Bloomberg with the good news from Goldmans, Deutsche Bank & JPMorgan
JPMorgan
- suggests that if China's expansion slows by 1 percentage point, the spillover to industrial nations is just 0.2 point of gross domestic product
- "It doesn't mean there isn't a negative effect, it just means that some of the positive supports are there"
Deutsche Bank
- Concerns are overblown
- Say China's stock market is divorced from the overall economy
- Yuan's fall will be contained
Goldman Sachs:
- Drag on the U.S. will be minimal
- Only about 7 percent of exports headed to China, they estimate the total spillover on the U.S. to be around 0.2 percentage point.
- "But the uncertainty is significant in light of the difficulty of disentangling financial spillovers and the continued downside risks to the Chinese economy"
