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Macro-prudential regulation coming to a company near you

Published Wednesday, April 9th, 2014

The IMF has shaved its forecast of this year’s global growth rate to 3.6% and next year’s to 3.9%. The downgrade stems from a less positive view of emerging markets and developing countries which it now expects to grow by 4.9%.

The cuts may be small but nearly 6 years after the recession and after trillions of dollars of monetary supports and record-low interest rates the fact that there are any cuts at all is disconcerting. Either the IMF has been overoptimistic or “the recovery” is second rate despite all of the assistance.

The Eurozone comes in at 1.2% with Germany at 1.7%, France at 1% and Italy at 0.6%. The UK leads the G7 at 2.9% handing Eurosceptics a trump card. The big downgrades are for Russia to 1.3% (-0.6%) and Brazil to 1.8% (-0.5%).

The stock markets had a better day with the technology sell-off taking a breather, for the moment. The sell-off however spread to the UK taking recent IPOs below their original listing price. European IPO volumes have hit record highs. When private equity runs for the exit it is not the time to buy.

To read the rest of the report, please click here 

Posted by David Hufton