Goldman’s O’Neill looking sick on Euro, China outlook.

Goldman’s O’Neill….losing Midas touch?

This from Bloomberg this morning (my italics):

‘Investors are demanding greater yields to lend to China property firms, a sign they expect borrowers will have a harder time meeting debt payments amid a government clampdown down on lending. Goldman Sachs Group Inc. and Credit Suisse Group AG cut their profit estimates for Chinese real estate companies after a 12.8 percent jump in real estate prices in April from a year earlier spurred the state to increase regulation’.

That’s odd: wasn’t Goldman’s BRIC-inventor Jim O’Neill the permabull advising investors to be bullish about China the week before last?

(This whole thing’s a bit bizarre, because the May 21st property price data released by Beijing showed prices screaming to a skidding halt. What gives here?)

Also Jim seems to be wobbling a bit on his outlook for the Euro, which fell further in Asian trading overnight. “The more time goes on” he said last Thursday, “things look a little darker than we thought”.

Meanwhile, Jim ONeill’s Red Knights have given up on buying Manchester United off the Glazers. Not surprising really, given they want £1.5 billion.

Be patient, Mr O’Neill. You’ll pick it up for a lot less this time next year.