Senza categoria Archivi | Studio Pangea

Hong Kong exports plunged as the global demand cools

fumagalli — Thu, 08 Sep 2022 06:21:21 +0000

Everyone’s perfectly aware that the outbreak of covid 19 changed everything. And being at the borders of China, where everything began and where the lockdowns were tighter than everywhere, may have worsened things. This could be the case of Hong Kong (read here our last article concerning Xi Jinping’s visit to the city https://www.studio-pangea.com/en/xi-jinping-in-hong-kong/), already shocked by the pandemic and where exports (that represent the major business here) shrank in the last weeks, slipping into the second recession since the 2019 mass protests. More specifically, overall exports plummeted 8.9% only in July 2022, where the economists predicted a 4.8% fall, as shown in the following graph:

Source: https://tradingeconomics.com/hong-kong/exports-yoy

Same for the imports, that always in July fell by 9.9%, while the economists forecast a decrease of only 0.5%.

A government spokesperson attributed this performance to a worsening external environment that brought disruptions at the borders: export to China fell 10.7%, shipments to USA declined 15.8% and those to UK plunged 29.2%, while on the other Asian markets there were mixed results. Moreover, the aggressive monetary policy tightening in advanced economies are heavily weighing on the global demand, as the Ukrainian conflict and the pandemic-induced disruptions.

Looking forward, Hong Kong’s export is not at its best, but the loosening of some Covid-related quarantine and social distancing restrictions could boost in the second half of the year. The influence of the ‘Greater Bay Area’, where Hong Kong occupies a prominent position, should not be underestimated too. Strongly promoted by Beijing, it is an economic megalopolis consisting of 9 different mega-cities that all enjoy the same fiscal benefits. But the weakening of Hong Kong’s economic performance, with respect to the highly competitive area in which it is located, does not mean less attractiveness for foreign investors and their general interests. It’ll be very interesting to follow in which way the city government – more and more influenced by Beijing, but with strong tools in its hands – will be able to cope with being in the same boat as others.

Contact us for further details!

Edited by Michael from the Hong Kong office of Pangea Studio Associato

hkong@studio-pangea.com

(852) 2110 3361

L'articolo Hong Kong exports plunged as the global demand cools proviene da Studio Pangea.

Lombardy’s furniture exports to Russia do not stop, even with some obstacles

fumagalli — Wed, 31 Aug 2022 09:08:54 +0000

Kremlin, 7 February 2022: the photo of this table with Emmanuel Macron and Vladimir Putin sitting at opposite poles has gone around the world. This long white table adorned with gold leaves comes from the Italian company “Oak”, located in Cantù, in the province of Como. This signifies how the Brianza and Como districts, which have always been strongholds of Italian design, are going strong despite the Ukrainian war. Indeed, since the EU sanctions imposed on Russia do not directly affect designer furniture, because it is not considered luxury, requests (almost always dealt with in absolute privacy) continue to pour in. Some people have even opened a branch in Russia in spite of the various difficulties.

Those directly involved in the sector have confirmed that exports have certainly become more difficult since the beginning of the conflict: many of their customers have ended up on the black list of European sanctions, while others still prefer to wait to buy because of the rather substantial increases and the difficulty of finding raw materials, particularly certain woods such as birch and oak, which often come from the Balkan area. Operators are expressing a certain caution, which is completely justified.

Contact us for further details!

Edited by Valentina from the Italian office of Pangea Studio Associato
info@studio-pangea.com
06-87155256 – to speak with us select “italian” and “Roma”.

**Image Source : https://www.open.online/2022/02/11/covid-19-macron-no-test-incontro-putin/

L'articolo Lombardy’s furniture exports to Russia do not stop, even with some obstacles proviene da Studio Pangea.

Italy runs the pharmaceutical chemicals sector

fumagalli — Mon, 11 Jul 2022 14:14:52 +0000

In Italy, the pharmaceutical chemicals sector is worth 228 billion euro. It is the third in Europe after France and Germany and the tenth worldwide. The companies involved are more than 3,000 and employ almost 300,000 people, driving the creation of additional jobs. In fact, we often do not realise how essential specialised chemistry is in our lives, and how many sectors it is involved in, to mention but a few: construction, cosmetics, pharmaceuticals, agriculture, textiles, metallurgy. Special mention for the cosmetics sector, a leading sector where Italian exports account for 85% of total production, with a turnover of more than 4 billion euro in 2019. The chemical sector is confirmed to be an open-minded one, and there is also considerable room for SMEs, according to the report drawn up by SACE in 2021.

The top Italian chemical company is Versalis (Eni), the second place goes to the Mapei Group, leader in building products. Bronze medal for the Bracco Group, a specialist in contrast media for X-rays. The Italian chemical industry also boasts another important record: being so involved in many other sectors, it is the industry with the lowest risk of bankruptcy, with a minimal insolvency rate of around 1%.

Analysing the sector during the difficult pandemic situation, it can be said that it was the high level of exports (up 30% in 2020) that saved the chemical industry from the economic crisis that inevitably affected all sectors. In fact, the chemical sector lost ‘only’ 8% compared to the disastrous situation in other sectors.

The chemicals sector is therefore, like the pharmaceuticals sector, continuously developing and creating long-lasting, well-paid jobs.

Edited by Valentina from the Italian office of Pangea Studio Associato

Contact us for further details!
info@studio-pangea.com
06-87155256

L'articolo Italy runs the pharmaceutical chemicals sector proviene da Studio Pangea.

The world likes prosecco and Italian wines, but their export is oligarchic.

fumagalli — Mon, 27 Jun 2022 16:00:50 +0000

Italian wines and sparkling wines’ export has always been a happy island. The average annual growth rate has been 5.2% over the last twenty years. And it has not stopped even with the pandemic. On the contrary, according to the UIV, it was precisely thanks to the lockdown that the world appreciated even more our sparkling wines, with Prosecco leading the field, thanks also to the deseasonalization of demand, which increasingly sees sparkling wines present not only on special occasions but also in everyday life. Even in the first quarter of 2022 there were concrete increases in their demand across all markets, with the clear exception of Russia and Ukraine, where demand fell heavily.

But of the 7 billion of exports in 2021, almost 5 billion came exclusively from mediumsized companies with a turnover of more than 20 million, while small companies with a turnover of up to 2 million only represented 5% of the value of Italian wine exports. It is therefore appropriate to ask whether the size of the companies themselves is not becoming an increasingly decisive factor on wine export capacity. It has not been a problem for many years, it is therefore an emerging issue that should not be underestimated. One has to ask oneself

What are the reasons why small companies have started to disappear from the international market.

Mismanagement of their resources?
Structural limitations?
Poor organisational skills?
Strong competition?
Difficult collaboration with consortia and denominations?

These are all plausible hypotheses: there is certainly a considerable waste of both energy and resources by some small companies, on the flip side they are often opposed by medium-sized and large competitors, who control the denominations and decide the prices.

Moreover, at the moment there is no effective strategy to promote ‘Made in Italy‘ wine in the world, and many small companies are not implementing the necessary improvements to be able to grow and become competitive. Exports represent a fundamental factor for the economic sustenance of the wine sector, and it is therefore important to succeed in increasing both the number of exporting companies of excellence and the number of our denominations present in international markets, expanding also in markets that are considered emerging.

However, it is clear that there are still limitations as far as the wine sector is concerned. Making forecasts to understand where the market will actually be positioned in the near future becomes difficult, given that inflation is sharply increasing, the economic scenario is getting heavier, and the consumption front is anything but easy to interpret.

Edited by the Italian office of Pangea Studio Associato

Valentina
(39) 0687155256

L'articolo The world likes prosecco and Italian wines, but their export is oligarchic. proviene da Studio Pangea.