Simply Economics, from Mexico

Grupo Dia’s Sustainability Plan, Geopolitical Conflicts and the Global Economy

Grupo Dia unveils its Strategic Sustainability Plan, focusing on social sustainability, diversity, and promoting healthy lifestyles. Geopolitical conflicts are identified as the main threat to the global economy. Gain insights into Grupo Dia's efforts towards accessible and affordable healthy food options, and the potential impact of geopolitical conflicts on the global economy.Sources:https://www.larazon.es/viajes/pilar-hermida-economia-proximidad-nuestra-esencia-nos-hace-unicos_202407126690c532301df7000107fad4.htmlhttps://es.benzinga.com/2024/07/12/conflictos-geopoliticos-mayor-riesgo-economia-global/Outline:(00:00:00) Introduction(00:00:38) Pilar Hermida: “The proximity economy is our essence; makes us unique "(00:02:28) Geopolitical conflicts: Greater risk for global economy

Duration:: 6m
Broadcast on:: 12 Jul 2024
Audio Format:: mp3

Grupo Dia unveils its Strategic Sustainability Plan, focusing on social sustainability, diversity, and promoting healthy lifestyles. Geopolitical conflicts are identified as the main threat to the global economy. Gain insights into Grupo Dia's efforts towards accessible and affordable healthy food options, and the potential impact of geopolitical conflicts on the global economy.

Sources:
https://www.larazon.es/viajes/pilar-hermida-economia-proximidad-nuestra-esencia-nos-hace-unicos_202407126690c532301df7000107fad4.html
https://es.benzinga.com/2024/07/12/conflictos-geopoliticos-mayor-riesgo-economia-global/

Outline:
(00:00:00) Introduction
(00:00:38) Pilar Hermida: “The proximity economy is our essence; makes us unique "
(00:02:28) Geopolitical conflicts: Greater risk for global economy

Good morning, and welcome to Simply Economics from Mexico. It's Friday, July 12th. On today's show, Pilar Hermita discusses how the proximity economy is the essence of Mexico and makes it unique. We also delve into the greater risk for the global economy due to geopolitical conflicts, this coverage and more up next. I'm David, and you're listening to Simply Economics from Mexico. We start off with some corporate sustainability news. Group ODA, a major Spanish supermarket chain, has just unveiled its new strategic sustainability plan for 2024/2025 under the motto "Everyday Counts." The plan focuses on social sustainability, diversity, proximity, food accessibility, and promoting healthy lifestyles. Here to discuss the details is our correspondent, so what makes Group ODA's approach to sustainability unique? Pilar Hermita, Group ODA's director of communication and sustainability, emphasizes that sustainability is deeply ingrained in the company's DNA. It's not just an accessory factor for them. After a year of intense work, they've developed a plan advancing four key areas, developing the economy of proximity, promoting a diverse and inclusive culture, driving a sustainable value chain, and caring for the environment. The economy of proximity seems to be a core focus. How are they developing that? Through three main levers. First, the Eat Better Every Day program aims to mitigate food barriers and facilitate healthy habits. Second, they're stimulating employment and entrepreneurship through DIA's network of franchises and suppliers. And third, social contribution initiatives with third sector allies like the Red Cross, Caritas, and the Food Bank. Diversity and inclusion are also highlighted in the plan. What measures are being taken there? Group ODA is implementing programs for the professional and personal development of their team, as well as actions to promote greater inclusion in their value chain. All of their awareness, work-life balance, training, and development initiatives aim to create a work environment where each individual feels valued and can reach their full potential. Proximity to the customer has always been one of Group ODA's strengths. It seems that will continue to be a key differentiator for them as they pursue these sustainability goals. The Strategic Sustainability Plan demonstrates an admirable commitment to creating long-term value, not just for the company, but for the communities they serve and the environment we all share. Thanks for the insights. Now shifting our focus to the global economic outlook, a recent survey of Central Bank Reserve managers has identified geopolitical conflicts as the top threat to the global economy, despite generally positive economic outlooks. The UBS Asset Management Survey included 40 of the top central banks managing over $15 trillion. Here with more details is our correspondent. So what did the survey reveal about the concerns of these reserve managers? The survey found that a staggering 87 percent of reserve managers identified an increase in geopolitical conflicts has the biggest risk to a favorable economic outcome. This concern is leading 41 percent of managers to diversify their investments across different regions and currencies in anticipation of escalating tensions between the U.S. and China. Gold has been a major beneficiary of this diversification, with prices hitting all-time highs. 24 percent of respondents increased their exposure to gold in the past year and 30 percent planned to do so in the next year. That's a significant shift in investment strategies. What are some of the factors driving this concern about geopolitical conflicts? One key factor highlighted in the survey is the recent policy decision to use central bank gains from frozen Russian assets to finance Ukraine. This move further increases the risk that foreign exchange reserves are no longer seen as a safe haven for central banks, according to Massimiliano Castelli, Head of Strategy and Advice at UBS Asset Management. Additionally, the upcoming U.S. election could exacerbate tensions, with 94 percent of respondents predicting a worsening of U.S.-China relations if Donald Trump wins. Despite these concerns, the global economy has shown some signs of resilience. Can you elaborate on that? Yes, the Organization for Economic Cooperation and Development, OECD, has revised its growth forecast for 2024 upward, indicating a possible exit from a stagflationary period. The U.S., China, and India are among the countries contributing to these improved outlooks. China's importance in the global economy is growing, already accounting for 19 percent of global GDP and 48 percent of Asia's GDP, making it a crucial player with significant impact on industries worldwide. And what about the role of emerging technologies like artificial intelligence and cryptocurrencies in the global economy? AI and cryptocurrencies could collectively contribute 20 trillion dollars to the global economy by 2030, boosting global GDP. This intersection of AI and cryptocurrencies is expected to have a more substantial impact than anticipated. However, it remains to be seen how these technologies will develop and be adopted in the face of geopolitical tensions and shifting investment strategies by central banks. It's certainly a complex and evolving situation. Thank you for that insightful analysis on the recent UBS Asset Management Survey of Central Bank Reserve Managers. And with that, we wrap up our stories for today. Thanks for listening to Simply Economics from Mexico. We'll see you back here tomorrow. [MUSIC] [BLANK_AUDIO]