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Pros Say: Quantitative Easing Will Help

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Published: Friday, 6 Mar 2009 | 6:51 AM ET
By: CNBC.com

Global stocks were mixed Friday, while the dollar fell, rolling back from 3-year highs as demand for euro zone government debt rose ahead of the US February jobs report. Experts tell CNBC that quantitative easing will help get the global economy back on track.

Quantitative Easing Can Limit Downside

Quantitative easing may be able to put a floor under the deep recession that Western economies are facing. But it can't reverse the downside, says Gerard Lyons, chief economist & group head of global research at Standard Chartered.

Quantitative Easing Will Work

Quantitative easing announced in the UK will work but it will not turn the economy around, says Gerard Lyons, chief economist & group head of global research at Standard Chartered. He speaks to CNBC about the BoE's latest move to pump up the money supply as interest rates drop to record low of 0.5%.

Chinese Economy Unlikely to Grow 8%

Gerard Lyons, chief economist and group head of global research at Standard Chartered, says China's stimulus efforts will work, but it is unlikely the economy will grow 8% this year.

Stress Testing Banks

The government's stress tests for U.S. financial institutions will help to differentiate the strong from the weak, and will give some certainty as to which financials will likely survive, says Kent Shepherd, portfolio manager at Franklin Templeton Investments.

Don't Rule Out Financials

Citigroup's share price plunged below $1 for the first time on Thursday. Kent Shepherd, portfolio manager at Franklin Templeton Investments, says to have limited exposure in big financials is a tactical move, as conditions for these powerful institutions may improve in the event of some new government policies.

Banks to Brace for Steep Revenue Falls

Banks which operate in Asia may see steep revenue declines going into this year as the region enters a sharp slowdown, warns David Marshall, MD of financial institutions at Fitch Ratings.

Capital Position of Asian Banks

The capital position of most Asian banks remain strong. But David Marshall, MD of financial institutions at Fitch Ratings is concerned about banks in South Korea, Japan and Taiwan.

Islamic Banking Largely Unaffected by Crisis

The impact of the global financial crisis on Islamic finance is far less as compared to conventional finance, notes Khaled Al-Aboodi, CEO & GM of ICD.

Jobs Data Won’t Make a Difference

“The macro-economic data is going to be horrible, so whatever comes out this afternoon … I don’t think it does make a difference. In terms of the markets, I think the markets have got the chance and the opportunity to do much better than the economy in the next few months,” Marino Valensise, CIO Barings, told CNBC.

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Global stocks were mixed Friday, while the dollar fell, rolling back from 3-year highs as demand for euro zone government debt rose ahead of the US February jobs report. Experts tell CNBC that quantitative easing will help get the global economy back on track.
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