Salient to Investors: Tomoya Masanao at Pimco said: Investors should be wary of high-yield borrowers as slowing growth in Asia threatens profitability. China will average 6 percent to 7.5 percent annual growth during the next 5 years versus 9 percent annual for the past 5. Companies in Asia outside Japan almost tripled junk bond sales
READ MORE... →Salient to Investors: China approved 2 domestic ETPs backed by gold as global holdings of the precious metal in ETPs dropped to a 2-year low. Zhang Bingnan at the China Gold Association said Gold ETFs should boost gold demand as they make Chinese investments in the bullion much easier, and the recent
READ MORE... →Salient to Investors: Shen Jianguang at Mizuho Securities Asia said the May data will force China and the central bank to rethink growth and inflation as it seems they were too optimistic about growth and too concerned about inflation, and will be a test to see if they are determined
READ MORE... →Salient to Investors: Fareed Zakaria said China is not the world’s other superpower and we should not treat it as such. Zakaria said China has always played a weak hand brilliantly, and will one day become the largest economy, but by most political, military, strategic and cultural measures it is not a
READ MORE... →Salient to Investors: The term “he cha” in Chinese, literally meaning to drink tea, is a euphemism for the informal interrogation of citizens deemed to have stepped out of line. Accounts of such conversations have proliferated online, describing how police use the talks to try to suppress activities that are considered
READ MORE... →Salient to Investors: Shen Jianguang at Mizuho Securities Asia said it is too early to say an economic rebound has begun in China as there is still a strong bias towards larger enterprises and coastal areas in terms of fiscal and credit policy implementation, while small and mid-sized companies appear to
READ MORE... →Salient to Investors: OECD predicts faster global economic growth, led by the US and Japan: growth in member countries will accelerate to 2.3 percent in 2014 from 1.2 percent in 2013, China, will grow 8.4 percent in 2014 after growth of 7.8 percent in 2013. Neil Mackinnon at VTB Capital
READ MORE... →Fareed Zakaria said: The great American housing market is back as the Case-Shiller housing index showed its largest annual increase in prices in seven years, showing its core character: flexibility and resilience. The US is the only rich country whose population is growing, increasing by 3 million people every year,
READ MORE... →Salient to Investors: Marc Faber at the Gloom Boom & Doom Report says: High-end assets from stocks to art to real estate are in a bubble caused by central bank money-printing. This money doesn’t increase economic activity and asset prices in concert, instead creates dangerous excesses in countries and asset
READ MORE... →Salient to Investors: Charlene Chu at Fitch Ratings says: Total lending from banks et al in China was 198 percent of GDP in 2012 versus 125 percent 4 years earlier, and there is just no way to grow out of a debt problem when credit is already twice as large as
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