As every year, Saxo Bank this year as well shared it with the world about what crazy things you envision for the next year. The Danish investment bank predicts, among other things, the consequences of Donald Trump’s punitive tariffs, scientific breakthroughs, and insurance chaos caused by the climate crisis by 2025.
Trump’s economy is causing the dollar to turn upside down
In 2025, the new Trump administration will reshape the entire nature of the US relationship with the world, imposing massive tariffs on all imports while reducing the deficit with the help of Elon Musk’s Department of Government Efficiency (DOGE).
The consequences for the dollar, however, will be dire.
China and the BRICS+ countries transact with gold-backed digital money and, to some extent, directly with a new gold-backed offshore yuan, while Europe increasingly bases its trade relations on the euro. Gold-pegged crypto stablecoins also come into the picture during this dramatic new chapter in global financial markets.
As a potential market impact, Saxo predicts that the crypto market will quadruple to more than $10 trillion, with the US dollar falling 20 percent against major currencies and 30 percent against gold. The US economy will fall, but wages will keep pace with commodity inflation as production resources move to the US. US exporters benefit.
Nvidia beats everyone
Next year, Nvidia’s success will increase with the mass production of the revolutionary Blackwell chip with 208 billion transistors, which increases the performance of artificial intelligence calculations per unit of energy consumption by up to 25 times compared to the previous H100 generation.
In the ever-increasing AI arms race, in which no giant corporation or even government wants to be left behind, as well as the skyrocketing electricity costs of AI data centers due to the insatiable demand for higher-performance, yet less power-hungry Blackwell chips
Nvidia emerges as the most profitable company of all time.
This will easily surpass Apple’s record profit of $105 billion next year. This puts it above all other companies in the world with a value of $7 trillion, which is 10 percent of the global stock market. The value of Apple and other tech giants is shrinking in relative termsas their profitability is reduced by having to build huge data centers to keep up with the artificial intelligence gold rush.
The first human bio-heart is printed
The breakthrough of the year 2025 is that researchers will successfully bio-print a fully functional human heart using advanced 3D “bioprinting” technology. Using high-resolution CT scans, scientists create a complex digital model that captures every minute detail of the heart’s complex structure.
This model serves as a blueprint for a state-of-the-art 3D bioprinter that meticulously layers human stem cells and biodegradable materials to build the organ with astonishing precision.
Once printed, the heart is placed in a special bioreactor that mimics the physiological conditions of the human body.
Our picture is an illustration
The heart “ripens” under these conditions for several weeks, allowing the cells to properly organize and differentiate, forming the vital blood vessel networks and electrical pathways required for normal heart function. In a groundbreaking surgical procedure, a mature human heart is transplanted into a pig for testing.
OPEC may disappear because of electromobility
China is leading the way in boosting transport electrification. As other countries join China in rapidly expanding manufacturing capacity exponentially, battery prices will continue to drop, making electric vehicles cheaper than their gasoline-powered counterparts. For this reason, an ever-accelerating decline in oil demand can be expected in the coming years.
As a result, OPEC’s importance continues to decline, and its production results of millions of barrels per day actually become irrelevant.
With some members already playing around with production quotas to capture the maximum revenue possible, and with export demand falling, most members are quickly realizing that it’s game over. Amid bickering and infighting, key members are leaving, and it is sending OPEC to its grave. Former members maximize production to secure market share, leading to a large drop in oil prices.
Crude oil prices are beginning to fall, a boon for airlines, chemical, paint and tire manufacturers, as well as shipping and logistics companies.
The storm is sweeping the insurance sector
A catastrophic storm and rain will catch the insurance industry in the United States unprepared next year, causing multiples of the $40 billion loss recorded during Hurricane Katrina in 2005.
One of the largest US insurers significantly underestimated insurance risks from climate change, leading to underpriced insurance policies in the affected region.
With reserves insufficient to cover claims and reinsurance inadequate to mitigate the costs of this extreme event, panic broke out across the industry.
The crisis reaches all the way to the government, debates begin about whether to save bankrupt companies and other victims of the sector.
Twenty years ago, Hurricane Katrina caused enormous damage
Due to the event caused by the giant storm, the pricing of natural disasters resets, and this significantly reduces the value of properties in the real estate market. Consumer confidence has wavered as the value of many homeowners’ biggest asset, their house, has become uncertain.
AI pumps up electricity prices
In 2025, US electricity prices will skyrocket in several populated areas as the biggest tech companies scramble to provide baseload power to their precious AI data centers. This causes outrage among the public as household utility bills skyrocket, exacerbated by huge spikes in the price of electricity consumed at home during evening peak load periods.
In response, many local authorities will act on behalf of the population and hit the largest data centers with huge taxes and even fines in order to support lower electricity prices for households.
Taxes are spurring investment in massive new solar farms with load-balancing batteries, but also building dozens of new natural gas-fired plants as demand for ever-increasing energy continues to outpace supply. Rising electricity prices trigger new inflation impulses.
Source: www.economx.hu
