What does the superstar company phenomenon mean?
Superstars – typically in control of their markets and pricing, often at the forefront of innovation and frequently eager to expand – represent both opportunities and threats when it comes to investing.
Their often solid profitability and their ability to protect this can make them attractive propositions.
Their dominance, however, can undermine suppliers and labour markets and their pricing power can jeopardise competition, both at the consumer and at the antitrust level.
Check out our infographic on superstar pricing power as a challenge for policymakers and investors.
|Also read: Investing in superstars and Are companies about shareholder or stakeholder value?|
|For more about sustainability at BNP Paribas Asset Management, click here >|
|This article appeared in The Intelligence Report – 1 October 2019|
The adoption of ESG investing in Asia Pacific has accelerated over the last two to three years, particularly in the form of a greater push by leading institutions or governments, but more work still needs to be done, also because Western models cannot simply be copied locally, argues Ligia Torres, CEO Asia-Pacific, in this edition of The Intelligence Report .
Making our range of investment products ESG-proof also means tackling asset classes and industries where data availability and transparency still have some headway to make. While challenges remain, for example in emerging markets, we can now rank debt issuers comprehensively on the basis of some 90 factors. This gives us a good view of whom to embrace and whom to avoid in our EMD portfolios, as Bryan Carter explains in the first article. Having a presence on the ground matters in this respect, including in China, where our senior economist Chi Lo keeps tabs on Beijing’s efforts to transform the economy while maintaining the momentum of growth. Read his latest analysis in our second article. Finally in this edition, an extensive write-up of the many efforts and initiatives – our own and those of the many multilateral organisations we belong to – en route to a sustainable finance system, all the while remembering that there is further to go before the world becomes a better place.
The transition to a global sustainable finance system is gaining pace. Speaking at the first PRI Sustainable Finance Policy Conference in September, BNP Paribas Asset Management CEO Frédéric Janbon explained that while sustainable finance is moving up the agenda for policymakers, regulators and investors, much work remains to be done. We set out the key points in this edition of The Intelligence Report.
Here’s reflation, well, for now
Recent geopolitical news has caused financial markets to trade in a reflationary fashion, shrugging off weak data and concern over structural Sino-US tensions, even if the economic slowdown may evoke memories of Q4 2018. Are the similarities actually there?, we ask in this issue of The Intelligence Report .