Predictions - that's always dangerous, but I'll have a go. The economy here in Germany will pick up slightly. This is because of the certainty that Bush will win easily in November in the absence of any realistic challenge. The markets and banks like that sort of thing. Bush will probably look for some sort of fudged deal to get most of his troops out of Iraq before polling day in November. It will safeguard America's oil (buried inconveniently beneath Iraqi sand), but not be enough to prevent the inevitable takeover of the Shias. That will mean all Western countries having to be a lot nicer to Libya and Iran. That could have a positive knock on effect for the Middle East process, as Sharon's position looks likely to grow weaker.
Blair will survive in Britain as the Mike Tyson of UK politics - loved by few but respected for his cunning. He'll never get his Bambi image back.
A resurgent West Indies will hammer the English at cricket and the English football team will suffer a resounding defeat in their first match against France in Portugal. They will recover enough to scrape into the quarter finals, where the injury list and the hot Portuguese summer will prove their undoing.
The upswing in the world economy will last until about half a year into Bush's second term of office. The US budget deficit will then spin horribly out of control with horrendous consequences for the rest of the world's economy. Unemployment and crime will rise steeply in the US and in the UK, Germany and France. (That's 2005-2006 though). The Democrats will make gains in those mid term elections. Schroeder's government will just about survive this year.
Now let's see what a prat I have made of myself by the first of next year!