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China Sentiment Warms As Export Data Brightens

Joe Quinlan

10-Sep-13 09:30

China Sentiment Warms As Export Data Brightens
Joe Quinlan, MD and Chief Market Strategist at US Trust-Bank of America Private Wealth Management in New York, answers the following questions:     - A survey by Boston Consulting Group found foreigners much more upbeat about US economic prospects compared to Americans themselves.   What do u think? Especially in light of where Americans view the economy is right now?     - The new Australian PM, Tony Abbot has pledged to repeal Australia's carbon tax and reduce its foreign spending.   How do you think this will affect investment in Australia?    - That being said, while Abbott's economic policies are not expected to differ too much from Labor's, some reckon with the election now over, confidence will be boosted, and investment plans that were on hold before the election should now be implemented.  Do u agree?     - China’s August exports rose 7.2% from a year ago (ahead of consensus’ 6%) - with Chinese stocks surging 3.5 percent on Monday.  Has sentiment towards China turned a corner?    - However, imports only rose 7% (vs. consensus 11.3%) -- and attention now shifts towards August industrial production, fixed asset investment and retail sales numbers;   How equivocal do u think this data will prove to be, in terms of indicating a stabilising China     - And with Tokyo having been awarded the right to host the 2020 Olympics, does this global event remove the "value trap" as Nomura suggests it does?    - According to Nomura, national stock markets appreciated in six out of the last seven cases of venue selection - and increases the probability of reaching their year-end Nikkei target of 18,000, which is 27 percent above current levels.   Is this too much of a stretch?    - Wall Street’s biggest firms, including BlackRock and Goldman Sachs, are predicting intensifying bond losses in emerging markets, where borrowing costs have already soared to the highest in more than four years versus U.S. corporate debt  Does this mean the worst is still to come in terms of flows out of emerging mkts?

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