Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co. says 5 of the 7 varieties of deflation are present in the US economy. Commodity price deflation will continue as oversupply continues to swamp demand amid weak global growth and a hard landing in China, which remains export-driven. The slow global
READ MORE... →Salient to Investors: China’s swap market is signaling interest-rate increases for the first time since 2011 after inflation accelerated to a 10-month high and the housing market defied government-cooling efforts. Hedge funds are making the biggest bet against copper on record. Edward Meir at INTL FCStone said China’s growth story remains intact, but
READ MORE... →Salient to Investors: Deutsche Bank said Hong Kong prices could fall as much as 20 percent over the next 2 years after lenders raised home loan rates. Buggle Lau at Midland Holdings said the pile of measures plus higher interest rates will be a big challenge for the market – as many as
READ MORE... →Salient to Investors: Angelo Zino at S&P Financial Services said there is no way the Suntech shareholders are going to get anything. Zino said a host of companies have gotten billions of dollars from Wall Street investors, who will ultimately get nothing. Risks to investors in solar have spread after the collapse
READ MORE... →Salient to Investors: Morgan Stanley predicted increased demand in China. Rachel Zhang said major copper end-demand market indicators are all improving, while inventories remain low, so expect restocking in the next couple of months. Australia said prices on average will fall 2 percent in 2013 as stockpiles expand. Read the full article
READ MORE... →Salient to Investors: Jim O’Neill at Goldman Sachs says: China equities are very cheap and are the best place to be in 2013. Don’t expect draconian tightening in China as inflation last year was way below their target and the government has been careful not to stimulate economy too much and are doing a good
READ MORE... →Salient to Investors: Beijing’s strict property curbs are forcing up rents for 7.7 million residents originally from outside of the city who are blocked from buying a home. Bacic & 5i5j say average rents in Beijing have risen 23 percent since 2010, as demand for rentals surged 82 percent – college
READ MORE... →Salient to Investors: The average analyst expects new solar generation capacity to rise 14 percent in 2013 to 34.1 gigawatts, equal to 8 atomic reactors and versus 4.4 percent growth in 2012. BNEF says China will pass Germany as the largest solar market in 2013 after doubling its 2013 target for new projects in
READ MORE... →Salient to Investors: Copper analysts are the most bullish in 5 weeks on optimism the global economy is strengthening versus hedge funds the most bearish since August. Goldman Sachs recommended buying copper for a 16 percent gain to $9000 in 6 months as China copper imports increase. Barclays says China
READ MORE... →Salient to Investors: The dollar advanced to the highest level in 3 1/2 years versus the yen on speculation an improving labor market will compel the Fed to slow stimulus even as Japan pledges to extend easing. Sean Callow at Westpac Banking said the greater the momentum in the US economy, the sooner the Fed will taper off
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