MLA Recap of Recent Economic Events & Update to our Financial Services Guide (FSG)

Dear MLA Clients,

We take this opportunity to briefly summarise some recent events as follows:-

  1.   The UK officially exits the European Union after 47 years.  The race begins to formalise bilateral trade agreements with all trading partners, including their largest – the USA.
  2.   The US and China sign Phase 1 Trade Agreement, and Phase 2 already underway.
  3.   Despite coronavirus global growth more stable in 2020 than 2019.
  4.   Australian bushfires – early estimate approx. -0.7% impact to GDP. (Aust. Finance Minister).
  5.   Polls show Donald Trump as favourite in forthcoming US Election (Nov. 20).

(source: CNBC, CNN, Bloomberg, Economists, Fund Managers, World Economic Forum)

 

We further highlight a few interesting takeouts for 2020 from the World Economic Forum (WEF) in Davos, Switzerland last week:-

  1.  Leaders cautiously optimistic entering a stage of stability in 2020. (source: overall WEF)
  2.  Climate change was central theme of the WEF. “Climate risks underestimated on economy and corporates as its difficult to assess”. (source: Christine Lagarde – EU)
  3.  IMF downgrade global GDP to 3.3% primarily due to India (Inflation high). (source: IMF)
  4.  Diverse Boards drives better proven results and adds value to shareholders.  (source: Goldman Sachs).
  5.  Digital Tax has been proposed by France Finance Minister.
  6.  EU, China and 15 other countries to form alliance to solve trade disputes. (source: Bloomberg).
  7.  C02 emissions from recent fires in Australia same as all emissions from Aircraft flights in 2018. (source: Bloomberg)

We look forward to expanding on this in your individual reviews throughout 2020.

 

Finally, please follow the link below to access the latest version of our Financial Services Guide (FSG) dated 1 January, 2020 (version 1.6):

Click Here for our latest Financial Services Guide.  Please note:  our FSG and Privacy Policy is also available on our website.

 

Best regards,

Margie Arendtsz

MLA Advisers & FinWealth

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