Salient to Investors: Hitoshi Asaoka at Mizuho Trust & Banking expects the yen to weaken, saying should the Fed reduce stimulus, US Treasury yields will rise and the currencies of countries easing monetary policy will be sold and those of nations tightening will be bought. Steve Brice at Standard Chartered thinks
READ MORE... →Salient to Investors: Tom Levinson at ING said emerging-market currencies are at the beginning of perhaps longer and deeper correction, while this is where the dollar starts to rally potentially for the right reasons because the US business cycle is further developed. Kit Juckes at SocGen said the bull market is over
READ MORE... →Salient to Investors: Michael Amey at Pimco said sell the pound as it may drop to a 4-year low of $1.37 during Mark Carney’s tenure at the BoE because he will want to see it decline, while a similar move against the euro is unlikely because of the euro bloc’s challenges.
READ MORE... →Salient to Investors: Bruce Stout at Aberdeen Asset Mgmt says: Optimism is too high for stocks and bond yields are too low His fund’s fixed-income holdings are at the lowest level in 25 years. The main problem is trying to get yield in a world where there is no yield, but
READ MORE... →Salient to Investors: Bloomberg Global Poll: International investors are the most bullish on the US and Japanese markets in more than 3.5 years as both economies are seen to be improving. Over 40% will reduce gold exposure over the next 6 months, close to 3 times more than those who
READ MORE... →Salient to Investors: Bill Gross at Pimco raised Treasuries holdings to 39 percent in April, the highest level since July 2010, and warned that investors face potential losses from global central banks’ unprecedented monetary stimulus. Gross said Treasuries are a better alternative than cash, and negative real interest rates, inflation, currency
READ MORE... →Salient to Investors: Arne Rasmussen at Danske Bank said the outlook for the UK economy and the pound are bad and today’s jobs data is disappointing. Rasmussen says investors should not underestimate the possibility the BOE will act aggressively to support growth, and expects the pound to fall much further. Mike Amey
READ MORE... →Salient to Investors: George Soros said: China has a couple of years to control risks as t he rapid growth of shadow banking is disturbingly similar to the subprime-mortgage market in the US that caused the financial crisis of 2007-2008. China can keep its current economic growth model for another year
READ MORE... →Salient to Investors: Paul Ashworth at Capital Economics said: US overall net worth was 550 percent of GDP in 2011 versus official GDP of near $15 trillion and national debt of $16.8 trillion – not particularly egregious. Including US holdings of foreign bonds and cross-country holdings of other types of assets,
READ MORE... →Salient to Investors: George Soros and Bill Gross at Pimco said the BOJ plan to end deflation risks weakening the yen. Gross said the yen has to depreciate much more for the BOJ to reach its inflation target of 2 percent, and other G-7 countries may not be willing to permit that. Read the full article
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