FINANCIAL REVIEW Bob Moritz, Chairman PwC Network “More than half of the CEOs we sur - veyed believe the rate of global growth will decline in 2020..While there is record pessimism, there are still real op - MARK ETS portunities.” Monthly Edition ⎥ Volume II ⎥ Issue 16 ⎥ Jan. 2020 ⎥ Freely Distributed [ Page 05 ] ETFs TESLA INC. Historical prices close Who won the $ 23.89 fee war? $ 650.57 ▲ Last year, fees fell across the exchange traded funds (ETFs) landscape, with the lowest-price providers stealing mar - The Vision ket share from more ex - pensive rivals, a new study by Factset reveals. The report produced by Became Elisabeth Kashner, FactSet head of ETF research, found about a third of all US- listed ETFs lowered fees in 2019 while Reality only 4 per cent upped their sticker prices . [ page 09 ] n June 28, 1971, the wonderkid of . American economy was born in O Pretoria, South Africa. Elon Reeve Musk who founded COMMODITIES X.com in 1999, SpaceX in 2002 and Tesla Motors in 2003 risks where most don’t dare. What a Energy commodity difference a year can make. In prices surged 2019, Elon Musk skeptics were talking about the end of the elec - Kyriaki Energy commodity prices continued to tric car maker and now the com - Balkoudi surge in December, rising 3.1% according pany reached a $100 billion Editor to the World Bank Pink Sheet. Precious market cap for the first time on Jan. 22. Tesla metals prices inched up 0.5%, but jumped also impressed investors at the start of 2020 17.9% for the year, the largest increase as its stock has added over 100% in value among commodity groups. The Pink over January, while in the past six months, Sheet is a monthly report that monitors the shares have rocketed nearly 300%. There commodity price movements. A are more visionary entrepreneurs who are turning exciting ideas into market-leading CRUDE OIL businesses out there. We need to find more BREND $ / bbl 65.9 Elon Musks who can improve not just the world economy but inspire others who are coming. There are more visionaries who GOLD $ to z 1,479.0 wait to be discovered by investment funds so a new Renaissance can take place again. SILVER $ / toz 17 .1 [ page 08 ] uval Noah Harari, a world-renowned historian and professor at the Hebrew MARKETS DATA Tech risks dividing Y University of Jerusalem, claims that the world is in the midst of an AI arms-race, MSCI WORLD led by the USA and China. According to EQUITY INDEX the world into Harari, countries that cannot keep up with the race will either go bankrupt or become colo - nial. Speaking at the 50th WEF held in Davos, the Israeli historian said: “In Davos we hear wealthy elites and so much about the enormous promises of tech - The broad equity index that repre - nology – and these promises are certainly real. sents large and mid-cap equity per - But technology might also disrupt human so - formance across 23 developed ciety and the very meaning of human life in markets countries advanced 3.0% in exploited Excerpts from US dollar terms in December. The numerous ways, ranging from the creation of Yuval Harari’s speech a global useless class to the rise of data colo - index covers approximately 85% of at World Economic Forum nialism and of digital dictator - the free float-adjusted market cap in Davos 2020 ships.” [ page 11 ] each country. [ page 05 ] 2 WORLD MARKETS January 2020 EDITORIAL & IPO activity to perk up in 2020 2019 was a dismal year for IPOs but market ex - perts say activity will perk up in 2020. There were just 213 IPOs, which raised $53.9 billion, in the Americas in 2019. The picture in Europe, the Middle East, India, and Africa was equally lackluster. Graph source: Refinitiv Note from the E ditor Timeline for Jan. 2020 A look at the big events around the world in politics, business, economy, international relations, armed con - flicts, attacks, disasters and more. ✓ Jan.3 he world entered 2020 with uncertainty and insecurity all around. Maplecroft. The socio-economic and political analysis firm's index A United States drone strike near the Baghdad Interna - Geopolitical tensions are at their highest and protesters have predicts that 75 out of the 125 countries examined will see a tional Airport targeted and killed Iranian major general continued to turn out in their thousands from India to Chile, from deterioration in stability. Qasem Soleimani of the Islamic Revolutionary Guard Lebanon to Hong Kong - to name just a few places. We have entered an era of a self-centered lifestyle, where everyone is Corps. Each protest has its own trigger, but many of the underlying frustrations are only interested in pursuing the interests of his own. If we believe similar: worsening economic conditions, income inequality, the perception that that this is the way to bring about positive change we are wrong. We ✓ Jan.4 those in power are corrupt, the abuse of human rights, the downsides of tend to forget that our well-being may only be achieved via the Militants fire rockets at Iraqi bases supporting U.S. per - technological change. well-being of our neighbour. sonnel, nearly hitting the U.S. Embassy in Baghdad. We live in a time of fear. Citizens fear that their governments cannot or will Where are we headed? To self-destruction? U.S. president Donald Trump vows to target 52 sites not protect them. Political upheaval that marked 2019 is here to stay. “The next 12 months are likely to yield more of the same, and significant to Iranians and Iranian culture if Iran Nearly 40% of the world’s 195 countries will see civil unrest during 2020, ac - companies and investors will have to learn to adapt and live with this "strikes any Americans or American assets." cording to Verisk ‘new normal” Verisk Maplecroft said. Will they? ✓ Jan. 5 The Council of Representatives of Iraq accepts a reso - lution to expel U.S. troops from Iraq. Iran's parliament votes to exit the 2015 Joint Comprehensive Plan of Action nuclear deal with world powers. ✓ Jan.7 Ahead on the Markets After a year of political deadlock, incumbent Prime Minister of Spain Pedro Sánchez is sworn in, forming the first coalition government in the democratic era. Biggest risks facing world 2020 ✓ Jan. 8 Iran begins Operation Martyr Soleimani, launching ballistic missiles at several United States Armed Forces In 2019, world gross product broad-based debt accumula - stakeholders interviewed for the possible breakdown in Chile due to social unrest. facilities in Iraq, including Al Asad Airbase. U.S. Pres - growth and world trade tion ended with widespread the survey said economic di - US/China relations follow - ident Donald Trump announces new sanctions against growth fell to their lowest financial crises. “Low global visions and geopolitical dis - ing a first-phase deal, fur - UN Iran in response to the attack. level in a decade. The world interest rates provide only a order are their ther trade sanctions by the In equality, -The heads of state of Turkey, Russia, Serbia and Bul - economy continues to be precarious protection against greatest con - US on Europe, and the garia formally inaugurate the TurkStream gas pipelines. plagued by risks that threaten financial crises,” said World cerns. Borge spread of social unrest. All food financial stability. Trade ten - Bank Prospects Group Di - Brende, the of these factors could put in -Ukraine International Airlines Boeing 737-800 sions, high levels of debt, rector Ayhan Kose. “The president of jeopardy the recovery from insecurity crashes while taking off from Tehran Imam Khomeini wide-ranging policy uncer - history of past waves of debt the World last year’s The UN sounded the alarm International Airport, killing all 176 people on board. tainties and environmental accumulation shows that Economic Forum, said: “The weak growth that trade tensions between ✓ Jan.9 issues are only a few one of these waves tend to have political landscape is po - over the next major countries like the The United Kingdom House of Commons votes 330– the risks facing our world in unhappy endings. In a fragile larised, sea levels are rising two years, US and China threatened 231 to pass the Withdrawal Agreement Bill authorizing 2020. Here's a look at what global environment, policy and climate fires are burning. the IMF said. to serve as the country’s departure from the European Union at the top institutions are saying. improvements are critical to This is the year when world IMF’s chief a brake on minimize the risks associated leaders must work with all economist end of the month. WORLD BANK growth. The ✓ Jan.10 with the current debt wave.” sectors of society to repair Gita Gopinath said that since prospect Thousands of people protest in Melbourne, Brisbane Debt crisis WEF and reinvigorate our systems the UK election result last that financial of cooperation, not just for month, the IMF had down - and Sydney, calling for the resignation or ouster of In its latest Global Economic turmoil, or Prime Minister Scott Morrison, accusing him of neg - Geopolitical short-term benefit but for graded the threat from a no- an escalation of geopolitical Prospects (GEP), the semi- tackling our deep-rooted deal Brexit. In its half-yearly ligence over the Australian bushfires. annual flagship publication disorder, cli - tensions could derail a re - risks.” health check on the world covery this year. The New ✓ Jan.11 on the state of the world economy, the IMF also cited German Chancellor Angela Merkel announces she will economy, the mate change IMF York- based institution also political wrangling between said that the climate emer - hold peace talks in Berlin to help end the Second Libyan World Bank For the first time, climate the US and Iran.