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Gerard Fitzpatrick: Positive on global growth
Guest blogger Gerard Fitzpatrick is portfolio manager at Russell Investments, where he runs a $5 billion global bond fund.
The views expressed here are entirely the author’s own and do not constitute Reuters point of view.
The global economic outlook is positive overall, currently powered by China and America’s twin engines of growth. Questions have been asked about the level to which the Japanese disaster may slow down the world’s economic recovery, but in reality, it’s expected to have only a small negative effect on global growth this year.
Europe remains constrained by the Euro sovereign crisis, and we expect to see only low levels of European growth. Europe is moving in the right direction, but there are still lingering challenges. Despite Greece and Ireland remaining at risk of default, the economic outlook is moderately positive.
Morning line-up: AIG’s Asian unit IPO, City seeks to calm Europe, further bank bailout
News and views on the fund industry and elsewhere:
AIG lowers valuation for Asian unit’s IPO - FT
UK launches 1st property derivatives fund - FT
City’s bankers tour Europe to reassure investors over future - Daily Telegraph
UK banks may need further state bailout - Reuters
Chicken Little was Quite the Optimist
By Martin de Sa’Pinto
If the sky falls, at least you know how far it can go – the worst case scenario is that it will hit the ground.
That’s not the case for the hedge funds, asset managers and banks exposed to toxic assets.
