Mercer Outlook 2020: Europe Could Face Problems
![https://dailyalts.com/wp-content/uploads/2020/01/50e0d5474355b114a6d98074cf213576083edbe25b55734173277f_640.jpg https://dailyalts.com/wp-content/uploads/2020/01/50e0d5474355b114a6d98074cf213576083edbe25b55734173277f_640.jpg](https://dailyaltslive.wpenginepowered.com/wp-content/uploads/2020/01/50e0d5474355b114a6d98074cf213576083edbe25b55734173277f_640.jpg)
Is a Recession in Europe on Tap?
The Mercer 2020 outlook came out in January.
The firm expects growth to pick up somewhat in 2020, both in the United States and the rest of the world. Inflation in the US is expected to increase a little in the States but remain at or below the Federal Reserve’s 2% target. Growth in the United States is expected to be driven by low borrowing costs, a strong labor market, and a potential doe a de-escalation of the trade conflicts that would lead to a pickup in business spending.
Mercer 2020 Outlook: Brexit, Germany, and Upside Bias
In Europe, they think we may see further slowing as some nations, including Germany, may fall into a recession in 2020. They note that most of the EU’s slowdown comes from extreme weakness in the German auto sector. The firm notes that most other areas of the economy are holding up very well. Mercer expects the labor market to pick up in Europe this year, possibly leading to a rise in inflation. As is the case in the United States, they do not expect inflation to rise above the European Central Banks 2% target.
Mercer suggests that until Brexit reaches a resolution, uncertainty will halt commitments to large capital-intensive projects. If Brexit didn’t hang over the United Kingdom, Mercer could make a positive case for the economy. The labor market is as strong as it has been in the past 50 years, and wages are growing by about 4% annually.
Meanwhile, Mercer analysts have a mild upside bias for equity prices in 2020. However, they note that substantial downside risks exist. Government bonds around the world should also see rate increases this year as inflation increases modestly around the globe. They also expect credit conditions to remain form enabling corporate bonds to outperform government bonds this year. The dollar is likely to fall against most currencies after outperforming them in 2019.
You can download the full report here.
![Shape Shape](https://dailyaltslive.wpenginepowered.com/wp-content/uploads/2019/08/shape.png)
Latest Alternative Investment News
![https://dailyalts.com/wp-content/uploads/2023/12/AMD_headquarters_santa_clara.624da707519a6.jpg https://dailyalts.com/wp-content/uploads/2023/12/AMD_headquarters_santa_clara.624da707519a6.jpg](https://dailyaltslive.wpenginepowered.com/wp-content/uploads/2023/12/AMD_headquarters_santa_clara.624da707519a6-wpv_300x300_center_center.jpg)
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
![https://dailyalts.com/wp-content/uploads/2023/12/RHCEU-Inline.jpg https://dailyalts.com/wp-content/uploads/2023/12/RHCEU-Inline.jpg](https://dailyaltslive.wpenginepowered.com/wp-content/uploads/2023/12/RHCEU-Inline-wpv_300x300_center_center.jpg)
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
![https://dailyalts.com/wp-content/uploads/2023/12/Samsung_UK_Samsung_Pay_Lifestyle_0552-revised-Pictogram-23.11.30-1024x744-1.png https://dailyalts.com/wp-content/uploads/2023/12/Samsung_UK_Samsung_Pay_Lifestyle_0552-revised-Pictogram-23.11.30-1024x744-1.png](https://dailyaltslive.wpenginepowered.com/wp-content/uploads/2023/12/Samsung_UK_Samsung_Pay_Lifestyle_0552-revised-Pictogram-23.11.30-1024x744-1-wpv_300x300_center_center.png)
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
![https://dailyalts.com/wp-content/uploads/2023/12/Revaia-founders.jpg https://dailyalts.com/wp-content/uploads/2023/12/Revaia-founders.jpg](https://dailyaltslive.wpenginepowered.com/wp-content/uploads/2023/12/Revaia-founders-wpv_300x300_center_center.jpg)
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…