Gerber Kawasaki Chief Executive Officer Ross Gerber says deflationary pressures and downward global economic indicators mean the U.S. Federal Reserve should do nothing and not raise interest rates for at least another year.
SHOWS: NEW YORK, USA (JANUARY 28, 2015) (REUTERS - ACCESS ALL)
1. GERBER KAWASAKI CHIEF EXECUTIVE OFFICER, ROSS GERBER, SAYING: (BEGINS OVER JOURNALIST ASKING QUESTION)
JOURNALIST ASKING ROSS GERBER: 'Alright we are also watching the Fed, their decision tomorrow on interest rates. What is your bet? Obviously we don't expect a rate increase tomorrow but what is your bet in terms of what we hear from them and whether or not they acknowledge what is going on in the global economy and this kind of warnings we are getting from American companies that do so much business overseas?'
GERBER: 'Yeah, you know the Fed is in a really tough position now because they just can't raise interest rates. All of the pressure is deflationary now, we are seeing lower inflation, we are seeing costs coming down and we are seeing the economics of the world going down while the U.S. economy is getting stronger. So the Fed is in this tough position but our bet is rates are going much lower than what people think, we have a heavy position in U.S. treasury bond right now and we see rates continuing to go lower and really the Fed has no room to do anything this year. So we actually think the Fed is going to be off the table. If they do raise interest rates I do think that is a negative to the U.S. economy and to the stock market and so we are really hoping that they understand that we are in a deflationary environment right now and the Fed should do nothing for at least in my mind another year.'
Access Co Ltd is a Japan-based company mainly engaged in the provision of information technology (IT) solutions to domestic and foreign manufacturers of mobile phones and information appliances, infrastructure operators such as communication networks, service providers involved in e-book and advertising businesses, and general companies. The Company operates in three business segments. In the Internet of Things (IoT) segment, the Company and its domestic and Taiwanese subsidiaries provide IoT-related solutions and software mainly for the domestic market. In the Web Platform segment, the Company and its subsidiaries in Germany, China, and South Korea, provides Web platform-related solutions such as embedded browsers in the domestic and overseas markets. The Network segment mainly operates through subsidiaries in the United States, Canada, India, and Israel, and provides software for network equipment and integrated network operating system (Network OS) for white boxes.