There are still lingering risks but the risks are probably manageable. Even though global growth is disappointing, businesses are more optimistic because they see moves toward structural reforms. Frederic Neumann More Quotes by Frederic Neumann More Quotes From Frederic Neumann It's a drag on growth. I don't think it's as disruptive as often described, china's position is strong enough to avoid a hard landing in the current scenario. Frederic Neumann top-news The China-U.S. relationship is such a large component of global trade that we really have a global impact and that has implications that are difficult to foresee. Frederic Neumann top-news I don't see those countries just being forced by the Fed into action because some of them have such enormous surpluses that they would probably be happy to see weaker currencies and capital outflows, at the margin. Frederic Neumann top-news This may raise hopes for something punchier, but we counsel caution: to us, the decision suggests that the BoJ has reached the limits of its current policy framework. Frederic Neumann business We think they'll deliver a bit of everything, but not quite the bazooka some may be hoping for. Frederic Neumann business China's economic engine... has begun to sputter, for the global economy that represents a problem. Frederic Neumann energy Concerns over financial stability in the energy sector and a further fall in drilling capex are headwinds to growth against an already fragile global economic backdrop. Frederic Neumann energy In the near-term, lower oil prices are bound to weigh on investor confidence and could exacerbate financial volatility, concerns over financial stability in the energy sector and a further fall in drilling capex are headwinds to growth against an already fragile global economic backdrop. Frederic Neumann energy I don't think the market has priced in the fall in LNG prices that may come on the heels of the collapse in oil prices. It's not on people's radar screens yet. Frederic Neumann energy Growth keeps slowing ... Lower commodity prices, including oil, partly reflect weakening demand itself. In addition, the downturn in mining capex and the declining income of commodity producers is weighing on exports from Asia. Frederic Neumann energy Hundreds of billions of dollars were spent in new oil, natural gas, iron ore, coal and many other commodities in the expectation that China would continue to grow insatiably forever, that's changed, so many of the investments made by governments and companies now look really bad, and that's hitting economies and company stocks hard ... It's been a huge bubble, a massive misallocation of capital which now has to be wound down. Frederic Neumann company-news The growth problem endures. Asia isn't about to bounce. Frederic Neumann most-read-articles China's demand stumble comes at an awkward time, just when more and more supply of raw materials is coming on stream in many sectors. No quick fix in sight, china's stock market stumble now risks knocking demand down further. What all this points to is the need for a lot more easing, including extra fiscal spending. China's economy is highly dependent on construction. With that engine sputtering, mainland commodity demand will struggle to make headway for a while. Frederic Neumann company-news Don't bet on a rebound in China later this year. The government has tried a lot to spur growth but so far it's not working, and that could also retrain energy demand. Frederic Neumann business Everything is signaling a further slowdown in the global trade cycle. Nothing suggests a turnaround soon, we're not even seeing a big pick-up following the U.S. West Coast strike closure earlier this year. Frederic Neumann industrials There are still lingering risks but the risks are probably manageable. Even though global growth is disappointing, businesses are more optimistic because they see moves towards structural reforms. Frederic Neumann company-news
