Investors get their piece of apple as global oil prices plunge.
On a Friday morning at the SABMiller headquarters in Dublin, the CEO of SABMiller, James Byrne, gave a lengthy talk about the company’s growth prospects in emerging markets and China.
In an interview that would have been unthinkable 20 years ago, this was the one message that kept getting missed. Byrne was clearly bullish on China. He was not sure that the current growth rate of 7.2 per cent was sustainable, and he was not happy that oil prices were at a record low – in the US, in the Euro Zone, or even in many European countries.
But then, in the 1980s and 1990s, he got a sense that oil prices had plateaued, and the economy was in deep trouble – and he decided to do something about it. In 1993 he sold off a majority stake in SABMiller to private equity group Bain Capital. A year later the company re-valued its shares and began a new phase of capital spending, and the first dividends were paid to SABMiller shareholders in 2000.
Byrne would later write that that was a good time to take on the challenge that China presented: “the one problem is that China didn’t invent the thing that’s driving global growth right now. But we’ve taken the challenge to address the other problems.”
This was not a revolutionary plan, to say the least. The new Chinese leadership was still reeling from a series of devastating economic crises, so it remained to be seen whether they would ever be content with the status quo or try something completely new.
After a few rocky years (the 2008 credit crisis wiped out about $15bn of GDP in the United States), China started to build up its industrial base. It also introduced a wide rang출장e of new products and services, most of which were in the form of electronic gadgets.
Byrne and his team were eager to go beyond the basic components: an advanced jet engine, for example, took about five years. The rest of the Chinese government was still trying to do business with the United States, the world’s largest consumer of energy.
It wasn’t until 2013 that China started to build up its manufacturing capacity in key industrial sectors such as cars and computers, and those are now starting to do well. In its largest economic growth quarter in history between 2009 and 부천출장마사지2013, China’s gross domestic product grew 8 per cent, compared with a 2.2 per cent annual gain in the United States광주출장샵.