Investors Would Rather See Germany Ramp Up Spending Than China
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Global fund managers say German fiscal stimulus would be a greater boon to risk assets than infrastructure spending in China or aggressive central-bank policies.
Uncertainty from the U.S.-China trade war and perceived monetary-policy impotence are increasingly placing the onus on fiscal policy, according to a recent investor survey conducted by Bank of America Merrill Lynch. Yet market participants are focused more on Germany in this regard than China -- the world’s second largest economy, which has previously driven global growth with massive infrastructure investment projects.