Snapshot

Economic & Strategy Viewpoint

Janet Mui: weekly economic update 8 November 19


Janet Mui

Janet Mui

Global Economist

US-China trade development

  • China and the US have agreed to roll back existing tariffs as they work toward a deal, according to reports on Thursday. Markets rallied in response.
  • If this step results in the release of pent-up investment that has been hold back by trade uncertainty, we think the global economy will stabilise instead of further slowing down.

German industrial production

  • German industrial production continued to contract in September on a year-on-year basis.
  • There may be some evidence that the worst is over: the latest German factory orders are starting to improve.
  • Positive developments in USChina trade would help the German economy stabilise.

Bank of England meeting

  • Policy remained unchanged at the Bank's November meeting, as an upcoming general election and Brexit extension added more uncertainty for policymakers.
  • Two members of the Monetary Policy Committee unexpectedly voted to cut rates by 25 basis points, citing Brexit and global risk as the rationale.
  • If global growth fails to stabilise this could prompt policy easing, thre Bank indicated.

Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change.  The content is issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.

Contact Schroders Wealth Management

To discuss your wealth management requirements, or to find out more about our services and how we can help you, please contact:

Marc Brodard

Marc Brodard

Head of Private Clients - Switzerland
Telephone:
marc.brodard@schroders.com