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Pros Say: Mark-to-Market Changes Won't Help

CNBC.com
Thursday, 2 Apr 2009 | 8:40 AM ET

Global stocks powered higher Thursday as hopes grew that the US economic decline was reaching a bottom, while the euro gained despite expectations of an interest rate cut from the European Central Bank. Experts weigh in on how to help the economy.

Changing Mark-to-Market Rules Unlikely to Help

As the market will price the banks' toxic assets as it sees fit, Craig Irvine, co-head of regional research at Daiwa Institute of Research does not think that any changes to mark-to-market accounting rules will help.

Speeding Up Global Recovery

If the IMF does issue SDR bonds, that would definitely be a positive sign, says Hans Redeker, global head of FX strategy at BNP Paribas. He explains how this will aid in the global recovery.

Trade Is Key to Ending Global Recession

Developing countries will be most affected by falling trade, says Victor Fung, chairman at The International Chamber of Commerce and chairman of Li & Fung Group of Companies. He tells CNBC why international trade is key to ending the global recession.

US Should Not Only Be Blamed

China, Japan and Germany's dependence on exports led to large surpluses with the U.S., which forced down long-term interest rates, says Greg Ip, U.S. economics editor at The Economist. He tells CNBC that the U.S. is not the only country to be blamed for the global crisis.

ECB Seen Moving Towards Quantitative Easing

Olivier Desbarres, director of FX strategy at Credit Suisse expects the ECB to move towards quantitative easing, when it meets later today. He tells CNBC that the nature of its quantitative easing will be different to that operated by the BoE & Fed.

Risk of Protectionism

The rise of protectionism is of a major issue, says Victor Fung, chairman of the International Chamber of Commerce, and chairman of the Li & Fung Group of Companies. He tells CNBC that protectionism will cause unemployment to rise.

Watching Currencies Ahead of G20

Ahead of the G20 meeting, Jeffrey Halley, senior manager of FX Trading at Saxo Capital Markets says he is keeping an eye on the Swiss Franc & Swedish Krona, while Victor Fung, chairman at The International Chamber of Commerce points out why stable rates are important to international trade.

US Banking Crisis to Last Another Year

Do not expect a quick resolution to the U.S. banking crisis. In fact, Jim Antos, head of research at Fox-Pitt Kelton thinks it will drag on for another year.

Upbeat on China

China is the most resilient of the Asian nations, says Clifford Bennett, chief economist at Kinetic Securities.

Japan's Economy Seen Stabilizing in H2

The Japanese economy will probably stabilize in the second-half of 2009, believes Junko Nishioka, economist at RBS Securities.

G20 Could Stem Protectionism

The G20 meeting is unlikely to produce any market-moving results, but could help to stem protectionism, Hugh Johnson, chairman & CIO of Johnson Illington Advisors, told CNBC.

G20: Preparing for Disappointment

The high expectations for the G20 summit have been successfully scaled back, which could help to ease disappointment among investors, Nick Parsons from National Australia Bank told CNBC.

Contact Europe: Economy

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