SHOWS: SINGAPORE (JANUARY 3, 2014) (REUTERS - ACCESS ALL)

TIMOTHY RIDDELL, HEAD OF RESEARCH (GLOBAL MARKETS IN ASIA), ANZ

1. (QUESTION GRAPHIC)

'What are your views on the shift of fund flows in the global market?'

2. TIMOTHY RIDDELL SAYING:

'Well we've been seeing a constant flow out of funds which invest into bonds and into emerging markets and a flow into developed market equities. At ANZ, we refer to it as a slightly clumsy manner as 'reversification' and it's picking up exactly on the point that you are talking about. Over the past ten years, we have had diversification away from developed markets and especially away from equity markets into emerging markets both in equities and bonds and also into bond markets globally. So what we are seeing now is a shift of those flows. We've seen some going into U.S. equities but there is still a potential huge amount to go into developed market equities. If we think about the flow of money that occurred with quantitative easing, that was about 2.2 trillion dollars went from the U.S. into other markets. And about 1.2 trillion of that went into Asian markets. If we see some further withdrawal of that or return of that money into the U.S. markets and developed markets, it's likely to go into the equity side rather than the bond side, because as I was saying we are looking for U.S. yields to continue to rise. So I still think that flow is there, that potential is still there.'

3. (QUESTION GRAPHIC)

'What is your 2014 outlook for the Indian economy?'

4. TIMOTHY RIDDELL SAYING:

'First off, we've gone through the worst point for India. The actions that the central bank have taken over the last few months have been pretty supported by the global markets. But it doesn't mean that the scenario for India becomes particularly positive. What I am picking up from the international investment community is that they are really hoping that a Modi victory in the May elections will give a further boost to the potential of infrastructure and structural changes within the Indian economy. So there's a definitely a demand from international investors to get involved in India. My fear is that we are not going to get the dynamism that they are looking for in terms of infrastructure investment and structural changes. So I have a rather mixed view on the Indian economy. The low growth profile that we've had over the last year is likely to continue this following year, so even if we get an uptick in our current low growth forecast - we are only looking for four/four and a half percent growth, even if that goes back towards more consensus of around about five percent, that's still below trend for India. So growth might not be as bad as it was last year, but it's not going to be great and inflation is really sticky. So I see a problematic, rather than a positive profile for India but the worst has probably been through. As for the dollar and the rupee, if we get dips back down below sixty, I would have thought it's a buying opportunity for dollar investors to buy dollar-rupee. I don't see a lot of strength in the rupee coming through next year.'