Saxo Bank, which is known for its 'Outrageous Predictions' before the start of a year, have come out with their '10 Outrageous Predictions for 2019'. And this time, they have names like Netflix, the on-demand video giant and Apple in their list which is enough to make the world sit up and take notice.
The predictions are an elaborately studied list of events that can have a massive impact on the markets if they come true. However, by the bank's own admission, it is highly impossible that the events can see the light of the day. But some of the predictions in the past have mirrored reality, even if by some distance. For example, the 2017 prediction in fall of cryptocurrency stock value.
Let us look at the 10 Outrageous Predictions for 2019 Below:
1. EU Announces a Debt Jubilee
The report says that Italy's bank problems will plunge the European countries into debt. ‘When contagion spreads to France, policymakers understand that the EU faces the abyss,’ analysts at Saxo bank predict.
2. Global Transportation Tax (GTT) Enacted as Climate Panic Spreads
"The golden age of cheap travel and transportation fades into history as adverse weather changes forces the world into action," says the report about travelling and transportation.
3. Germany Enters Recession
"The German automotive world severely lags its competitions in terms of EV and big data, and this gap helps push the country into recession as soon at Q3'19," says the report about Germany's economy.
4. Australian Central Bank Launches QE on Housing Bust Down Under
"Binge no more – 2019 sees the "Australian Dream" implode in spectacular fashion afters decades of galloping house price inflation," said the report about house affordability in Australia.
5. Corporate Credit Crunch Pushes Netflix Into GE’s Vortex
"The once all-powerful General Electric is foiled by the magnitude of its liabilities and the contagion ripples through the markets, bringing content king Netflix to its knees," predicts the report about Netflix's future.
6. X-Class Solar flare Creates Chaos and Inflicts $2 Trillion of Damage
"As reliant as we are on modern communications technology, this pales in comparison to our reliance on the sun. When it misbehaves, the consequences are severe indeed," says the report about solar flare.
7. IMF and World Bank announce intent to stop measuring GDP, focus instead on productivity
"The long reign of gross domestic product as the chief measure of economic progress comes to an end in 2019. In a surprising move at the International Monetary Fund and World Bank spring meetings, chief economists Pinelopi Goldberg and Gita Gopinath announce their intent to stop measuring GDP," says the report.
8. Prime Minister Corbyn Sends GBPUSD to Parity
"Two years of agonised Brexit debate sees a staunchly leftist Corbyn government sweep into power and impose old-school policies that cut the ground from under the British pound," predicts the report.
9. Trump Tells Powell 'You’re Fired'
"Long-simmering tensions between US President Donald Trump and the chairman of the Federal Reserve come to a head and Jerome Powell is dismissed. His replacement's new policies shock many people, especially savers," well this prediction might just come true!
10. Apple 'Secures Funding' for Tesla at $520/share
"Two icons of the tech world get together in an unexpected but surprisingly logical and very convenient marriage," predicts the report.
The Saxo's team of expert analysts compile the list every year. And they term the list as "some highly unlikely events that could have a tremendous market impact – if they come to fruition." Going by the predictions, they surely are outrageous, to say the least.