Salient to Investors: In Q1, China’s broadest measure of credit rose 58 percent and GDP gained 7.7 percent – each $1 in credit added the equivalent of 17 cents in GDP, down from 29 cents in 2012 and 83 cents in 2007. The IMF said decisive policy changes are needed in
READ MORE... →Salient to Investors: Pier Carlo Padoan at OECD said: Global economic growth will accelerate at multiple speeds in 2014 with both the US and Japan continuing to outpace the euro area. Rising unemployment is the most pressing challenge and euro countries with trade surpluses such as Germany need to allow wages to rise Reform fatigue is mounting
READ MORE... →Salient to Investors: Kevin Adams at Henderson Global Investors said his biggest worry is that central banks will lose their credibility, and that the Fed will lose the faith of investors. The International Monetary Fund lowered its forecasts for China’s growth to 7.75 percent in 2103 and 2014. Read the full article at http://www.bloomberg.com/news/2013-05-29/european-stock-index-futures-decline-after-two-day-rally.html Click here to
READ MORE... →Salient to Investors: David Lipton at the IMF said: IMF lowered its forecast for China’s growth to 7.75 percent in 2013 and 2014 Decisive policy changes would put the economy on a more sustainable path. The record expansion of credit is concerning, and China has significant but narrowing policy space and financial capacity to
READ MORE... →Salient to Investors: Money managers cut their net-long position of futures and options to the lowest since July 2007, while holdings of short contracts rose to a record. Dan Denbow, a fund manager at the $1 billion USAA Precious Metals & Minerals Fund said gold has so many drivers that it gets
READ MORE... →Salient to Investors: Nobel laureate Joseph Stiglitz said it is premature for the Fed to reduce monetary stimulus despite little evidence it has helped the economy, which is not back to normal. Stiglitz said the stimulus may have contributed to asset price bubbles and to a weaker dollar. Zhu Min at the
READ MORE... →Salient to Investors: Akamai Technologies said China accounted for 41 percent of the world’s computer-attack traffic in Q4 2012 – more than 3 times a year ago and versus 33 percent in Q3 2012 – followed by the US with 10 percent. Verizon said China accounted for 96 percent of all global espionage
READ MORE... →Salient to Investors: Wu Kan at Dazhong Insurance said investors are avoiding stocks related to traditional manufacturing industries, while the selloff in Japan has spread risk-off sentiment across the region. The Shanghai Composite is at 9.3 times 12-month estimated earnings versus a 7-yr average of 15.7 times. Ken Peng at BNP Paribas said the
READ MORE... →Salient to Investors: Craig Erlam at Alpari says if the markets believes Bernanke indication the Fed will scale back in three months then we could see a bigger sell-off, but if they believe this is just a threat with no follow through expected for six months then this is a buying
READ MORE... →Salient to Investors: Fareed Zakaria said: The fundamental rule of international relations is that as a country becomes powerful, others gang up to bring it down – viz the Habsburg Empire to Napoleonic France to Germany to the Soviet Union. The one great exception in modern history is the US,
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