WTI crude oil price continues to trade slightly higher in the $2.07 range on the first session of the fourth quarter. Price has been holding on positive comments from European Union Commissioner Olli Rehn about the Spanish banking system’s stress tests, suggesting the euro zone debt crisis could be contained.
Sometimes U.S. stocks are the natural way to play a business trend in the emerging world because they dominate a particular market. In other circumstances, we suggest the U.S. competitor as a proxy on a hard-to-reach sector. The global cosmetics industry gives us examples of both.
We’ve seen a real bloodbath in the emerging markets, but multinational consumer stocks that have been in these countries for a long time look largely insulated from both Chinese sluggishness and the euro madness. We talk about defensive growth today on Trading the Globe (10:20 ET, CNBC).
A three-day rally has traders wondering whether the emerging markets are safe to dive in again. We lay out both sides of the argument on today’s installment of Trading the Globe.
Global food and household products maker Unilever has “never seen” more volatile commodity markets and is raising its prices to compensate. Expect
Global personal care products maker Unilever is adding shampoo to its soap-heavy product portfolio — and taking it to emerging markets — with the $3.7 billion acquisition of Alberto Culver.
Unilever (UN, quote) aims to put shampoo maker Alberto Culver (ACV, quote) in its core markets — North America and the British Commonwealth — and build out its presence in Russia, Latin America and worldwide.
The acquisition values ACV at $37.50 a share in cash, roughly a 19% premium from its Friday close and about 1.3 times revenue.
Emerging markets are key to UN’s strategy. The company expects about 80% of its growth to come from outside its European stronghold, where sales are in a soft decline. Expect more deals like this as established giants look for exposure to Russia, Asia and Latin America.
CNBC launched the first of its half-hour Trading the Globe specials today. Tim Seymour hosts top emerging market traders in their discussion of global investment ideas.
Replace the Dow with emerging markets stocks
The sun is setting on a decade of losses in the benchmark U.S. index, the Dow Jones Industrial Average. Now traders are sending their money to every corner of the globe on the hunt for growth and returns.
If you want to replace the Dow in your portfolio, you could see much better returns. Every one of the emerging Dow doppelgangers in this list (designed by Tim Seymour himself) is a pretty good match for one of the giants of U.S. industry — and on average, they are up over 200% over the last decade.
Dow component Emerging doppelganger Alcoa (AA, quote) Vale (VALE, quote) American Express (AXP, quote) Banco Bradesco (BBD, quote) AT&T (T, quote) China Mobile (CHL, quote) Boeing (BA, quote) Embraer (ERJ, quote) Bank of America (BAC, quote) IDC Bank (IDCBY, quote) Caterpillar (CAT, quote) Kubota (KUB, quote) Chevron (CVX, quote) Gazprom (OGZPY, quote) Cisco (CSCO, quote) United Micro (UMC, quote) Coca-Cola (KO, quote) Fomento MX (FMX, quote) DuPont (DD, quote) Sasol (SSL, quote) Disney (DIS, quote) Televisa (TV, quote) ExxonMobil (XOM, quote) Petrobras (PBR, quote) General Electric (GE, quote) Reliance Industries (no ADR) Home Depot (HD, quote) Homex (HXM, quote) Hewlett-Packard (HPQ, quote) Lenovo (LNVGY, quote) IBM (IBM, quote) Infosys (INFY, quote) Intel (INTC, quote) Taiwan Semiconductor (TSM, quote) JP Morgan (JPM, quote) ICICI Bank (IBN, quote) Johnson & Johnson (JNJ, quote) Dr Reddys (RDY, quote) Kraft (KFT, quote) Brasil Foods (BFRS, quote) McDonalds (MCD, quote) Yum Brands (YUM, quote) Microsoft (MSFT, quote) SAP (SAP, quote) Merck (MRK, quote) Ranbaxy (no ADR) 3M (MMM, quote) Samsung (no ADR) Pfizer (PFE, quote) Teva (TEVA, quote) Procter & Gamble (PG, quote) Unilever (UN, quote) Travelers (TRV, quote) China Life (LFC, quote) United Technologies (UTX, quote) Hyundai (no ADR) Verizon (VZ, quote) China Unicom (CHU, quote) Walmart (WMT, quote) Walmart Mexico (WMMVY, quote)
The next growth engine
As rising debt and slowing demand hobble the Western world, traders are hunting for the globe