Trade/globalization

The forces driving 2019's global M&A slowdown

Illustration of a cracked piggy bank shaped like the earth
Illustration: Sarah Grillo/Axios

The collapse of the mega-merger between Fiat-Chrysler and Renault was the latest piece of bad news for lawyers, advisers and other middlemen who make their living brokering corporate tie-ups.

Why it matters: M&A's slowdown this year has been particularly bad for deals involving companies based in different countries, and shows another way globalization's retreat is draining revenue, even from fast-growing segments of the economy.

IMF slashes global growth expectations for 3rd time in 6 months

The seal of the International Monetary Fund(IMF) is seen outside of the headquarters building in Washington, DC on April 8, 2019.
The IMF seal outside its headquarters in Washington, DC. (Photo: Mandel Ngan/AFP via Getty Images)

The International Monetary Fund cut its expectations for global growth from 3.5% to 3.3% — the third downgrade since October, as Reuters points out — and said major risks to the world economy like the U.S.-China trade war and Brexit are skewed to the downside.

Why it matters: The IMF's economic downgrade is broad based. Per its latest outlook, the group dialed down growth expectations across the eurozone, Latin America, the U.S., the U.K. and Australia. Its more optimistic projections for next year's economic growth — at 3.6%— "relies on an expected rebound in growth in Argentina and Turkey" as well as other "stressed developing economies, and is therefore subject to considerable uncertainty," the report says.