The Chinese government has cut its vehicle purchase tax in half for the rest of the year. Unlike previous subsidies, this incentive applies to a broad swath of vehicles, including some entry-level makes by Western luxury brands. This could help broadly spur consumption in one of the largest automotive markets.
With big stores looking to hold the line on inflation, companies that make necessities such as shampoo and shaving cream are feeling pressure to limit price increases. However, with input costs still rising, there’s a risk to their bottom lines. That could create an opportunity for larger companies, which can leverage their scale to pass some costs on to retailers and maintain their revenue.
With strong balance sheets and good revenue, large drug manufacturers are in a position to augment their drug pipelines by scooping up smaller researchers. There’s a catch, though: There are relatively few targets right now. That could result in high acquisition costs to help secure the next generation of drug patents — and a decade’s worth of tailwinds for those companies nimble and farsighted enough to make prudent purchases now.