The performance of the S&P 500 has been on a downward trend
NEW YORK: Dealmakers are bracing for a slower 2019, predicting that stormy equity markets, intensifying political uncertainty and weakening economic conditions could cool a five-year boom in transactions.
With 10 days left of 2018, the fourth quarter -- traditionally the strongest in a year -- is on track to be the worst since 2013, with just $776.7 billion of deals announced, according to data compiled by Bloomberg.
The euphoria over U.S. tax reform that drove many companies to do deals earlier in the year gave way to nervousness about a rise in protectionist policies and worsening conditions in the credit markets in the second half, when volumes fell 20 percent.
Still, companies around the world struck $3.7 trillion of transactions through Dec. 19, the data show, making it the third-biggest year on record, behind 2007 and 2015.
Bankers remain optimistic that technological disruption, the quest for earnings growth and companies’ need to keep simplifying their businesses will fuel deal activity in 2019, albeit at a lower volume than this year.
Limited time offer:
Just RM5 per month.
