This is what El Niño will do to the global economy

Sunday, November 1, 2015
By Paul Martin

Ben Moshinsky
BusinessInsider.com
Nov. 1, 2015

The effects of El Niño, a series of weather changes characterised by warming Pacific waters near the equator, can vary widely depending on which part of the world you live in.

A strong El Niño, for example, is often associated with flooding and warm weather in Peru, drought in Indonesia, Africa, and Australia, torrential rains in southern California, and a mild winter in the US northeast.

Equities analysts at Macquarie, led by Niraj Shah, believe they have worked out what these expected conditions brought on El Niño might do to the global economy in the next few months.

They think it spells bad news for Asian economies while the US will get a net positive effect from the shifting weather patterns.

Here’s what they had to say (emphasis ours):

Companies in North America and Australia/NZ are most likely to be impacted, followed by companies in Asia. Importantly, the impact on companies is not uniform within any given region. In Aus/NZ, 38% of highlighted companies are likely to be negatively impacted with 62% expected to be positively impacted. In North America the negative/positive split is 45/55 and in Asia the mix is 70/30.

The Rest…HERE

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