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SnapperLaboralization in its current form “may now have run his course”, according to HSBC President Sir Mark Tucker, who said trade and geopolitical tensions would lead to stronger economic links between regional groups and the trade block.
In a speech at the Global Bank Investment Summit in Hong Kong on Tuesday, Tucker said trade tensions created uncertainty that posed a “serious potential global growth”.
Since taking office in January, US President Donald Trump has hit tariffs for key trading partners, including China, Canada and Mexico, and is expected to impose more on April 2, when his administration reveals “Mutual Tariffs” in the world.
The world is experiencing a “period of deep and deep change” in arrangements for trade, economic policies and international security, Tucker said.
“As we consider current developments. We believe that globalization as we knew could have run his course now,” he said.
“Economic considerations that guide efficiency supply chains optimally led to one of the world’s largest periods of wealth we have ever seen. The balance of economic power changed as a result, and what was once sustainable is no longer,” he added.
Tucker said this does not mean that the world would “regress either geo-phragment and de-globalization”, but that there would be new opportunities and stronger economic links between “political groups and trade blockages”, including the “BRICS-PLUS GROUP”, which would increasingly trade with each other.
HSBC is a major participant in global trade finances. Its trade business is ranked first of the income for the last seven years, according to its latest annual report, which quotes figures from the Greenwich Analytics coalition competition.
In recent months it has regulated its operations, including the division of its business along the geographical lines into two units, one focusing on Asia and the Middle East and the other in Europe and America.
Tucker said the economic connection between Asia and the Middle East, a major focus on the bank, is likely to “fly” in the coming years.
The Bricks group, consisting of Brazil, Russia, India, China and South Africa, has expanded to include Iran, the United Arab Emirates, Egypt, Ethiopia and Indonesia.
“The increasing link of trade and financial of these economies to the rest of the developing world suggests that there can be significant spread of growth,” Tucker said.
He said the Bricks group was building institutions that would have energy, trade, finance, supply chains and technology, adding that “between geopolitical tension it is likely that more developing markets will be joined by BRICS to promote closer connections and have a stronger voice in the world phase.”
