Capital Connection

Russell Jones, Global Head of Fixed Income Strategy at Westpac Institutional Bank, says the budget surplus announced by the Australian government will not transform into votes for the Labor party. He adds that the RBA will have to cut interest rates to offset the fiscal austerity put in place.

Francisco Solar, Head of FX Operations, Asia Pacific at Easy Forex, says the wafer thin Australian budget surplus leaves room for the RBA to cut rates, which will weigh on the risk-sensitive AUD.

Paul Donovan, Global Economist at UBS, expects signs of moderation in the German economy over the next six months.

Antje Praefcke, Forex Analyst at Commerzbank, expects euro-dollar to trade within its current range as markets assess the outlook for Europe's recovery.

Tao Wang, China Economist at UBS Securities, says US-China talks are on course with key issues such as trade and currency policies up for discussion.

Mitul Kotecha, Head of Global FX Strategy at Credit Agricole, expects to see gradual appreciation of the yuan in 2012.

Vasu Menon, Vice President of Wealth Management, Singapore at OCBC Bank, says China's projected 7.5% GDP target demonstrates the economic giant's shift in focus to domestic growth, with greater attention being paid to social issues.

Klaudius Sobczyk, Founder and Managing Director at Advanced Dynamic Asset Management, says markets need reassurance of readily available liquidity in Europe. He adds that Europe needs growth, not just austerity.

Robert Poole, Vice President, China Operations of the US-China Business Council, joins Emily Chan to discuss the state of bilateral trade and commercial ties.

David Marshall, Senior Analyst, Asia-Pacific Financials at CreditSights, discusses growth prospects for banks in Asia-Pacific.