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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (533873)	12/2/2009 1:41:01 PM
From: bentway	1 Recommendation Respond to of 1579786

Goldman Sachs Sees ‘Rather Strong’ Growth in 2010-11 (Update2) By Paul Dobson Dec. 2 (Bloomberg) -- The global economy will expand 4.4 percent in 2010 and 4.5 percent the following year as the world recovers from the credit crisis, Goldman Sachs Group Inc. said. “Our projections suggest that both 2010 and 2011 will be rather strong years,” a team led by Jim O’Neill, Goldman Sachs’s chief economist in London, wrote today in a report in which the bank made eight “top trade” recommendations. “The combination of better-than-expected growth and lower-than- expected inflation should be good news for financial markets.” Among its recommendations, New York-based Goldman Sachs, the most profitable securities firm in Wall Street history, said investors should buy the pound against the New Zealand dollar and the Polish zloty versus the yen. The bank also backed Russian equities and suggested investors should go “long” credit protection on Spain and “short” protection on Ireland. Goldman Sachs is more bullish on the prospects for a recovery from the worst recession since World War II than Pacific Investment Management Co., which runs the world’s biggest bond fund. Pimco expects a “new normal” investment climate that includes lower and slower economic growth, higher risk premiums, volatility and a prolonged correction phase, according to a statement yesterday. ‘Risky Assets’ Goldman Sachs’s prediction for two consecutive years of global growth at more than 4 percent, with no increase in short- term U.S. interest rates, “would appear to be rather positive for risky assets, potentially sowing the seeds for fresh asset overvaluations down the road,” the bank said. The analysts remain “nervous” about possible risks, including the possibility that the Federal Reserve will increase interest rates sooner than anticipated. The MSCI World Index of stocks climbed 28 percent this year as the global economic slump eased. Crude oil jumped 75 percent, gold advanced to a record $1,217.23 an ounce and the dollar slid against higher-yielding currencies such as the Australian dollar and Norwegian krone. Treasuries dropped 1.4 percent in 2009, according to Merrill Lynch & Co. indexes, after a resurgence in risk appetite. Goldman Sachs said earlier today it was ending the last four of its top trades for 2009 after “potential gains” for nine of the 11 bets, including one that the pound would strengthen against the dollar. The bank said it had “significant losses” on a recommendation to buy the dollar against the yen, losing 9 percent. To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net Last Updated: December 2, 2009 12:54 EST