The risks to the global economy is "blatantly and ball" with growth likely to suffer as governments withdraw their fiscal and monetary support, according to Jacob Rothschild, chairman of the fund RIT Capital Partners Plc. (RCP).
The U.S. economic recovery is 'fragile', the European Monetary Union 'doubtful' and Japan are facing a 'monumental' challenge after the earthquake of March, "said Rothschild told shareholders today. Inflation is threatening growth in emerging economies.
"The risks we face are global and crying," said 75etis British banker. "It is likely that the withdrawal of fiscal and monetary payments that will surely come soon, will affect global growth. In fact there are already signs of a slowdown "since March. The investment banks that include Goldman Sachs Group Inc. and UBS AG cut their forecasts for global growth as the U.S. unemployment remains high oil prices threaten to extinguish the recovery and debt problems in Europe undermined investor confidence. The world participial index MSCI World Index lost 0.8% since the end of March.
Rothschild said the fund reduces its investment in oil and gold, were the two main engines of performance in 2010, without giving further details. Increases, and, most recently, the liquidity and take positions in some 'frontal markets' with similar characteristics to the countries of the group called BRIC.
Source: tvxs.gr [accessed 3/6/2011], translated through google translate
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