The US Is Turning Into an Emerging Market
For as long as any of us can remember, emerging-market companies have tried to learn from US companies. Diversified conglomerates have turned to the US to master the art of corporate focus. The heads of family companies have sent their children to Harvard Business School. Ambitious managers read the writings of Western business gurus such as Michael Porter and Gary Hamel.
Now US companies need to return the compliment. The US is rapidly shedding its Western skin and turning itself into an emerging market. And nobody knows better how to navigate the pitfalls — and exploit the opportunities — of such a market than companies that have been doing it all their lives: Think of Mexico's Grupo Bimbo SAB, founded in 1945, which endured national and international turmoil to emerge as one of the world's leading bakeries; India's Tata Group, founded in 1868, which has survived colonialism, national liberation and the neoliberal revolution; or Turkey's Koc Holdings AS, founded in 1926, which has thrived in one of the world's most turbulent corners.
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Yahoo
2 hours ago
- Yahoo
Iran says no sanctions relief in US nuclear proposal
Iran's parliament speaker said on Sunday that the latest US proposal for a nuclear deal does not include the lifting of sanctions, state media reported as negotiations appeared to have hit a roadblock. The two foes have held five rounds of Omani-mediated talks since April, seeking to replace a landmark agreement between Tehran and world powers that set restrictions on Iran's nuclear activities in return for sanctions relief, before US President Donald Trump abandoned the accord in 2018 during his first term. In a video aired on Iranian state TV, parliament speaker Mohammad Bagher Ghalibaf said that "the US plan does not even mention the lifting of sanctions". He called it a sign of dishonesty, accusing the Americans of seeking to impose a "unilateral" agreement that Tehran would not accept. "The delusional US president should know better and change his approach if he is really looking for a deal," Ghalibaf said. On May 31, after the fifth round of talks, Iran said it had received "elements" of a US proposal, with officials later taking issue with "ambiguities" in the draft text. The US and its Western allies have long accused the Islamic republic of seeking to acquire nuclear weapons, a charge Iran has consistently denied, insisting that its atomic programme was solely for peaceful purposes. Key issues in the negotiations have been the removal of biting economic sanctions and uranium enrichment. Tehran says it has the right to enrich uranium under the nuclear Non-Proliferation Treaty, while the Trump administration has called any Iranian enrichment a "red line". Trump, who has revived his "maximum pressure" campaign of sanctions on Iran since taking office in January, has repeatedly said it will not be allowed any uranium enrichment under a potential deal. On Tuesday, Iran's top negotiator, Foreign Minister Abbas Araghchi, said the country "will not ask anyone for permission to continue enriching uranium". - IAEA meeting - According to the UN nuclear watchdog, the International Atomic Energy Agency (IAEA), Iran is the only non-nuclear-weapon state in the world that enriches uranium up to 60 percent -- close to the 90 percent threshold needed for a nuclear warhead. Iran's supreme leader Ayatollah Ali Khamenei on Wednesday rejected the latest US proposal and said enrichment was "key" to Iran's nuclear programme. The IAEA Board of Governors is scheduled to meet in Vienna starting Monday and discuss Iran's nuclear activities. On Sunday the Atomic Energy Organization of Iran warned it could reduce its level of cooperation with the UN nuclear watchdog if it adopts a resolution against it. "Certainly, the IAEA should not expect the Islamic Republic of Iran to continue its broad and friendly cooperation," the Iranian agency's spokesman Behrouz Kamalvandi told state TV. Araghchi on Friday accused European powers of "opting for malign action against Iran at the IAEA Board of Governors", warning on X that "Iran will react strongly against any violation of its rights". A quarterly report from the IAEA issued last week cited a "general lack of cooperation" from Iran and raised concerns over undeclared nuclear material. Tehran has rejected the report as politically motivated and based on "forged documents" it said had been provided by its arch foe Israel. pdm/ami/dcp
Newsweek
9 hours ago
- Newsweek
Putin Warned of Dual Threat to Russian Economy: 'Countdown to a Crisis'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Moscow's economy is sliding toward the brink of "stagflation," according to a new report published by a Russian economics research organization close to the country's government. The report's author, Dmitry Belousov, head of analysis and forecasting of macroeconomic processes at the Center for Macroeconomic Analysis and Short-Term Forecasting (CAMAC), said that the "economic dynamics" in Russia are "rapidly declining, with a risk of a technical recession in the second and third quarters" of 2025. Why It Matters After the invasion of Ukraine, Russia's economy has been seriously affected by sanctions imposed by Western countries trying to cripple its ability to finance the war, but it crucially avoided entering a recession. Now, however, the economy is facing a risky combination of factors—including rising prices, slowing growth and an acute labor shortage—that is threatening its stability and outlook. In a sign that the Kremlin is aware of how fragile the country's economic position currently is, Russia's central bank cut its key interest rate to 20 percent on Friday, down from a two-decade high of 21 percent. What To Know According to the report released earlier this week and authored by Belousov, GDP growth in Russia slowed down to 1.4 percent in Q1 2025 compared to a year earlier. While inflation is slowing down, it remains very high, at 9.8 percent. While slowing investments in machinery and equipment has played into this slowdown, Belousov said that it has been accelerated by "growing problems in construction," with the number of new projects now declining, and falling consumer demand, especially when it comes to non-food products. According to the report, consumer spending has been stagnating since mid-2024. Russia's President Vladimir Putin at the Novo-Ogaryovo state residence, outside Moscow, on June 4, 2025. Russia's President Vladimir Putin at the Novo-Ogaryovo state residence, outside Moscow, on June 4, 2025. GAVRIIL GRIGOROV/POOL/AFP via Getty Images The combination of rising inflation and stagnant economic growth could bring the Russian economy into a state of "stagflation," which is usually also characterized by high unemployment. In Russia, according to official data, unemployment is currently low at 2.4 percent. What Happens Next Belousov presented a "countdown" to a potential crisis in Russia. The report said that a potential downturn of the Russian economy could unfold between Q2 and Q3 2025 as a slowdown in economic growth and falling consumer demand and as a weakening of the ruble between Q3 and Q4 2025. This loss in value for the Russian currency would be caused by a dip in trade in the first half of the year and a growth in imports, Belousov said, taking into consideration the impact of President Donald Trump's tariffs. "It is easy to see that the 'trigger' of a new intensification of the crisis could be another step in tightening the interest rate policy of the Bank of Russia, provoked by the (almost inevitable) weakening of the ruble, an increase in administratively regulated tariffs and a corresponding jump in inflation," Belousov wrote. The analyst recommends that the country focuses on reducing inflation to avoid the worst possible scenario for the Russian economy, as well as on supporting "the entry of Russian products into all available external markets" and stimulating investments in fixed capital. What People Are Saying The Central Bank of the Russian Federation said in a statement explaining its decision on Friday: "Domestic demand continues to outstrip the economy's capacity to expand the supply of goods and services, but Russia is gradually returning to a more balanced growth path." Russia's central bank's Governor Elvira Nabiullina said in a press conference on Friday: "We are close to a scenario of balanced economic growth." According to Nabiullina, "monetary policy will remain tight for a long period." She added: "Inflation ultimately eats away at the economy's potential, so our goal is to curb inflation and allow the real sector of the economy to develop."
Newsweek
a day ago
- Newsweek
Putin Incentivizes Space Investors After Elon Musk's Russia Asylum Floated
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Private investment is needed to boost Russia's space industry, Russian President Vladimir Putin has said. His comments come as a lawmaker in Russia floated the idea of offering political asylum to Elon Musk, the CEO of SpaceX. Dmitry Novikov, from Russia's international affairs committee, suggested Musk could be given asylum in Russia, following his public fallout with President Donald Trump, although there has been no confirmation of any formal offer being made. Putin asked the head of Russia's space agency Roscosmos, Dmitry Bakanov, about how to attract financial backers because of the need "to commercialize services." Newsweek has contacted Roscosmos for comment. File photo: Vladimir Putin sits with a pen on June 6, 2025 during a meeting of the Council for Strategic Development and National Projects. File photo: Vladimir Putin sits with a pen on June 6, 2025 during a meeting of the Council for Strategic Development and National It Matters As part of its space strategy, Russia is looking to create its equivalent of the satellite system of Starlink, a subsidiary of SpaceX, which Musk heads. Musk's relationship with Trump continues to unravel, but there is no suggestion yet that he would fund such a Russian venture. However, Putin's call for private investment in a key strategic sector comes as the country has lost access to many Western technologies due to sanctions caused by the war he started. What To Know Putin has previously raised the need to attract nongovernmental funds for Russia's space sector. At a meeting of Russia's Council for Strategic Development and National Projects, the president asked Bakanov when private money will start flowing into Russia's space industry, news agency Tass reported Friday. As other countries use private funding for the space sector, Putin said investors in Russia's program would need to see how they can get a return on their money as he emphasized the need to commercialize such services. Bakanov responded that Russia's space projects included developing the "Rassvet" group, which will become the country's equivalent to Starlink in providing communications services, TASS reported. Another plan is the Russia selling high-resolution satellite images from 2026, for which a regulatory framework has already been set up. Bakanov had previously said Russia plans to launch over 1,000 satellites—including 886 for the "Rassvet" internet constellation—and would deploy more than 100 satellites in orbit to control drones, the publication Izvestia reported. Putin's comments coincide with the idea floated by Novikov, first deputy chairman of the State Duma's international affairs committee, that Musk could be granted asylum in Russia, although he added that the SpaceX founder is unlikely to need it. Moscow has previously granted asylum to U.S. whistleblower Edward Snowden, as well as the pro-Kremlin British blogger Graham Phillips. When asked to comment on the spat between Musk and Trump, Kremlin spokesman Dmitry Peskov said it was "a domestic issue of the United States, and we don't intend to interfere." What People Are Saying Russian President Vladimir Putin said on private funding Russia's space sector: "As long as the business does not have an understanding of how the invested money will be returned, there will be no movement." Dmitry Novikov, first deputy chairman of the State Duma's International Affairs Committee, said: "If (Musk) he did [need political asylum], of course, Russia could offer it." What Happens Next Putin has called for "regulatory documents" to be prepared for private funding of the space sector, although no time frame has been specified, according to Tass.
