China’s old economic growth model is indeed running out of steam, and the Chinese government is in the middle of transitioning to a new model which is not just based on low-cost, low-wage, labor-intensive, manufacturing for export and a whole bunch of state investment, said Kevin Rudd, President of Asia Society Institute and former Prime Minister of Australia. The transition …
One Man’s Opinion: Is The US Fed Is More Worried About The International Economy?
The latest Fed minutes show the central bank is in no hurry to raise rates, and the US central bank is likely to wait until 2016 before making any move, said Lindsey Piegza, chief economist at Sterne Agee. Right now the Fed’s focus is the international economy, which reflected in their January statement for the first time. The rapid rise …
One Man’s Opinion: Will Europe And Japan See Faster Earnings Growth?
US markets are getting tired and valuations are certainly looking a bit expensive when already this year Europe and Japan have massively outperformed the US market, said Larry Kantor, head of research at Barclays. While both the US and Europe are benefiting from low inflation and low oil prices, the dollar has strengthened while the euro has gone down, indicating …
One Man’s Opinion: Will The US Fed Introduce Some Amount Of Uncertainty Into The Markets?
The US Fed in its statement last week said it hasn’t decided on an interest rate-hike yet, but Rick Reider, CIO of fixed income at BlackRock thinks the timing doesn’t matter. The market is incessantly focused if lift-off is going to be June or September. However, there are two other factors that would determine the timing; one: the pace at …
One Man’s Opinion: Will Weak Oil Prices Keep Inflation Expectations Subdued?
The US Federal Reserve’s latest policy statement may have omitted the “patient” word, but there seems to be less certainty in the central bank’s overall tone, indicating the Fed wants to be less predictable about a June rate-hike given the multitude of data that is affecting the US economy, said Matthew Beesley, head of global equities at Henderson Global Investors. …
One Man’s Opinion: Are Europe And Japan Likely To Give Better Returns In 2015?
The Federal Reserve didn’t drop the word “patient” from its latest forward guidance because it wanted to give itself the maximum flexibility, said David Joy, chief market strategist at Ameriprise Financial. The Fed is likely to see three additional months of labor data and if the dollar strengthens amid slumping inflation and falling unemployment rate. They are likely to give …