According to David Beilin, head of the investment department at Citi Private Bank, the assets in the market would cost about 10% more if there was not a trade war between the States and China. The expert believes that next year trade conflicts will remain one of the main risks. He also reminded investors that they should closely monitor the situation with Brexit and Italian banks.
Citi expects that next year the growth rate of earnings per share will slow down about 2 times. The same will happen with the global economy, but it will remain above 3%.
Mr. Beilin noted that the total income of the global market would be 7%, but the figure relating to the debt market – 1%. The expert recommends carefully choosing assets for investment in the coming year.
The conflict between the United States and China began when America imposed duties on Chinese goods worth
$ 250 billion. China did the same.
In the course of the “war” development, the States threatened to increase duties from 10 to 25%. At the G-20 summit, the leaders of the countries agreed that there would be no increase in duties. In exchange for this, China will have to increase purchases of US agricultural products. The agreement must be formulated and finalized within 3 months. If this does not happen, America will raise tariffs, as previously planned.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade