Wall Street Journal Opinion Article Essay Example | Topics and Well Written Essays - 750 words

Wall Street Journal Opinion Article - Essay Example This is because this could automatically affect the GDP of the countries in which the investors originate from. The greatest effect was felt from the withdrawal of the world’s super power-America’s bank-Merrill Linch. The bank had anticipated a GDP rise of about 7.6% but due to the drawback they were now expecting a rise of about 7.2% (Ellison 74).They therefore withdrew from China so as to maintain a steady economy in their country. However the bank’s management stated that they did not expect China to experience financial strain or even suffer a drop in their economy as a result of the drawback (Ellison 78). They also added that the Chinese government has the opportunity to stabilize their economy despite the unfolding that took place. However, there is still risk of these potential investors to withdraw from the business as it is expected that the growth forecast of Nomura Company will drop to 7.3% from7.5%.The CNBC further presumed that this may pose risk to the annual target of the company that was at 7.4% (Ellison 67).Conversely from a press release of an official government statement, investors were assured that the country would still be able to maintain their economic growth within reasonable limits despite the drawback that had occurred. The government official added that the debt risks of the county were manageable and that they would have no instances of default despite there being evidence that one company had defaulted (Ellison 69). According to data obtained from a survey conducted by the Fact sheet, it was noted that since July 2010, this was the first time that copper products were being sold below $ 3a pound (Ellison 76). This is critical to investors who have engaged in the business as this is termed as spoilt business on their part. This is because they cannot be able to sell their products at high prices