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Thursday, 18 January 02:04 (GMT -05:00)



Business And Politics News

During Trump's Presidency, Global Economy May See Stagflation, Bank of America Says


Bank of America warns after Donald Trump’s victory in the presidential election, over 20% of international investors are expecting stagflation in the global economy in the near future.

 

 

 

 
To be more specific, the recent survey conducted by the bank shows that 20% of 177 portfolio managers running over 456 billion dollars in assets assume that the global economy is going to fall into stagflation within the next 12 months.
 
At the same time, the bank representatives underline that today’s expectations of stagflation in the global economy have reached a new 4-year high. For those of you who don’t know, stagflation is an economic situation when zero or little economic growth comes hand in hand with rising unemployment and inflation.
 
Economic Growth Expectations Rise As Well, Survey Says
 
At the same time, the expectations of a stronger global economy within the next 12 months have risen as well. While the amount of investors anticipating a stronger economy used to be 1% in October 2016, now has gone all the way up to a stunning 35%, which is a new record high.
 
Bank of America explains that the results of the recent U.S. presidential election are seen as a positive factor for the global economy. The same holds true for corporate incomes. In October, 10% of the respondents used to expect higher corporate incomes in the USA. Now, it’s 29% of the respondents who think so. As for inflation expectations, they have risen all the way up to 85% since October, when the figures were around 70%.
 

 

At the same time, another major American bank, which is Goldman Sachs, says that Trump’s protectionism policy may well trigger stagflation in the American economy in the near future. For those of you who don’t know, Trump’s trade protectionism policy implies supporting American producers and capping imports amid war on illegal immigration. If Donald Trump really puts into practice everything he promised during the presidential campaign, the expert say that the U.S. GDP may well shrink by 0.8% against the 2017-2019 forecast. At the same time, the rate of unemployment and inflation may rise to 5.3% and 2,3% respectively. If that’s the case, the Fed is likely to fight higher inflation above the target level by aggressive interest rate hikes.

 

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Any Brexit Scenario Will Damage the British Economy

In practice, there can be multiple Brexit scenarios, i.e. the scenarios of how the United Kingdom will exit the European Union. Experts say that almost any scenario will damage the British economy to some extent. Moreover, there will be some economic damage to both the UK, the USA, and the EU.

Publication date: 25 December 02:48 AM

The Era of Cheap Money from Central Banks is Over

According to two major investment banks – Citigroup and JPMorgan, the days of cheap money and low interest rates are nearly gone after almost 10 years since the last global crisis. They warn us that major central banks around the globe (including the ECB, for example) are going to start toughening their monetary policies in 2018 at the fastest pace in 12 years.

Publication date: 25 December 02:05 AM

Will Bitcoin Mining Leave the World without Electricity?

It seems like people have been obsessed with cryptocurrencies. While loading up on them like crazy, they seem to have forgotten that everything has a price. When it comes to mining cryptocurrencies, this is all about the growing deficit of electricity. The thing is that all those mining farms consume tons of energy. Maintaining that cryptocurrency infrastructure is rather energy-consuming as well since all of that requires really powerful and capacious hardware, which consumes big amounts of electricity.

Publication date: 04 December 01:04 AM

Brexit and Bank Capital Outflow

Since the Brexit referendum that took place in the United Kingdom last year, European banks have already withdrawn from the UK as much as 350 billion euros. That’s reported to be the official stats provided by the European Union, The Financial Times reports.

Publication date: 30 November 01:52 PM

Fed Will Raise Interest Rate 4 Times in 2018, Goldman Sachs Experts Predict

According to the experts working for Goldman Sachs, one of the largest investment banks in the world, the U.S. Federal Reserve is probably going to raise the key interest rate 4 times next year.

Publication date: 25 November 04:05 AM

Referendum In Catalonia May Hit Europe Harder Than Brexit

The possibility of Catalonia exiting from Spain is dangerous to the integrity of the European Union, even more dangerous than the Brexit. This is what The Daily Telegraph thinks on the matter.

 

Publication date: 01 October 04:58 AM

Trump Announced Revolutionary Tax Cuts for Americans

On Wednesday, September 27th, President Trump announced a tax reform. The thing is that Donald trump promised this tax reform when making his election pledges in 2016.

Publication date: 29 September 07:51 AM

What is so precious about Ukraine for international investors? An American businessman shares his opinion

More and more international investors have been paying attention to Ukraine as a promising area for profitable investing. Cody Shirk, an American entrepreneur, traveler and investor, is now urging international investors to look at Ukraine as a country with really great investment potential, Market Leader reports.

Publication date: 27 September 03:16 AM

China’s Debt Bubble May Trigger Another Global Financial Crisis

The Chinese economy keeps on slowing down as China’s debt bubble is growing. International experts are concerned about that. They are afraid of a new global financial crisis, Market Leader reports. The thing is, the Chinese economy is not growing fast enough anymore. Beijing has to admit the economic slowdown. The entire international expert community is now closely watching this slowdown and expressing their concerns about China’s economic prospects amid the mentioned economic slowdown and inflating debt bubble.

Publication date: 25 September 12:44 PM

Why Is German Parliamentary Election Important to Europe?

Judging by the results of several sociological surveys, the chances of electing Angela Markel for the next 4 years is fairly high at the moment. Even though there is almost no intrigue in the election, the international community has still been closely watching it, Market Leader reports

Publication date: 24 September 12:55 AM