The global economic situation remained challenging over the last six months, as growth in several major advanced economies continued to slow, constrained by fiscal adjustment and sluggish labor markets. Most major chemical companies saw their profit slump in the third quarter, while activity across emerging Asian economies remained subdued in the quarter given a slowdown in exports. Chemical manufacturers benefitted by shifting from commodities and basic petrochemical towards higher performance chemicals and focusing on automotive, electronics, environmentally friendly technologies. Despite the challenging situation in the second half of the year, most Asian chemical companies stock prices somewhat improved over the six months from July to January. Joint ventures and acquisitions continued to be an option for most chemical companies to optimize their business portfolios.