John-Paul Smith of Deutsche Bank while giving his views on the markets stated that at the moment the markets are relatively optimistic. The transcript is placed verbatum to know the other side of the story of the market.
The discussions which are taking place in Europe which come ahead in the middle of next week and the G20 meeting at the start of November will lead to some relatively joyful resolution for Europe.
The problem is though within the eurozone. We can expect to see a prolonged period of fiscal austerity across the large number of countries unless Germany in particular agrees to a more distributive fiscal regime across Europe.
We do not think this is likely in the short term at any rate. From all this we understand that even though we are seeing a relief rally at the moment, the medium term growth outlook across Europe is lower. This will have a severe impact for most of the emerging market (EM) universe.
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