In today’s briefing:
- CX Daily: How Trump’s Return Might Be a Boon for TikTok
- Flash Macro Watch: The Fed has abandoned its 2% target
- Actinver Research – Mexico Equity Research: Opportunities amid the noise
- The X Factor
- Tire Industry: Premium Brands Exit Small-Rim Market Amidst Rising Competition
CX Daily: How Trump’s Return Might Be a Boon for TikTok
- Donald Trump’s victory in the presidential election could be a boon for TikTok, potentially offering the Chinese-owned short-video app a reprieve from the impending federal ban that would cost it one of its biggest markets.
- President Joe Biden signed a bill into law this April that gave a choice to ByteDance Ltd., the Chinese parent company of TikTok — sell the app by January next year or face a ban from the country’s app stores.
- The reason given for the bill was concern that Beijing could access U.S. users’ information and use TikTok to influence citizens — although TikTok denied both claims.
Flash Macro Watch: The Fed has abandoned its 2% target
- Following another reasonably hot U.S. CPI report yesterday, it’s time to dust off the old sell-side charlatan chart comparing today’s inflation to the 1970s.
- Honestly, I find this comparison absurd in many ways, as the drivers of inflation are different now.
- Still, there is an interesting resemblance, which got me thinking…Inflation in the U.S. is trending around 3-3.5%, and the Fed has made no progress over the past 3-4 months toward the 2% target.
Actinver Research – Mexico Equity Research: Opportunities amid the noise
- We review our current coverage given recent headlines, including potential FX depreciation, trade moves and migration changes.
- Within Consumer, we see most of our covered companies as solidly positioned, as most of these companies have at least a third of their revenues originated in the U.S., with mostly minimal export-import relationship.
- In Cement, our covered companies are also well positioned, supported by their exposure to the U.S. market, with a significant portion of their EBITDA generated in this country.
The X Factor
- This was not about Left versus Right, it was about a generational shift, from the Boomers to Gen X.
- This will then also move the children of the Boomers – the Millennials – down in favour of the next generation, the Zoomers of Gen Z.
- The economy and the markets will now shift in line with their traits and behaviours.
Tire Industry: Premium Brands Exit Small-Rim Market Amidst Rising Competition
- Premium brands focus on high-value large rims, leaving small-rim markets.
- Factory closures signal overcapacity as brands exit small-rim tire production.
- New players gain ground in small-rim segments in Europe and North America.
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