30 th January 2020 STROLLING INTO 2020 IN

30 th January 2020 STROLLING INTO 2020 IN CHARTS Research Team research@flatrockassociates. com

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When SARS broke out in late 2002, global economies were recovering from a recession and as such the outbreak did affect growth in most Asian countries except Japan. By the end of 2019 GDP growth started picking up for Asia and with the Coronavirus outbreak one must stop and think about what will happen to this trend by the end of Q 1 2020. 3

General government debt has soared in the eurozone since the financial crisis. However Germany & Malta are 2 countries which have seen a reduction in the debt (as a % of GDP). Will this trend continue into 2020? 4

Although it may look like that the US economy is performing well cracks are appearing in several indicators. Take the durable goods orders for example which have been falling for 5 months (and this was before the coronavirus outbreak). 5

Yikes! Demand in Hong Kong has rapidly fallen over the last year due to the protests that brought the economy to its knees. Mind you the coronavirus outbreak’s effects have yet to appear and in an economy that’s already in recession it is mind boggling to think of what might happen to the financial capital of the Asian world 6

Private sector credit growth in the Eurozone has remained constant overall with Spain finally achieving an increase in its credit growth in November 2019. Italy on the other hand has taken a hit. 7

Household financial assets in the UK are well above their average value and even surpassed their highest levels last seen in 1999. 8

The unemployment & underutilization rates in Australia are at the same levels last seen during the peak of the financial crisis but still considerably lower when compared with historical data. Does this mean that the labor market down under has not cracked yet? 9

It looks like Chinese government bonds are a reflection of the dollar and since the dollar is expected to weaken this year, could we see an uptick in Chinese bond yields? 10

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