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Summer heat
Weather conditions throughout our universe have been turbulent this summer with severe rain in some regions while other areas have suffered from extreme heat causing draught and deadly wild fires.
Moscow and its surrounding areas have been significantly impacted by the latter. Unfortunately, the weather forecast shows no signs of relief in terms of rain or cooler temperatures until closer to September. Although wild fires are nature’s way of renewing the earth and soil it is extremely sad to see this type of devastation in such a densely populated area.
As far as our portfolio companies are concerned, there might be some short term effects on companies in the agricultural and consumer goods sectors as a fall in crop yields is expected; however, this will most likely be partly offset by higher soft commodity prices. For example, wheat and corn prices are up by 50% and 20% respectively during the last month. East Capital has a few holdings within the agricultural and consumer goods sector. Agro might experience some short term impact on profitability as well as consumer goods due to higher input prices.
Jacob Grapengiesser, Partner East Capital
About this blog
A long-term perspective and local presence are key to East Capital’s investment philosophy. Making 1,200 company visits and meetings every year in the region teaches us more about the markets than all indices ever could. This blog aims to share our experience of investing in Eastern Europe & China in an informative and insightful manner.
Blog policyEast Capital’s blog is intended for interaction between users of the website and East Capital representatives. It is important to note that comments by East Capital representatives do not necessarily represent the official position of East Capital. Under no circumstance shall the comments on the blog be construed as investment advice, and East Capital is in no way liable for any damage or loss any person has suffered due to reliance on such comments.
While East Capital does not control the comments posted by users, East Capital reserves the right to refuse, delay, delete, move or edit any comment on the blog. East Capital does not accept any comments that are abusive, threatening or offensive. Further, no comments should be posted by users that are unrelated to the blog topic, contains advertising, promotion, or illegal material, or where posting of a comment may constitute a breach of law (such as, but not limited to, insider and market manipulation regulations or infringement of intellectual property rights).
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Our bloggers
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Founding partner and Chief Representative, Shanghai office. Karine blogs about East Capital, its investment products and gives direct reports from Shanghai.
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As East Capital's Chief Economist Marcus will focus on macro-economic issues, market events, research and political issues affecting the region.
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As Head of Communications Vesna will focus on East Capital's business as well as the latest media topics.
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Kristina, Macro Economist Asia, will share her experience and report trends and issues within politics and economics affecting China.
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