The  WB expects the global economy to contract for the first time since WWII in 2009 and world trade is to decline to the lowest level in 80 years.

A trade dispute  has just exploded between Washington and Beijing following the imposition of tariffs on Chinese tires imported into the US.

China’s internet community has gone viral on the topic. And many in the West are thinking. “Isn’t this type of reaction a bit out of date? Given China’s economic power, if they want to sell tires in another country, they can just go ahead and buy a tire manufacturer there. The West has enough broke businesses.”

With the G20 summit opening tomorrow in Pittsburgh, people are wondering what kind of world the aftermath of the financial crisis is likely to produce in the years to come.

The tendency, as we have seen, is to go tribal.

Forbes  is heralding the end of Thomas Friedman’s  ”Flat World” and the beginning of a new “era of decreasing trade”.

I can’t help sensing a strong feeling of hysteria around the whole thing.

Yes, the world is changing. May be much faster than Friedman or anybody else had predicted. But the answer is not to find refuge in protectionism.

Times call for much more creative solutions. Let’s see what comes out of  tomorrow and Friday.

I used to find index charts soothing.  

You might think I’m strange. But when I worked as a financial journalist, they would stimulate my thinking….

Like a mandala, I would look at them and they would give me a sense of clarity…. After a while, sentences would start flowing in my mind.

I haven’t found financial charts soothing lately.

But yesterday, I was glad to hear at a seminar that markets are showing signs of normalisation. Which doesn’t mean that the recession is over. But markets have at least stopped to be out of control and are experiencing some sort of stabilisation.

 However, analysts believe that the UK and Europe will not be able to attract significant investment for a while.  

The spotlight has moved to the East.

Most Asian countries already had their financial crisis in 1998.  It enabled them to clean house and left their banks with strong balance sheets. On top of this, they were able to create high levels of self-generating demand.

China and India are continuing to grow, and most importantly, their middle-classes are growing. International capital is being lured by the prospect of huge sales volumes.

s="MsoNormal" style="margin: 0cm 0cm 0pt;"> 

Communications  and marketing are right at the core of this trend.

With little growth to be expected in the West, many of the companies we are working for are increasingly looking at China and India.

One of the first tasks they will have to master is reaching out to audiences and engaging with consumers in these markets.