Europe Gaining Confidence Among Investors in Global Poll – Bloomberg 09-11-13

Salient to Investors: A Bloomberg poll of investors, analysts and traders showed: 40% see the euro-area economy as improving, more than 4 times the number in May 40% see the world economy as strengthening, the most since January 2011. 52% expect stocks to produce the best return over the next

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Pension Funds Shift Out of U.K. Index-Linked Gilts on Valuation – Bloomberg 09-10-13

Salient to Investors: Julian Brown at JLT Employee Benefits said: UK pension funds are seeking alternatives to index-linked gilts for inflation-protected cash flows as the securities are very expensive and giving negative real yields. Ten-year index-linked gilts have yielded less than zero since September 2011. The funds are diversifying into assets such as infrastructure and

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Russia to Brazil Intervention Adds to U.S. Debt Distress – Bloomberg 09-09-13

Salient to Investors: Scotiabank and Bank of America said India, Brazil, Russia and Indonesia have intervened in foreign-exchange markets, and dollar sales mean liquidating Treasuries. Ali Jalai at Scotiabank said there is a lack of buyers in the Treasury market, while selling by central banks to back up their currencies exacerbates

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BlackRock to JPMorgan See Deeper Emerging-Market Losses – Bloomberg 09-09-13

Salient to Investors: Wall Street’s biggest firms are predicting intensifying bond losses in emerging markets, where borrowing costs have already soared to the highest in more than 4 years versus US corporate debt. Jeffrey Rosenberg at BlackRock is not convinced we have seen the worst in terms of flows out

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Euro Becoming Haven With Breakup a Memory on Economy: Currencies – Bloomberg 09-06-13

Salient to Investors: The 90-day correlation between changes in the euro and a Citigroup index of bond and swaps risk has turned positive for the first time since November 2008, indicating the euro is gaining favor as investors’ perceptions of turmoil in financial markets rises. Hedge funds et al are

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Singapore Stocks Worst in Developed World: Southeast Asia – Bloomberg 09-01-13

Salient to Investors: Investors pulled $2.2 billion from Thailand, Indonesia and the Philippines in August, versus inflows of $6.8 billion in 2012. Wellian Wiranto at Barclays said Singapore is a barometer for Southeast Asia; choppiness elsewhere cause ripples in Singapore. Khiem Do at Baring Asset Mgmt said Singapore’s stock market benefited from loose

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Treasuries Drop in Longest Stretch of Losses in 2 Years on Fed – Bloomberg 08-30-13

Salient to Investors: Ian Lyngen at CRT Capital said a slightly better non-farm payrolls report would trigger tapering – it is just a question of size and composition. 65 percent of economists expect tapering in September. Stone & McCarthy Research Associates said the securities scheduled to be purchased by the Fed during September

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El-Erian Says Emerging Market Woes to Create U.S. Headwinds – Bloomberg 08-29-13

Salient to Investors: Mohamed El-Erian at Pimco said: Weakening emerging-market growth and spiraling currencies risk creating headwinds for a recovering US economy. Longer-term, we should care due to the feedback loop to the US. We will see a tightening of financial conditions to markets, with growth more challenged and the ability of

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Bond Trading Hampered as Buyers Retreat to Crowded Exits – Bloomberg 08-21-13

Salient to Investors: US corporate-bond trading volume in August have fallen to the lowest since 2008 despite soaring company debt. Exiting from fixed-income securities is getting tougher as the biggest bond dealers adapt to new capital standards by reducing inventories by 76 percent since the peak in 2007. The 21 primary dealers reduced

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Capital Flows Back to U.S. as Markets Slump Across Asia – Bloomberg 08-20-13

Salient to Investors: Asia’s role as the world’s growth engine is waning as economies across the region weaken and investors pull out billions of dollars in favor of nascent recoveries in the US and Europe. Economists forecast Malaysia will post its second straight quarter of sub-5 percent growth this week.

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