Recession looming more in Europe than US: BGC

David Buick, partner, BGC spoke to CNBC-TV18 about his outlook for global markets keeping Europe in focus.

He says that though earnings seem to be improving across US, UK and Europe, signals of a recession are strong from Europe than US.  Below is the edited transcript of the interview. Also watch the accompanying video. Q: Are you surprised that the good cheer has lasted only for a day or do you think we are going to see some positive vibes today as well?
A: I think it was very much a relief rally. Initially yesterday, people thought that this was reincarnation of 9th March 2009 which saw the effect of introduction of quantitative easing. This is genuine banking crisis where there is clearly a serious liquidity problem, also of money markets, basically moribund bonds have been sold for three years. No bank lends any money for creative time, just a very short basic money. In the long-term, this just simply cannot go on because it puts undue pressure on the Central Banks. That apart, it makes a very unrealistic appraisal of the banks