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11 Nov 2014
United States is bright spot in the global economy, says Barings - BAM
FXStreet (Barcelona) - Marino Valensise, Head of Asset Allocation and Chairman of the Strategic Policy Group at Baring Asset Management sees the US as an economic bright spot and believes it will continue to be supported by lower unemployment, which should likely sustain the strength of the US consumer sector.
Key Quotes
“In our view, the US economy has proven resilient of late, enjoying improvements in employment and a reasonable rate of economic growth. However, since late summer, we have seen a number of data releases signalling weaker global economic activity, particularly in Europe. And in the second half of September, market participants finally woke up to this weaker data with a sell-off in riskier assets.”
“By mid-October, the release of the September US Retail Sales number provoked an even sharper market rout. It was a truly violent market reaction for such a small disappointment: the figure came in at -0.3% instead of the -0.1% consensus expectation. The fear was that the economic weakness in Europe had spread to the US.”
“We stand firm in our positive view on the US economy. In terms of economic data, the US is an economic bright spot and we believe it will continue to be supported by lower unemployment, which should likely sustain the strength of the US consumer sector. An extra source of help should be provided by declining energy prices. The US GDP figure rose to 3.5% (annualised) in Q3 2014 and we believe that future economic data releases will remain strong.”
Key Quotes
“In our view, the US economy has proven resilient of late, enjoying improvements in employment and a reasonable rate of economic growth. However, since late summer, we have seen a number of data releases signalling weaker global economic activity, particularly in Europe. And in the second half of September, market participants finally woke up to this weaker data with a sell-off in riskier assets.”
“By mid-October, the release of the September US Retail Sales number provoked an even sharper market rout. It was a truly violent market reaction for such a small disappointment: the figure came in at -0.3% instead of the -0.1% consensus expectation. The fear was that the economic weakness in Europe had spread to the US.”
“We stand firm in our positive view on the US economy. In terms of economic data, the US is an economic bright spot and we believe it will continue to be supported by lower unemployment, which should likely sustain the strength of the US consumer sector. An extra source of help should be provided by declining energy prices. The US GDP figure rose to 3.5% (annualised) in Q3 2014 and we believe that future economic data releases will remain strong.”