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00:00DISCUSSING CLEARLY. THEY HAVE DOWNGRADED FY 16 235 RESPECTIVELY. THAT IS BEEN THE BIG STORY OVER THE WEEKEND. THE OIL REMAINS THE KEY PART AND WHAT GOES INTO GENERATING IN FEBRUARY. IT IS MOVING TOWARDS THE LOWS IN 2008. ALL OF THAT FACTORS INTO A MEDIUM-TERM LOOK. MARKETS HAVE A LOT OF QUESTIONS TO ASK. WHAT DOES IT MEAN FOR THOSE ECONOMIES DRIVEN BY OIL? ALL THAT IS WHAT IS PLAYING INTO THIS. MANAGERS CLOSE OUT THEIR BOOKS AND THAT VOLUME DISAPPEARS. AND LITTLE POSITIVENESS IN THE ASIAN TRADING SESSION. GRANDMA IF WE WERE TO PUSH YOU -- >> IF WE WERE TO PUSH YOU OFF THE SESSION -- OFF THE FENCE, WHICH SIDE WHICH YOU'S SIDE ON? >> THE MARKET IS STARTING TO SHIFT TOWARD THE IDEA THAT RATE HIKES ARE MORE LIKELY THAN NOT. THAT PUTS THE U.S. TO THE UPSIDE. OIL IS STILL HAVING A SUPPLY SIDE ISSUE. THE EIA NUMBERS SHOWS THAT THE U.S. HAS A RECORD LEVEL OF STOCKPILING. ALL THAT SUGGEST THE PRICE IS GOING TO REMAIN BELOW 45 FOR THE NEXT THREE OR FOUR MONTHS. , OPEC CONTINUING TO SQUABBLE AND THERE IS MORE TALK THAT THEY ARE GOING TO INCREASE SANCTIONS ON RUSSIA. ALL THAT SUGGEST I MORE PESSIMISTIC ON PRICE AREA NOT VERY GOOD FOR THE ECONOMIC SIDE OR HER THE NATIONS HEAVILY INDEBTED TORT OIL AND OIL MOVEMENT. >> IF THAT IS THE CASE AND THE GLOBAL ECONOMY GETS A LITTLE BIT OF A SPURT THANKS TO OIL PRICES BEING SO LOW, DOES THE GLOBAL ECONOMY THEN BENEFIT? >> IT COULD. WE HAVE TO START LOOKING AT WHAT IS GOING ON IN CHINA. THERE IS A GLOBAL PUSH. YOU MAY GET THAT TIGHTENING COMING THROUGH IT, WHICH HAS BEEN DEEP RIGHT SPOT. IF THAT DOES START TO SEE AN IMPACT AND U.S. CORPORATE TO SLOW ON THE U.S. DOLLAR. -- U.S. DOLLAR, CHINA'S THE NEXT STEP. DO THEY START TO SEE DEMAND PICKING UP? MANUFACTURING IS IMPACTED BY THE OTHER SIDE OF EUROPEAN AND JAPANESE DEMAND. IN TERMS OF WHAT IS HAPPENING ON FRIDAY AROUND THEIR NEW WAY OF STIMULATING THE ECONOMY. I AM PESSIMISTIC ON GLOBAL GROWTH. THE SUGGESTION THAT IT WILL GROW AT OR BELOW IS UNLIKELY. I THINK WE ARE GOING TO SEE ANOTHER TREND HERE IN 2016. >> I'M GOING TO ASK TO SHAKE OFF THAT PESSIMISM AND SEE WHAT YOU ARE OPTIMISTIC ABOUT IN TERMS OF BULLISH TRADES FOR 2016? THEM I'M STILL VERY MUCH POSITIVE ON THINGS LIKE HIGH-END MANUFACTURING. THAT MEANS PARTICULARLY HEALTH CARE. CLEARLY SIGNS OF STRENGTH WHEN YOU ARE STARTING TO SEE RISK. IF YOU LOOK TO GERMANY AND FRANCE, MANUFACTURING ON THE HEALTH SIDE, THEY HAVE DONE WELL. CERTAINLY BRIGHT SPOTS ON AN EQUITY FRONT. I AM FAIRLY OPTIMISTIC IN TERMS OF EUROPEAN MOVEMENT. WE DO SEE MORE STIMULUS. I AM POSITIVE ON THE EUROPEAN EQUITIES. MORE SO POSITIVE ON THE U.S. DOLLAR, CONSIDERING WHAT IS GOING ON ON THAT SIDE. IT WILL BE AN INTERESTING YEAR IN 2016. HOPEFULLY I WILL BE MORE UPBEAT THAN I AM IN THIS INTERVIEW. >> THANK YOU SO MUCH FOR JOINING US, THAT IS EVAN LUCAS. COMING UP NEXT, WHY BANKS FROM LONDON TO HONG KONG ARE PORTING THE YUAN. DETAILS AFTER THE SHORT BREAK.

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Bad Energy: the Implications of Oil's Slide

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