With so much going on in the world with Greece, El-Nino, the Women's Soccer World Cup and the global liquidity glut from money printing, I was keen to try and understand which macro trends had a greater weighting versus the others, how to sort the trees from the woods.
"The opportunities for trade growth (with the TPP) were exciting for most industries."
Tareq Muhmood, Managing Director, Global Diversified Industries, Global Banking | ANZ
Four big themes emerged:
How much will the slowdown impact domestic demand in China? The US consumer has their wallet open again but it was clear the consumer in China is playing an increasingly global role in determining confidence in the future. There are challenges for China of course, however the country is still growing. Indeed, its present growth rate represents the whole Indonesian economy being 'added' to the Chinese economy every year. So that put a floor under the concerns.
Companies with large earnings in other currencies are now suffering when translating their foreign currency revenue back to USD. I'm no economist but the consensus was the USD will continue to strengthen over the coming couple of years. Some treasurers were considering hedging future foreign currency earnings to protect and provide stability to future earnings. Others were comfortable living with the FX exposure.