Marsh & McLennan Advantage Insights logo
Conversations and insights from the edge of global business
Menu Search

Quick Takes

Most Companies Have Withdrawn From Russia, But Not All

Level of Business Activity in Russia

Five hundred companies have withdrawn their business from Russia since the country’s invasion of Ukraine, but some companies have continued business as usual. 

Professor Jeffrey Sonnenfeld and his team at the Yale Chief Executive Leadership Institute are tracking how many businesses have withdrawn and which are still operating in Russia. The team assigned each business letter grade, from A to F, based on their level of operations in the country. 

Sonnenfeld says the list has helped CEOs convince their boards to join responsible business leaders in leaving Russia, but that he has refined the list over time. The new list, with five categories, reflects that some businesses in the “asset-light” sector have an easier time withdrawing completely than, say, automobile or tech companies with large workforces in Russia or investment-intensive manufacturers. 

But other companies, particularly those in the last three categories, he says are using the idea of withdrawal, the necessity of their production of “essential” goods, or “humanitarian commitments,” as a smokescreen while continuing substantive business operations.

Colombia Leans Left in Election Run Up

Colombia may elect a leftwing government for the first time in years in its upcoming presidential election, potentially changing its relationship with the United States. 

New polls show radical left candidate Gustavo Petro in the lead over more conservative competitors, center-right Federico Gutiérrez and populist Rodolfo Hernández, in advance of this weekend’s May 29 election. Experts say the election will likely go to a run-off in June, as no candidate is likely to get over 50% of the vote.

Petro has promised sweeping changes, including renegotiating Colombia’s free trade agreement with the U.S., legalizing the drug trade, and restoring diplomatic relations with Venezuela, whose president the U.S. doesn’t recognize. His campaign promises have made business leaders and landowners nervous, reports the Financial Times, and Colombia’s central bank, Banco de la República, says it has seen capital flight from the country leading up to the election.

U.S. Mortgage Debt Rises to $11 Trillion

American household debt has risen to nearly $16 trillion, in large part driven by over $11 trillion in mortgage debt, shows a new report from The Federal Reserve Bank of New York. The record-high debt comes as inflation and interest rates also hit new highs.

Mortgage debt — which rose by $250 billion in the first quarter of 2022 — makes up 71% of all household debt. Mortgage originations have increased by $197 billion since the start of the pandemic, a result of Americans relocating from cities and buying homes in the suburbs. This urban flight, driven by a desire for more space amid lockdowns and remote work, has also pushed the median home price up by 30% over the last two years.

Non-housing debt, such as student loans, automobile loans and credit card debt, grew by $17 billion in the first quarter, largely due to a $14 billion increase in student loans. Overall, household debt has increased by nearly $2 trillion since before COVID-19.

Finland’s Support for NATO Soars

An overwhelming majority of Finns (76%) support joining the North Atlantic Treaty Organization (NATO) since Russia’s attack on Ukraine, whereas previously, a majority of Finns opposed joining the intergovernmental military alliance, a recent Yle poll reports.

As Russia’s invasion of Ukraine continues into a third month, the number of Finnish adults in favor of NATO membership has grown from 53% in February to 62% in March, and 76% in May. Support was strong across political parties, with the strongest support among backers of the Swedish People’s Party and the Centre.

Finland and Sweden, traditionally neutral countries, announced their bids to join NATO this week (though Turkey has blocked the start of the talks for both countries). Finland’s membership would double the alliance’s land border, adding the more than 800 miles of border that Finland shares with Russia and additional support in the Baltic Sea.

Climate Change Causes Heat Waves in India and Pakistan

Extreme heat waves have engulfed India and Pakistan since March, with temperatures rising to up to 122 degrees Fahrenheit (50 degrees Celsius), according to NASA. The temperatures, which are higher than average, are a result of climate change.

The effects of the heat waves include death, illness, reduced crop yields, poor air quality, and one of the worst electricity shortages in more than six years as power demands go up. While heat waves are common in the region this time of year, the number of spring heat waves has been increasing as global warming intensifies.

The deadly heat waves have also caused India — the world’s second-largest wheat producer — to ban wheat exports. India initially planned to fill the gap left by Ukraine and Russia, which together export more than a quarter of the world’s wheat. This and other factors have driven up global food prices — agricultural prices are up 41% compared to January 2021, with wheat prices up by 60%.

Get ahead in a rapidly changing world. Sign up for our daily newsletter. Subscribe
​​