President Donald Trump appears to potentially hit a trade contract with China in this year given that he will be in pursuit of re-election in 2020, the CEO of ABN AMRO stated to CNBC. Trump has been at differences with China due to trade since his campaign in 2016. And from the start of his presidential term, the U.S. has enforced tariffs on Chinese goods worth $250 Billion. Beijing has comeback with tariffs on US goods worth $110 Billion. The confrontation has been at the front of many shareholders’ minds, as they attempt to appreciate how businesses will be influenced by the latest tariffs.
Kees van Dijkhuizen—CEO of ABN AMRO, a Dutch bank—told to CNBC, “It is quite depressing compared to last year,” at the WEF (World Economic Forum) in Davos concerning the world’s economic outlooks. “Looking at the U.S., I believe Trump wishes to be re-elected in the next year so I think he would strike an agreement in this year,” he said. He further added, “China deleveraged a lot in the last year and they are placing a lot of effort presently to have increase development again. And I feel in Germany, Europe, the previous quarter was worse, but it was much correlated to cars. I do not expect it to persist in this year.” The IMF (International Monetary Fund) added to the obscurity recently, revising down its prospects for global expansion and warning that the development seen in last few years is losing momentum.
Recently, the IMF was also in news as it cuts universal growth estimate between trade war fears and Brexit risks. The IMF is cautioning that the global economy is declining and that it would get worse if nations keep squabbling due to trade. The agency’s upgraded WEO (World Economic Outlook) reduced assessments for growth in 2019 by over 0.2% to 3.5%—which is its second descending revision—this time on grounds of weakness in Turkey and Germany.