Some key themes to look out for in 2019 H2
1) Further Uncertainty in Europe
Europe-wide Economic slowdown has resulted in European Central Bank president Mario Draghi reffirming policy stance of keeping interest rates at zero to stimulate growth in the EU as the recent months have seen Italy fall into recession, and German growth slow to practically zero.
Reprieve for UK as Brexit is extended to October 31st, stipulating that Britain will leave the bloc deal or no deal with the condition that the UK participates in the European Parliament elections and that it does not disrupt key EU decision-making before it leaves.
Prospect of new trade war between the US and EU after Donald Trump threatens the European Union with tariffs on $11.2 billion worth of goods over "unfair" subsidies to Europe’s largest aircraft maker, Airbus.
2) Growth in Asia
Expansionary fiscal policies adopted by governments will drive growth as Southeast Asian governments are expected to spend more this year as they try to prop up growth and address domestic challenges
Elections in key Emerging Markets such as India, Indonesia and Thailand bode well for sustained economic growth. For example, Indonesian President Joko Widodo has renewed a pledge to cut corporate tax rates and Indian Prime Minister Narendra Modi promises to spend more than US$1.4 trillion on new infrastructure over five years upon re-election
3) US-China Trade War Truce/Rebound in China's Economy
Favourable economic indicators in the US like how the Jobless Claims, which is the number of Americans filing applications for new unemployment benefits fell last week to the lowest level in 49 years
Likewise, economic indicators in China suggests that it is recovering from the effects of the trade war. The Manufacturing Purchasing Managers' Index (PMI) rose above 50 for the first time since July 2018, signaling stabilization in the world’s second largest economy, easing one of the biggest concerns for the global outlook
Some key themes to look out for in 2019 H2
1) Further Uncertainty in Europe
Europe-wide Economic slowdown has resulted in European Central Bank president Mario Draghi reffirming policy stance of keeping interest rates at zero to stimulate growth in the EU as the recent months have seen Italy fall into recession, and German growth slow to practically zero.
Reprieve for UK as Brexit is extended to October 31st, stipulating that Britain will leave the bloc deal or no deal with the condition that the UK participates in the European Parliament elections and that it does not disrupt key EU decision-making before it leaves.
Prospect of new trade war between the US and EU after Donald Trump threatens the European Union with tariffs on $11.2 billion worth of goods over "unfair" subsidies to Europe’s largest aircraft maker, Airbus.
2) Growth in Asia
Expansionary fiscal policies adopted by governments will drive growth as Southeast Asian governments are expected to spend more this year as they try to prop up growth and address domestic challenges
Elections in key Emerging Markets such as India, Indonesia and Thailand bode well for sustained economic growth. For example, Indonesian President Joko Widodo has renewed a pledge to cut corporate tax rates and Indian Prime Minister Narendra Modi promises to spend more than US$1.4 trillion on new infrastructure over five years upon re-election
3) US-China Trade War Truce/Rebound in China's Economy
Favourable economic indicators in the US like how the Jobless Claims, which is the number of Americans filing applications for new unemployment benefits fell last week to the lowest level in 49 years
Likewise, economic indicators in China suggests that it is recovering from the effects of the trade war. The Manufacturing Purchasing Managers' Index (PMI) rose above 50 for the first time since July 2018, signaling stabilization in the world’s second largest economy, easing one of the biggest concerns for the global outlook