Dear MLA Clients,
We take this opportunity to briefly summarise some recent events as follows:-
- 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.
- The US and China sign Phase 1 Trade Agreement, and Phase 2 already underway.
- Despite coronavirus global growth more stable in 2020 than 2019.
- Australian bushfires – early estimate approx. -0.7% impact to GDP. (Aust. Finance Minister).
- 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:-
- Leaders cautiously optimistic entering a stage of stability in 2020. (source: overall WEF)
- Climate change was central theme of the WEF. “Climate risks underestimated on economy and corporates as its difficult to assess”. (source: Christine Lagarde – EU)
- IMF downgrade global GDP to 3.3% primarily due to India (Inflation high). (source: IMF)
- Diverse Boards drives better proven results and adds value to shareholders. (source: Goldman Sachs).
- Digital Tax has been proposed by France Finance Minister.
- EU, China and 15 other countries to form alliance to solve trade disputes. (source: Bloomberg).
- 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):
MLA Advisers & FinWealth