Newton's Harries: US data 'not to be confused with proper recovery'

Newton's Harries has urged investors not to be fooled by US positive data, and warned China is facing a more severe slowdown than expected.

The manager of the £2.4bn Newton Global Higher Income fund said there are still problems within the US economy that are yet to unwind. "There has been a lot of positive data recently but I would not want to extrapolate too much from that. A lot of the bad things that got the US into trouble have been stuck on its balance sheet, but these problems will come to bear eventually. The data should not be confused with a proper recovery," he said. "The US has been chosen to be comfortable in an unstainable fiscal position, but at some stage the reality will return. If people start downgradin...