Snapshot

Janet Mui: 2019 third quarter update


  • Two years ago the majority of the world economy was growing. Today the reverse is true as economies come together in a synchronised slowdown.
  • Weakness is focused on manufacturing, and triggered by the ongoing trade dispute between the US and China.
  • Despite the slowdown we do not expect a recession. This is because the spillover from manufacturing weakness into the services sector is so far relatively contained. In the US, the services sector is a far greater part of the overall economy than manufacturing.
  • US consumers are in a comparatively robust position: they are helped by lower levels of household debt and lower interest costs.
  • Central banks including the Federal Reserve have been cutting rates to support the global economy, but their ammunition is limited.
  • The key topic in financial markets is whether governments will ride to the rescue with supportive fiscal policies. Again, in many developed markets, governments' headroom for fiscal action is limited.

This article is issued by Schroders Wealth Management, which is part of the Schroder Group and a trading name of Schroder & Co. (Hong Kong) Limited, Level 33, Two Pacific Place, 88 Queensway, Hong Kong. Licensed and regulated by the Hong Kong Securities and Futures Commission. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

Contact Schroders Wealth Management

To discuss your wealth management requirements, or to find out more about Schroders Wealth Management and our services, please contact:

Robert Ridland

Robert Ridland

Head of Wealth Management, Hong Kong
Telephone:
robert.ridland@schroders.com
Jelmer Kattevilder

Jelmer Kattevilder

Portfolio Director
Telephone:
jelmer.kattevilder@schroders.com