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Deloitte CEO says global growth fragile

Wednesday, January 25, 2012 - 03:20

Jan. 25 - The CEO of consulting giant Deloitte, Barry Salzberg, says he expects the global economic outlook to be fragile this year, but the performance of emerging markets and the United States give some cause for confidence. He spoke to Reuters correspondent Jamie McGeever.

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SOUNDBITE: JAMIE MCGEEVER, REUTERS INSIDER TV CORRESPONDENT, SAYING (English): "Reports published this week by two of your competitors Ernst and Young and PWC seem to suggest that the confidence in the improving global economic outlook are fragile. Is this something that chimes with what you're seeing and hearing too?" SOUNDBITE: BARRY SALZBERG, DELOITTE CEO, SAYING (English): "Absolutely. I would say our view right now is that (the) global economy is slowing down in its growth to the extent that there's uncertainty involved throughout the global environment, there's no doubt it is fragile. From our perspective the European recession we believe Europe is in right now has a clear effect on that conclusion. The U.S. is growing reasonably well, moderate growth is what we're anticipating, bucking the trend. And some of the emerging markets are continuing to grow as well. So when you put it all together, there's still a little bit of confidence in the outlook, but cautious and a little bit fragile." SOUNDBITE: JAMIE MCGEEVER, REUTERS INSIDER TV CORRESPONDENT, SAYING (English): "What advise are you giving to your clients and how is that advise differing from country to country and region to region?" SOUNDBITE: BARRY SALZBERG, DELOITTE CEO, SAYING (English): "Because each region is different we are in fact experiencing different growth patterns by company and by region. And so to start with we're telling our clients, as they are uncomfortable with the environment, uncertain about its outlook, to be cautious. And so from region to region based upon their growth we're experiencing, obviously there's different reactions to the environment, and we're customising our advise to each of our clients appropriately." SOUNDBITE: JAMIE MCGEEVER, REUTERS INSIDER TV CORRESPONDENT, SAYING (English): "What are U.S. executives of U.S. companies telling you?" SOUNDBITE: BARRY SALZBERG, DELOITTE CEO, SAYING (English): "I have met with a number of executives in the U.S. and by the way, across the globe as well, and they're all pretty consistent, and the word that's coming out it 'certainty', and the lack of it. And I think because of this uncertainty and the fact that to now growth has been reasonably good, there is this discomfort about how to think about the next 18 months or so and the uncertainty regarding the European crisis in particular which could clearly have a contagion effect on all markets around the world is driving a lot of that uncertainty." SOUNDBITE: JAMIE MCGEEVER, REUTERS INSIDER TV CORRESPONDENT, SAYING (English): "How does the mood in Davos this year compare with previous years?" SOUNDBITE: BARRY SALZBERG, DELOITTE CEO, SAYING (English): "I just arrived in Davos, it's early on in the days at Davos, but the focus in Davos is all about clearly is right and that's creating new models and transforming our businesses to align with these new models and the message I will be delivering in one of the panel discussions I will be leading tomorrow is about the connection between business and society and the importance of driving societal purpose and impact into the core business or business, reidentifying it, reenergising strategy, driving initiatives, and being able to communicate the same across the organisation so that mood, if that continues here, this reenergising of what business is for, I think it'll be a great World Economic Forum this year."

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Deloitte CEO says global growth fragile

Wednesday, January 25, 2012 - 03:20