The gloom surrounding the slowdown in the U.S. and China isn't as big a worry for John Studzinski as a global “geopolitcal recession”.
That's because the managing director and vice-chairman of Pimco, the private banking company with $1.77 trillion in assets, said with a strong swing to the right in Europe, there's a “strong authoritarian backbone of leaders emerging around the world”.
“I am more worried about the geopolitical characteristics of the world and how these individual personalities and leaders manage to maintain the domestic agenda of jobs, growth and prosperity,” he said.
Compared to other emerging leaders who're “playing to an aggressive base”, Studzinski said Prime Minister Narendra Modi has a number of people who support him. “He is much more diplomatic and measured.”
The world expects Modi to win the election but probably more on the lines of a coalition, Studzinski said, adding that the premier has had to transition from leading Gujarat as a hands-on leader to managing complicated and sophisticated personalities in his country.
He (Narendra Modi) is managing a complicated, big government with a small team. He needs a bigger team when he starts his next tenure.John Studzinski, Managing Director and Vice Chairman, Pimco
Studzinkski expects India's banking system lacks enough capital to give as many loans as it should. He, however, said low oil prices will stabilise the economy. “There are a lot of attractive elements to invest in India still.”
Watch the full conversation here:
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