Saxo Bank, the biggest Danish bank, surprised investors with Outrageous Predictions, an informal outlook for 2019.
The bank noted a number of negative events in the global market such as a significant decrease in the volume of the global money supply for the past ten years. But that is not all. In 2019 some important events can take place that can have serious repercussions, the bank’s experts outlined. Steen Jakobsen, Saxo Bank’s Chief Economist, believes that big investors often underestimate the risks of such events.
Let us see what all these predictions are about. According to the forecast, in the coming year Applе will buy electric cars producer Tesla. Analysts estimate that Apple will pay as much as USD 520 per share which is 40% more than the nominal value. Saxo Bank expects that the corporation will achieve success in manufacturing electric cars, being the high tech leader.
The financial sphere will also experience great changes, Saxo Bank’s analysts anticipate. The Federal Reserve will have staff reshuffle. US President Donald Trump is expected to appoint Neel Kashkari as a new governor of the regulator who will replace acting chair Jerome Powell. The replacement is likely to be announced after Mr. Powell raises the funds rate at the FOMC monetary policy meeting in December this year. This measure will trigger a crash on the US stock market, thus disappointing the President. New Fed Chair Neel Kashraki is expected to continue reducing the debt level. Besides, he can speed up the inflation to 6%, experts of Saxo Bank predict.
Furthermore, the Danish bank anticipates that the Global Transportation Tax will be enacted next year. This measure will be taken as a precaution to the climate change and the threat of global warming. Analysts of Saxo Bank also foresee a number of devastating solar storms to occur in 2019 which will destroy some satellites in the Western Hemisphere. The consequences of cataclysms can inflict USD 2 trillion of damage.
According to the bank, the global economy is facing substantial risks at the moment. There are four forerunners to the impending catastrophe: a tendency to deglobalization, a small volume of money supply, an increase in the value of money, and a rise in energy prices.
