Salient to Investors: In Q1 2013, BRIC bonds, currencies, and stocks fell together for the first time since 2006. Since 2003, the MSCI BRIC Index has returned 227 percent, but is down 17 percent in 2013 and trailing the S&P 500 by the most since 1998. The MSCI BRIC Index
READ MORE... →Salient to Investors: Economists expect China to grow 7.5 percent in Q2 versus 7.7 percent in Q1, while cutting back on stimulus while pushing reforms is expected to lower China’s growth to the 6 percent range. payday loans direct lender instant approval Alaistair Chan at Moody’s Analytics said 2013 is
READ MORE... →Salient to Investors: Jim Rogers writes: How do you tell China to stop building infrastructure and start consuming? That happened gradually in the US, UK and many other countries historically. No economy or market goes straight up so expect China to have many setbacks. America had a Civil War, several depressions,
READ MORE... →Salient to Investors: Jim O’Neill writes: Too much of the world’s trade and finance is conducted in dollars. The exorbitant privilege has lasted too long. It is time one or two of the emerging-market governments did something about the US’s ability to borrow in its own currency – an advantage the rest
READ MORE... →Salient to Investors: Fed tapering, China’s credit squeeze, and Japan’s reflation ultimately prime the three biggest economies for less volatile and longer-lasting expansions, but near-term, emerging markets, commodity producers, and economies that need cheap cash or weaker currencies, including the euro area, could suffer. Stephen Jen at SLJ Macro Partners said that
READ MORE... →Salient to Investors: The IMF said: Global growth will struggle to accelerate in 2013 as the US expansion weakens, China’s economy levels off, and Europe’s recession deepens. Global growth will be 3.1 percent in 2013, unchanged from 2012, and 3.8 percent in 2014. Developing economies will grow 5 percent in 2013,
READ MORE... →Salient to Investors: The IMF said: Global growth for 2013 will be unchanged at 3.1 percent as US growth slows to 1.7 percent in 2013 and 2.7 percent in 2014. Global growth will be 3.8 percent in 2014. Downside risks to global growth prospects still dominate, with the possibility of a longer
READ MORE... →Salient to Investors: Louis Kuijs at RBS said the liquidity crunch has increased downside risks and estimates China will reduce aggregate credit by 1.8 trillion yuan in 2013, but as long as policy makers cushion the impact through fiscal and exchange-rate measures, the damage to the economy could be quite modest. Kuijs
READ MORE... →Salient to Investors: Nomura says: China, Hong Kong and India are in a high-risk danger zone because their monetary policies have stayed too loose over the past 4 years. The average ratio of domestic private debt to GDP across Asia had risen to 167 percent in 2012 and most of
READ MORE... →Salient to Investors: Chinese landlords are forgoing rent and paying to outfit stores for mass-market fashion brands to blunt the impact of a boom in shopping-mall construction that threatens to push up vacancies. Big mall operators can withstand the slowdown at the expense of smaller ones as smaller cities add retail space
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