Goldman Sachs Asset Management Chairman Jim O'Neill, said that Brazil's currency may be overvalued and predicted more volatility in the debt markets in the euro zone in 2011.
"People have to be a little careful about Brazil, but has come a long way, " O'Neill said in a radio interview today on surveillance with Tom Keene. "The currency is overvalued. I that the people of Rio and Sao Paulo I visited in London and the description of London as economic. "
The comments are a reminder of how much has changed since O'Neill coined the acronym BRIC in 2001 to describe the rise of Brazil, Russia, India and China as economic powers. The Brazilian real has strengthened about 15 percent against the dollar since early 2001 and 36 percent since early 2009.
monetary union, or EMU.
"I do not think this is a credit crisis, " he said. "It's more of a crisis on the structure of the EMU and the governance of EMU. It is not so easily solved overnight."
"Very nervous"
The extensive debate on governance, which EU leaders will resume when they meet this week in Brussels, can promote financial market volatility.
"People are going to be very nervous, " said O'Neill. "We need much bolder, clearer leadership in Europe. "
O'Neill also hopes that the performance of the 10-year U.S. Treasury bonds to increase to about 5 percent in the medium term from the current 3.3 percent.
"The more I look at U.S. data, the more I think of the U.S. to return to reality, " he said. In the medium term, "equivalent to a yield of 10-year bonds than 5 percent. Not necessarily for the next year, but it is true that people think about it. I see that, along with the continued rise stock prices as a good thing for everyone. "
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