FT News Briefing Spain in political limbo
Jul 25, 2023
Credit Suisse faces a hefty fine from US and British regulators as Spain grapples with a political stalemate, leaving its future in limbo. Meanwhile, US consultancies are struggling to maintain business in China amid national security concerns and government raids. Despite challenges, foreign investors remain committed to the region, with firms like Bain and McKinsey adapting strategies to navigate rising tensions. Also, LVMH steps up as a major sponsor for the Paris Olympics, showcasing its support for the event in these turbulent times.
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Spain's Political Limbo
- Spain's 2023 election resulted in a hung parliament, with no clear majority for either the right or left coalitions.
- Small parties now hold significant power in forming a government.
US Consultancies Struggle in China
- US consulting firms face declining business in China due to weak economic growth and national security raids.
- These raids create fear among local clients, impacting due diligence and expert networks.
Bain's China Challenge
- Bain, a US consultancy, is heavily impacted by the situation in China, particularly due to a raid in Shanghai.
- This raid has raised concerns among clients who rely on Bain for due diligence.