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China: 'A ticking time bomb and a big shock's coming'
Markets are massively underestimating the deflationary fallout that's going to come from a big decline in China and other emerging markets. That's according to Michael Ingram, Market Strategist at BGC Partners. China's manufacturing sector continues to shrink. On Tuesday, the HSBC PMI index for April came in at 48.3. Anything below 50 shows a contraction. China's yuan hit a 16-month low on the news.
Michael says China's efforts to re-balance its economy is taking its toll and he's not sure it can be managed effectively. He says that we're not seeing "risk off" right now, we're seeing "growth off". Any suggestion that emerging markets have decoupled from developed economies is "nonsense", according to Michael and China's a "ticking time bomb" that's about to explode.
01:54 minutes
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