December is always a month of reflection on the past year, and a glimpse into the coming future and the new year. With this particular new year being full of hope in the aftermath of the greatest political shift in 8 years, Saxo Bank is once again publishing a list of its most outrageous predictions for 2017.
In contrast to December 2015, when the Danish multi-asset brokerage’s outrageous forecasts were outright crazy at some points, this year’s forecasts are more likely to happen. Apparently the initiative led by the CIO of Saxo Bank Steen Jakobsen has turned more conservative this year and after almost getting some of the forecasts for 2016, the brokerage is presenting a new set of outrageous and potentially correct predictions for next year.
By the time the Article 50 invocation vote is put before Parliament, it is turned down in favour of the new deal
From Chinese GDP growing at 8 percent while the economy refocuses on the domestic services sector, to a “desperate FED” that mimics Japan’s currency depreciation policy of targeting the yield curve across to treasury markets, Saxo’s predictions also include the concept of Bremain.
Saxo Bank’s Head of Forex Strategy, John Hardy, elaborates: “As the negotiations drag on, the EU realises that it is stronger with the UK under its umbrella than without, and indicates a willingness to make a key concession or two on immigration and the UK’s nancial services under its existing special status within the EU.”
“By the time the Article 50 invocation vote is put before Parliament, it is turned down in favour of the new deal that goes far beyond former prime minister David Cameron’s original treaty change requests,” Mr Hardy’s hypothetic scenario unfolds.
From Cryptocurrencies gaining in value to Donald Trump’s bizarre policy decisions, this year’s predictions by Saxo are much more likely to happen. With the promises of fiscal spending and the tough going on China, the Donald’s administration is just starting to stir things up on the financial markets. This morning we are hearing that the new Treasury Secretary Mr Steve Mnuchin is advocating the privatization of Fannie Mae and Freddy Mac, two companies at the heart of the US mortgage market meltdown in 2008.
Next year is certain to be a fairly volatile one for the financial markets, and Saxo’s call for Europe to engage in common bond issuance and the establishment of a European Bad Debt Bank does not sound that outrageous today.
