BI Predicts 2019: Trade War Troubles

The transcript discusses the uncertainty surrounding the trade war between the USA and China, highlighting its potential negative impact on consumer sentiment and manufacturing shifts out of China. It suggests that the Chinese government might intervene with tax incentives to support the auto industry. The trade war is expected to have significant repercussions on the shipping sectors, particularly dry bulk and container shipping, and contribute to volatile oil prices. The global demand for oil is already slowing down due to the escalating trade tensions.

What is one potential impact of the trade war on consumer behavior?

• Negative impact on consumer sentiment

• Increased consumer spending

• No change in consumer sentiment

• Improved consumer sentiment

What is a significant change in manufacturing due to the trade war?

• No change in manufacturing locations

• Increased manufacturing in China

• Shift of manufacturing capacities out of China

• Decrease in global manufacturing

How might the Chinese government respond to prolonged trade tensions?

• By increasing tariffs

• By reinstating tax incentives

• By reducing exports

• By banning imports

Which sectors are most affected by the trade war according to the transcript?

• Technology and finance

• Drybulk and container shipping

• Healthcare and education

• Agriculture and retail

What is the expected trend for oil prices next year due to the trade war?

• Stable prices

• Decreasing prices

• Volatile prices

• Increasing prices