Tapering Won’t Matter 6 Months From Now: Wilson

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Dec. 17 (Bloomberg) -- Andrew Wilson, EMEA CEO of Goldman Sachs Asset Management, discusses monetary policy affecting growth and his subsequent worldwide economic outlook for 2014. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)


Will we get it tomorrow on march?

What are the pros and cons?

It will not happen by the end of q1. debating a lot.

It will matter quite a bit on the day it happens.

Not in terms of the outlook six months from now.

What they are looking at is the day to improving.

Moving on strongly.

Gdp came out, heavily inflated by -- it will not keep that pace.

If you look at 2014, the u.s. economy is on a decent recovery trend.

Maybe 2.5 -- 3.5% growth next year.

Most likely, we start in january.

A chance in march.

Inflation is at a very low levels.

The conundrum or the fed, how do they balance?

They definitely needed to unwind.

This the point were making last time.

The marks understand that fed tapering it does not mean a rise in interest rates.

The markets panicked.

That is right.

There has been communication to distance they ease of tapering from rate hikes.

Talking about 2016 or later.

Our own view is there's a chance that the fed could be hiking the rates in 2015. would bring that forward a little bit because of the nature of the recovery.

The momentum in the u.s. economy particularly around the house in the markets.

We were talking earlier session about the aspect around housing and house building creates demand for finishing and appliances.

That is one of the key elements in our view for next year.

That positive momentum in the housing market will spread out more broadly.

If you look at the world economy, 2015, the fed started to tighten.

They will start taking.

Your the ecb possibly using.

And the bank of japan.

It is a phenomenal environment.

Central banks on different levels.

The fed meeting the accommodation.

You have to find a way for mario draghi and his team to keep european rates low.

We think the economy is recovering.

It's a fragile recovery.

They cannot afford to see interest rates rise.

Some form of further accommodation a we think is very likely in 2014. it'll be interesting with central bank moving in different directions.

Will mario draghi's job more difficult?

We see the u.s. a rates rising.

Yes, it will be hard to stop for the u.k. rates to stay where they are.

Trying to keep european rates at the subdued levels.

We will see.

It will be addressing.

You're quite optimistic about europe, a little cautious.

We have been through such a tough time and we look across the eurozone, around germany, it looks to be doing pretty well.

The directory is improving.

Spain is getting better.

We are seeing significant improvements.

Better flexibility and places like spain.

Spanish exports are doing very, very well.

We are optimistic but in that context we are seeing subdued growth and contraction.

Next, we think 1%. not a lot to be excited about.

What does it mean -- how to set policy especially when we are more word about inflation?

You are talking from a investment perspective.

We are cautious.

As a result with positioning portfolios to benefit in some cases from a rise in interest rates.

That is one of our key abuse.

You do not want to -- particularly in the u.s. where we are very confident.

Would you buy anything in europe?


Some of the periphery's. some of those are stabilized.

European growth is around one percent.

Would continue to think and places a like spain.

Reasonable value with inflation being so low.

We have inflation figures later.

A full report.

What is your take?

And doing a. there are pockets that to the bank of england is concerned about.

Medium-size enterprises are still very weak.

The consumer looks to be recovering.

Car sales and home sales doing well.

It is giving a lending to business and getting the business is going.

Thank you.

Andrew wilson.

He stays with us.

Also coming up, how these artists are turning technology to boost live performances.

Keep it right here.

We are "on the move." ?

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


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