See integrated rate cuts by world central bks: Asia Pac AMC

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » RELATED NEWS Investors wary of volatile mkts, earnings season : Experts Not pulling out of Asian markets: Tyche Group Caution is warranted, optimism is not: Bank Julius Baer BSE | NSE 01/01/70 Are Mutual Funds betting on ?

Asian markets are plunging on fears that the credit crisis will spark a global recession. Speaking to CNBC-TV18 James Chirnside, CIO at Asia Pac Asset Mgmt says if one has an allocation plan of over 12 months then it is a good idea to stat putting little bit of money into markets now.

He further said, "I would expect that over the next week or two, probably more like the next week, to see some form of global coordinated Central Bank cut in rates, a very aggressive cutting of rates."

Here is a verbatim transcript of the interview with James Chirnside on CNBC TV-18. Also see the accompanying video.

Q: On an optimistic note do you see some sort of bargain buying coming in for some of those indices, even though despite Nikkei down by about more than 10,000 in the first five years. We did see some light bargain hunting or probably on the other side are you advising your investors to hold on to cash or probably invest in Yen?

A: To be honest with you, we think that it is a good idea at the moment to so called dollar cost averaging, So if you take your allocation plan over the next 12 months or so, we think it is a good idea to start putting a little bit of money into the markets now because there are companies which are clearly going to survive this meltdown and are going to prosper. You have got to bear in mind that on the other side of this those companies that do remain are going to be extremely in good position to generate good earnings.

Q: Any specifics in that?

A: I think particularly consumer staple businesses are going to do extremely well. I think some banks are going to do very well out of this at the end of the day. But the problems with bank of course is as is the case all the financial stocks  at the moment is that there is real shortage of capital and I can't think of one bank in the world at the moment that couldn't use a bit more capital that it has got right now.

I would expect that over the next week or two, probably more like the next week, to see some form of global coordinated Central Bank cut in rate, a very aggressive cutting of rates.

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