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The global economic rebalance continues
Weekly investor research
07 April 2014
The global economic rebalancing act extended over the past week, with both the Brazilian and Indonesian trade balances
bouncing back into surplus. In China, the government announced a small economic stimulus package designed to reverse the
marked slowdown experienced in the first quarter. Conversely, in developed markets, overly optimistic expectations are being
rebalanced towards a more sober reality: growth forecasts for the US are being revised downwards following the publication of
disappointing trade numbers, and the ECB finally recognised that inflation is undershooting their expectations and that they
may have to do something unconventional about it. Investors piled into European fixed income assets, singing the old
Elvis tune which calls for “a little less conversation, a little more action”.