HSBC expects global economic growth of 2.6% in 2014January 15, 2014 - 11:42 AMT PanARMENIAN.Net - HSBC expects global economic growth of 2.6% this year, a moderate increase from 2% in 2013, while developed markets could expand by 1.8% and emerging markets by 4.9%. Disinflationary pressures in parts of the developed world have raised the specter of deflation. This leaves central bankers with a troubling dilemma whether should they consider tightening monetary policy in response to better economic data or keep policy loose to ward off the threat of deflation, according to 2014 HSBC View. “This is the backdrop to our key calls for the year. We think the ten-year Treasury yield will fall to 2.1% because of the persistence of low inflation, debt overhangs, and an improving U.S. fiscal position. We see global equities rising by around 6%, and high single digit returns overall, once dividends are included. Returns will be driven by decent earnings growth, rather than multiple expansion. We are overweight Europe, underweight the U.S. and Japan, and selective in emerging markets,” HSBC says. Although global growth will pick up modestly this year, inflation is surprisingly low, according to HSBC specialists who expect global equities to return 9% and fixed income returns of 4-5%. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Some 100 detained as protesters, police clash in Yerevan Riot police fired stun grenades outside the Armenian parliament as they clashed with protesters. Exclusive access to all EURO 2024 games for Ucom subscribers This year once again Ucom stands as the primary partner of UEFA EURO 2024 in Armenia. Pashinyan congratulates Putin on Russia Day Nikol Pashinyan sent congratulatory messages to Vladimir Putin and Mikhail Mishustin on the occasion of Russia Day. Armenia, U.S. to upgrade Strategic Dialogue meeting to Strategic Partnership Commission The two governments have release a statement on the occasion of the U.S.-Armenia Strategic Dialogue Capstone meeting. |