Bloomberg China will likely avoid a financial crisis and is on track to reach high income status by 2027, according to a new Morgan Stanley report on the nation’s longer-term prospects titled “Why we are bullish on China.” The sweeping outlook comes amid growing concern over China’s surging debt levels, slow pace of reforms and the impact of a …

  Bloomberg A European Union bad bank would go a long way toward reducing the 1.2 trillion-euro ($1.3 trillion) mountain of soured loans on lenders’ books, but that relief may be a long time coming, according to the bloc’s bank regulator. Andrea Enria, chairman of the European Banking Authority (EBA), proposed setting up a bloc-wide asset-management company to take over …

  Bloomberg Jim McCaughan, who oversees more than $390 billion at Principal Global Investors, cautioned against betting on European stocks, even after they trailed US equities for years. “I see this as a value trap,” McCaughan said in an interview on Bloomberg Television. “I don’t see where the growth is coming from in Europe, and I see lots of risk. …