As for the European debt problem, a safety net has been put in place, which includes such moves as the European Central Bank (ECB)’s decision to launch a new government bond purchasing program and the establishment of the European Stability Mechanism (ESM).
Against this background, a number of policy measures for economic and fiscal reform are expected to make progress gradually, which would improve business and household sentiment. In China, the effects of economic policy measures as well as continued inventory adjustment are expected to materialize.