Global Wealth Report Raw Video Material for Media Outlets

Raw Video Material for Media Outlets

Video snippets with Michael O'Sullivan, Credit Suisse Chief Investment Officer, International Wealth Management, focusing on certain topics to be used by media outlets.

Emerging Markets 

Emerging Markets wealth growth really has been the story of the last seven Credit Suisse's Wealth Reports. But it's slowing. On average for example since 2000 China has grown its wealth by 11%, that compares with 4-5% in many developed world countries. So China has been leapfrogging. In fact, in 5 years' time China will leapfrog where US was in 1990. However, in the last year we have seen other big emerging economies like Brazil suffer as their economy has contracted.

Measuring Wealth

Economists talk a lot about the new normal or secular stagnation and to a degree they all focus on GDP, but I think a better measure is wealth. Wealth and household balance sheet are really what motivates people to spend and to invest.

Brexit

The financial and economic implications of Brexit really have been overshadowed by the sharp moves lower in the pound. If we look at the wealth in the UK in dollar terms, the UK - since Brexit - has lost 1.5 trillion dollars in wealth. Net average wealth per household in the UK has fallen by USD 33,000 to USD 289,000 per adult. Further, in the UK there are now about half a million fewer millionaires in dollar terms as a result of Brexit.

The Bottom of the Wealth Pyramid

This includes people who's net wealth is less than USD 10,000, i.e. countries like Congo or Nigeria. These countries are interesting because the rate of change for many households is actually very rapid. And if I think back to what happened in Indonesia for the last 15 years, where wealth has increased by 6 times in that period, you look at some of the African countries and wonder whether the same is possible?