Why should you care what Chris Levett of Clive Capital has to say about China? Because its the world largest commodity fund.
The Fed’s decision to further ease financial conditions, the potential that Japan and the UK may eventually follow suit, and the resultant de facto easing of financial conditions in much of the emerging world is set to support the continuation of the firming growth path of the global macro economy. While activity momentum in many parts of the developed world remains sluggish at this stage, it now seems clear that the global economy has troughed. Into year-end the US looks set to settle into a period of sub-trend but stable growth and thereby avoid a double dip, the Eurozone increasingly seems likely to outperform expectations from earlier this year and, most importantly, EM growth is becoming increasingly supportive. China has now passed through its (policy-induced) soft patch and looks set to accelerate into 4Q10 and further beyond with the October manufacturing PMI showing activity is now expanding at a rate last seen in April. Policymakers' confidence in the prospects for the Chinese economy was clearly demonstrated by the PBoC's decision to hike the reference interest rate by 25bps this month, the first rise since December 2007. This therefore also implies that global growth will begin to pick up in the near-term, led by the dynamic EM world.
Read more: http://www.businessinsider.com/chris-levett-clive-on-china-2010-11#ixzz15fwf0eva
This is the personal blog of Emory Redd.
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