If the economic stimulus plans in China prove successful in boosting consumer spending and economic growth, it could make life easier for two new CEOs in the United States who are trying to orchestrate their own turnarounds. Brian Niccol and Elliott Hill are taking over Starbucks and Nike , respectively, just as a key market that weighed on their predecessors gets a boost. Both companies are in the top 50 of S & P 500 companies with direct sales exposure to China, according to Bank of America — Nike has 14.
7% exposure, while Starbucks is at 8.6%. As China's economic stimulus takes shape, it could end up helping these global brands.
"A fundamental turnaround will likely require additional support — particularly on the fiscal front — to stabilize the property market and revitalize consumption. But the coordinated efforts and rapid follow-up so far suggest that this could be the real deal for the broader economy as well, contingent on policy continuity and execution," said an Oct. 1 UBS note from analyst Hartmut Issel and others.
The same note named Starbucks as one of the U.S. stocks that could benefit from a rebound.
SBUX 3M mountain Starbucks' stock has rallied since the company announced a CEO change. Nike and Starbucks in China While the exact plans for Niccol and Hill are still unclear, the Chinese market seems like it will be an area of focus. At Starbucks, the company's leadership team in China has already been reshuffled since Niccol took over in September.
Some W.