What is behind the dramatic change in the markets

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ROUL KHALAF, FT editor, choose their favorite stories in this nice newsletter.

The writer is Chairman of the Kingdom of Queens, Cambridge, and a Councilor to Allianz and Gramet

The financial markets witness a dramatic change that suspended promises promises as dominating until the beginning of this year.

Falls in the stages of there and their pair of the United States remarks in the statements of investing on the economic and Europe-and Europe-to-one measurement of China. What is less clear is if the blend of all this is favorable or unfavorable on the term longest. And that matters a lot because of global welfare, inflation and financial station.

Three key factors support the recent 180 degree in times in times, the bonds and currency: they grow the concerns about the US economy; A potential “sputnik urban” in Europe driven by a possible change in Germany in tax and European policy; the suggestions of a more determined reply of China. The credentials in American exception was eroded with not only the US actions but the bond yields in growth of growth and dollar.

Have treated with a sheet of stagglation the week before, Markets they suffer a good frightening frightening frightening because of a significant will of the US policy volicility. The uncertainty associated with the fee again / off-again as Canada as Canada and Mexican are composed of the impact on public sector and income

Governic’s officials that “disrupted” should be seen as part of the international efficiency – a large international sector, and the most powerful sector nonpreprene or activities. Indeed, as, as it is only a matter of time before I travel that makes me improve the minor energy prices and significant degration.

The concern is that the bumpy trip can drive to a different, less favorable. The US Risks of the United States of the United States of one of their important and differentiated “- long-term investor in the politics and decision decision.

US policy is also responsible for the “markets change in economic duration. The ocracy of the economatory of the Fiscal (may be translated to the greater infrastructures infrastructure, greater and funding larger regional.

Meanwhile, China is reported a move toward a more powerful mix of stimulus and reforms. Markets see this as essential to count the threat of Japan’s leg of the Chinese economy that was highlighted again in Data Sunday with your consumer prices and product prices fall in February.

On the paper, this foul comforter presents two scenery (china (china (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China (China the outstanding performance of the exception of the US economy. This would be a higher general level of global growth as a deceleration of the US Department is more than the pickle in China and Germany.

The most pessimist outlook would be a downward convergence that joint stagflation. This scenario will be due to delays in the deployment of Germany policy; The continued bull of China for stimulus balance and reforms; and a US economy decelerating toward speed speed at low consumer, a corporate expect the attention approach and stagflation.

While it is left, global cyclabes will take, absolute and absolute price parts and relative and smaller lacks for convergence favored. This involves a credentials in the capacity to overcome the capacity of the capacity to navigate their policy of policy and resconsomal of the unit impossible for their current disturbances. The bet is that global economy is always likely to run out of staghlation lease and reach more balanced and surveyable tradition. We should hope this is right.