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BUSINESS Saturday 31 december 2016
A25

Globalization took hits in 2016; Will 2017 lead to more?

MARKETS MARCH ON set to follow up its first in-
Trump’s victory did not terest rate hike in nearly a
cause the bottom to fall decade with three or four
out of the stock market more in 2016. But there
rally that’s been largely in was no move until Dec. 14,
place since 2009, when the when the U.S. central bank
world economy started to raised its main interest rate
first claw out of its deepest to a range between 0.5
recession since World War percent and 0.75 percent.
II. In fact, both the Dow Many factors explained its
and the S&P 500 rallied to hesitation to raise rates, in-
hit a series of record highs. cluding unease over the
Stocks have also benefited global impact of China’s
from a raft of big corporate economic slowdown and
deals this year — execu- uncertainty surrounding
tives are seeing takeovers the U.S. election.
as a fast way to generate But with the U.S. econo-
growth in a low-growth my continuing to do bet-
global economy disrupted ter than most developed
by non-stop technological countries — with unem-
innovations. Notable deals ployment below 5 percent
in 2016 included the $85 bil- and inflation edging up —
In this Oct. 25, 2016, photo, a pedestrian passes the New York Stock Exchange, in lower Manhat- lion merger of Time Warner the Fed finally delivered
tan. and AT&T and the $57 bil- another hike. The markets
Associated Press
lion takeover of Monsanto are predicting another
PAN PYLAS came as a surprise — cer- punish China for the way by Germany medicine and three or four increases next
Associated Press tainly to bookmakers and it devalues its currency farm-chemical maker Bay- year. Those expectations
LONDON (AP) — Global- many pollsters who had against the dollar and to er. The $100 billion takeover have helped the dollar ral-
ization, the path that the consistently given the tax U.S. firms that move of SABMiller by Budweiser ly, especially as other ma-
world economy has largely “remain” side the edge jobs overseas. maker Anheuser-Busch In- jor central banks persevere
followed for decades, took — and means Britain has He has also laid out plans Bev was also completed. with super-loose monetary
some hefty blows in 2016. to redefine itself after 43 to bring America’s creak- ___ policies to breathe life into
The election of Donald years of EU membership. ing infrastructure up to FED FINALLY DELIVERS their economies.
Trump as U.S. president and David Cameron resigned 21st-century standards, a During his campaign, ___
Britain’s decision to leave as prime minister after the new spending pitch that Trump said Federal Reserve CHINA’S KEY ROLE
the European Union have vote and the new Conser- has the potential to boost Chair Janet Yellen should As the world’s second-
raised questions over the vative government led by jobs — but which could be “ashamed” of the way largest economy, China is
future of tariff-free trade Theresa May is planning to also lay the seeds of higher she’s run policy since tak- playing a bigger role in the
and companies’ freedom trigger the formal process inflation. ing the helm in 2014. A year functioning of the global
to move production to low- by which Britain exits the EU ___ ago, the Fed appeared economy.q
er-cost countries. early next year.
Borders are back in vogue. There are many shades of
Economic nationalism is potential Brexit, from an
paying political dividends. outright divorce that could
“We want our country put up tariffs on goods
back” was the rallying cry and services, to a more
of those backing Brexit, a amicable parting that sees
sound bite that had echoes many of the current trad-
in Trump’s “Make America ing arrangements kept in
great again.” place. The pound’s fall to
The rise of Trump and the a 31-year low below $1.20
triumph of Brexit had their at one point is testament to
roots in the global financial that uncertainty.
crisis of 2008. Eight years ___
later, the world economy TRUMP CARD
has still not yet fully gotten Pollsters and bookmakers
past that shock to its con- got it wrong again a few
fidence — people are ner- months later when Trump
vous, some are angry, and defeated Hillary Clinton in
many are seeking novel the U.S. presidential elec-
solutions to their problems. tion.
Next year, there’s scope Whether he translates his
for more uncertainty with “America First” platform
elections in France and into action following his
Germany. inauguration in January
Here’s a look at the year’s will help shape the global
top business stories for 2016: economy for the next four
___ years at least.
BREXIT SHOCK Trump has railed against
In what was a sign of things long-standing trading
to come, Britain voted to agreements, including the
leave the EU in a referen- North American Free Trade
dum in June. The decision Agreement, and vowed to