China Is Saying All The Right Things: Nakisa

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Nov. 19 (Bloomberg) -- Ramin Nakisa, Global Asset Allocation Strategist at UBS, discusses reforms in China, and what that may mean for individual stocks and investors. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Companies, we are looking at alibaba, the nestle's of this world, will benefit strongly.

A lot of companies will have long-term effects that will be positive.

It is almost like abe's third arrow.

The thing that will affect them is the child policy.

Now they can have two children.

There is a joke about chat rooms going quiet since people have gone off the job to make more babies.

One is to create more children and the other is to increase productivity.

The children factor is much easier to manufacture.

That will be positive for gdp and growth.

As anyone who has children knows, it is very hard not to spend more money after you have a baby.

You stop saving quite significantly because you have to plan for the children.

This is the biggest shift that we have seen in china's economy.


That will have the most immediate impact.

On the policy side, we are also discussing state owned enterprises.

If they could have deregulated those, that would have been a positive story.

They are actually talking about increasing the dividend.

That might be a drag in the short term.

Local governments have to increase their income because they have to finance their debt.

The issuance of debt by local governments for building projects is actually very positive too.

It has become a kind of regulated market like the u.s. municipal bond market.

What does it mean for investors?

Do you going to china right now in the hope that china will then be their main growth?

We still perish on emerging markets.

-- we are still bearish on emerging markets.

Increasing the amount they have to and -- they have to pay their employees, which is a drag on margins, that is the opposite of what we have seen in europe.

What we have actually seen is the top line has disappointed and the bottom line has outperformed.

The reason why is that margins are increasing in europe.

Thank you so much.

We will come back to you in a short while and ask about industry groups.

We will talk a little bit of media and banks.

Coming up on the program, easyjet profit takes flight.

Could there be turbulence ahead?

And itv's content push.


This text has been automatically generated. It may not be 100% accurate.


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