Salient to Investors: Contrarian fund manager Bill Smead is: Bullish on the U.S. but bearish on companies exposed to China. Looks for strong balance sheets, industries with high barriers to entry, long histories of profits and dividends, p/e ratios below their 10-year average, strong insider ownership, and shareholder friendliness with regard to
READ MORE... →Salient to Investors: In a Bloomberg poll of 847 investors, analysts and traders: A quarter expect Chinese markets to be among the worst performers over the next year. 46 percent, the highest, say U.S markets offer among the best returns over the next year. 18 percent expect commodities to offer the highest
READ MORE... →Salient to Investors: Reports from three of Asia’s four largest economies signal the jump in commodity prices has not yet constrained the consideration of further monetary stimulus. Satoshi Osanai at Daiwa Institute of Research said inflation is not yet a major issue for Asian central bankers – Asia and emerging nations have more room to cut rates or ease.
READ MORE... →Salient to Investors: Koji Toda at Resona Bank said money that risk money that fled Europe’s debt crisis is gradually returning to places where there is policy optimism. Tim Leung at IG Investment said China’s economic momentum is slowing – the market expects the Chinese government to help accelerate the economy. Richard Fisher at Federal Reserve Bank
READ MORE... →Salient to Investors: Jason Schenker at Prestige Economics sees positive growth signals, says the trade number signals Q2 GDP will be revised higher. Guy Wolf at Marex Spectron said for the market all that matters is the prospect of central bank monetary stimulus, so soft growth data, without inflationary pressure, is a green light for central
READ MORE... →Salient to Investors: Fareed Zakaria said: Max Weber singled out China and Japan as cultures particularly prone to poverty and stagnation, but were the world’s fastest-growing two large economies over the past five decades. Another powerhouse, India, was once seen as having a culture totally incompatible with economic success. China was stagnant for centuries. What changed was their
READ MORE... →Salient to Investors: Kishore Mahbubani of Lee Kuan Yew School of Public Policy said the era of the West changing governments is over, Western power has peaked and will decline. The more the West isolates Iran , the more Iran becomes a geopolitical gift to China, which will accept it. China can get
READ MORE... →Salient to Investors: Government measures to stimulate the world’s second-biggest economy have yet to reverse a slowdown that may deepen for a sixth quarter. China’s economy expanded 8.1 percent in Q1, the least in almost three years and the fifth quarterly deceleration. Predictions: Dariusz Kowalczyk at Credit Agricole CIB said industrial profits
READ MORE... →Salient to Investors: China’s Shanghai Composite Index erased its 2012 gain on concern a manufacturing slump and Europe will deepen the economic slowdown. Wu Kan at Dazhong Insurance Co said the Chinese economy is still slowing and earnings growth forecasts have further room to fall, and investors have no idea how slow earnings
READ MORE... →Predictions: Khiem Do at Baring Asset Management (Asia) said China has many available tools but will implement their policies gradually, not aggressively, because it sees the economy slowing but not in a hard landing. Read the full article at http://www.bloomberg.com/news/2012-06-27/yen-gains-south-korean-stocks-drop-before-europe-crisis-summit.html
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