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Tuesday, 17 September 06:17 (GMT -05:00)



Business And Politics News

IMF Sees China As Major Deterrent To Global Economy In 2016


This year, the global economy is going to be seriously affected by the economic slowdown in China, which is the world’s second-largest economy after the USA. This is what the IMF’s chief economist thinks on the matter. During his interview to IMF Survey, he said that the global economy is going to be seriously influenced by emerging markets, including China as the major one.
 
 
As you probably know, China is moving from foreign investments, production and export to domestic consumption and services. The process is rather painful due to the weak balances of public companies and financial markets while the resource base lacks flexibility and rational distribution.
 
Global financial markets may be scared by China’s declining economic performance once it’s below the target set by the Chinese government. However, there are traditionally techniques designed to artificially help an underperforming economy reach the target. Still, these artificial steps may result in even bigger economic problems in the long run.
 
On top of that, it is important to keep in mind that foreign investors start fleeing emerging markets. There is a flight of capital amid partially exhausted reserves, which resulted in wider sovereign spreads and weaker national currencies amid sharply declining GDPs. Apparently, if commodities like crude oil keep on losing their value, the exporting nations are going to see even bigger economic challenges leading to devaluation, inflation, deficits etc.
 
At the same time, it is very important to take a look at the refugee problem currently seen in the EU. This is a challenge for the European labor market as well, not to mention the EU’s political system which may face strong opposition by the indignant locals tired of the refugees.
 

 

All of that is probably going to translate further into some major challenges for the global trade as well, especially as the global GDP is expected to slowdown. Moreover, the Fed is planning more interest rate hikes in 2016, which (if that’s the case) is going to make dollar assets even more popular while making investors flee emerging markets and other risky high-yield assets. This is a very important aspect to keep in mind and monitor this year.

 

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Fed Cuts Key Interest Rate For The First Time In 10 Years

The U.S. Federal Reserve is reported to have cut the key interest rate, which is something really outstanding since the Fed has done it for the first time since 2009.

Publication date: 11 August 03:05 AM

New Prime Minister Names Brexit Date

It seem that the new Prime Minister of the United Kingdom is really determined about everything related to the Brexit. The process is expected to start in later 2019. Boris Johnson's standpoint on the matter didn't come as a surprise to the international expert community, Market Leader reports. The thing is, he has been well-known for being an advocate ad big supporter of quitting the European Union in general, and doing so without a major agreement in particular, which is also known as the hard Brexit scenario. 

Publication date: 07 August 06:54 AM

Johnson Launches Hard Brexit Ad Campaign

Boris Johnson, who has recently been appointed new UK Prime Minister, is on his way to launch an ad campaign to promote the idea of quitting the EU the hard way, which is also known as the hard Brexit. For those of you who don't know, the hard Brexit scenario implies quitting the European Union without signing a major agreement.

Publication date: 31 July 11:43 AM

U.S-China Trade War Is Sponsored By Consumers

According to the IMF, consumers and producers are the biggest losers in the trade war between the United States and China. Despite growing duties, American companies are not in a hurry to move their production back to the USA.

Publication date: 12 July 01:19 AM

US-China Trade Conflict May Trigger Another Global Financial Crisis

Beijing and Washington are one step away from escalating their trade conflict. The confrontation may harm the entire global economy. Some experts belive that the trade war may also trigger another global financial crisis. At this point, the parties seem to have come to a standstill, which is why the chances of the conflict escalating into a move severe trade war are still growing.

Publication date: 18 June 10:18 AM

WTO Lowers Global Trade Growth Forecast

 WTO experts are reported to have revised their forecast for the pace of global trade growth. The renewed forecast names figures below the previous ones - 2,6% against 3,7%. It's also interesting to note that the previous forecast for 2018 failed to match the actual figures.

 
Publication date: 19 May 02:58 AM

How to Protect Investment Capital in 2019?

Existing political and economic risks are pushing international investors into thinking about the security of their investment capital. Chasing big profits becomes secondary to this kind of security.

Publication date: 31 March 11:26 AM

EU Comes Up With Workaround to US Sanctions

The representatives of Germany, France, and the UK have registered a company to let it trade with Iran despite the US sanctions. The company still needs to be approved by 28 EU members.

Publication date: 31 March 02:33 AM

Beijing and Washington are getting ready for the final talks

Publication date: 17 February 08:58 AM

US-China Trade War Reaches Next Level

Washington and Beijing have announced a new round of talks. International experts say that the trade war is indeed going to a whole new level.
Publication date: 08 January 10:17 AM