2019 ROI First Quarter Edition 2019 - HIS Capital Group | Page 47

Brexit
Among concerns of an abrupt departure from the EU will
fuel chaos and hurt their economy, British Prime Minister
Theresa May has sought to delay Brexit until June 30. An
earlier request for delay was rejected last month amid
increasing irritation among EU leaders about the political
chaos in London. There is concern that an exit from the EU
could lead to a breakdown in food and medical supplies
as border checks and tariffs are added overnight. Without
a deal in place Britain would still vote in the EU election
causing additional strife. France chimed in as President
Emmanuel Macron stated, “we cannot be held hostage by
Britain’s political deadlock over Brexit.
Don’t shed too many tears:
The stock market melt downs of 2018 obliterated nearly One
Trillion (actually $950 Billion) of the fortunes of the world’s
richest individuals. According to the Hurun Report, China’s
version of Forbes, Chinese billionaires still outnumbered
those from any country. China reports a total of 658,
including several newly minted ones, however, they also
report 212 Chinese tycoons lost their billionaire status, oh
woe is me....
The report shows that the US comes in second with 584
billionaires (though other reports show almost 750 in
North America at the end of 2017), followed by Germany
with 117. The biggest gains last year came in the areas of
technology, media & telecoms, followed by Real Estate and
other investments, then manufacturing and retailing. Jeff
Bezos, Bill Gates, and Warren Buffett topped the global
charts, and all grew their wealth while President Trump
fell to 793rd on the list after losing a reported $500 million.
Overall Hurun reports there are 2,470 billionaires globally
down 224 from the previous year. However, the report
speculates there may be well over 6000 billionaires noting
that many seek to hide the extent of their wealth especially
those in the Middle-East.
Bottom-line = in the U.S. the wealthiest one percent [1%]
control over thirty-seven [37%] of the country’s personal
wealth, while the bottom fifty [50%] control nothing.
China: Their expansion into Latin America through its Belt
and Road initiative to build ports and other trade related
46
HIS Capital Group
facilities is certainly stirring alarms in Washington over
Beijing’s ambitions specifically in Central America. In a region
once considered off-limits to other powers, Panama is now
a beneficiary of Chinese expansion. President Juan Carlos
Varela Rodriguez has a vision to connect Asia and the US
through his nations ports yet is nervous that this relationship
with China may interfere with its US relationship.
China has become the primary lender to the emerging
market especially in this region, Venezuela has received $62
Billion, Brazil owes $42 Billion, Argentina and Ecuador are
both in around $18 Billion. Worth keeping an eye on folks
Global Trade brings boom times for formerly war –
torn Vietnam:
The Vietnamese economy expanded at an estimated annual
rate above 7 percent in 2018 fueled by a double-digit
increase in manufacturing and exporting. Cell-phone giant
Samsung has led the way employing more than 100,000
and opening up a wave that has seen Microsoft and Intel
join in establishing a presence. By joining the World Trade
Organization Vietnam has leap-frogged its neighbors taking
advantage of lower tariffs seeing their exports surge to over
$214 billion with the US its biggest market.
As the economy has grown, poverty rates have fallen, and
life expectancy has risen. Aided by Vietnam now ranks in
the top 50 of the world’s top economies, however, heavy
reliance on export led growth leaves the country vulnerable
to global down turns.
The European Union fined Google $1.7B for violating
online advertising antitrust rules.
For Google, it’s business as usual: This is Google’s 3rd
multibillion-dollar fine since 2017 — and it likely won’t be
the last.
The EU launched an investigation into Google’s search
algorithm in 2010 after smaller internet companies
complained Big G was unfairly boosting its own goodies in
search. After 7 years, the EU accused Google of manipulating
search results in 2017, levying a fine of $2.7B.
Then, in 2018, the EU fined Google $5B for forcing phone
makers using Google’s Android operating system to install
Google’s search and web apps. Now the EU’s going after
Google’s restrictive 3rd-party ad contracts.