Knowledge and Insight - Global economy

As the coronavirus spreads the world is experiencing a testing time, and we will undoubtedly face some difficult challenges in the weeks and months ahead as stewards of our clients’ financial futures.

Government budget balances are misunderstood. By politicians — sometimes wilfully — and even by some economists. So it’s no wonder then, if they’re misunderstood by the public.

Global markets have been focusing on US rate cuts over the past few months. But investors are increasingly looking to governments to stimulate growth, with a record 57% of fund managers saying fiscal policy is too restrictive, according to a recent survey of fund managers by Bank of America Merrill Lynch.

The UK’s first December general election in nearly 100 years punctuated an eventful year for politics and the economy. Financial markets experienced a series of mood swings throughout 2019, but ended on a high as investors regained their appetite for risk. Despite ongoing uncertainty, including Brexit and trade tensions between the US and China, we remain positive about the outlook for 2020.

Please Mr Trump, don't mention the war.
The global economy is sinking into a slowdown, but is this the beginning of the end? It’s too early to tell.

Clearing the hurdles

With the influence of politics on the global economy growing, could game theory provide a model for success?