Private bank Coutts says 2020 has a positive outlook after a challenging 2019 but there are hurdles ahead.
In an outlook report, Coutts claims there are two main factors in the year ahead; cenral bank action and the US election.
The report stated: “Three rate cuts from the US Federal Reserve in 2019 have given the global economy a boost to kick-start the next decade. It’s further evidence of how far central banks are willing to go to keep the world economy moving, and we’ve seen similar action taken by the European Central Bank and the People’s Bank of China.”
In addition, the result of the US election could affect a lot of change. President Trump is likely to continue with a protectionist policy that protects local businesses and jobs.
However, if the Democrats win, they will advocate for higher fiscal spending and the country will be less likely to influence global trade.
Another important factor in the upcoming year was impact investing or conscious consumption.
The report continued: “One way or another, a transition from reliance on high-carbon fossil fuels to carbon-neutral renewable energy sources will be a dominant theme in the coming decade. Just as the rise of the tech giants has dominated markets over the last decade, we could see renewable energy innovators leading the way in the 2020s.”
Peter Flavel, CEO of Coutts, said: “At Coutts, we see the pace of change increasing as the world enters a new decade. Building on our successful rich history, we look forward to advising clients on the investment opportunities ahead as well as the ever-present risks to minimise.”
Mohammad Kamal Syed, head of asset management, added: “The world continues to change and the pace of change is accelerating. As we start a new decade, it’s an opportunity to step back and consider how the next ten years could evolve.
“We are always looking beyond short-term horizons to the long-term challenges that will shape our investment strategy and our future. As responsible investors we know we can do more than just focus on numbers – working with our clients we can create a better world.”