SHOWS: HONG KONG, CHINA (AUGUST 26, 2014) (REUTERS - ACCESS ALL)

MICHAEL EVERY, HEAD OF FINANCIAL MARKETS, RESEARCH RABOBANK

1. (QUESTION GRAPHIC)

'How are Asian markets poised to perform given signs that easy monetary stimulus may continue for some time in Europe and Asia?'

2. MICHAEL EVERY SAYING:

'Well obviously the easier that the monetary policy stance is from the U.S. and Europe, the better it is for Asia. So if we are getting signals for the low rates are here to stay for some time ahead, and so far we are, that can only be good for Asia.'

3. (QUESTION GRAPHIC)

'How concerned are you about China's rising non-performing loans (NPLs)?'

4. MICHAEL EVERY SAYING:

'I am concerned. I actually think NPLs are still far lower than they probably are in reality. Or should I say the reported figures are still far lower than the reality of the figures that the economy should be producing. We are seeing slower growth, we have seen a massive, massive increase in lending over the past few years and not always to very productive sectors. So really it's no surprise that NPLs are going up. But that's not a healthy sign, that's a reflection that this lending had not been very efficient.'

5. (QUESTION GRAPHIC)

'What is your outlook for China's bank earnings this year given the fall in the country's July new banks loans data?'

6. MICHAEL EVERY SAYING:

'Well if the kind of figures that we saw in July are carried forward into the second half of the year, then I think we will see much much slower growth. And I think we will see significantly higher non-performing loans. Having said that, those credit figures have been extremely volatile - June, very very strong; July very very weak, so you have to see which one of the two really is the indicator for the second half of the year.'

7. (QUESTION GRAPHIC)

'What does this drop in new loans mean for the overall health of the Chinese economy?'

8. MICHAEL EVERY SAYING:

'It's not good for the economy. China is an economy that is very very credit-dependent at the moment. You can see a very close correlation between the credit impulse and what the economy does just a few months later. In fact, we've already seen signs that the economy is slowing again as credit has been reduced slightly in the past few months. And that's a very worrying signal for the second half of the year.'

9. (QUESTION GRAPHIC)

'What else should investors be paying attention to out of the bank earnings, aside from the non-performing loans concern?'

10. MICHAEL EVERY SAYING:

'I think NPLs really are critical, but I think we will see lower earnings going forward too as a corollary with a slower growth in the Chinese economy.'

11. (QUESTION GRAPHIC)

'How are Asian markets taking Janet Yellen's speech from the Jackson Hole Symposium last week?'

12. MICHAEL EVERY SAYING:

'Well I think overall the market very much liked what it heard coming out of Jackson Hole on Friday from Janet Yellen. We had a repeat of the message that she still thinks that there is a lot of slack in the U.S. labor market, which ostensibly shouldn't been positive for equities, but it is. Because that means that easy money is here to stay for a considerable period of time in the U.S. And at the same time, Mr. Draghi from the ECB (European Central Bank) also gave a hint that he maybe more open-minded towards on one hand QE (quantitative easing), and on the other, may be slightly loser fiscal policy from some countries in Europe. And that again is being seen as positive for equities.'