{"id":2206,"date":"2020-02-03T06:32:10","date_gmt":"2020-02-03T06:32:10","guid":{"rendered":"http:\/\/www.ceo-worldwide.com\/blog\/?p=2206"},"modified":"2024-05-14T05:58:46","modified_gmt":"2024-05-14T05:58:46","slug":"what-is-happening-in-the-global-world","status":"publish","type":"post","link":"https:\/\/www.ceo-worldwide.com\/blog\/what-is-happening-in-the-global-world\/","title":{"rendered":"What is happening in the global world?"},"content":{"rendered":"
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China<\/strong> is synonymous with strong and secure economic growth. Indeed, so entrenched is this sentiment that commentators talk of Chinese exceptionalism; i.e.; that the usual rules of economics do not apply. But rules are rules. And there\u2019s concern that China\u2019s rapid build up of credit has left it vulnerable to a sharp slowdown. A very fragile China are in deep trouble that will impact globally!<\/p>\n\n\n\n

Dragon’s Debt<\/strong>. China’s solution to the economic and export fallout from the financial crisis was to invest more at home.So it\u2019s been consuming a strong cocktail of excess investment fueled by large debt. It’s a heady brew that leaves the country’s banks sitting on a high level of bad loans, as signaled last week. And the strains are beginning to show. As China faces this problem\/major issues globally while trying to reform its economy, the best outcome is that growth will slow substantially. But there\u2019s still time to avoid the worst. China`s issues will impact on global economies and effect growth!<\/p>\n\n\n\n

UK`s Two Directions<\/strong>. Although the number of mortgage approvals fell in April, the average value of each approval rose. The UK housing market is currently experiencing two opposing winds. One is new mortgage regulations, sensibly aimed at ensuring borrowers are better able to afford a future rise in mortgage rates. The other is rising demand, supported by Help to Buy. So far the scheme has helped over 27,000 households buy a home, most of who bought properties valued at \u00a3250k or less. Banks lending to many very high borrowing proposals for houses and many overseas buyers just buying for investment and not letting the houses!<\/p>\n\n\n\n

A stitch in time<\/strong>. No member of the UK Monetary Policy Committee (MPC) has voted for a rate hike for almost three years (since July 2011). But it looks like that will change before too much longer. In an interview with the Financial Times, MPC member Martin Weale said that if you want to raise rates gradually, then you have to start sooner. He said “we can wait a bit longer” but the implication is he will be voting for a rate hike before the year is out, possibly as early as August. If markets are correct, it will be the first half of next year before a majority of the nine-person committee joins him. Major challenges on bank rate rises will see many house borrowers very worried for the future!<\/p>\n\n\n\n

And I’m feeling good<\/strong>. UK firms and households are feeling chirpy. May’s GFK consumer confidence index rose to its highest level since 2005. Although consumers are particularly pleased with the UK\u2019s economic performance, as well as hopeful about the future, they’ve yet to see a marked improvement in their own finances. Likewise, the CBI growth indicator reported that British firms are experiencing the strongest growth in orders and activity since the survey began in 2003. We already knew the UK economy has a spring in its step. But few of us mind being reminded of our good points all the same. Growth based on UK government and domestic borrowing THEREFORE TROUBLE AHEAD WHEN THE UK BANK RATE RISES!<\/p>\n\n\n\n

Do not panic<\/strong>. US output shrank by 1.0% on an annual basis in the first quarter, enough in normal circumstances to have us reaching for the panic button. But there\u2019s no need. Firms running down their stocks accounted for a large chunk of the fall and the icy grip of winter on construction activity for most of the rest. Growth of 3.1% in consumer spending was a more accurate reflection of the economy\u2019s health. And with the Purchasing Managers\u2019 Index hitting a four year high in May, Q1 looks like no more than a blip. Domestic and Government borrowing are very high, so there will be major trouble ahead!<\/p>\n\n\n\n

Bubbling along<\/strong>. US house prices increased by 10.3%y\/y in March according to Case Shiller. That\u2019s a little slower than the 11%+ rates recorded in the second half of last year but not much. Incomes are rising at a fraction of that rate, so house prices are becoming less affordable by the day. Yet with US long-term interest rates falling to their lowest levels in almost a year and mortgage rates following them, a frothy housing market could be with us for some time yet. Many challenges ahead with a flat housing market in the future! Will we see the same problems as we did in 2008?<\/p>\n\n\n\n

Cosy<\/strong>. We’re used to reading about the high price of houses. But less attention is paid to the wider costs. London’s meteoric house price growth is having an effect on how many people are living in a typical house. The share of households with six or more people rose by a third in the 10 years to 2011. Cosy, as estate agents might say. Estate agents making a fortune again on the back of very high selling prices!<\/p>\n\n\n\n

Crossroads<\/strong>. India’s economy grew 4.6%y\/y in Q1. Although that\u2019s a decent pace of growth by western measures, its low for a country at India’s stage of development. India\u2019s most powerful economic weapon is a functioning democracy. However, the country has just elected a proven reformist as prime minister with a strong parliamentary majority. India’s problems\/issues are a mirror image of China\u2019s. It\u2019s underinvested in infrastructure. That may be about to change. India running into economic trouble the same as China, therefore the impact is a double whammy globally!<\/p>\n\n\n\n

Very Fragile China\/Very fragile India! Globally, there is trouble on its way `big time`!<\/p>\n\n\n\n

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About the author: Colin is a former successful Managing Director of Transactional\/Print Manufacturing Plants, Document Management\/Workflow Solutions companies and other organisations, Former Group Chairman of the Academy for Chief Executives, Non-Executive Director, Mentor -RFU Leadership Academy, Mentor -Coventry University, Mentor -The Chartered Institute of Personnel and Development, helping companies raise their `bottom-line` and `increase cash flow`. Plus, helping individuals to be successful in business and life in general. Author of several publications, research reports, guides, business and educational models on CD-ROM\/Software\/PDF and over 1000 articles published on business and educational subjects worldwide. Plus, International Speaker\/Visiting University Professor. <\/p>\n\n\n\n

View Colin’s short bio<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

China is synonymous with strong and secure economic growth. Indeed, so entrenched is this sentiment that commentators talk of Chinese exceptionalism; i.e.; that the usual rules of economics do not apply. But rules are rules. And there\u2019s concern that China\u2019s rapid build up of credit has left it vulnerable to a sharp slowdown. A very … Read more<\/a><\/p>\n","protected":false},"author":9,"featured_media":5185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21,28],"tags":[78,359,116,48,67,60],"ppma_author":[615],"class_list":["post-2206","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-development","category-export-business","tag-china-2","tag-economic-growth","tag-export","tag-india","tag-uk-2","tag-usa-2"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2024\/05\/krelishkxtm.jpg?fit=1600%2C1200&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p7XjMV-zA","jetpack-related-posts":[{"id":20,"url":"https:\/\/www.ceo-worldwide.com\/blog\/international-management-future-plans\/","url_meta":{"origin":2206,"position":0},"title":"International Management – Future Plans","author":"Colin Thompson - CEO - UK","date":"","format":false,"excerpt":"International Management: A sticky wicket? Some facts about the global economic climate Not a reference to the England cricket team\u2019s difficulties on the subcontinent but a term economists use when inflation is resistant to change. Should we then be overly alarmed to see inflation stuck at 2.7% for three months\u2026","rel":"","context":"In "International Management"","block_context":{"text":"International Management","link":"https:\/\/www.ceo-worldwide.com\/blog\/category\/international-management\/"},"img":{"alt_text":"white paper on a vintage typewriter","src":"https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2013\/02\/pexels-photo-4057659.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2013\/02\/pexels-photo-4057659.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2013\/02\/pexels-photo-4057659.jpeg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2013\/02\/pexels-photo-4057659.jpeg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2013\/02\/pexels-photo-4057659.jpeg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":6970,"url":"https:\/\/www.ceo-worldwide.com\/blog\/electric-vehicles-and-critical-raw-material-supplies\/","url_meta":{"origin":2206,"position":1},"title":"Electric Vehicles and Critical Raw Material Supplies","author":"Thomas Reilly","date":"","format":false,"excerpt":"In a previous blog, I wrote about the global rise in export restrictions on critical raw materials.\u00a0 In the modern world of greatly increased geopolitical tensions, securing reliable access to critical minerals is becoming a key economic security consideration, vital to the success of the energy transition. 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Bans","src":"https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2025\/07\/pexels-photo-1044290.jpeg?fit=1200%2C999&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2025\/07\/pexels-photo-1044290.jpeg?fit=1200%2C999&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2025\/07\/pexels-photo-1044290.jpeg?fit=1200%2C999&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2025\/07\/pexels-photo-1044290.jpeg?fit=1200%2C999&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2025\/07\/pexels-photo-1044290.jpeg?fit=1200%2C999&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":7455,"url":"https:\/\/www.ceo-worldwide.com\/blog\/international-expansion-and-strategic-market-entry-at-aalborg-portland-asia\/","url_meta":{"origin":2206,"position":3},"title":"International Expansion and Strategic Market Entry at Aalborg Portland Asia","author":"Bo Ankerfelt","date":"","format":false,"excerpt":"Role:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Managing Director \/ General Manager, Aalborg Portland Asia Tenure:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2000 \u2013 2005 Industry:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 White Cement Manufacturing \/ Building Materials (Malaysia \/ Southeast Asia \/ China) THE MANDATE Following the acquisition of a 60% stake in the white cement interests of Rock Chemical Industries (RCI) in 2000, the mandate was\u2026","rel":"","context":"In "Case Studies"","block_context":{"text":"Case Studies","link":"https:\/\/www.ceo-worldwide.com\/blog\/category\/case-studies\/"},"img":{"alt_text":"globe figurine in a studio","src":"https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2026\/04\/pexels-photo-22669715.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2026\/04\/pexels-photo-22669715.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2026\/04\/pexels-photo-22669715.jpeg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2026\/04\/pexels-photo-22669715.jpeg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2026\/04\/pexels-photo-22669715.jpeg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":7449,"url":"https:\/\/www.ceo-worldwide.com\/blog\/driving-international-growth-and-strategic-evolution-at-dafa\/","url_meta":{"origin":2206,"position":4},"title":"Driving International Growth and Strategic Evolution at DAFA","author":"Bo Ankerfelt","date":"","format":false,"excerpt":"Role:\u00a0 Group CEO\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Tenure: 2014 \u2013 2018 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Industry:\u00a0 Foam & Rubber Sealing Solutions \/ Industrial & Construction (Denmark \/ Europe \/ Asia \/ USA)\u00a0 THE MANDATE DAFA, a Danish family-owned company with roots dating back to 1939, was a market leader in foam and rubber sealing solutions and at\u2026","rel":"","context":"In "Case Studies"","block_context":{"text":"Case Studies","link":"https:\/\/www.ceo-worldwide.com\/blog\/category\/case-studies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2026\/04\/pexels-photo-35602949.jpg?fit=264%2C264&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":6947,"url":"https:\/\/www.ceo-worldwide.com\/blog\/the-centrality-of-geopolitics-to-commercial-success\/","url_meta":{"origin":2206,"position":5},"title":"The Centrality of Geopolitics to Commercial Success","author":"Thomas Reilly","date":"","format":false,"excerpt":"Much has been written about the collapse of the post-WW2 world order.\u00a0 Much more will be written about whether a return to fragmentation, de-globalisation and the undermining of trust in global institutions is a deliberate strategy, or is merely collateral damage for the MAGA movement.\u00a0 But what is incontrovertible is\u2026","rel":"","context":"In "International Management"","block_context":{"text":"International Management","link":"https:\/\/www.ceo-worldwide.com\/blog\/category\/international-management\/"},"img":{"alt_text":"The Centrality of Geopolitics to Commercial Success","src":"https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2025\/07\/pexels-photo-1236421.jpeg?fit=881%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2025\/07\/pexels-photo-1236421.jpeg?fit=881%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2025\/07\/pexels-photo-1236421.jpeg?fit=881%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2025\/07\/pexels-photo-1236421.jpeg?fit=881%2C1200&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"authors":[{"term_id":615,"user_id":9,"is_guest":0,"slug":"colin-thompson","display_name":"Colin Thompson - CEO - UK","avatar_url":{"url":"https:\/\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2020\/05\/49200-2.jpg","url2x":"https:\/\/www.ceo-worldwide.com\/blog\/wp-content\/uploads\/2020\/05\/49200-2.jpg"},"author_category":"0","user_url":"","last_name":"Thompson - CEO - UK","first_name":"Colin","job_title":"","description":"Colin is the Managing Partner at Cavendish and a former successful Managing Director of Transactional\/Document Manufacturing Plants, Document Management\/Workflow Solutions companies and other organisations, former Group Chairman of the Academy for Chief Executives, Non-Executive Director, Mentor - RFU Leadership Academy, Mentor - Coventry University, Mentor - The Chartered Institute of Personnel and Development, author\/writer Business Advice Section for IPEX, <\/strong>Graphic Display World, News USA, Graphic Start, many others globally, helping companies raise their `bottom-line` and `increase cash flow`. Plus, helping individuals to be successful in business and life in\u00a0general. Author of several publications (35 +), research reports, guides, business and educational models on CD-ROM\/Software\/PDF and over 4000 articles published on business and educational subjects worldwide. Plus, International Speaker\/Visiting University Professor.\r\n\r\nCheckout Colin's LinkedIn profile<\/a>"}],"_links":{"self":[{"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/posts\/2206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/comments?post=2206"}],"version-history":[{"count":8,"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/posts\/2206\/revisions"}],"predecessor-version":[{"id":5184,"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/posts\/2206\/revisions\/5184"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/media\/5185"}],"wp:attachment":[{"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/media?parent=2206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/categories?post=2206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/tags?post=2206"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.ceo-worldwide.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=2206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}