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global economic outlook amid tariffs and investment uncertainties in us and europe

Political uncertainty and potential new tariffs are impacting investment plans in the U.S. and Europe, with the U.S. economy growing at about 2% while Europe remains stagnant. The European Commission's defense plan lacks convincing substance, and the German fund for infrastructure may have limited effects on competitiveness. Meanwhile, China's technology sector is thriving, with significant gains in AI and automotive advancements, suggesting a rotation in investment opportunities across geographic areas.

investors question tech valuations as ai drives new growth opportunities

Investors are questioning the high valuations in the tech sector, particularly as the U.S. earnings season unfolds. Matteo Ramenghi from UBS Wealth Management highlights the significant role of artificial intelligence in driving growth, with expectations for capital expenditures from major tech firms to reach $224 billion in 2024. He recommends focusing on semiconductors, utilities, and certain commodities, while remaining optimistic about U.S. equities amid falling interest rates and expected earnings growth.

Market Growth Predictions and Investment Strategies for 2025

In 2025, market growth is anticipated, particularly in U.S. equities, driven by lower interest rates and advances in artificial intelligence, with the S&P 500 projected to reach 6,600 points. However, risks such as tariffs and potential stagflation loom, necessitating careful monitoring of central bank policies. Italy's GDP is expected to slow, contrasting with stronger growth forecasts for Spain and India.
18:03 08.12.2024

Swiss Entrepreneurs Concerned About Strong Franc and U S Tariffs

Swiss entrepreneurs are increasingly concerned about the strong franc and potential U.S. tariffs, with worries rising from 26% to 49% since 2016. The Swiss economy is projected to grow by 1.5% this year, bolstered by solid domestic demand, despite challenges from European economic weakness. Analysts anticipate continued interest rate cuts and significant growth in sectors like artificial intelligence and electricity.
16:34 04.12.2024

uncertainties for europe following us presidential election outcome

The recent U.S. presidential election outcome introduces significant uncertainties for Europe, particularly regarding trade policies and tariffs. With the U.S. as the EU"s largest trading partner, potential tariffs could impact European exports, while a trade war may affect corporate earnings and business confidence. Additionally, geopolitical shifts, such as the resolution of the Russia-Ukraine conflict, could alter energy markets and economic dynamics, emphasizing the need for cohesive European strategies amidst political fragility.
11:55 12.11.2024
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