Shift in Global Growth Engines Signals Gain After Pain – Bloomberg 10-07-12

Salient to Investors: Jim O’Neill at Goldman Sachs Asset Mgmt said when we come out the other side with a different structure, we should have a much stronger world economy. John Bilton at Bank of America Merrill Lynch sees a changing complexion in global growth, ending with a more balanced world economy longer-term. Bilton said this will

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European Stocks Are Little Changed This Week – Bloomberg 09-21-12

Salient to Investors: The Stoxx 600 is at 12.3 times estimated earnings, its highest multiple since December 2010. Peter Garnry at Saxo Bank A/S said the divergence in the purchasing managers’ index figures between France and Germany shows that Europe is diverging into an A and a B team, with France joining the B team

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German Stock Ownership Highest Since 2007 as Yields Fall – Bloomberg 09-07-12

Salient to Investors: More Germans have bought equities the most in five years due to inflation rising and less security and stability in bonds because of concerns surrounding Portugal, Italy, Greece and Spain – Germans traditionally loved government bonds. Share ownership declined almost every year in the decade through 2011. Economist forecasts compiled by Bloomberg predict

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Fareed Zakaria GPS – CNN 07-01-12

Salient to Investors: Fareed Zakaria said 49 percent of Americans polled said economic conditions were good or excellent in the city they lived in, 37 percent said the same about their state,  25 percent about the US, 18 percent about Europe, 13 percent about the world economy.  Housing is finally is recovering and will have big ramifications for

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Gross Says Decades Needed to Normalize From Too Much Debt – Bloomberg 06-28-12

Predictions: Bill Gross said: It will take economies and financial markets decades to normalize after the debt crisis, keeping U.S. securities the safest bet for investors. This is an authentic debt crisis and can only be ultimately cured by default or printing more money to inflate it away. A debt crisis can’t be cured with more debt

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Roubini: Europe Dissolves if No German Backstop – Bloomberg 06-27-12

Salient Ponts: Professor Nouriel Roubini at NYU said at some point Germany has to decide if it takes the credit risk to backstop Spanish and Italian debt in exchange for some loss of natural fiscal sovereignty by Italy and Spain, giving the Eurozone  a chance to survive, or otherwise Europe dissolves in the next few

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Merkel Rebuffs Rajoy Plea, Shuts Door to Euro Area Bonds – Bloomberg 06-27-12

Salient to Investors: Professor Niall Ferguson at Harvard said the key negotiators, including Merkel, do not understand that the timeframe for financial crises is days, for structural reforms is years. Merkel has to realize that the cost of disintegration to Germany would be mind-blowing, and whatever happens, Germany pays – either through massive defaults or fiscal transfers. Read

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Havens Hard to Find as Bonds Lose Risk Status, BIS Says – Bloomberg 06-24-12

Salient to Investors: The Bank for International Settlements said government bonds losing their risk-free status are depriving investors of wealth-preservation opportunities while Europe’s debt crisis boosts demand for havens. The global pool of safer assets has shrunk just as demand has risen due to a flight to safety, leading to a

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European Stocks Retreat as German Confidence Declines – Bloomberg 06-22-12

Salient to Investors: German auto rebates on new cars rose to a seven-year high in June. Moody’s cut the ratings of 15 global banks due to their significant exposure to the volatility and risk of outsized losses. Predictions: Lucy MacDonald at  RCM expects extremely low growth, low interest rates and much politically driven volatility

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Treasuries Hold Gains Amid Stock Declines, Gross Warning – Bloomberg 06-21-12

Salient to Investors: Moody’s Investors Service slashed credit ratings on 15 global banks yesterday. Hiromasa Nakamura at Mizuho Asset Management said even Germany can’t avoid a slowdown, showing the instability of Europe’s financial system is affecting the region’s economy. Nakamura said the weakening global economy is leading to risk aversion among investors, putting

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