FX.co ★ 7 grey swans to look out for in 2020

Inflation in euro area surges

According to analysts at Zerohedge, the eurozone will go through significant changes in 2020. The current geopolitical background of the euro area is far from perfect. The eurozone residents support political parties that oppose the euro bloc policy. Experts think that in the governments of some countries there will be leaders who will ignore the current fiscal norms. As a result, the EU budget deficit could reach 3% compared to 1% in 2019. Analysts also warn about a rise in trade union activity and possible strikes which could paralyze the work of several sectors of the economy.

US introduces capital restrictions

One of the most important events of the coming year may become another trade war initiated by US President Donald Trump. The new trade conflict will affect large capitals. Economists suppose that the new trade war can lead to the outflow of the capital. The capital outflow and new tariffs may seriously affect the world economy.

Japan intervenes in FX market

Japan will also undertake a new move to revive the economy. The Japanese economy is losing steam. In 2019, its GDP growth did not exceed 1%. Next year, this figure will increase by only 0.3%. Japanese authorities have introduced fiscal stimulus measures to offset this decline. It did not help much, though. For this reason, Japan has only one option: currency intervention. This move may draw criticism from other countries, especially from the US. However, Japan will do everything possible to boost its economy and it may take an even more aggressive path if it is necessary.

Tesla teams up with Hyundai

Next year, a lot of transfigurations in the auto market will take place. Many companies will disappear and will be replaced by more competitive ones. In 2019, electric cars gained popularity in the market. In the meantime, Japanese automakers are far ahead of their European counterparts, experts say. Korean automaker Hyundai is the only laggard in this field. Therefore, the company needs a powerful partner to get back on track. Experts assume that the company may decide to cooperate with Tesla. Such a partnership could help both companies to solve a number of problems.

Fed disintermediates banks with help of digital currencies

Next year, the cryptomarket will have a greater impact on many sectors of the economy. Analysts at Zerohedge believe that banks should not be afraid of digital currencies as they need to be more concerned with the looming financial crisis. Its consequences are difficult to predict, and banks will have to step up all their efforts to protect their capital. If the Fed is forced to do the same, the regulator, lacking fiat money, will begin to use digital assets to minimize currency risks.

Drone attacks on oil facilities in Middle East increase

Experts believe that next year, the number of drone attacks on US-owned oil facilities in the Middle East will grow. The drone attacks on Saudi Arabia's oil refineries are sure to be one of the most memorable events of the passing year. Notably, the likelihood of such attacks is quite high even despite the fact that the US has implemented enhanced tracking and air defense systems. Drone attacks are mostly unpredictable. According to experts, they cannot be prevented. Almost all oil facilities in Saudi Arabia will remain vulnerable to drone attacks.

Virtual reality takes over auto sector

The concept of virtual reality fascinates human minds. Every year, it is getting more popular. Experts at Zerohedge believe that in the nearest future, it will displace the auto industry from the market. The desire to travel will be a catalyst for the fast development of virtual entertainment. Even now, VR is developing faster than any other industry. One day, it may put the final nail in the coffin of the auto industry as it has no physical boundaries. It opens new horizons where there is no need for cars. Movements in imaginary worlds are faster and cheaper. Besides, it offers an entirely new experience for people.