13th October 2015
What do Volkswagen and commodities giant Glencore have in common – other than that their shares have both suffered from massive crashes in the last couple of weeks? At first sight, the answer is “not a lot”. VW has been hit by scandal, whereas Glencore’s woes are down to fears that it has been caught swimming naked, now that the tide is going out on commodity prices. But smart investors should see this as a warning. A new era of ultra-competitiveness is coming – and poorly governed or highly indebted companies will be among the first casualties of what will be an extinction-level event for global corporations.