ECB Forced to Be More Accommodative in 2014: Dixon

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Jan. 06 (Bloomberg) -- Peter Dixon, Global Equities Economist at Commerzbank, discusses toe economic outlook worldwide for 2014 and his subsequent investing strategy. He speaks on Bloomberg Television's “The Pulse.” (Source: Bloomberg)

Is certainly one of the factors.

I think it is primarily because we are less concerned about the u.s. and europe than we were.

Now we are focusing on the negatives in china.

I think the bigger concerns credit.

What is happening to the credit market.

Is a people's bank able to provide enough liquidity to keep it afloat.

Are the numbers reliable?

Ha ha ha.

That is the million dollar question because we still don't know what we're looking at today.

I think they are what we have.

That is what markets react to.

Let's watch the numbers and see what they are telling us.

And we will see if we can divine a wider truth around those numbers.

Talk to me about europe.

It is stated and it was last year or the year before that.

What is 2014 going to bring?

Everyone says france is the one they're most worried about because it is big and has not been competitive at all.

The political situation is also worrying because they have not take this as an incentive to be more competitive.

2014 on the positive side is likely to be characterized by an absence of big picture concerns.

That is a good thing.

As you said it is a stable environment.

I think are going to start looking a bit more closely at the competitive issues.

Markets might start to look more critically at france because they have been given an fairly easy ride so far.

At the same time the ecb being very in, dating, especially the bank of japan.

The problems and structural issues which have afflicted europe are so going to be in play.

As a consequence the ecb will be forced to be accommodated in the course of this year.

In clued in qe?

Qqq might be a step too far.

-- qe might be a step too far.

The problems that europe faces are problems that the government needs to tackle.

We have some pmi figures early from spain.

They are a lot better than economists were forecasting.

The spanish economy has surprised on the upside over the past 12-15 months.

It does appear that a year or two ago it was in the crosshairs of the market.

This was the next shoe to drop and it did not work out like that the banking sector problems still remain an issue.

Again, they are fading into the back burner.

It is fair to say that when an economy such as spain or greece has taken a precipitous decline, you are going to get some form of decent rebound.

I think that is what we're seeing in spain at the moment.

What about the u.k.? is going to be a political play?

2014 remains a very tough year, he says.

I don't think there's any doubt about that.

We had a nine-month spell of what looked like decent growth numbers.

I think it is consistent with a slightly slower pace of activity rates.

I think that the chancellor, if you look what he is done with regard to policy, has tended to push out his sharp fiscal ties tightening.

I think you have to take what mr.

Osborne says in the context, the political context, of what he means.

Thank you peer dixon of commerce bank.

-- of commerzbank.

Liberty is giving a new stock

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


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