Asian equities began the week on a subdued note as high U.S. Treasury yields tested Wall Street's lofty valuations, keeping the U.S. dollar near multi-month highs. Market Performance : MSCI Asia-Pacific Index dipped 0.2% but remains 16% up for the year. Japan’s Nikkei slid 0.9%, still boasting a 20% annual gain. Chinese blue chips rose 0.3%, with most of their 16% yearly gain achieved after Beijing’s September stimulus promises. South Korea's index edged up 0.3% but is down 9% for the year, weighed by political uncertainties and events like Jeju Air’s recent plane crash. Global Futures : EUROSTOXX 50 futures gained 0.1%. U.S. futures saw slight declines, with S&P 500 and Nasdaq futures down 0.1%. Economic Drivers and Concerns U.S. Treasury Yields : Yields on 10-year Treasuries are near eight-month highs at 4.631%, up 75 basis points for the year. Rising yields reflect revised expectations of less restrictive monetary policy, raising concerns about potential impacts on corpo...
Unilever is making "drastic" changes in its Indonesian operations, according to Chief Financial Officer Fernando Fernandez, as the company grapples with consumer boycotts of multinational brands in response to the ongoing war in Gaza. These boycotts have worsened the company's distribution challenges in the region.
Unilever, known for brands like Dove, Knorr, and Ben & Jerry's, first reported in February that Southeast Asian sales had taken a hit due to Indonesian shoppers boycotting multinational brands, linked to the geopolitical situation in the Middle East.
Speaking after delivering slightly better-than-expected quarterly sales, Fernandez said Unilever plans to make its brands more "contemporary" to adapt to the significant societal changes taking place in Indonesia. He expects improvement over the next six months.
Unilever’s Indonesian unit reported an 18% drop in third-quarter revenue, largely driven by a decline in volumes. CEO Hein Schumacher acknowledged "long-standing issues" in the country but noted that major changes in the third and fourth quarters will not yield immediate results. The company is also revamping its distribution system to stabilize prices and recover market share lost during the consumer backlash. Fernandez noted that Unilever has already regained one-quarter of its lost market share.
Despite these efforts, analysts like Warren Ackerman from Barclays remain skeptical, pointing to Unilever's underperformance in Indonesia for nearly a decade.
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