Advertisement feature A word from AlphaSense: Geopolitics x IR
Major geopolitical events are often unforeseen and fast-moving, making it crucial that IROs remain prepared and communicative. Following the pandemic, investors have become more informed than ever before, consistently looking for information on global events that could inform a competitive edge or actively manage risk. Consequently, the C-suite will have to follow suit – by not only staying abreast of events, but also keeping a finger on the pulse of investor mentality.
But some executive leadership is already aware of this. AlphaSense’s collection of quarterly earnings calls show a rise in transcripts containing terms related to these between January 1, 2018 and March 31, 2024.
The Yemeni militia attacks in the Red Sea area have forced companies reliant on the shortest Asia-EU route to seek alternative shipping options, leading to costly detours around Africa and spikes in spot rates. The disruption is compounded by drought-related restrictions at the Panama Canal, another shipping choke point.
‘We have been working very closely to monitor all the effects connected to the Red Sea situation, including what this will mean for freight prices for the year. And we’ve been in a very close dialogue with our shipping partners to try to mitigate these effects as much as possible’ – H & M Hennes & Mauritz earnings call, March 27, 2024
Mentions of Israel within conference call transcripts spiked in Q4 2023, following the Hamas terrorist attacks on October 7 and subsequent military intervention. Both locally headquartered and foreign businesses have responded to these events.
‘As the war continued, Bank of Israel extended its instruction and limited the distribution for another quarter, the fourth one, although we are clearly able to pay out dividends in line with our policy and even more. Obviously, our view is that the remaining capital surplus should be distributed to our shareholders, and we are working on that with the Bank of Israel’ – Bank Hapoalim earnings call, March 7, 2024
Russia’s initial invasion of Ukraine and succeeding military strikes, sanctions and divestitures left both countries unable to fulfill importee orders. This led to a shortage of essential commodities, as well as supply-chain disruptions and realignments.
‘With the prolonged US-China trade friction, the war in Ukraine and the worsening situation in the Middle East, the global geopolitical risks are increasing. With this, the supply chain has become even more separated, which is beginning to have a significant impact on the group’s business opportunities’ – Renesas Electronics Corporation shareholder/analyst call, March 26, 2024
Looking through a larger lens, we’ve noticed an increase in transcripts mentioning ‘tensions’ as global protectionism policies take hold. More specifically, we’ve seen an increase in transcripts mentioning the CHIPS Act, as both the US and the EU rolled out major industrial policies regarding semiconductor manufacturing.
‘What’s happening here is really a new renaissance in manufacturing that has a multi-year tailwind of growth for the industry. Driven by the CHIPS and [Inflation Reduction] Act, we’re going to see manufacturing explode in the US… And when you look at that, that’s going to be multi-years of growth’ – Summit Materials analyst/investor day, March 13, 2024
The bottom line is that geopolitical tension and international warfare are rife, rendering the market unpredictable and investors anxious. To truly succeed today, IROs need a market intelligence tool that eliminates the ambiguity brought on by the unexpected.
In AlphaSense, you can use the keyword search bar to search for topics or themes from across AlphaSense’s millions of data points.
To conduct a thematic search that is not tied to a specific company or list of companies, enter a keyword or theme in the keyword search bar, and leave the company/ticker bar empty.
Click the blue search button to begin your search.
Once you enter a keyword search, AI-powered suggested filters will automatically recommend the most relevant sources based on your keyword. You can select one or multiple filters to narrow your search. You can easily search key terms within the platform and see relevant companies, industries and regions trending in relation to that theme.
Unsure of where to start? The Trending Topics module, available via the dashboard, allows you to see the top 100 topics that are trending for a single company or a group of companies in a watchlist or industry.
Beyond earnings calls, AlphaSense offers an extensive universe of company filings, expert interview transcripts, news, trade journals and equity research – paired with proprietary AI-based search technology – to pinpoint the above insights and more in seconds.
