SHOWS: SINGAPORE (JULY 7, 2014) (REUTERS - ACCESS ALL)

SANJAY MATHUR, MANAGING DIRECTOR & HEAD OF ECONOMICS RESEARCH, RBS

1. (QUESTION GRAPHIC)

'Christine Lagarde said on Sunday (July 6) that global growth momentum could be weaker than expected in 2014. What do you make of that comment?'

2. SANJAY MATHUR SAYING:

'Well I think this is more sort of looking at the GDP numbers that came out of the U.S. and clearly they've disappointed. That said, and based on that, it does appear that full year global growth might be lower than what the IMF had initially projected. But the question is where do we go from here now? And I think that there is a clear cyclical uptick. We have seen that some of the complimentary data points that have come out of the U.S., the non-farm payrolls, the ISL numbers, they all seem pretty good as this point in time. Vis-a-vis Europe and Japan, I think they are following the script as has initially pencilled in. How Japan, with the consumption tax, etc, demand is likely to slow. So to that extent, I think that the real surprise has come from the U.S., and to some extent, we've had some negative numbers out of China. But we do think that we are somewhere at the bottom in terms of the Chinese business cycles.'

3. (QUESTION GRAPHIC)

'The IMF also does not expect a 'brutal' slowdown in China as the country's slowing of growth has become sustainable. What are your views on that?'

4. SANJAY MATHUR SAYING:

'Well I think that the Chinese economy has bottomed out. And if you look at two things, one is that just looking at the trend of say interbank rates, clearly that has been some degree of monetary easing. So that should help. The second part is that they are now working more actively towards deleveraging the economy, so I believe that about a hundred firms have not been allowed to do IPOs this year. And that would help the momentum going forward. Also we shouldn't forget the cyclical element of the Chinese economy. That we have seen the PMIs have picked up, reflecting better export demand. So net-net, we do think the Chinese economy did bottom out.'

5. (QUESTION GRAPHIC)

'What are the markets looking for from the Indonesian election?'

6. SANJAY MATHUR SAYING:

'I think the market is really looking at a Jokowi victory. Admittedly the gap has narrowed down in terms of what the opinion polls are saying between the two candidates. But at the same time, I think it would be fair to say that the odds still favor Jokowi, second, the third of the last debate really went in Jokowi's favor in our view. The question however, is really going to be what is it that Jokowi would deliver apart from better administration. One of the things that does bother us and we hope that this is not actually carried out in principal, in practice, is the fact that the economic nationalism, or the policies around it vis-a-vis FDI, in banking, in mining. Those are issues that none of the two candidates have impressed us in terms of opening up. Rather they seem to be going back, and that's something we should keep in mind and be concerned about.'