Morgan Stanley has identified five big changes that global economies need to make

Morgan Stanley think that five tough transitions are now necessary for global economies to grow, or as they put it to "embark on a sounder, safer and more sustainable second half".

  • US: From QE to credible forward guidance on interest rates.
  • Japan: From deflation to (moderate) inflation.
  • Europe: From financial fragmentation to a credible banking union.
  • China: From leverage-driven growth to reform-driven growth.
  • Emerging markets: From broken traditional to sustainable new growth models.

We'd love to see some odds on each of those happening...