Joined Nov 11, 2007
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SocGen Ponders The Perfect Storm

“Last weekend at Davos, Nouriel Roubini told BI’s Joe Weisenthal that it seemed   markets had sailing into a perfect storm, resulting in lots of volatility.

“…Between Chinese PMI of 50, Argentina letting its currency go, noises coming politically from Ukraine, Turkey, and Thailand … [the] contagion is not just within emerging markets but also affects advanced economies’ equity markets.

This evening Société Générale says, that, indeed it sure looks like we have.

In a note to clients titled “Perfect Storm Brewing As Policy Turns,” they write:

Following a week of extreme volatility in emerging markets, many wonder if we are now heading for a perfect storm, with China increasingly sucked in and Europe’s already low inflation falling further towards deflation. The current developments also mark a shift in markets’ focus on where the need for policy change is the greatest…”

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