Attending a luncheon at Bond University’s Business Leaders Forum today, I got the chance to listen to the views of Macquarie Group Limited (MBL) CEO Nicholas Moore (pictured) on the past and future of Macquarie and on the happenings in the financial sector and the greater economy. He was of the belief that the slowdown of growth in China from 12 per cent to a target of 8 per cent is a good sign, and commended the Chinese for applying the brakes, and using the same analogy suggested that important factor was resisting the temptation to hit the accelerator too soon once more sustainable levels of growth are achieved. He made the point that it (China) is a very big economy in its own right and those kinds of growth percentages still equate to big numbers.
He went on to say,
“China is leaning on the brakes through various measures to pull back growth to more sustainable levels”.
“We don’t disagree with these measures at all with growth coming back from high levels. With real estate price falls, restricted lending has meant that there is the capacity to borrow for maybe just one house, not two in China.”
“We continue to be optimistic about China, its long term growth and we have facilitated that in our thinking,” said Moore
“The forecast next year is for emerging economies like China, Brazil and India to contribute 75 per cent of world growth, while a slower recovering US and Europe will bring in 25 per cent.”
Moore stated that Macquarie Group has $316 billion worth of funds and assets under management with 50 per cent of its revenues in Australia. He suggested that Macquarie is opportunistic and not overly long on strategy, and more or less evolves with the opportunities that present themselves. It was nice to hear someone in that position say something like that because far too many business leaders wish to claim results from strategy and long range vision. His attitude on this I felt matched his advice on career opportunity, in which he suggested performing well with the opportunities that present themselves and taking incremental steps along that journey, rather than trying to carve out a predetermined path.
Macquarie Bank CEO – Nicholas Moore