The 10 most important challenges for financial markets in 2020

To shed light on the subject, and know the challenges that lie ahead in the financial world in 2020, the newspaper sifted through an article by writer Guillaume Benoit analysts' expectations, to present the top 10 challenges that she said included the most prominent questioning the role of central banks, and determining the reasons for the existence of companies.
1- Will Europe defeat Wall Street?
After the excellent performance of the stock markets last year, the author said that the stock market outlook for 2020 will be more modest, especially since valuations are very high now, especially in the United States where the upside potential is lower.
From this point of view, BFT’s portfolio management estimates say European stocks should be preferred because of the good performance of economic growth in the euro area, the strength of their balance sheets and their valuations which are still far from excessive.
2- Do interest rates rise?
The newspaper said that debt with negative interest amounted to a record size at 18 trillion euros in mid-2019, but the stock allocated to trading with interest less than 0% fell at the end of the year to 11 thousand billion euros under the influence of the rise in interest rates, and the return of the yield of government bonds in France for 10 years Years to the positive zone after hitting a low of "0.44% -" in August.
In 2020, most specialists believe that financing costs in Europe may be at their lowest levels and therefore have a slight bounce potential, as USB believes that prices will start to decline again at first.
And the interest rate for 10 years in Germany will drop to "0.75% -" in the second quarter, due to the US economic slowdown at the beginning of the year, the inflation still slow in Europe, and the European Central Bank policy that is still comfortable.
Debt with negative interest reached a record size of 18 trillion euros in mid-2019 (Getty Images)
Debt with negative interest reached a record size at 18 trillion euros in mid-2019 (Getty Images)
3- Will the European Central Bank’s mission develop?
The newspaper said that the European Central Bank will undertake the first review of its monetary policy since 2003, which will be closely monitored by markets, in a massive process open to civil society and without taboos, as its new president announced last December, indicating that it will include in addition to purely monetary issues, Climate issues and reducing inequality.
4- Will green financing become the norm?
The writer considered that 2020 should be the year of entitlement to the green bond market, as 2019 witnessed unprecedented activity from the issuance of global green bonds, which amounted to more than 650 billion dollars, and could reach one trillion - as HSBC expects. "- In the first half of the year 2021.
After France, Belgium, Netherland (Netherlands) and Ireland, Germany announced its intention to issue the first Bond Gronn for several billion euros, but the market hopes to rely on American companies that were hesitant long before they were convinced to mobilize In favor of the environment and the growing appetite of investors.
It is noteworthy that green financing means the use of financial products and services (loans, insurance, shares, bonds) to finance environmentally friendly projects.
5- Will the popular stock experience develop?
The writer said that 9 million individuals owned shares in the 2000s contract, while today this number reaches 3 million, indicating that the French state has privatized the French Games Company in order to revive the popular shares, and has taken specific measures to attract young owners.
The newspaper asked: Will this experience be developed in 2020? Will individuals find their way to the stock exchange?
Euronext CEO Stefan Boujnah says they are convinced of this, as "nearly half of the individuals who bought the shares of the French games company have opened stock accounts for the first time ... individuals are willing to take small risks and thus invest in stocks."
6- Will the activists continue to break through in France?
The newspaper said that 10 French companies were a target of activists in 2019, noting that activists should pay more attention to France, at a time when the number of French companies at risk increased, and therefore potential targets.
The newspaper said that the tendencies - demonstrated by the Paris market for six months - towards imposing additional regulatory restrictions on activists in 2020, will not likely prevent this money from coming to France.
7- Does gold return to its peak as in 2009?
Gold achieved its best year for 10 years in 2009, when the value of the yellow metal increased by almost 20%, and ounces of gold exceeded the psychological threshold of $ 1,500, and investors bought gold throughout the year to protect themselves from the recession against the backdrop of the Sino-American trade war.
In 2020, doubts linked to the US elections in November may continue to push gold prices higher, according to the newspaper, and China, which wants to diversify its reserves, can continue to buy massive bullion.
8- Will central banks revolutionize e-currencies?
The newspaper asked: Will payment for purchases be made in "digital" euros, an electronic sum issued by the European Central Bank? Noting that this is the wish of Europe, in response to Facebook's "Libra" digital currency.
The newspaper warned that the social network intervention in the field of encryption shook the countries and central banks and made them see in this electronic money a threat to their sovereignty, which prompted the Bank of France to launch this year the experience of the digital currency of the first central bank in the euro area, but not the only one in the world, where China is testing This subject.
Facebook interferes in the field of encryption, shaking countries and central banks and making them see electronic currencies as a threat to them (Anatolia)
Facebook enters into the field of encryption shaking countries and central banks and making them see in electronic currencies a threat to them (Anatolia)
9- Will the appetite for assets not listed in the financial markets continue?
A number of investors were enthusiastic in recent years of real assets such as real estate, private shares and private debt, as in Europe the capital invested in real assets increased by $ 300 billion within three years to reach $ 1,600 billion, while the valuations of companies not listed on the stock exchange exceeded the estimates of their listed counterparts.
Long-term sovereign wealth funds and investors have led efforts to seek returns in a world dominated by zero interest rates.
After several years of unrestricted growth, UPS predicts a slowdown in demand. As long as central banks maintain appropriate monetary policies, the unlisted assets will remain attractive.
10- Have companies started a cultural revolution?
The newspaper concluded that Black Rock - the world's largest asset manager - called on companies that invest in it in January 2019 to determine its existence, and at the same time, the CEO of State Street called on boards to give more importance to corporate culture.
In France, the "Pact" law (the law of growth and transformation of companies) introduced the possibility for companies wishing to do so to obtain reasons for their existence. Indeed, Athos and Carrefour have modified their laws to obtain this. In 2020, this movement must continue.
The Bucket Law aims to simplify the lives of companies and their managers to become more competitive European and global, and includes a number of measures aimed at developing businesses and creating more opportunities.