EU Equity Story More Interesting Than U.S.: Nielsen

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Nov. 19 (Bloomberg) -- Erik Nielsen, Global Chief Economist at UniCredit Bank, discusses worldwide economic outlook and his subsequent investing strategy. He speaks on Bloomberg Television's “The Pulse.” (Source: Bloomberg)

Emerging markets to what is happening in europe, if you were looking at a list of flanking those, work them through for me.

Where do the greatest risks lie?

Economic growth is not that strong.

There seem to be an a lot of risks out there.

I think the first and foremost space went to look out at the so-called franchise five, the five big emerging markets starting with south africa turkey brazil and so on.

With a current accounts and when the tapering comes to some states, these will be the most vulnerable.

How the finances big deficits when the global risk free rate of the u.s. treasury start to move higher.

How much focus of a china and the reforms?

We have actually quite sweeping reforms, but we have to make sure they get implemented.

Could that change your worldview if they start consuming more?

If they have more than one child, they're spending less.

It is a tricky one.

The bounces in china are internal.

They have way too much real estate, they have spare capacity and they have long-term trend and attempt to consume more.

I completely agree with this.

For me, i think it is risky to see something outside the six .5 and 7.5 growth rate for china.

They have to go internally and something blows up and they can't handle it politically and how'd you put odds on that.

It is possible, but it would never be my main scenario.

That's when there's not enough people available to come into the factories very most research i've seen look at 7-8 years out.

And the growth stocks a half.

How do you handle that product.

? from is out there 2020. given the environments were working in and the economic -- in the equity markets aren't record highs?

First thing is that equity markets should and usually do price the future.

Is a discounting mechanism.

That's right there it we are in exceptional circumstances, right?

We have the risk-free rate at the bottom, we have potential liquidity in the world is normalizing.

Therefore people are looking for risks and of coarse equity is your obvious one that has been beaten up so far.

For me the interesting thing is that the u.s. have so -- have been running ahead of europe.

I think that is wrong in relative terms.

The u.s. will do better in europe, but in terms of the equity story, i think europe has become the more interesting one now.

Interesting, eric, thank you so much.

All the slots.

We will be coming back to you shortly.

Eric nielsen of unicredit.

It is a summit for bankers and officials to discuss upcoming changes in policy.

This of course as the ecb -- manus cranny had a chance to speak to the managing director of the interior -- the minister

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


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