Chinese growth is more of a concern than the American economy right now, private bank says

The Chinese economy is a bigger worry right now than the U.S. economy, according to an investments expert at a private bank.

Speaking to CNBC on Friday, Felix Brill, the head of investment solutions at Liechtenstein-based VP Bank, said investors should expect more market volatility due to the ongoing trade war negotiations between Washington and Beijing. Still, he ultimately expressed optimism that China’s leaders will keep their economy together.

“The Chinese economy is, at the moment, a bigger cause of concern right now compared to the U.S. economy,” Brill told CNBC’s “Squawk Box.”

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The Finance 202: China standoff could end before U.S. government shutdown

Analysis Interpretation of the news based on evidence, including data, as well as anticipating how events might unfold based on past events

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In this Thursday, Jan. 3, 2019, photo, shoppers pass by the Apple store logo at a shopping mall in Beijing.'(AP Photo/Ng Han Guan)

Here’s a stumper for oddsmakers: What will President Trump agree to first, a deal with Democrats to end the government shutdown or one with the Chinese to cease trade hostilities?’

Unlikely as it may seem, the advantage could be shifting in favor of a breakthrough with China. Such an outcome appeared significantly more remote just a month ago, when Trump set a 90-day egg timer for negotiations with Beijing before resuming intensification of the trade standoff.’

DealBook Briefing: Feeling the Bite of the Government Shutdown

President Trump escalated the border wall fight in a televised speech last night, at the cost of leaving the government partly closed. He criticized political opponents for blocking the wall, although Democrats have offered $1.3 billion for border security measures like surveillance and fencing.

The effects of the shutdown have begun to ripple across the economy, with mortgage applications delayed or canceled, public companies unable to complete deals and the well running dry for many federal employees.

Ruchir Sharma’s Forecast Of The Top 10 Economic Trends For 2019

Each January, I look forward to the top ten trends of the coming year, an exercise that takes on even greater significance as we near the end of a decade. The mega trends of one decade usually falter in the next. The 2010s have been a great one for the American economy and markets, but the top trends of 2019 reflect the passing of that era.

1. America Has Peaked: In the 1950s, global investors were hot for Europe. The big theme of the 1960s was the big American companies called the Nifty-Fifty, the 70s was the age of oil and other commodities, the 80s was the decade of ‘Rising Japan’. By the 1990s, the markets had rediscovered America, this time with a focus on Silicon Valley and tech. The 2000s brought the big emerging markets labeled ‘BRICS’ into the spotlight. The 2010s have been another American decade, and saw the US market triple in value while the rest of the world’s stock markets on average did little in dollar terms.

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  • Date: Fri, 11 Jan 2019 17:32:42 +0530
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