Great interview from Martin Sorrel at the 5th Investor Forum in São Paulo Brazil 2022

Martin Sorrel Interview at 5th Investor Forum Brazil 2022

 

Getting started in Brazil or wanting to Invest in Brazil in 2022?

Read about this great interview from Martin Sorrel at the 5th Investor Forum in São Paulo! Laser clear information on what is going on in the world economy right now. 

His company S4 Capital is doing great things and in 32 countries now. The company is focused on the following markets:

60% North & South America 

20% EMEA 

20% Asia Pacific

In South America focus is Brazil I Mexico I Columbia I Argentina and about 3500 employees in LATAM. 

What makes what he says relevant? Well S4 Capital group does sales, marketing and IT for the largest companies in world! Their client list below from largest:

Google / Alphabet

NDA Telecoms (2nd largest in world)

Meta / Facebook

BMW

Mondalez 

HP

In short what Martin Sorrell had to say about the world economy in 2022:

1-There is a Perfect Storm going on globally: 

        Disruption with companies needing to be truly agile.

10-15 Trillion of Stimulus ended in a 92 Trillion economy.

High Inflation to pay for the bill now.

Ukraine war. 

China COVID lockdowns 

2-Risk on for: 

N and S America, Middle East!

3-Globalization gone: 

Regionalization is on with trade moving to nearshore. For Brazil to the USA this is great. 

4-Agile: 

CEO´s talk agile but companies not really agile! Must focus on efficiencies and true agile to survice now. Quoted Kissinger “everything has gone short term”. 

 

5-Guedes (Economic Minister of Brazil):

Agreed with Guedes speech about why Brazil is now risk on and nearshore positioned to do well. And in this regard also as Brazil did not really open its economy before also and reap benefits of globalization. 

6-War:

Ukraine wall not end soon. And will drive investment in technology and cyber products. Example is Germany with massive uptick in spend on military. 

7-Take Control:

Companies must take back control. Move critical functions inhouse again. Do this to be able to move at light speed. “Fast is better than cheap”.

8-Digital Platforms:

There are 6 platforms that dominate the world. Their total spend online is $450 Billion.

From largest below:

1 Google / Alphabet (spends $215 Billion on advertising) 

2 Facebook / Meta (spends $150 Billion on advertising)

3 Amazon (spends $130 Billion on advertising)

4 Alibaba

5 TikTok

9-Two Big Issues in the World economy to resolve:

1-Russia.

2-USA / China trade and relations. About $38 Trillion or 40% of world GDP at stake! 

10-Brazil:

Brazil is 50% of LATAM GDP. Highlighted quality of people in Brazil and Argentina. 

In closing: LATAM has and Brazil have huge advantages in this new economy. Focus on true agility in companies. Get efficiencies.