London’s Future as a Yuan Hub

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Dec. 04 (Bloomberg) -- Hans-Guenter Redeker, Managing Director at Morgan Stanley, discusses the Renminbi and London as an offshore hub. He speaks on Bloomberg Television's “The Pulse.” (Source: Bloomberg)

Growth.

We will leave it at that.

What is your favorite flavor 2014? in terms of where our portfolios are focused, we're looking at the portfolios and moving in a defensive fashion.

We will be rethinking this.

I guess, as an investor, you need to have this in the new year.

In a years time, we will be talking about whether or not we are in for an imminent risk increase.

We will also see the interest rates starting up in 2013. it is unlike what we're seeing and we will see interest rates rise.

One of the other big questions is, is this the year that people go back into emerging markets in a big way.

At the moment, this favors emerging markets.

Emerging markets love excess demand.

We are trying to contain that at the moment.

There is more emerging markets and they are trying to re-create domestic demand.

A point that you said was that it is talking about policy tightening and the markets are pricing it in.

This may be an end of 2013 story.

To a certain extent, markets are pricing it in.

If you look up bond yields at the moment, it is not being priced in and there is a lot of room for them to retreat.

You can see that on the major bond market and the 10 year yield.

Are the markets to complacent?

If you look below the numbers, they are not so encouraging.

We have pmi figures that show lots of work in the construction sector and the strongest growth in manufacturing in a while.

It seems to be relying on alternatives.

I think consumers are having a tough time and the real incomes for a lot of people are being squeezed.

That was not good news.

We still have not gotten the momentum coming through in capital investment.

Where the key investments have gone away.

We'll see the growth through corporate profits.

The u.k. is in a better position at the same time.

The countries are very much struggling.

The country we are concerned about the most is france.

They have a similar sized economy and the u.k. is taking a position of getting things right.

They are much more liberal and they are beginning to prosper because of that.

We're looking at that growth and france is struggling to get any growth whatsoever.

Richard, that is really interesting.

People are worried about france because there is a hatred of the political class.

They are concerned about the political elections and the fact that france might go right wing.

Could they leave the eurozone?

I don't think they're about to leave the eurozone.

Investors will look at this concern and economy like this.

There are weak links in the system.

All the other link in the system have gone through the healing process.

For the time beale -- for the time being, it looks as though it is continuing to go on with growth from a very low place.

This is where people are at the moment.

You mentioned goals and defenses.

What about retails?

This holiday season is very different from previous years.

It seems like people are going to spend a lot more.

The reality might be something different.

I do not think we are going to see a surge in consumption.

The reason numbers that have come out of the united states has shown that consumer spending is growing what not surging.

Similar things are coming out -- if fine yields will start rising, i think that sort of area will be under pressure.

But thank you so much for all of that.

A very interesting conversation.

Richard jeffrey.

The chief investment officer at capital management.

Let's head over to manus cranny for his latest update.

The profits will be flat relative to last year.

That is what they are saying to us.

Net interest income will fall slightly.

This is slightly important for the second half of the year.

It will rise relative to the first.

Wholesale banking will be broadly flat and they are coming at fixed incomes.

It is at one percent.

This has had a big exposure.

We have emerging-market

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change