Biotech booms
Biotech companies continue to grow and attract major funding from both public and private sources. In 2020, global venture-capital funding and deals reached their highest ever level of USD 36.6 billion, while IPOs raised more than twice the amount of capital compared with 2019.
To read the article, see “Can European biotechs achieve greater scale in a fragmented landscape?” June 29, 2021.
Inflation comes back to life
As the global economy emerges from the worst of the pandemic, strong growth is back—and so is inflation. Higher commodity prices are creating stress in all economies, developed and emerging. Oil prices reached USD 75 per barrel due to rising demand. Food-price inflation reached its highest level since 2011. In the United States, consumer inflation reached 5 % in May. US investors are factoring all this into their expectations.
To read the article, see “Global Economics Intelligence executive summary, June 2021,” July 19, 2021.
Fashion’s bias cut
Almost a quarter of fashion employees say they have seen biased behavior in the workplace, usually based on race, ethnicity, or appearance. A Black fashion executive told us, “I’ve had a white peer say to me that I don’t have to worry about layoffs because [the company] can’t let go of the Black person, or they verbalize that they think I got a promotion because I’m Black.”
To explore the interactive, see “Voices and viewpoints of fashion students and emerging designers,” July 20, 2021.
How India Inc. could write a new chapter
Indian companies could unlock substantial value by selling businesses, and now may be a particularly propitious time to divest. Our research finds that companies should consider private equity buyers, which have historically been willing to pay more. PE firms’ ability to attract top talent, undertake transformations, and employ better capital discipline may explain their willingness to bid more than strategic buyers.
To read the article, see “Unlocking value through divestitures: Can Indian firms seize the moment?,” July 20, 2021.
Savings skyrocketed as Americans locked down
Americans’ personal-savings rate hovered just below 10 percent in the months before the onset of the pandemic. As lockdowns began, savings climbed dramatically, up to nearly 35 % in spring 2020. The rate has fallen but remains above historical norms, at over 12 percent, as the pandemic lingers.
To read the article, see “Trends that will define 2021 and beyond: Six months on,” July 21, 2021.
HBCUs propel grads up the American economic ladder
Graduates of historically Black colleges and universities (HBCUs) climb the economic ladder at rates well above those of their non-HBCU-graduate peers. HBCU graduates are 51 % more likely to move into a higher-income quintile than graduates of non-HBCUs. Moreover, the economic mobility rate for HBCUs is nearly double that of all US colleges.
To read the article, see “How HBCUs can accelerate Black economic mobility,” July 30, 2021.
Mental health stigma persists
Experience matters. In surveys conducted by McKinsey’s Center for Societal Benefit through Healthcare, about a quarter of respondents who have little experience with behavioral-health issues indicated they would be willing to work closely with someone who has a substance-use disorder or mental health issue. Those figures climbed by more than 65 % among respondents who are familiar with behavioral-health conditions.
To read the article, see “Overcoming stigma: Three strategies toward better mental health in the workplace,” July 23, 2021.