Latest news with #multinational
Yahoo
an hour ago
- Business
- Yahoo
The 3 areas of the stock market to buy as the dollar continues to plummet, Morgan Stanley says
The US dollar has tumbled this year, with the GOP budget bill threatening more declines. But Morgan Stanley sees the move in the dollar as a likely tailwind for the stock market. The bank sees it as a positive catalyst for companies in four sectors of the market. The dollar just wrapped up its worst half of a year since 1973, but the US currency's loss might be the stock market's gain. Morgan Stanley predicts that the dollar will continue depreciating throughout the year but it views this trend as a "substantial, under-appreciated tailwind" for stocks, one that could drive fresh earnings growth. It also laid out four sectors of the stock market the are set to benefit most from the dollar's string of declines. "The dollar is currently down approximately 11% from the January highs and is expected to fall another 7% by mid-2026 providing a substantial boost for multinational earnings," analyst Michelle Weaver said in a recent note. In Morgan Stanley's thesis, the key tailwind for stocks is companies with high exposure to foreign sales. A weaker US dollar makes currency conversions more favorable for overseas customers and makes US goods more attractive. Weaver also highlighted the translation effect, in which such companies can "earn a premium when exchanging revenues earned in foreign currencies into USD," which does not apply to competitors who only sell in the US. This creates an environment in which larger cap stocks are well-positioned to benefit. The note adds that the S&P 500, composed of the largest publicly traded US companies, typically derives roughly 40% its revenue from abroad. By contrast, the small-cap Russell 2000 sees about 22% of its revenue from overseas sales. "We have a broad preference for large-cap stocks given their higher-quality balance sheets, stronger pricing power, and stronger supplier negotiation power — the dollar dynamic further supports this view," she noted. For investors looking for specific sectors to focus on, Morgan Stanley has highlighted those with the highest foreign revenue exposure. First on the list is tech, which boasts more than 50%. The materials sector is next, with just over 40% exposure, followed by industrials, with 30%. Tech makes up the largest portion of the S&P 500, accounting for more than 30% of the benchmark index. That's likely part of why Morgan Stanley predicts it will rise even more as the dollar declines. As the bank said in a separate report this week, upward earnings revisions are the stock market's secret weapon for hitting new highs. "Morgan Stanley expects the S&P 500 to end the year at 6,500, implying a gain of about 5% from current record levels. With analysts growing more bullish on corporate earnings, the outlook points to a potentially sustainable growth trajectory." The "Big Beautiful Bill" that's moving through Congress is also expected to increase the national deficit by as much as $3.3 trillion, which could push the US dollar down even further. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Herald
15 hours ago
- Business
- The Herald
Thinking local will help grow Nelson Mandela Bay economy and create jobs
Globalisation of economies and manufacturing supply chains is a reality which is here to stay, but as much as we seek to be a globally-connected economy we have to ensure that Nelson Mandela Bay remains a site of local manufacturing by multinational players as that is the anchor which creates much-needed local jobs. The erosion of local manufacturing in various sectors over the past year alone — through downscaling or shutting down sections of operations, as well as outright closures of entire plants — is a grave concern. Every direct job lost in a manufacturing operation potentially costs at least four jobs in the supporting supply chain, and in turn represents 10 people who have lost the support of a bread-winner. There is no single reason for any of these, but rather a combination of decisions made at a global head office as to the most amenable and competitive manufacturing locations, considerations of productivity and economies of scale, efficiencies and connectivity to global logistics hubs, and taking into account the local business enabling environment, or lack thereof. At the same time as we need the various stakeholders to take action to improve the conditions to support local manufacturing, such as reliable delivery of basic services and the ease of doing business, there is another powerful way to strengthen the local economy and protect local jobs, and that is to 'think local first' when making purchasing decisions. This call applies as much to us as individual consumers as it does to businesses and government when sourcing vehicles, equipment and supplies. Given that the Bay economy is anchored by vehicle manufacturing, a prime consideration is the depth of the business ecosystem surrounding these manufacturers, which creates thousands of additional local jobs in the supply chain of raw materials, component manufacturers and logistics, as well as the suppliers of goods and services to these operations. That generates an enormous amount of purchasing power to be spent with local retailers and diverse businesses from tourism, hospitality and entertainment through to home maintenance, personal services, healthcare, and paying school fees. The manufacturing sector in the Bay is the largest contributor to municipal rates and services income, as well as substantial corporate social investment which supports education, community development, youth skills development, and the welfare of society's most vulnerable. The local presence of multinational manufacturers also supports increased localisation and in turn opportunities to employ more people in the supply chain. That said, thinking local first is not only about big-ticket purchases like a new vehicle or set of tyres. It extends to thinking about buying fresh, seasonal produce grown in Loerie or the Sundays River Valley, locally-reared chicken, or fresh fish in the harbour, rather than imported vegetables, fruit and meat. It's about considering where clothing or shoes were manufactured, supporting local artisans and craftspeople, or sourcing office supplies or IT services from a local business. Sourcing from local suppliers also gives the advantage of more readily available customer support, reducing downtime, saving costs and the benefit of building local, trusted relationships. Buying local reduces transport costs and also contributes to environmental sustainability, reducing your carbon footprint by cutting down on the fuel and emissions of global shipping and airfreight. Consider also that some proudly SA products are sought-after the world over — mohair and wool from the Eastern Cape, wine from the Western Cape, oranges and lemons from the Sundays River Valley, squid from the fishers of St Francis Bay. Alongside this, our automotive assemblers have proven they have the capabilities and expertise to assemble vehicles which meet world-class standards. On the other side of the coin, there is no arguing with the fact that businesses based in the Bay, which sell imported goods, do also add value to the local economy in terms of property investment, contributing rates and taxes, employing people and developing their skills and careers. Some also contribute to local social and welfare challenges through CSI initiatives. However, this does not create the depth and breadth of direct and indirect jobs and overall support for the local economy, which local manufacturing provides. Consider for example all the thousands of businesses and jobs which are directly and indirectly linked to having an automotive industry in the Bay. There is good reason for many imported goods — things that can't be competitively produced locally, and offering consumers more choice and more price points — but we need to think about the long-term consequences of purchasing these products. We are saying 'think local first', because by buying an SA made or grown product, you are not just buying a car, a new suit or bag of vegetables, you are supporting local employment, education, skills development, and the welfare of local communities. What's more, local manufacturing brings technology and innovation to a country, which keeps it at the forefront of new developments. Our purchasing decisions have the power to grow a resilient and sustainable local economy, which in turn drives opportunities for employment creation and crucial support for communities. Think about it. Denise van Huyssteen is CEO of the Nelson Mandela Bay Business Chamber. The Herald
Bloomberg
2 days ago
- Business
- Bloomberg
Irish Government Must Widen Tax Base, Central Bank Warns
Ireland should broaden its tax base to ensure its budget protects long-term fiscal stability, the Central Bank of Ireland warned. 'The need to reduce the risks to the public finances from an excessively narrow tax base has become more immediate, given the reliance on corporate tax receipts from an excessively narrow tax base from a small number of multinational enterprises, which may be more vulnerable in light of geoeconomic fragmentation,' Governor Gabriel Makhlouf wrote in a pre-budget letter to the Irish government.
Fast Company
3 days ago
- Business
- Fast Company
3 power skills that are key for business success
What does it take to lead through complexity, make tough decisions and still put people first? For me, the answer became clear during a defining moment early in my career—one that changed my path entirely. Today I am a business-school educator, but I began my career in the corporate world. I faced a challenge so intense that it motivated me to go back to school and earn a Ph.D. so I could help others lead with greater purpose and humanity. Back then, I was working for a multinational home goods company, and I was asked to play a role in closing a U.S. factory in the Midwest and moving its operations abroad. It was, by every business metric, the right economic decision. Without it, the company couldn't stay competitive. Still, the move was fraught with emotional and ethical complexities. Witnessing the toll on employees who lost their jobs, and the broader effects on their community, changed how I thought about business decision-making. I saw that technical skills alone aren't enough. Effective leadership also requires emotional intelligence, ethical reasoning and human-centered thinking. That experience was a turning point, leading me to higher education. I wanted to fulfill a greater purpose by equipping future business leaders with critical human-centric skills. And to do that, I needed to learn more about these skills – why they matter, how they shape outcomes, and how we can teach them more effectively. Often called 'soft skills' or 'people skills,' these are also, more appropriately, referred to as 'power skills' or 'durable skills.' And they aren't just nice to have. As my own experience shows and as research confirms, they are central to success in today's business world. Power skills: Underappreciated, yet in demand Research on power skills dates back to at least 1918, when the Carnegie Foundation published A Study of Engineering Education. That report concluded that 85% of engineering professionals' success came from having well-developed people skills, and only 15% was attributed to 'hard skills.' These early findings helped shape our understanding of the value of nontechnical skills and traits. Today, employers arguably value these skills more than ever. But while demand for these skills is growing across industries, there's not enough supply. For example, nearly 7 in 10 U.S. employers plan to prioritize hiring candidates with 'soft' or 'power' skills, according to LinkedIn's most recent Global Talent Trends report. Yet 65% of employers cite soft skills as the top gap among new graduates, according to Coursera's 2025 Micro-Credentials Impact Report. New hires are struggling in the areas of communication, active listening, resilience and adaptability, the survey found. Power skills are transferable across roles, projects and industries, which makes them especially valuable to hiring managers. And research continues to show that these skills drive innovation, strengthen team dynamics and help organizations navigate uncertainty—key reasons why employers prioritize them. Three power skills to prioritize So what does it look like to lead with power skills? Here are three key areas that have shaped my own journey—and that I now help others develop: Adaptability: Adaptability goes beyond simply accepting change. It's the ability to think, feel and act effectively when the situation changes—which, in today's business environment, is all the time. Consider a company expanding into a new international market. To succeed, it must invest in cultural research, adapt its operations to regional norms and align with local regulations—demonstrating adaptability at both strategic and operational levels. That's why adaptability is one of the most in-demand skills among employers, according to a recent LinkedIn study. Adaptable workforces are better equipped to respond to shifting demands. And with the rise of artificial intelligence and rapid tech disruption, organizations need agile, resilient employees more than ever. Empathy: As I learned firsthand during my time in the corporate world, empathy—or the ability to understand and respond to the feelings, perspectives and needs of others—is essential. Empathy not only fosters trust and respect, but it also helps leaders make decisions that balance organizational goals with human needs. More broadly, empathetic leaders create inclusive environments and build stronger relationships. At Western Governors University, we have an entire course titled 'Empathy and Inclusive Collaboration,' which teaches skills in active listening, creating culturally safe environments and cultivating an inclusive mindset. Inclusivity: Effective communication and teamwork consistently rank high as essential workforce skills. This is because organizations that excel in communication and collaboration are more likely to innovate, adapt to change and make informed decisions. While managing a global transition, I saw how hard and necessary it was to listen across cultural lines, to foster collaboration across borders and departments. When teams collaborate well, they bring diverse perspectives that can foster creativity and efficiency. The ability to communicate openly and work together is crucial for navigating complex problems and driving organizational success.
Reuters
4 days ago
- Business
- Reuters
G7 strikes deal to shield US multinationals from higher global taxes, FT reports
June 28 (Reuters) - The G7 has reached an agreement that would exempt U.S. multinational companies from paying more corporate tax overseas, the Financial Times reported on Saturday, citing people familiar with the discussions. The deal, backed by Washington and other G7 members, would allow U.S. companies to avoid certain overseas taxes due to levies already paid in the United States, the report said.
