GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share

From China's lead on electrification to a possible US recession and the irony of cryptocurrencies, Steen Jakobsen, Chief Economist, CIO & Co-head of Global Sales Trading at Saxo Bank Group previews what's in store for global financial markets and Middle East growth next year 

Dubai-UAE: 05 December, 2017 – Steen Jakobsen, Chief Economist, CIO & Co-head of Global Sales Trading at Saxo Bank, the leading online multi-asset trading and investment specialist, delivered an economic forecast of how top trending issues, including China, electrification, cryptocurrencies, recession and politics will shape financial markets in 2018, during a Saxo Bank event in Dubai.

Jakobsen outlined China's growing influence and position on the global stage and how it will impact market prices and commodities against the US dollar. “With China controlling 50% of growth and credit in the world, it remains the most important country in terms of its credit impulse and trending behaviours,” said Jakobsen.

Jakobsen predicts that China will be the main driver of one of the most significant innovations the world has witnessed – electrification - and, specifically, electric vehicles. With pollution standing out as China's biggest national issue, electric transportation will form a vital part of the country's ambitions for world leadership and the move towards electrification has gained in significance – courtesy of Volvo's 2020 plans to electrify its entire model line-up, while leading Chinese car manufacturer BYD expects all cars to be fully electrified by 2030.

Jakobsen also pointed to the monopoly-like condition in the technology sector as something that could be on the radar in 2018. He added: “Leading tech giants such as Google, Amazon and Apple all operate under monopoly-like status and with little to no competition, which explains their massive profitability. These high profits are due to a lack of market regulation that allows big players to keep a monopoly pricing structure on their consumers leading to negative economic consequences on the future of productivity, investment, and research and development,” said Jakobsen.

Cryptocurrencies and bitcoin were also discussed, with Jakobsen predicting changes in 2018, adding: “Bitcoin is supposed to be a decentralised, anti-government and anti-establishment cryptocurrency but all the players are on the internet, which is the most regulated place in the world. Soon enough we will have an anti-government coin being regulated by governments. To some extent, this is a great irony.”

Jakobsen explains that the future market of bitcoin is difficult to predict as, while cryptocurrency is popular because it trades like a one-way street - when there are bigger futures exchanges, such as CME and CBOE listing bitcoin and cryptocurrencies, it will facilitate a two-way market where shorting will be easier.
Jakobsen also anticipates that 2018 will be the ‘make or break' year for the US fixed income. “We are either going to hit a 0% or 3% interest rate – if we break the 30-year down trend, it will be one of the biggest trend changes in my lifetime and lead to 80% probability of a US recession next year, said Jakobsen.” However, he expects the trend to remain intact with a potential for zero interest rates by 2019.

In the Middle East, events such as last year's fixed income issuance, the Saudi bond issuance, and capital markets being deeper in liquidity, all resulted in a positive year but Jakobsen forecasts a different regional pattern for 2018, adding that the geopolitical risk the region has seen this year will make foreign investors cautious and most of them have hit the pause button. This is going to have some negative impact on growth for the GCC, which Jakobsen expects to hit 1.0% for 2018. 

Looking further forward, Jakobsen believes SMEs will have a bigger role to play in GCC economies. He said: “In order to strengthen the economy, the SME sector needs to be a much larger part of GCC countries and their economies. The strongest economies in the world all have strong SME sectors and engaging SMEs is crucial for creating long-term growth through broadening the credit and productivity to a wider, more flexible private sector.



Posted by : GoDubai Editorial Team
Viewed 11828 times
Posted on : Tuesday, December 5, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Saxo Bank 2018 Outrageous Predictions: 2018 will be a true roller coaster ride compared to an outrag...
Next Story : AL-Thiqa Islamic Bank Deploys ICS BANKS ISLAMIC System from ICSFS
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Interview with Asil Attar, CEO of Al Yasra Fashion
24 Karat Gold Elixir by Mehrunisa Launches in the UAE Beauty Market
Festive Gift Sets from Bubble T
Get Ready for Party Season with Lottie's new make-up hits
Holiday Gifting Made Easy with Wet n Wild Beauty Specials
DKNY Launches (Limited Edition) Holiday 2018 Collection
Tissot PR100 Lady Sport – Chic Glamourous Festive Season
Winter wool Christmas must- haves
New 1948 Seamaster Watches Join the Ranks'
Samsung Galaxy A9 – Designed to capture the world in its fullest
Chic and Stylish Wraps with a 3 in 1 effortless concept
Michael Kors Collection Transeason 2019 Press Presentation
Santa is Coming to Town!
Tissot PR100 Lady Sport – Chic Sporty yet Feminine
Dubai Shopping Festival Wednesday Specials at The Smile Bar
9th Edition of China Homelife Exhibition to Have Over 3000 Exhibitors Across Bus...
New Menu alert: Moombai & Co. launches exciting and delicious food items to its menu
Els Back for the 30th Omega Dubai Desert Classic Aiming for a Record Fourth Victory
UAE students win top awards at international math competition in Malaysia
Enjoy 11 exciting new street entertainment shows at BOLLYWOOD PARKS™ Dubai
Get Party Ready with Champion Cleaners
'Introducing the GUESS Jeans Fall 2018 Collection'
CITIZEN's “#MyBetterStartsNow” campaign seeks out UAE's inspired and driven indi...
Raja Al Gurg is one of Forbes Magazine's 100 most powerful women in the world
Marni Introduces Marni Rothko, A 7-layer Acetate Frame With a Vivid, New Color ...
Over 80 developers showcase top projects at Indian Property Show in Dubai
Ring in the New Year With Four Firework Shows at Dubai Festival City Mall
Nine winners honored by DQG for their innovative ideas at the 10th Global Contin...
Puma and Hasbro Announce New Collaboration
Jury Announced for Epson's First Ever Win-A-Robot Competition in Europe, The Mid...
Model of the Year Takes Camo to Catwalk Level
Over 2,000 Cyclists Took Part in the Cycle Challenge of the Year
Spinneys Dubai 92 Cycle Challenge | Road Closure Timings
His Highness Sheikh Saud discusses collaboration with British Consul-General And...
Listen to the Autism Beat Gala Dinner at Atlantis - The Palm
Bawabat Al Sharq Mall is all set to welcome an exciting festive season with 'Wi...
SAVEX 11 TO 15 DECEMBER 2018
Arla Foods launches initiative with UAE Ministry of Education to promote healthi...
Extra Fort Automatic continues to set style standards
CBUAE and Central Bank of China meet to Enhance Renminbi Clearing in the UAE
Al Hosn Now Open to the Public
It's a Wrap! The Second JLT Restaurant Awards Conclude with a Glitzy Ceremony At...
Julphar to Launch Wearable Insulin Delivery Device in GCC
Johnny Depp Wears a Corum Bubble Skull
Joe's Backyard Opens at the Holiday Inn, Dubai Festival City
Young Emirati Champion Rashid Al Dhaheri Powers Ahead to Stunning Victory at the...
Dubai Islamic Bank triumphs at Islamic Business and Finance Awards 2018
University of Balamand Dubai and Emicool agree MoU for student scholarships
Health Authorities advocate early screening for prevention of cardiovascular disease.
Al Ghurair Centre Teams Up With Nike to Support Its ‘We Play DXB' Campaign