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El-Erian Says Emerging Market Woes to Create U.S. Headwinds

Weakening emerging-market growth and spiraling currencies risk creating headwinds for a recovering U.S. economy, according to Pacific Investment Management Co.’s Mohamed El-Erian.

“Longer term, we should care due to the feedback loop to the U.S.,” El-Erian, chief executive and co-chief investment officer of the world’s biggest manager of bond funds, said in a radio interview today on “Bloomberg Surveillance” with Tom Keene. “You will see a tightening of financial conditions to markets. You will see growth more challenged and the ability of U.S. companies to get topline growth from emerging markets is going to be less going forward.”