Below we will take a look at what’s going on in global business this month.
As you will have probably heard Brexit is upon us and it is affecting everyone across the world. Even with regards to New Zealand, the United Kingdom leaving Europe will have a knock on effect to trade. It is important that we understand how this change will affect local businesses; even something as simple as air freight tracking could be affected by Brexit as there may be restrictions related to which ports certain goods may or may not pass through. The United Kingdom has got a strong digital presence globally, whether its basic web design, affordable website design right up to digital agencies promoting a company’s web presence, the effects of Brexit could have a negative impact on this reputation.
UK businesses have been urged to put preparations in place in the event of a no deal Brexit. UK businesses are suffering from the indecision that has been caused by the threat of a no deal. Common sense business owners have had a strong plan in place for some time in the event of a no deal Brexit as the impact will be huge. Even though a deal could still happen, preparations are vital for businesses as until a bill has been signed, sealed and delivered, there is always a chance it could go wrong in the final hour.
It has been reported in the press recently that engineering and technology firms are looking into the prospect of using hydrogen power to replace natural gas within our homes. Hydrogen has also been linked to motor vehicles as well, making the use of this technology transferable between different engineering sectors. Hydrogen has its advantages because often the by-product is only water, which is not harmful to the environment. As with any technology that’s been developed for cleaner energy, there has to be a playoff. Take, for example, wind farms. A farm lease agreement that farmers enter into may allow them to have a section of their land devoted to renewable energy. It is this type of agreement that gives renewable energy the push it needs so we can move from carbon-based energy sources that are known to pollute the environment, to more environmentally friendly energy sources.
The price of crude oil can fluctuate on a daily basis. There are many factors that affect the price of crude oil at varying times of the year. For example, if the demand goes up, the price will increase because the crude oil then becomes in shorter supply and a price increase helps to counteract this. Currently, we are seeing the piece of crude oil ease as the reduction on demand has decreased.
Body Corporate Services
The need for body corporate services has increased. Whether it’s for facilities management, debt recovery, legal services or property developer services, as the global world has changed, the need for these types of services continues to increase.
AI is Shaking Things Up
If we think of the word AI we always think of sci-fi films or robots that are as intelligent as humans. However, if you add music into the mix you might be confused as to how AI can affect the music that we listen to. AI is used in music all the time. We can now talk to our devices and make them play our favourite tracks. We can also ask them to shuffle music or play full albums at any time. AI companies have now developed technology that can allow their customers to edit music to fit their own videos. This means the consumer now has greater control over how they listen to music.
Global Trading Slow Down
It is no secret that the United States and China have had growing tension which is threatening a slowdown of global trading. Many Asian countries such as South Korea, Taiwan and Japan will be negatively affected if this tension continues. China and the United States are the world’s largest economies and at the moment the biggest argument is a tariff fight. There has been a number of high profile cases of Chinesefirms causing security risks such as Huawei that many Americans now believe are too risky to own. This has meant Washington has placed this company on a blacklist.
World currencies are constantly under scrutiny, as every country wants its currency to be buoyant against the rest. In America, Donald Trump has hinted that the EuropeanCentral Bank has been manipulating the Euro in order to make it stronger against the Dollar. World currencies have always been a complicated business, but with the world in economic turmoil, more and more strain has been put on these currencies by the governments we select. In Europe, the single currency is struggling to gain momentum, as inflation remains stagnant. Even countries like Germany who have a very large economy have seen their growth stall in recent months. In the European Union, the threat of recession is never far away and over in the States, this has been highlighted more and more.
The global markets, as we have mentioned above, have been suffering for some time now and many analysts believe that we are not far away from a world recession. The World Bank has predicted the worst outlook in trade since 2009. This would mean a monumental recession, similar to what we had ten years ago. Huge global firms such as AIG were affected by the last economic crash, so if these predictions are true, the catastrophic effect this may have could be felt for generations. Currently, the world’s governments are trying to avoid this by bolstering their economies.
The news this month has been largely focused on the financial sector as there are a number of key events that are unfolding. These events could determine future trade deals and our economy.