Daily Brief - 14 Mar 2024

Tik Tok may be banned in the US

The future of TikTok, an app loved by 170 million Americans, hangs in the balance as it faces a possible ban in the US. The House of Representatives has already passed a bill demanding TikTok's Chinese owners sell the app, or face a ban. Despite the overwhelming support in the House, the bill now faces a rocky path in the Senate, known for its complex debates and slow decision-making. TikTok's CEO is rallying users to share their stories and influence senators. The Senate's next steps are uncertain, with various senators expressing both support and opposition, highlighting the deep divisions over the app's fate and broader issues of data privacy and national security.

BYD beats Tesla in China but struggles to conquer markets abroad

BYD, a giant in China's electric vehicle (EV) market, has beaten Tesla domestically but finds the global stage tougher to conquer. Holding 35% of China's EV market with Warren Buffett's support, BYD aims to expand its presence worldwide. However, adapting cars for different countries and high international shipping costs have led to prices soaring up to 50% higher than in China. This, along with quality control challenges, is making it difficult for BYD to meet its goal of increasing international sales. Despite these hurdles abroad, BYD's strong local customer base remains unwavering, even as competition intensifies with new entrants like Xiaomi entering the EV space.

Nestle faces investor challenge over healthy food targets

Nestle, known for its Kit Kat bars, is under pressure from shareholders, including Legal & General Investment Management, to sell more healthy food. A group led by ShareAction has pushed for a vote at Nestle's annual meeting to commit to better nutrition standards globally. This comes amid rising global health concerns, with unhealthy diets linked to obesity and diseases, potentially costing the global economy $4.3 trillion a year by 2035. Despite talks, no agreement has been reached, with Nestle defending its nutritional efforts but facing criticism for not doing enough to promote healthier products.