Salient to Investors: Michael Woolfolk at Bank of New York Mellon Corp said the market is already very short euros and overly long dollars, so expects reversion to a more neutral basis. Peter Gorra of BNP Paribas said the European debt crisis will be solved sooner than people think. Geoffrey Yu at UBS said many people are resigned
READ MORE... →Salient to Investors: Eric Viloria at Gain Capital expects the euro to grind lower as Draghi left many uncertainties open. Lower volatility makes investments in currencies of nations with higher benchmark interest rates more attractive because the risk in such trades is that market moves will erase profits. Read the full article at
READ MORE... →Salient to Investors: Fareed Zakaria said: Outsourcing jobs to ensure a company’s survival is acceptable and is how you run a business. America needs and already has a tax and regulatory structure that creates strong incentives for private businesses to flourish. The great shift in the U.S. economy over the past
READ MORE... →Salient to Investors: Amonthep Chawla at Kasikornbank said the spike in regional currencies is just a short-term reaction – there’s going to be a chronic debt crisis in Europe and investors will fear again that the problems are still there. fee paying Rafael Algarra at Security Bank Corp said good economic data about the
READ MORE... →Salient to Investors: For the first time in 13 years, the real, ruble and rupee are weakening the most among developing-nation currencies, while the yuan has depreciated more than in any other period since its 1994 devaluation. Investors are fleeing the BRICs, after Brazil’s consumer default rate rose to the
READ MORE... →Salient to Investors: George Soros said: A failure to produce drastic measures could spell the demise of the Euro. Europe should create a European Fiscal Authority to purchase sovereign debt in return for Italy and Spain implementing achievable budget cuts – funding to come from the sale of European Treasuries, which would
READ MORE... →Salient to Investors: George Soros called on Europe to buy Italian and Spanish bonds, warning a failure by leaders meeting on June 28 to produce drastic measures could spell the end of the euro. Wayne Lin at Legg Mason says the EU summit won’t produce anything extraordinary, that Soros’ views are extreme, and expects more volatility.
READ MORE... →Predictions: Geoff Kendrick at Nomura International says the generalized dollar buying is down to risk aversion, expects the euro to keep heading lower. Daisaku Ueno at Mitsubishi UFJ Morgan Stanley Securities said any slowing in global growth would lead to buying of the dollar because the euro is less attractive than the dollar due to their different economic situations and
READ MORE... →Salient to Investors: American exporters are preparing for a further decline in demand from Europe. U.S. exports to the European Union dropped 4.8 percent in the year ended April, the worst 12-month performance since November 2009. Predictions: Bank of America expect weaker exports over the long-term, and the trade deficit to widen to
READ MORE... →IMF estimates Japanese public debt will balloon to 245.6 percent of GDP in 2014, up from 67.3 percent in 1984. Former adviser to George Soros, Takeshi Fujimaki recommends buying assets in U.S. dollars, Swiss francs, sterling, Australian and Canadian dollars, because Japan may default within five years, before Europe does. Fujimaki says the yen
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