The United States has the largest weight in the consumer staples
sector, closely followed by Europe. Here the big firms in the United
States are Procter & Gamble, Altria, and Wal-Mart, while in Europe the
dominant firms are Nestlé, Unilever, and British American Tobacco. The
emerging markets have few entries in this sector while Japan has virtu-
ally no presence relative to the size of its market.
The energy sector has a large value everywhere but in Japan, which
has very little in energy resources. In the United States the integrated oil
producers such as Exxon Mobil, Chevron, and ConocoPhillips dominate,
while in Europe the largest firms are BP (British Petroleum), Total in France,
and ENI in Italy. Energy firms in the emerging markets are dominated by
the Chinese PetroChina, the largest foreign firm, and Russian Gazprom, the
second largest. Both these firms are only partially privatized.
Healthcare has the largest share of U.S. firms and the smallest share
in the emerging markets. In the United States, the largest firms are
Pfizer, Johnson & Johnson, and Merck; in Europe, GlaxoSmithKline, As-
traZeneca, Roche, and Novartis; while in Japan, Takeda Pharmaceutical
is predominant.
The share of industrial firms is largest in Japan and smallest in the
emerging markets. Mitsubishi and Mitsui dominate in Japan; Siemens
and Deutsche Post in Europe, and General Electric in the United States.
Information technology has the highest share in the emerging mar-
kets, but this is almost entirely due to the Asian giants Samsung Electronic
from South Korea and Taiwan Semiconductor. If we exclude firms from
South Korea and Taiwan, then India has nearly 80 percent of the remaining
market value of technology firms with Infosys and Wipro being the largest.
By far the largest sector share for telecommunications firms is
found in the emerging markets, due to Chunghwa Telecom of Taiwan,
América Móvil, S.A.B. de C.V. of Mexico, and China Mobile. In Europe
Vodafone is the largest telecommunications firm, followed by the Span-
ish Telefonica and Deutsche Telekom. In the United States the largest
firms are AT&T and Verizon.
Finally, utility firms have a small share of only 3^1 ⁄ 2 percent in the U.S.
market (led by Exelon Corp.), an electric utilities firm, to nearly 7 percent
in Europe led by Enel of Italy and Electricité de France, the tenth-largest
foreign firm.Private and Public Capital
Exxon Mobil may be the largest company by market value in the world,
and it has the largest reserves of oil and gas (20 billion barrels) of anyCHAPTER 10 Global Investing and the Rise of China, India, and the Emerging Markets 177