Saxobank Warns China Is Exporting Deflation (And It's Not Going To Stop Anytime Soon)

Tyler Durden's picture

With global growth expectations for 2014 having just collapsed to new lows...

 

 

...and on the heels of mixed inflation data last night in China (and stubbornly low-flation in Europe), Saxobank's Steen Jakobsen explains in this brief clip how, thanks to massive over-building and now over-capacity, China is in fact exporting its deflation to the rest of the world - most problematically Europe.

 

What is more worrying for all the optimists, Jakobsen argues that both the Eurozone and China are at the centre of a slowing world economy which will see stagnation for the immediate future and ECB action, or lack of it, can't do a thing to change the status quo.