Salient to Investors: Kyohei Morita and Yuichiro Nagai at Barclays said: Abe’s policies can succeed even if wages don’t immediately accompany price increases, because 2.21 million people born between 1947 and 1949 are starting to retire and will become buyers rather than workers and savers, even as the total population declines.
READ MORE... →Salient to Investors: George Friedman writes: China has been in an economic crisis for a while, unrecognized outside China and particularly in the US. Paul Krugman last week wrote in The New York Times that the signs that China is in big trouble are unmistakable, its economic system has reached
READ MORE... →Salient to Investors: Stretched budgets and sluggish growth are putting emerging-market governments on a collision course with rising pressures from recently empowered middle classes for more spending and better services. Policy makers face the end to an era of abundant global liquidity that helped fuel the fastest expansion in three decades. The
READ MORE... →Salient to Investors: Fareed Zakaria said: Unlike most developing nations, China spends little on subsidizing current consumption but spends massively on export-free zones, highways, rail systems and airports. No developing democracy has been able to ignore short-term political pressures and execute a disciplined growth strategy with such success. China’s growth
READ MORE... →Salient to Investors: William Pesek writes: Japanese economists and cheerleading media now seem to realize they bought into Abenomics too hastily We are a long way from knowing if China Premier Li has the skill or political will to put China onto a more sustainable growth path, led by domestic
READ MORE... →Salient to Investors: The IMF said: Risks are increasing that China’s economic growth this year will fall short of its forecast of 7.75 percent. China is becoming increasingly vulnerable to risks from an expansion of non-traditional sources of credit and borrowing by local governments. China’s heavy reliance on credit and investment to sustain activity is raising
READ MORE... →Salient to Investors: William Pesek writes: The best way to approach China’s GDP figures is ignore them – they are much worse than they appear. Industrial production rose just 8.9 percent in June versus 9.2 percent in May, anemic for an export-addicted, developing economy, and will crimp consumption and income growth in half2
READ MORE... →Salient to Investors: China understands that its economy needs to slow down. Too much money is flowing into unproductive investments with local officials often to blame. Its effort to engineer a soft landing is laudable and long overdue, but unless it pushes ahead with political as well as market reforms, surrenders
READ MORE... →Salient to Investors: The MSCI China Index has gained 14 percent, including dividends, since July 1993 versus 452 percent for the S&P 500 Index, 322 percent for the MSCI Emerging Markets Index and 86 percent from US Treasuries. Only the MSCI Japan Index had a weaker performance among the 10 largest
READ MORE... →Salient to Investors: Quincy Krosby at Prudential Financial said China increasing the investment limit for qualified foreign institutions sends a strong signal that the government is committed to reforms. Krosby says little by little, China is opening up the market, paving the way for deeper reforms. Timothy Ghriskey at Solaris said the quota increase would definitely
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