China Will Not Have a `Hard Landing’: McCarthy

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May 5 (Bloomberg) –- CMC Markets Chief Market Strategist Michael McCarthy discusses China’s slowdown, it’s impact on other Asian countries, the U.S. jobs report and the U.S. dollar with Rishaad Salamat on Bloomberg Television’s “On The Move Asia.” (Source: Bloomberg)

Expansion plans in the country.

We are joined by michael mccarthy in sydney.

Thank you for joining us.

Just to get a view of what's going on there in indonesia and really looking ahead to china as well.

Where are we now with the growth situation?

Many are starting to talk about a hard landing.

I would question who are crawling those for a hard landing.

This story gets around despite the fact that there is very little empirical evidence to back it up.

Yet the rumors and concerns persist.

At this stage, we have no numbers to back up this idea that a hard landing is coming.

Even the track record of the economy, no reason that it's about to occur.

Let's kick it out to what's going on market wise.

We have a stellar markets report and you look deeper down to the participation rate and you freak out.

Is that why we're seeing a lack of conviction in the dollar and equities?

I think that's part of it.

With the lack of wages pressure, a flat performance despite the falling unemployment rate, there are still plenty of slack and the market and i believe that's the real concern.

Under employment dropped from 12 .7% to 12.3% indicating there is still plenty of capacity to start looking through the line in the sand of 6.i percent.

The other issue from a risk asset perspective is the high levels we are seeing.

The u.s. market still near record levels.

Investors remain cautious despite is very good numbers.

I guess it will take quite a change traction get aims moving along in any meaningful direction.

What do you make in the dollar?

Has the strength of the way because of the strain?

We have a clear positive trend.

Markets are positioned ahead of it.

You saw the big hiccup in volatility with a 1% range for the euro, gains for the u.s. dollar all given back largely because of the pre-positioning ahead of the release.

Let's turn to some good news now coming out of portugal.

They are exiting the bailout program with no per cautionary credit line.

Greece is the only country still receiving this money.

It does appear that the last of the crisis here is fading.

Working without a safety net on the high wire is a high risk scenario but the confidence expressed will outweigh any concerns about the risks.

We are not seeing a great turnaround in europe that what we are seeing is diminishing risk.

Investors have responded accordingly in the strength of the risk markets of their suggest your hand participation continues to grow.

Would you buy portuguese bonds?

With the price?

That's the key issue.

A lot of the risks are not reflected in the current levels for portugal.

Risk assets in favor strategically, i'm against them

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


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