Here is a summary of the most important events that unfolded last month, and which may affect economic, financial and geopolitical issues in the months ahead:

North America

The United States (US) House of Representatives voted to impeach President Donald Trump for his conduct with Ukraine. The two articles of impeachment charge him with abuse of power for pressuring Ukraine to help him in his re-election campaign and for obstructing Congress. Trump is the third president to be impeached by the House of Representatives in US history. The impeachment articles have yet to be sent to the Senate where President Trump will be tried. Two-thirds of the Republican-led Senate is required to vote to convict him and remove him from office.

President Trump announced he will sign the recently negotiated phase one trade deal with China in Washington on January 15th. Included in this deal, China will greatly increase its purchases of US agricultural products and the US will cancel and reduce tariffs, among other items.

The Taliban’s ruling council has agreed to a temporary cease-fire in Afghanistan. Last month, the US had demanded a cease-fire deal before restarting peace negotiations. This new cease-fire opens up the opportunity for continued negotiations on an agreement between the US, Afghanistan, and the Taliban.

2019 was a year of excellent market returns, especially for stocks and bonds. Though the year was full of ups and downs as trade fights and recession jitters abounded, the US stock market closed 2019 on a high note. The S&P 500 gained 28.9% this year, marking its best annual performance since 2013.

Europe

Prime Minister Boris Johnson and his Conservative party won the United Kingdom’s (UK) snap election this past month. The party was also able to secure a comprehensive parliamentary majority. The members of parliament (MPs) have passed Johnson’s Brexit deal which means the UK will leave the European Union by January 31st.

Scotland’s First Minister Nicola Sturgeon has asked Prime Minister Johnson for the power to hold new Scottish independence referendums. The Scottish National party made electoral gains in the recent general election, strengthening the push for Scotland’s independence from the UK. Scotland would like to remain in the EU single market and customs union, but their proposals have been ignored, according to Mrs. Sturgeon.

Ukraine and Russia agreed to an “all-for-all” prisoner swap, marking a major improvement in Ukrainian-Russian peace negotiations. In addition, the two countries finalized deals necessary to continue shipping Russian gas to European markets via Ukraine for the next five years.

French unions have vowed to continue protests despite President Emmanuel Macron’s plea for an end and a solution. Philippe Martinez, leader of the leftwing CGT union, dismissed the call for compromise and instead called on all of the French people to protest.

Greece had the best performing stock market of 2019. Over the year, its main index rose 43% making it the top performer in Europe and the rest of the world. The country’s economic growth accelerated in 2019 thanks to reviving government spending and investment.

Asia-Pacific

The US House of Representatives approved a bill that calls for a tougher response to Beijing’s treatment of its Uighur Muslim minority. China’s foreign ministry has warned that this legislation could complicate trade talks. So far, human rights issues have remained separate of trade issues.

Separate from US-China trade negotiations, Beijing has announced broad tariff cuts for all trading partners on more than 850 products beginning January 1st.

In December, India passed a controversial citizenship bill. The bill will give some citizens of Afghanistan, Pakistan, and Bangladesh the opportunity to apply for Indian citizenship based on their beliefs, but the bill stipulates that they must be Hindu, Christian, Sikh, Jain, Parsi or Buddhist. Muslims are not listed which has provoked protests from the country’s 200-million Muslim minority.

At a summit in Chengdu, China, the leaders of China, South Korea, and Japan agreed to support nuclear talks between the US and North Korea. Talks between the two countries stalled after North Korea promised the US a “Christmas gift”, which analysts predicted could be a missile test. However, no missile tests have occurred to the US’ knowledge.

Wildfires have been raging across Australia’s most populous state, New South Wales. The fires have grown as temperatures in Australia have been rising. The country saw its hottest days on record in December.

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