Thu. Dec 5th, 2019

Normal Chartered CEO says a recession subsequent yr ‘appears to be like much less probably at this time’

There could also be ominous indicators of a recession — comparable to a yield curve that has inverted, and worrying financial information popping out of Europe — however Normal Chartered CEO Invoice Winters says it does not seem like a downturn is on the horizon.

“On steadiness, issues really feel okay proper now. We all know that the worldwide economic system has slowed, however there are indicators of a bottoming out starting to choose up,” he informed CNBC on the Credit score Suisse Asian Funding Convention in Hong Kong on Tuesday. “There are indicators from China, there are indicators from Europe — I’d say extra tender in Europe. This concept that we’re in a straight line to a recession someday subsequent yr appears to be like much less probably at this time.”

Winters pointed to 3 elements to assist his prediction.

“A part of it’s the Fed, a part of it’s the sense that there is progress on the commerce discussions between the U.S. and China,” he informed CNBC’s Nancy Hungerford and Emily Tan.

“A part of it’s we’re within the cycle — we have most likely gone by the deleveraging interval in China … in among the remainder of rising Asia. Not utterly, however there’s the sense that we’re coming again up,” he continued, referring to China’s efforts to scale back debt ranges.

However there have been indicators that the world’s second-largest economic system has kind of paused its deleveraging measures and as a substitute, is setting up extra easing measures in a bid to prop up its slowing economic system.

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