his chief market strategist attends now, daniel morris. what does the year ahead look like here? what is it going to look like, in the king's english? daniel: one of the key changes is the prospect for earnings growth next year. if you look at the consensus forecast for the u.s. next year, 2022, 2021, it is 7%. 4% in europe, 15% in china, but compared to what we expect to get in china, it is not that much. you are just not going to have that earnings momentum to really push the markets much higher, and of course, we have valuations that are not particularly low. jonathan: when you look at these forecasts from wells, 5% on cpi for the next year, 4% real gdp growth for next year. is that good for risk assets? can you see it either way? daniel: i guess it is what are your alternatives. generally we have seen that equities are going to be one of the most resilient asset classes when you are in either a high or rising inflation environment. jonathan: a bit of a connection issue there with dan morris of bnp paribas. i asked that question because in a world of 5% cpi and 4% real gdp grow

we are joined by bnp paribas' chief market strategist, daniel morris. und getting an understanding of what economic impact all of this is going to have? daniel: the one thing we should be able to say with some certainty is that it will be less than last year, and surely we are in a much different sickle relation -- for and situation thanks to the vaccine. the countries in europe are trying to do whatever they can to avoid lockdowns. we have had some exceptions, and this could change if the situation deteriorates, but number one, certainly countries want to avoid that. number two, they are going to want to nonetheless memorize the economic impact by trying to maximize the benefits on the health care side, but without question on the margin, this is a negative that is going to weigh on the markets. i think you have seen that already in terms of the relative performance between europe and the u.s. in a time with real rates rising in the u.s. and growth stocks consequently underperforming. he would spec to see europe outperform, and you haven't. i think one