hampered the revenues, sales, and growth prospects of many tech firms worldwide, including India. Whether it is a short-term effect or will India’s IT sector suffer long-term consequences is yet to be seen.

• Evolution of AI in Modern Military Warfare

  Artificial intelligence (AI) has recently been making significant strides in various fields including military operations. The integration of this emerging technology with modern warfare could revolutionize how armed forces operate, enhance decision-making processes, and provide tactical advantages. This has led to niche investments and a surge in innovations in this industry.

• Harnessing the Power of Artificial Intelligence in Marine Defense

  The integration of artificial intelligence (AI)-based solutions has enhanced efficiency, effectiveness, and security in maritime operations. This is helpful for naval forces protecting the country’s coastlines. AI technology is harnessed to deploy advanced systems capable of tracking, detecting, and executing relevant actions. As there are historical complexities associated with navigating oceanic routes, technology can be extremely helpful. Through integration of technologically advanced solutions identification, monitoring, and decision-making can be streamlined and security can be tightened.

• The Future of Internal Combustion Engine

  In 2021, the worldwide internal combustion engine (ICE) market was approximately worth USD 58,514.15 billion and is predicted to reach USD 93,615.18 billion by 2029, growing at a CAGR of 6.05% between 2022 and 2029 showing tremendous growth. It is likely to expand further as demand for passenger and commercial vehicles rise in both established and emerging markets. Electric powertrains are increasingly coupled with ICE to enhance vehicle fuel efficiency, which is driving industry development. The demand for ICE is growing exponentially in industries such as agriculture, construction, mining, and power generation. The global lack of EV infrastructure availability is partly responsible for the ICE market's growth.

• Keeping an Eye on the Road: The Surge in Driver Monitoring System (DMS)

  With a significant number of road accidents attributed to distracted driving, the adoption of “Driver Monitoring System” (DMS) gained traction in the automotive industry. Governments worldwide are considering legislation to make DMS mandatory, while car manufacturers are embracing this technology to enhance the safety of their vehicles. Will DMS become a safety norm across the globe in the coming years?

• Floating Offshore Wind Energy

  The need for environment-friendly resources and technology is rising. Renewable energy resources are gaining popularity, with wind energy being the second largest source. Though offshore wind is the fastest growing source, floating offshore wind source is also emerging as a powerful source of energy. Platforms and turbines are being developed to garner this energy. Though the resource faces challenges in implementation, it is a viable and economic option, and if a few measures are taken, it can easily become a main contributor of renewable energy.

• Overcoming Limited Global Starch Supplies through Effective Contracting Strategy

  The price cushioning initiative by leading starch producers, coupled with market and climate conditions driven feedstock supplies constraints, would lead to a decline in starch supplies in the next 1-2 years. Amid such supply market situations, it becomes necessary for industrial starch buyers to better utilize global and regional starch suppliers to build resilience in their starch supply chain.

• Fertilizer Sector on Fertile Ground in 2022

  Fertilizer prices have considerably increased over the last year. Growth was driven by higher demand on account of economic recovery in 2021 after the pandemic, jump in raw material prices (especially for natural gas), ban on exports by major producers such as Russia and China, and geopolitical tensions.
  

• Price Corrections in Global Caustic Soda Market

  The global caustic soda market observed substantial price corrections in 2023 following the elevated energy costs in 2022. APAC, commanding 55–65% of chlor-alkali capacity, saw a 19% drop, led by China. In contrast, North American suppliers were resilient to declines, maintaining a strong market stance. After Russia-Ukraine challenges, Europe faced surging prices and reduced utilization rates. Nevertheless, the caustic soda market shows promise, driven by stable demand in traditional applications and emerging Li-ion battery opportunities. The outlook foresees price recovery in APAC and Europe, with North American suppliers expected to concede to lower prices for better plant utilization.

• Biases and Investor Choices: A Behavioral Finance Perspective

  Behavioral finance is a fast-growing field that focuses on the complex interplay between human psychology, investor behavior, and financial markets. By examining the impact of psychological elements on investor conduct, specialists in behavioral finance aim to explain why financial markets behave in a certain manner, and how investors can take better decisions A plethora of cognitive elements, including but not limited to overconfidence, confirmation bias, herd mentality, and loss aversion, can significantly influence investment decisions. Gaining insight into these biases can offer valuable perspectives on market trends and support investors in making decisions that are better informed.

• Green Gold Rush: Cleantech Startups Attract Global VC Interest

  In recent years, cleantech startups have emerged as the favorites of venture capitalists (VCs). The rising concerns surrounding climate change triggered a massive shift in investment patterns and pushed the clean technology sector into the limelight. This transformation is not confined to a specific geographic region; rather VCs across regions are increasingly supporting technologies and innovations that could contribute to a sustainable future. Is this a short-term trend or a new phenomenon?

• Private Label Retail in F&B – A New Paradigm in Consumer Choice

  Private label retail, also known as store brand or own brand, posted remarkable growth in recent years globally. Retail giants, such as Walmart and Target, played a significant role in driving this surge, revolutionizing the way consumers perceive and engage with private label products, especially in the Food and Beverage(F&B) segment. While it can help increase the profit margin of retail stores, it comes with a set of challenges.

• Soil Conservation – A Critical Need

  Soil is a critical resource needed for our very survival as it ensures food production and security for countries. Yet, unchecked pollution is leading to irreversible soil damage. Apart from natural disasters and industrial activities, modern soil enhancers are causing soil erosion and degradation. This unprecedented damage can pose major challenges in the future. Fortunately, there are organic ways to mitigate this damage, which can help conserve healthy fertile soil for reuse.

• Pet Shelter Segment on a Growth Trajectory

  The pet care industry is witnessing rapid growth due to the rise in pet adoption across the globe. With cats and dogs being the most popular pets, there is a need for good care facilities where they can be left by working or traveling parents. Key players compete against each other by offering various services for pets as well as convenience for owners. The pet shelter segment is flourishing worldwide, and its momentum would continue to grow.

• Sugar Alternatives – The Sweet Success Story

  Sugar alternatives are an emerging ingredient category gaining popularity due to the consumer shift toward health and fitness. Various factors drive its growth, with certain regions recording higher demand than others. With various options available, the sugar alternative industry is poised to grow as it is an exciting sector with unexplored opportunities and potential.

• An Alternate Revenue Stream from Decarbonisation Techniques

  Most industries are now moving towards “reducing CO2 emissions and targeting to become carbon neutral by 2050”. Companies have already set sustainability targets to reduce CO2 emissions. Methane processing techniques are being evaluated as a potential decarbonisation process compared with commercially available CCS/CCU techniques. These techniques decarbonise natural gas and form a feasible business case for companies adopting it, as hydrogen produced can be re-titrated to natural gas stream to achieve up to 100% sequestration of carbon content and solid carbon (carbon black/graphene) produced can be traded in various end-use industries, including tyre, construction, and ink & coating industries.

  Carbon black is a mature and low-priced market ($1-2/kg) with the tyre industry contributing to >70% of the demand. While graphene is a high price point market ($100-1,000/kg), the actual demand of graphene is still optimistic and highly dependent upon the mass adoption by major end-use applications such as cement, concrete, etc.

• Nanoclay – A Feasible Alternative for Food Packaging Industry?

  Incorporation of nanoclay in polymer is an emerging technology for optimizing food packaging material that can meet the stringent regulations imposed on packaging industry. However, a few challenges are associated with its use in food packaging industry. If these challenges can be successfully overcome, nanoclay technology will be widely adopted.

• Heat Wave: A Challenge for Power Sector

  Heat Waves as an impact of climate change have created an existential crisis and countries across the world are struggling against it. It has led to increasing demand for electricity and the need for alternative energy sources. Heat waves are also affecting the power generation capacity of renewable energy sources as well as thermal power plants. How can countries work together to decelerate global warming and develop new technologies to overcome issues caused by climate change?

• Exploring the Factors Behind Volatility in the Silicon Market

  The high volatility of silicon metal prices impacted multiple end-use industries over 2021–22. Prices spiked multi-fold in 2021 compared with 2020, but declined by 60–70% in 4Q22, primarily driven by supply-demand dynamics and varying cost of production. 

• Friendshoring: Strategy to Reduce Supply Chain Dependency on China

  Supply chains globally have barely recovered from the unprecedented challenges posed by the pandemic. The Russia–Ukraine war has added to the woes of already fragile supply chains. The only silver lining is that companies realize the perils of relying on a select few countries for manufacturing, raw materials, and components. For decades, companies have followed strategies such as offshoring, nearshoring, and outsourcing business operations to low-cost countries. However, recent events accelerated the movement to safeguard supply chains and move away from depending entirely on countries like China. One such concept that could be a game-changer for global trade order is “Friendshoring.”

• Modern Technologies to Clean Up Space Debris

  While space technologies are evolving and leading to the discovery of many facets of the universe, they are also creating space junk. Researchers, space engineers, and startups are deploying various technologies to remove these debris, since the materials floating around space can collide with a space station or satellite and damage it beyond repair. As space technologies continue to advance and increase space traffic, the process to monitor and clean space debris must become continuous and automatic.

• Rise of Metaverse Real Estate

  Real estate is rapidly developing in metaverse as more and more corporations are buying land in the virtual world. The main real estate companies in this segment are witnessing exponential growth and have potential for further development. Land prices in metaverse are connected to the experiences that can be created within this space. Therefore, corporations, retailers, hospitality companies, and banks are marking their territory in the virtual world and vying to create the most interesting experiences.

• Global Market Opportunity for Bio-Based Resins

  Bio-based resin is being increasingly adopted across industries as the need for sustainability has risen. Bio-based resins, made from partially or wholly plant-derived monomers, offer a sustainable and carbon-positive approach for consumers and manufacturers shifting to a bioeconomy model from highly-priced and depleting fossil fuel ingredients. Government regulations have also boosted their application. Successful commercialization is leading to the growth of bio-based resin throughout the world.

• Captured Carbon Dioxide – A Valuable Resource

  With climate change threatening the entire planet, it is essential to take decisive steps to stop environmental degradation. Governments across the globe are committed to reducing their carbon emission and invest in green energy, carbon capture (CC), and carbon capture and utilization (CCU). These technologies help modify captured carbon and reuse it, thereby reducing pollution and contributing to achieving net zero emission.
  

• Exploring Factors Affecting the Global Shipping Price Rise

  In early 2024, global shipping faced challenges due to attacks on key routes, like the Red Sea and Suez Canal, causing delays and raising costs. New environmental regulations added further complexity and expenses. Short-term solutions helped, but long-term resilience requires collaboration on security, compliance, technology, and finance.

• How Telecom Companies Leverage Gamification

  Gamification allows service industries to improve customer interaction and access to invaluable data. Telcos understand this need and some have already invested in integrating gamification in their platforms to increase customer loyalty. Using emerging technologies such as AI, metaverse, and AR/VR, the telecom industry can help create a personalized experience for customers, encourage brand involvement, establish a strong connection, and generate a new revenue stream for businesses.

• Industrial Bio-Oils Take Center Stage in Sustainable Shift from Synthetic Oils

  Organizational time-bound sustainability targets and attempt to build resilience by finding ways to minimize the impact of market/price volatility have been pushing companies to realign their business practices. It is time for chemicals, paints & coatings, CPG, and packaging companies to revisit their raw material sourcing spectrum by considering sustainable alternates - Industrial bio-oils! Global companies across industries have been actively transitioning from synthetic oils to bio-oils considering their performance is superior or comparable at the minimum. In lieu of the growing demand, the supply is poised to grow robustly with rising investments from prominent suppliers. Therefore, to drive sustainability across the sourcing value chain, it is imperative for procurement heads to leverage the expanding supply and gain a competitive position in the market.

• Integrating ESG in Real Estate

  Environmental, Social, and Corporate Governance (ESG) is slowly gaining prominence across industries. Real estate has been a late adopter of this concept, but global warming concerns and net zero commitments have accelerated its acceptance within the industry. Real estate companies across regions are embedding ESG practices within their processes. Investors and financial firms also consider it important. ESG is set to become an essential requirement and become an integral part of Real Estate processes.

• Mini-grids: Bridging the Gap in Electricity Access

  More than a billion people across the world do not have access to electricity; this includes Africa, where a major share of the population lives without electricity. To increase electrification and link remote locations, more and more countries are looking to install mini-grids. Asia and Africa are recording higher growth in installation of mini-grids, and it is expected that by 2030, mini-grids will provide electricity to more than 500 million people globally.

• 3D Printing in Dentistry: Challenges and Solutions

  3D printing in dentistry is seeing increased adoption due to its many advantages, but certain associated challenges hinder the wide-scale implementation of the technology. However, solutions are being developed to overcome these challenges and enable 3D to transform dentistry and help people get a beautiful smile.

• Thematic Investing on the Rise

  Disruptive technology is constantly reshaping the world. Despite the pandemic-induced lockdown, seamless internet connectivity enabled access to a virtual world where we could work, shop, and even meet people. Due to mobility restriction, labor shortage, and supply chain disruption, manufacturers have turned to robotics. Breakthrough treatments and medical advances in healthcare have helped combat the pandemic crisis. Climate change has shed light on vehicle electrification and the shift to renewable energy. Consequently, technological advancements such as AI, machine learning, blockchain, robotics, and data analytics are gaining popularity. The benefits of these disruptions, or rather “trends” and “themes,” are manifold. These trends are increasingly changing the way investors manage their portfolios.

  
  

• Gamification – Transforming Food Marketing

  Gamification in the food industry refers to using game-like elements and techniques in the design and marketing of food products and experiences. It is a popular trend in the food industry, as it can be an effective way to engage and motivate consumers and to create a sense of fun and excitement around food. Some brands have used it to increase their sales revenue by creating the right games, and through these, a loyal customer base. 

• Buy Now Pay Later: The Latest FinTech Disruption in Payments

  BNPL is a FinTech option that allows buyers to buy now and pay over a period of time. Unlike the regular loans, BNPL does not involve paperwork ­– customers can access it almost instantly using their smartphones. Besides helping customers raise credit easily and boosting the sales of consumer goods and other white goods, BNPL helps merchants to explore new borrowers. Accessing credit via BNPL is easy and hassle-free compared to a traditional loan; however, consumers must exercise utmost caution before using the BNPL facility as it is also a type of loan which must be repaid. The sector has faced intense scrutiny from regulators recently over awareness concerns. Nonetheless, BNPL’s future appears very bright.

• Latest Trends in Regenerative Medicine

  Healthcare and medicine are in a constant state of evolution. Innovative technologies such as regenerative medicine are bringing about a paradigm shift in the healthcare industry. While the segment does raise some moral questions, it is witnessing huge capital infusion from pharmaceutical companies. Despite the major challenges associated with regenerative medicine, industry trends indicate that it is poised for growth.

• Security of Natural Gas Supply (Europe)

  Prices of gas and electricity increased substantially across Europe in 2021–22 and are expected to rise further in 2022–23, as Russia began limiting gas supply to the region in response to the sanctions imposed. However, individual countries have taken several initiatives such as expanding storage capacity and coal and oil generation to reduce dependency on gas; reducing industrial, residential, and commercial demand; increasing imports from other countries; and investing in new infrastructure that would help secure supply and ultimately lead to stability in prices. 

• The Current Real Estate Turmoil in China

  China’s real estate sector is in turmoil due to various factors, ranging from low investment to declining trade numbers. It has far-reaching implications and is threatening the country’s economic growth. Therefore, the government has undertaken certain policy measures to limit the damages. However, a more extensive plan is needed to deal with this issue effectively.

• Purchase Price Allocations: What CFOs need to know to get it right?

  Purchase Price Allocation (PPA) is an important component of a merger and acquisition transaction. It entails distribution of the value of the purchase consideration among various tangible and intangible assets (and liabilities) acquired from the target following the merger/acquisition. Residual purchase consideration, if any, is recorded as goodwill in the acquiring company’s books. A fairly complex process, it requires deep domain knowledge, understanding of the business plan, and expertise in intrinsic valuation to ensure all aspects of the analysis have been factored in accurately.

• Gene Therapy: Revolutionizing Type 1 Diabetes Care

  Type 1 diabetes results from intricate interactions between genetic predisposition and environmental triggers. Existing treatments often fall short of providing sustained relief, prompting the search for alternative solutions. Gene therapy offers such avenues by either reprogramming alpha cells to perform beta cell function or providing gene editing tools that cut out damaged DNA altogether. The landscape of cell and gene therapy is ever evolving, accelerated by substantial investments, novel technology, and strategic partnerships among key major players. Cutting-edge technology, regulatory backing, and favorable market conditions are propelling alternative therapies towards mainstream acceptance.

• Exploring Web3: Applications and Use-Cases

  In this technology-driven world, centralization has enabled billions of people to become familiar with the world wide web or the internet, making way for the advent of many emerging technologies such as AI, blockchain, and machine learning. The increasing implementation of blockchain has necessitated the interoperability and seamless integration of blockchain platforms. Web3 embraces decentralization and gives more power to individuals than corporate giants, thus providing interesting use cases.

• Metaverse – Revolutionizing Entertainment

  The metaverse is slowly changing the world, creating a virtual reality, which is set to become a parallel universe soon. It is an interconnected world with virtual communities, where digital avatars of individuals can connect, work, or play using smart devices such as virtual reality headsets, smartphone apps, and augmented reality glasses, to name a few. This concept has immense possibilities in the entertainment industry and will be able to offer a completely immersive experience and greater entertainment value to viewers. This article discusses under-research and potential use cases of the metaverse in the entertainment industry.

• Trends in Pet Grooming Industry

  Pet grooming refers to cleaning, checking the hygiene, and improving the appearance of your cats and dogs. This segment of the pet care industry has also witnessed growth as the industry has been on an upward trajectory. Certain trends are driving the industry and revolutionizing the type of products and services being offered for pet parents of cats and dogs.

• Boron Revolution 2030 – Quest for Resilience Amidst Supply–Demand Disparity

  The decarbonization-led future with applications of e-mobility, wind energy, and solar energy is expected to drive an unprecedented rise in demand for boron and its derivatives. However, with no major supply expansions in the immediate pipeline, the supply–demand disparity is anticipated to widen, leading to a 25–40% projected price upsurge in the next 4–5 years. Therefore, reassessing supply chains and developing resilience to maintain competitiveness is crucial for companies in industries such as glass/composites, industrial manufacturing, automotive components, ceramics, and chemicals. It is imperative for procurement heads to secure future supplies by outlining forward-aligned sourcing strategies.

• Bioplastics - A Sustainable Alternative to Conventional Plastics

  Conventional plastics are a major cause of marine pollution. Bioplastics, made from renewable sources, are emerging as a popular alternative. The ban on single-use plastics and increasing demand from industries drive their adoption. However, challenges like economies of scale and limited composting facilities exist. Stronger legislation and incentives are needed for widespread use. Bioplastics offer a sustainable solution to reduce plastic waste.

• Exploring the Complexities of Hair Loss: Insights into Causes and Research Trends

  Hair loss is a pervasive worldwide concern. It can be caused due to various conditions such as androgenetic alopecia, alopecia areata, and telogen effluvium. The past decade has witnessed extensive research efforts dedicated to understanding the intricate factors that cause hair loss, delving into internal and external elements, alongside the impact of signaling pathways in varying manifestations of hair loss. While some studies have explored genetic predisposition associated with androgenetic alopecia, others have researched the role of hormonal imbalance linked to conditions such as polycystic ovary syndrome (PCOS) and thyroid disorders.

• Metaverse – The Future of EdTech and L&D

  The metaverse is essentially a futuristic virtual universe that will impact every aspect of our lives. It is also expected to change the current education system, making it more interactive, interesting, and experiential. Education technology (EdTech) companies and learning and development (L&D) platforms are gearing up for the change the metaverse will bring forth. By removing physical barriers, the metaverse will likely ensure that all individuals, even in the least accessible parts of the world, may avail quality education.

• Gamification in Healthcare

  Gamification is gaining importance as an interesting way to interact with customers, keep them engaged with brands, personalize offerings, and collect relevant data in the process. The healthcare industry has recognized the value of incorporating rewards and recognition to entice patients to participate in a health regimen. There has been an influx of fitness apps and devices using gamification in novel ways to attract and retain users. Some companies have done this successfully and reaped its benefits.

• Smart Healthcare: The Dawn of a New Era in the Post-Pandemic World

  The global pandemic created a humanitarian and economic crisis; nonetheless, it accelerated technological innovation across industries. Healthcare, the most directly affected sector, had to quickly adopt and implement modern technologies to handle the crisis. Healthcare systems across the world were challenged due to the surge in demand and workload pressure. This led to a wave of technological transformations and accelerated the adoption of digital capabilities to enhance efficiency. With this, the process of health check evolved, undergoing several structural changes. 

• Climate Tech Startups Saving the Planet

  In the past few years, changing weather patterns and an increase in natural disasters became evident as the climate change impact intensified. With the global temperature increasing and ice mass melting, sea levels have risen, which will soon prove to be cataclysmic for the planet. Technology experts and modern entrepreneurs are devising innovative solutions to combat climate change, such as reducing carbon emissions, harnessing renewable energy, and creating sustainable solutions, thereby changing the way of life. Will they be able to reverse the negative effect of environmental degradation and reset the delicate ecological balance?

• Keeping An Eye on Serotonin – The Need to Monitor Neurotransmitters in Our Body

  As a feel-good hormone, serotonin plays a key role in regulating moods, forming memories, and processing rewards, excitement, and happiness. Serotonin is an integral part of the human neurotransmission pathways and can directly impact mental and psychological well-being. Any disturbance in the level of this hormone in the blood can affect regular functions such as sleep, digestion, blood coagulation, and bone health, and cause anxiety or depression. Hence, tracking the level of serotonin through innovative new-age technologies can help with early prognosis and address the underlying issue.

• Veterinary Medicine – An Emerging Segment

  The global veterinary market is benefitting from the growing trend of pet adoption and is witnessing increased demand. Some interesting trends are changing this industry and key players in this space must be aware of these factors. These trends will change the face of veterinary medicine and bring about advancement in animal healthcare.

• The Dual Effect of Private Equity

  Private equity (PE) investments help and support companies with promising prospects, which have several positive impacts on society as they help create jobs and build successful businesses. PE firms provide capital for companies, encouraging them to grow and become more competitive. However, critics argue that these investments typically force small companies out of business and can be detrimental to them in some respects. Overall, PE has both positive and negative implications and can be a boon to society, but a threat to startups in certain situations.

• Millets – The New Super Crop

  Millets, often referred to as "food grains of the poor," are grown and consumed worldwide. Currently, there is a renewed interest in millets due to their numerous health benefits, low environmental impact, and adaptability to diverse growing conditions. In fact, the United Nations declared 2023 as the “International Year of Millets”, highlighting the importance of these crops for food security and sustainable development. This is expected to increase the demand for millets globally and create new opportunities for farmers and entrepreneurs in the millet value chain.

• Beyond Plastic: Embracing Sustainable Packaging Alternatives

  There is a major global shift away from plastic packaging toward other sustainable alternatives. This is driven by increasing environmental concerns and growing recognition of the detrimental impact of plastic waste on the ecosystem. There is a need and demand for more sustainable solutions.

• Applications of Nanotechnology in Diagnostic Testing

  Nanotechnology, the manipulation of matter on an atomic and molecular scale, has emerged as a revolutionary field with diverse applications across various industries, including healthcare. In the realm of diagnostics, nanotechnology offers promising advancements, from early disease detection to point-of-care testing and personalized therapeutics, that hold the potential to radically transform how diseases are detected and monitored.

• Can ChatGPT Disrupt Financial Services?

  Generative artificial intelligence (AI) tools, including ChatGPT, have led to increased adoption of AI in financial advisory and risk management. These tools have the potential to address issues related to operational inefficiencies, fraudulent activities, and the need for personalized services. However, it is important to recognize that ChatGPT has limitations, and human intelligence and judgment will continue to be crucial for decision-making.

• CAR T-Cell Therapy – Revolutionizing Medical Science

  Chimeric antigen receptor (CAR) T-cell therapy has come to fore as a breakthrough in cancer treatment, specifically for blood cancer. Several companies have invested in it and many treatments have already received FDA approval. Although there are certain limitations to this therapy, they can be overcome via research. The CAR T-cell therapy can not only become a revolutionary treatment for cancer but also cure autoimmune diseases and viral infections.
  

• The Rise of High-Pressure Processing

  High pressure processing (HPP) technology is witnessing rapid growth in the food and beverage industry. Consumer demand for fresh, minimally processed foods with longer shelf life; the need for safer and healthier food products; and the rise of HPP-processed functional foods are driving the HPP market.

• The Rise of Vertical Farming and Hydroponics

  Increasing demand for food, coupled with decreasing farmlands and fertile soils, has led to the emergence of alternative forms of farming, such as vertical farming, to boost food production. Countries that have long struggled with domestic production and supply constraints due to the lack of natural resources and favorable climatic conditions are implementing these technologies to achieve food self-sufficiency.

• Carbon Capture – Moving Toward Net-Zero Emissions

  To save the planet from climate change, countries and organizations are working toward achieving net-zero emissions. Capture, utilization, and storage of carbon emerged as a leading strategy for limiting the global temperature rise. However, these technologies are expensive to implement in factories and manufacturing facilities. In addition, each technology comes with its set of limitations. If these obstacles can be surmounted, carbon capture can be widely implemented and contribute to a positive environmental impact.

• PFAS Sourcing Challenges – Alternatives on the Rise

  Per- and polyfluoroalkyl substances (PFAS), widely used for their unique properties, face heightened scrutiny due to health and environmental concerns. Their persistence in the environment and links to adverse health effects have led to regulatory actions globally. Industries such as food packaging, coatings and paints, chemicals, cosmetics and personal care, and electronics using PFAS are recommended to adopt safer alternatives, stay up to date on regulations, and follow responsible management practices. Proactive measures can mitigate the environmental impact, safeguard public health, and ensure business sustainability amid increasing PFAS challenges.

• The Internet of Behavior: Shaping the Future of Data-Driven Insights

  Today’s interconnected world has given companies access to an immense amount of data. This data can be used to predict human behavior, possible outcomes to a certain situation, general behavioral patterns, and design offerings accordingly. This process is called Internet of Behavior (IoB) and can be used in various fields such as marketing, healthcare, insurance, and even policy making.

• The Other Side of ESG Investing

  Environmental, social, and governance (ESG) factors play a critical role in investment analysis, actions, and recommendations. Globally, investors are looking at different methods such as positive or negative screening, green finance, thematic investing, shareholder engagement, and activist ownership to include ESG factors. Sustainable investing is the new buzzword for successful investing. However, various private ESG data providers use inconsistent scoring approaches or inappropriate constraints and assumptions. Lack of standardization and transparency makes it tough for investors and analysts to determine the effectiveness of ESG scoring. Additionally, companies having a low environmental score, owing to uncertain emissions reduction targets, but a high social and governance score may not be considered ESG compliant by a few market participants. This lack of uniformity has given rise to issues such as greenhushing and greenwashing.

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Blogs

2 blog posts found for us:

• Healthtech Startups - Driving Innovations in Healthcare

  Technology enabled vertical of healthcare is known as healthtech. This sector has recently seen many startups offering innovative products or services that improve the distribution of healthcare or support it in other ways. While developed countries have seen its quick adoption, emerging nations are also increasingly accepting it and implementing these products to make their healthcare more efficient. The venture capitalist and investment companies have taken notice of the growth in this sector and have been investing in promising startups.

• Founder’s Stock Sale — How Not to Turn it Into a 409A Nightmare

  A Founders’ Stock sale can have serious and far reaching implications on the pricing of stock options due to 409A provisions.
  While the extent of the impact can vary significantly, it’s important to understand when this affects companies the most as well as how they can structure such transactions to mitigate these effects.

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Special Reports

25 special reports found for us:

• High Yield – US Spotlight

  After recording a plunge in the US high yield bond returns in 2022, the Federal Reserve’s aggressive monetary policy stance to tame inflation proved crucial in driving asset prices in 2023. The possibility of a soft-landing, where the US Fed could afford to slowdown economy and avoid a recession, has favored higher-beta fixed income assets such as the US speculative grade corporate bonds. We observed this in 9M’23, where the US high yield corporate bond Index generated returns at ~6% whereas the US Investment Grade Bond Index remained flat. Barring Equity and Energy, the US high yield corporate bonds outperformed other asset classes like the US treasuries, gold, and metals. As recessionary fears subsided, spreads across all rating categories of the US high yield bonds (i.e., BB, B, CCC and lower) have tightened. However, due to higher borrowing costs, the number of High Yield Corporate Bond issuances remains below the five-year average. Notably, consumer discretionary and healthcare sectors remain challenged by multiple headwinds, such as muted consumer demand, pricing pressures, high labor costs, and rising input costs. The impact is witnessed from the fact that a major chunk of bankruptcy protection filings has been in these sectors. Overall, bankruptcies in YTD Aug’23 have surpassed 2021 and 2022 levels. We still see value in the real estate, materials, and utilities sector, which recorded relatively lower bankruptcies in 2023.

• US Housing Market Overview

  The surge in home prices in the US in 2021 can be attributed to a combination of factors, including the increased housing demand as owning a house became a priority post pandemic; a shortage of construction manpower leading to supply crunch; and favourable mortgage rates back then in 2021. However, the pandemic triggered uncontrolled inflation and in response to that the US Federal Reserve initiated a series of interest rate hikes, resulting in higher mortgage rates. As of the early months of 2023, new home sales have been on a decline, falling below market expectations through August 2023. This downward trend was also seen in the existing home sales in the country as homeowners who locked in low interest rates stayed put and were hesitant to list homes. Builders' sentiment began to erode in August, as the costs of mortgages, construction materials, and labor wages continued to rise. Mortgage rates are expected to remain above 6% for the rest of 2023, keeping sales volume low. Recent data indicates competition easing faster than normal in the US housing market on the loosening of inventory and home prices ticking down in Sep’23 as sellers slightly lowered their asking price. The US home buying activity is expected to be largely driven by the rising employment in high paying sectors and expectations that the Fed will start lowering interest rates in 2024.

• High Yield – US Spotlight

  Rising Inflation, supply-chain disruptions, and tightening financial conditions have created a negative sentiment amongst the investors. In Year-To-Date 2022, the US High Yield funds witnessed net outflows of $33.8 billion. Year-To-Date July 2022 returns of major asset classes, including HY, were significantly negative. Equities and Emerging Markets have underperformed, compared to debt and developed markets, respectively, while oil markets are a clear winner. On the risk front, spreads have widened highlighting the rising credit risk. The spreads of CCC & lower rated bonds are trending over 1,200 bps. As cost of borrowing increases, corporates have struggled to refinance and/or issue new debt resulting in a substantial decline in high yield issuances in YTD 2022. Furthermore, Federal Reserves’ aggressive stance to hike rates and abate inflation, could have negative implications on growth. The most widely tracked 10Y-2Y US Treasury spread has entered negative territory in July as fears of recessions grip the market. High financing costs and weak cash flows could lead to increased number of companies filing for relief under Chapter 11 bankruptcy protection. The high-risk scenario, however, represents high return opportunities. Investors might stay away from riskier CCC & lower rated bonds and diligently look towards BB / B rated bond for higher yields.

• US Legislative Drive for Sustainable Economic Growth

  The US senate have passed three legislative bills - Infrastructure Investment and Jobs Act (IIJA), the CHIPS and Science Act of 2022 and the Inflation Reduction Act of 2022 in an effort to strengthen the US economy, combat climate crisis; and rebuild and modernize the US infrastructural landscape. This special edition provides the detailed insights on the three legislative bills passed by the US senate and captures the impact on sectors and the US economy.

  
  

• Extension Risk for US Bank Preferred Securities

  Fed’s 300 basis point rate hike this year has sent shock waves across the global stock and bond markets. Wall Street banks recently warned of revenue contraction amid the weakening market environment. However, US banks’ balance sheets remain strong, which could be attributed to higher capitalization following the global financial crisis (2007–08). In the backdrop of sticky inflation and expectations of “higher for longer” interest rates, we see extension risk rising for preferred securities issued by US banks. This report focuses on the factors driving extension risk and highlights the preferreds that are most at risk.

  
  

• Exploring the Rise and Impact of US RIA

  There has been a global shift in recent times to clean technology as advancements in electric vehicles (EVs), as well as solar and wind energy, gain momentum. However, there are several limitations in the existing energy-storage mechanism. Lithium-ion batteries are primarily used for energy storage, but lithium is scarcely available and highly expensive. Additionally, such batteries are relatively unsafe, and there have been several reports of batteries overheating and bursting. Sodium and zinc batteries are good alternatives to overcome these issues. Both metals are more widely available than lithium and cost less. However, their lower density means that sodium and zinc batteries would be larger and heavier. Therefore, such batteries could be used in applications where stationary energy is possible or in EVs, with limited mobility. Startups and well-established firms are making significant investments in the development of sodium and zinc batteries and are likely to reap strong returns.

  In the ever-evolving landscape of personal finance, individuals seek not only financial stability but also strategic guidance to optimize their investments. This is where Registered Investment Advisors (RIAs) emerge as key players in the financial ecosystem. RIAs, regulated by the Securities and Exchange Commission (SEC) or state authorities, offer personalized financial advice and comprehensive wealth management services, putting the client's interests at the forefront. In the dynamic landscape of financial advisory services, the United States takes center stage as the epicenter of Registered Investment Advisors (RIAs). With over 96% of RIA firms based in the U.S., their influence extends globally, managing an impressive 90% of the world's managed assets. In 2022,  the sector, consisting of 15,114 advisers overseeing $114.1 trillion for 61.9 million clients, experienced a growth of 2.1%. Despite challenges from an unstable global economy causing a decline in assets under management for the first time since 2008, Registered Investment Advisors (RIAs) persevered and maintained their success. The RIA industry is witnessing transformative trends, characterized by a robust merger and acquisition market, the emergence of new industry players, advancements in AdvisorTech, and evolving client expectations.

  
  

  
  

  
  

  
  

• US Regional Banks’ Crisis is Far From Over

  US regional banks continue to grapple with the same underlying problems that triggered the crisis, i.e., valuation losses on fixed-income investments, increased cost of deposits, and high levels of uninsured deposits. Increased deposit outflows tightened the liquidity of the banks, making them more reliant on borrowings from the Federal Home Loan Banks and Bank Term Funding Program facility. Moreover, regional banks have high lending exposure to commercial real estate, making them vulnerable to significant headwinds faced by the sector.

• US Home Healthcare Sector: Resurgence After a Period of Contraction

  The US home healthcare market is characterized by high fragmentation and competition, mostly comprising small-scale local providers. Major players such as Amedisys, Addus, Aveanna, Brookdale Senior Living, and The Pennant Group (public and private) dominate the landscape. This sector's growth is propelled by an aging population, escalating healthcare costs, and an increasing age dependency ratio. While the growing senior population pushes up healthcare costs, providing care in home settings can reduce expense. Reimbursement trends are shifting toward value based models and facilitating enhanced patient outcomes. Despite challenges like shrinking margins, the sector rebounded in 2023 post COVID-induced disruptions, driven by technological advancements and demographic factors. This resurgence after a period of contraction reflects the sector's resilience and potential for continued growth.

• Big Four US Banks - Who Has Better Deposit Beta and NIM?

  The Fed delivered its first rate hike since 2018 in March 2022 against the backdrop of high inflation and rising house prices led by quantitative easing during the coronavirus pandemic and soaring energy prices. However, the magnitude of current rate hikes is much higher compared to the previous rate hike cycle of 2016-18 where rate hikes were smaller and evenly spread across multiple quarters. In the report we a) decode the Net Interest Margin of US Big 4 Banks by analyzing deposit beta, and composition of interest-earning assets, b) answer whether strong deposit beta can lead to better NIM, and c) interpret the likely trend of deposit beta and NIM to determine which bank would benefit the most in the current rate hike cycle. 

• Hurricanes 2022- Facing Supply Chain Adversities with Resilience
  In the US, besides global disruptions (COVID-19-led volatilities, geopolitical instabilities, etc.), natural disasters such as hurricanes have exacerbated supply chain issues. Over 300 hurricanes made landfall in the US during 1851–2021, causing damage worth more than USD1 trillion across supply chains of key industries. Such events are expected to intensify in the coming years, leading to a sustained negative impact on supply chains. Is your supply chain ready to navigate the potential risks of the hurricane season 2022? Our special report can help you quickly understand the value chain of key industries susceptible to hurricane risks, the potential impact, and risks of hurricanes across supply chains, and the best practices for effective risk mitigation.

• SVB Crisis: Snowballing Down the Valley

  California-based Silicon Valley Bank (SVB), which specifically catered to startups, went bankrupt after it reported huge losses on investments. The bank received an influx of deposits in 2021 due to strong private fundraising and easy funding available to startups. SVB parked these deposits in government bonds and long-dated mortgage-backed securities, which are deemed risk-free. However, with the Fed aggressively increasing interest rates to tame inflation, the bank incurred huge mark-to-market losses on these securities, leading to a liquidity crunch at the bank when its clients started withdrawing money. This crisis challenges the risk-free status ascribed to these bonds and the level of regulatory oversight for small banks. On the other hand, large US banks are relatively safer due to their diversified business model, strong risk management practices, and stringent regulatory requirements related to liquidity and capital.

  
  

• Manufacturing on the Move: Reshoring Trends in Mexico and Vietnam

  In a world shaped by the seismic shifts of the COVID-19 pandemic, the Ukraine-Russia conflict, and the Red Sea crisis, a new narrative of resilience and adaptation is unfolding. Major companies are navigating through turbulent waters as supply chain disruptions cast a spotlight on the imperative of diversification. The World Container Index echoes this tumultuous journey, soaring to US$3,659 amidst the Red Sea crisis, symbolizing the challenges and opportunities in global trade. In a surprising turn of events, Mexico has emerged as a formidable contender, outpacing China as the leading importer to the US in 2023. This shift reflects a paradigm where unfavorable sentiments towards Chinese trade practices have paved the way for Mexico's ascent. With significantly lower average wages and strategic advantages stemming from the USMCA trade agreement and proximity to the United States, Mexico stands tall as a beacon of opportunity in the trade landscape. Meanwhile, Vietnam's ascent in labor productivity adds a new dimension to the global manufacturing stage, drawing attention and admiration from investors worldwide. As the allure of countries like India, Indonesia, and Thailand grows stronger, fueled by their proximity to China, competitive labor costs, and demographic advantages, a new era of exploration and innovation beckons. These nations stand at the crossroads of possibility, offering a canvas for companies to paint their supply chain futures with hues of diversity and resilience.

• Broadcom Inc. acquires VMware

  Broadcom (AVGO.O) announced its intention to acquire cloud-computing firm VMware (VMW.N) for $61 billion, along with assuming an additional $8 billion of the company's debt in May 2022. On November 22, 2023, Broadcom confirmed the completion of the acquisition. This strategic move positions Broadcom as a significant player in the infrastructure management software market.

• Microsoft – OpenAI Partnership

  Microsoft and OpenAI entered a partnership in 2016, with OpenAI committing to use Microsoft’s Azure as its primary cloud provider. Both companies saw the potential in collaborating and as a result, Microsoft started investing in OpenAI. After investing in OpenAI in 2019 and 2021, Microsoft further strengthened its partnership in 2023 with a US$10 billion investment.

• Metaverse – Mapping Investment Opportunities

  The COVID-19 pandemic has led to a rise in consumers’ expectations and need for more fulfilling and immersive communication methods. Numerous consumers are seeking ways to adopt the metaverse. Metaverse is considered the next generation of the Internet, ready to penetrate every sphere of human activity. Tech companies worldwide are gearing up to adopt the new technology by including it in their core business activities. Metaverse-specific investments have risen in the past few years. Several tech companies are looking to gain the first-mover advantage through large-scale acquisitions in this space. Metaverse-related ETFs have hit the market over the last 12 months, and many are in the pipeline. Globally, investors have been very bullish about the theme, and prominent institutional investors consider it a game changer. The metaverse also opens doors to key investment areas such as hardware, infrastructure, virtual platforms, payments, content, and assets

• Revenue Swing Analysis of S&P 500 Companies

  S&P 500 companies generated $4 Trillion revenues in 4Q22 – a -11% revenue growth swing in 4Q22 dragged down by Technology, Basic Materials and Energy sectors.

• Growing Consolidation in the US Oil & Gas Sector

• US Buybacks: Identifying Winners Amid Slowing Momentum

  Share buybacks have become the predominant means of corporate payout, surpassing dividends in the past two decades. The key driver for share repurchases include tax advantages, financial flexibility, and support for stock prices. In the last 15 years, the S&P 500 Buyback Index, which tracks companies with a high buyback ratio in the S&P 500, has outperformed the S&P 500 equal-weighted Index. However, buybacks fell by 22% in the first half of 2023 compared to the same period last year, as corporations reassess their capital allocation strategy in the face of slowing growth prospects. In this backdrop, we identify companies with a strong buyback track record, showcasing consistent free cash flows and a robust balance sheet that are likely to outperform the broader market in the current slowing repurchase momentum.

• Europe & North America MedTech strengthens in 1H23

  In a notable development, most MedTech companies in Europe and the US topped consensus estimates in 1H23 earnings, largely on a rewind in procedure volume and efficient execution of cost-saving strategy. Patient count surged in hospitals as people opted for non-urgent surgical treatment after delaying care during the pandemic, thereby accelerating demand for medical devices. This trend bodes well for MedTech giants Stryker, Zimmer Biomet, and Philips. Moreover, the decrease in supply chain constraints eased pressure on margins. Contrarily, extra retention charges of nursing staff pressured Fresenius Medical Care and Fresenius SE. Further, companies such as Philips, Stryker, and Baxter have lifted their 2023 guidance on improved surgery volumes. Conversely, on continuation of a softer environment for biopharma services, Danaher, and its peer ThermoFisher have narrowed their this year estimates. 

• Impact of China–Taiwan Geopolitical Risks on Semiconductor Sector

  Geopolitical risks on the global semiconductor industry increased after a recent visit by US diplomats to Taiwan, which triggered stark political opposition and military responses by China. In this report, we discuss the possible impact on the global supply chain of semiconductors if the geopolitical tensions between China and Taiwan increase. We focus on (a) the global importance of the semiconductor industry of Taiwan, as the region is home to the world’s largest foundry operations; (b) possible risks from the disruptions of the world’s leading and Taiwan’s largest semiconductor foundry company – TSMC; and (c) potential winners and losers from the disruption of TSMC’s operations. 

  
  

• Hearing Aid Market: Valuations are Poised for a Rebound

  Hearing loss is a major health concern globally, with over 1.5 billion people experiencing some degree of hearing impairment at the end of 2022 according to Amplifon. Among them, an estimated 430 million individuals require rehabilitation, and this figure is projected to reach 700 million by 2050 due to factors such as increased life expectancy and high noise exposure. Untreated hearing loss poses substantial health risks contributing to cognitive decline, depression and falls. This issue carries a staggering global annual cost of approximately 1 trillion US dollars, including health sector spending, lost productivity and associated social costs. Despite these implications, the adoption rate of hearing aids remains low, standing at around 37% in high-income countries and between 5% and 10% in emerging economies. 

  The post-lockdown period in 2021 witnessed a surge in ENT clinic visits, coinciding with a recovery in surgical rates and increased demand for hearing implants. The adoption of smart hearing aids has increased considerably, propelled by factors like rising noise-induced hearing loss, heightened awareness and targeted marketing programmes. The integration of digital technology is dynamically shaping the hearing aid market by responding to demographic shifts and technological advancements, and launching innovative products combining cochlear implants and hearing aid technologies. These developments, coupled with attractive valuations, present profitable opportunities for industry participants.

  
  

• Q2 2023 Global Macro Report

  Q2 posted a slowdown in global economic growth along with strong returns in risk assets. The IMF expects global growth to be lower in 2023 than 2022 for most advanced countries. It also expects headline inflation to decline owing to the aggressive monetary policies of major central banks, but core inflation may decline slowly. Chinese economic recovery seemed to have run out of steam after the initial reopening thrust, as shown by the decline in inflation, retail sales and PMI numbers.

  Regarding asset class returns, equities rallied during Q2 due to strong corporate earnings in Q1, slowing inflation, a resilient US economy, and the AI theme. China’s sluggish recovery led emerging market equities to underperform developed market equities. Bonds gave a mixed performance with most yields increasing to price-in high rate expectations as central banks continued their hawkish policies. High yield bonds performed well despite their historically low yields. The US Dollar strengthened while gold price declined as the US Federal Reserve increased rates. Oil prices fell as expectations of a global economic slowdown loomed over investors.

• High Yield - Europe Spotlight

  European HY bond market returns declined in YTD 2022, owing to heightened geopolitical tensions and rising interest rate risks. Issuers largely stayed on the sidelines in 2022 due to higher refinancing costs. Despite recession fears, the 10-year–2-year European spread steepened in 2022, in contrast to the US curve inversion. That said, the Eurozone recession is likely to stem from energy supply concerns owing to the Russia-Ukraine crisis and not from ECB tightening its monetary policy. Notably, S&P expects the European high yield corporate default rate to rise to 3.0% by March 2023 from 0.7% as of March 2022. 

• Saudi Banking Sector: Unlocking Vision 2030 Opportunities

  Saudi Arabia's economic prospects remain robust, driven by the non-oil sector in alignment with the Vision 2030 initiatives. The Saudi banking sector is expected to play a pivotal role in achieving the Vision 2030 objectives. This sector displays resilience, characterized by a healthy outlook supported by factors such as a promising pipeline for future loan growth, substantial liquidity, sound asset quality, and strong capitalization. Saudi banks are well-positioned to weather upcoming interest rate volatilities when the US Fed starts cutting interest rates. We believe that during this significant monetary policy shift, the top three banks in KSA are ready to capitalize on their dominant market share in loans and deposits for future opportunities. Among these, SNB is poised to reap significant benefits, given its leading market position in loans and deposits, a well-balanced loan mix, and a robust domestic franchise.

• Fintech Decoded: 2022

  Fintech deal activity in 2022 witnessed high volatility, with subsectors such as Payments+ and Blockchain/Crypto receding, while Business Solutions and Financial Markets domains gained prominence.

  The emergence of new Covid variants, soaring US inflation, withdrawal of stimulus measures by the Fed and successive interest rate hikes leading to a recessionary environment, regulatory uncertainty caused by GDPR, China’s ban on cryptocurrency, a worse-than-anticipated slowdown in China, geopolitical impacts of the Russia-Ukraine war, and soaring Eurozone inflation have caused the downturn in 2022.

  The global economic and political landscape is becoming increasingly uncertain, which has made venture capital firms more cautious about investing. Fintech companies with strong value propositions and sustained profitability will continue to attract investment, particularly in sectors such as RegTech and Cybersecurity.

  The Blockchain/Crypto segment plunged significantly owing to the Terra (Luna) crash and FTX bankruptcy in 2022. As investor interest in crypto solutions pulled back, the broader blockchain space started to gain more traction with companies using blockchain-based technologies.

  The increasing complexity of the regulatory environment with several changes in different jurisdictions (e.g., Basel IV, the EU Market in Crypto-assets Regulation, the Digital Operations Resilience Act, the AI Act, the Digital Services Act, ESG standards) enables greater focus and investment in the RegTech segment.

  In this edition of Fintech Decoded, we bring you insights into the sector’s performance following the macroeconomic headwinds, along with notable funding trends across the globe in the fintech space in 2022.

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