Skip to main content

Global deflation risk as EU deflation risk seen by 74% in poll: Bloomberg

Risks of prolonged market turmoil in emerging markets and of deflation in the euro area are threatening the world’s improved economic prospects, according to the International Monetary Fund.
The IMF, in a staff report prepared for central bankers and finance ministers from the Group of 20, said the recovery is still weak and “significant downside risks remain.” A January global growth forecast of 3.7 percent for this year, from 3 percent in 2013, hinges on recent market volatility from Turkey to Brazilbeing short-lived, according to the report.
“Capital outflows, higher interest rates, and sharp currency depreciation in emerging economies remain a key concern,” according to the report prepared ahead of the G-20 Feb. 22-23 meeting in Sydney.

From Blomberg Feb 2014:
http://mobile.bloomberg.com/news/2014-02-19/imf-warns-g-20-of-risks-of-deflation-emerging-market-turmoil.html 

======Europe Deflation Risk Seen by 74% in Global Investor Poll
Deflation Risk
Japan, China


In the latest poll, appearing in the June issue of Bloomberg Markets magazine, investors view the U.S. as the world’s bright spot, with close to two-thirds describing the largest economy as improving. That jibes with the forecast of the International Monetary Fund in its World Economic Outlook in April that U.S. growth will accelerate to 2.8 percent this year and 3 percent in 2015, up from 1.9 percent last year.
On the question of which one or two markets offer the best investment opportunities over the next 12 months, the U.S. comes out on top, with 44 percent. Investors continue to endorse the recovery in the European Union, which is in second place, at 32 percent. That’s a far cry from the low of 7 percent for the region in November 2010, when the euro-zone sovereign-debt crisis was getting worse.
Poll respondents, however, are overwhelmingly concerned about deflation in the euro zone. About three-quarters of them say it’s a greater threat to the region than inflation. Some individual countries such as Portugal have already experienced deflation this year, and the inflation rate in the 18-nation bloc as a whole was 0.7 percent in April, which is about a third of the European Central Bank target of just under 2 percent.
One reason to like European stocks is that they’re cheap, relatively speaking, according to Russ Koesterich, chief investment strategist at New York–basedBlackRock Inc., which manages $4.3 trillion in assets. “Most of the motivation is the valuation,” he says. Koesterich recognizes the growing caution the poll reveals. “People can still be overweight stocks and use the opportunity to raise a little cash, given the fact that there are some risks out there and stocks are no longer so cheap,” he says.
Investors are nervous about Asia’s two largest economies. There’s growing doubt about Japan’s turnaround. Only 13 percent say the country is among the best places to invest during the coming year, which is a decline from 23 percent in January and 33 percent in May 2013, when excitement about Abenomics was running high.
http://mobile.bloomberg.com/news/2014-05-11/europe-deflation-risk-seen-by-74-in-global-investor-poll.html


Comments

Popular posts from this blog

Communist party launches 'China Operating System' to oust iOS and Android

hina officials have launched a national operating system in an attempt to take back control of the country’s computer market from American companies such as Google and Apple. The software has been in development for more than a year, but has been released at a crucial time with revelations about US-led surveillance sparking fears over the integrity of American-designed software. Known simply as the China Operating System, or COS, the software can run on PCs, tablets and smartphones and has been based on the open-source Linux operating system. Chinese media say that the OS has been created “entirely independently” in order to provide better localization for a range of features – from Chinese-language keyboards, to integration with the country’s banks. At the launch of the event, one of the developers involved with the project reportedly criticized Western software , saying that Apple’s iOS was too closed, that Google’s Android OS suffered from fragmentation (ie, too many versi

Best IELTS and English language training institutions in Hyderabad

IELTS stands for International English Language Testing System. As the name implies it is basically an English test for testing the proficiency of the language in an individual.  Training for IELTS can be taken to pass the IELTS exam or to develop good english language skills. I am giving the training institute addresses for Hyderabad. The test system is jointly managed by the British Council,IDP education ltd and University of Cambridge ESOL Examinations and more than 1 million candidates are taking the exam all over the world. The test has two versions : 1. Academic 2. General training Academic  version is for people who plan to continue their higher education by enrolling in universities in countries like US,UK,Australia,Canada,New Zealand etc.The academic institutions in these countries consider the IELTS score as a criteria for the admission process. General training is mostly for immigration purposes in countries like Australia,New Zealand,Canada etc. It may also be u

How to avoid injurious sitting posture at work? Take care of Ergonomics

The impact of poor consideration of these, as well as other, ergonomic elements can be very hazardous to our  well-being. Some of the effects include increase chances of suffering from carpel tunnel syndrome, decreased eye sight, cramps in our joints, strain from overworking certain muscles and joints,  and decreased blood-flow circulation. Work productivity also decreases when we are in environments that are not designed for proper ergonomics. One other important thing to consider is the lighting levels in the space. I actually did not even think of this as an ergonomic design issue, but it truly is.  Our eye muscles are the most used muscles in our entire body.  We use our eyes in every situation throughout our entire day.  Poor considerations for lighting causes very negative short and long-term effects.  It is recommended that we use mixed levels of lighting in our environments. This allows for multiple options for each user depending on his or her preferences and physical nee