/STOCKS: Barclays' Michael Gavin and.......>

US BONDS: /STOCKS: Barclays' Michael Gavin and Ajay Rajadhyaksha said in special

report 2017 Global Outlook Overview report, that it's "too early to play

defense." 

- They said the "low volatility environment of the third quarter should persist

in the fourth, in our view. We expect global growth of close to 4% in both 2017

and 2018, have modestly upgraded our euro area and Japan forecasts, and expect a

mild deceleration in China; our call for US growth of just over 2% remains

intact."

- They add financial "markets have little to fear from the initial stage of

central bank policy normalization. Any such steps are likely to be gradual and

tentative until inflation becomes a more pressing issue, which seems unlikely

for the next few quarters. There are a number of political developments in Q4,

in the US, China and Europe. But they are all normal political risks of the sort

investors routinely face; none rises to the level of this spring's high-stakes

French election or the Brexit vote last year."