Comments from James McIntyre Macquarie Bank head of economic research:
- Says that the capacity for manufacturing to step up and deliver a meaningful contribution to the transition from mining to non-mining activity is limited
- Structural challenges -- particularly automotive closures --weigh on the sector
- A "much more significant" currency depreciation may be needed, and for longer, in order to deliver sufficient price signals to rebalance the economy
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ps. Macquarie comments on oil (not from the same interview, nor the same economist/analyst)
- The bank has 2015 price forecasts for Brent and West Texas Intermediate crude oil (note from Tuesday)
- Forecast for WTI to $52 a barrel from a previous forecast of $68
- Brent to $56 from $74
- The bank cites building supply and high levels of storage
- Says its more optimistic on the U.S. oil market vs. the international market for the second half of the year given expectations for a significant slowdown in U.S. production growth
