This morning, Bob Janjuah of Nomura spoke to Bloomberg Television about his views on the global economy (tactically bearish), why the Asia slowdown will matter, and why he’s bullish on the euro’s long-term future.
- 0:21 – Tactically bearish, 2-3 month view. Looking for a reversal of the post Jackson hole risk on, reflation trade. Could be 10% correction, could be more.
- 1:30 – Big issues: Asia slowdown has global implications, are we going to need another crisis before we get to a solution in Ireland, and is the U.S. recovery sustainable.
- 3:10 – If you really believe in domestic led recoveries in the U.S. and Europe, buy financials.
- 3:30 – The slowdown will be deeper and harder in Asia; this year will end up like last year in the U.S., with the growth rate slowing by Q3, and people calling for another round of QE.
- 4:40 – Worried Sinn Fein could take a large position in the new Irish government, a more nationalist party.
- 6:10 – The euro has two choices: it becomes the next world reserve currency, or it doesn’t. If the region solves its solvency problem and recapitalizes its banks, it could become that reserve currency.
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