Capital Connection

Richard Harris, Chief Executive at Port Shelter Investment Management, discusses the market implications of a possible Greek exit from the euro zone.

Andrew Colquhoun, Head of Asia-Pacific Sovereigns at Fitch Ratings, says China's rebalancing will be a long, drawn out process. He expects growth in the world's second largest economy to settle at a slower average rate in the next 5 to 10 years.

Jonathan Cavenagh, Senior FX Strategist at Westpac, expects the AUD and NZD to underperform against the USD in the current risk-off environment.

James Shugg, Senior Economist at Westpac Bank, expects the Bank of England to increase asset purchases, noting a downtrend in inflation.

Simon Baxter, Partner at EC Harris, sees opportunities in the Chinese residential property sector in the long-run, but recommends developing markets such as Myanmar, Cambodia and the Philippines in the short-term for investors with higher risk appetites.

Harwig Wild, Currency Analyst, at Bankhaus Metzler, says that although the euro-dollar is holding up well, the picture looks precarious for the euro against the yuan, yen and sterling.

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.