Salient to Investors: Steve Ashley at Nomura said: The worst is over for Asian emerging markets but individual countries could continue to suffer significant challenges. It is very positive for the next 5 to 10 years as the amount of investments by funds in these countries catch up with the
READ MORE... →Salient to Investors: Steve Hanke at Johns Hopkins University said inflation is always and everywhere a monetary phenomenon, but hyperinflation is always and everywhere a political phenomenon. payday short term loan Ricardo Hausmann at Harvard says the Fed’s planned tapering is not the only reason why emerging-market stocks and bonds
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: Weakening emerging-market growth and spiraling currencies risk creating headwinds for a recovering US economy. Longer-term, we should care due to the feedback loop to the US. We will see a tightening of financial conditions to markets, with growth more challenged and the ability of
READ MORE... →Salient to Investors: Asia’s role as the world’s growth engine is waning as economies across the region weaken and investors pull out billions of dollars in favor of nascent recoveries in the US and Europe. Economists forecast Malaysia will post its second straight quarter of sub-5 percent growth this week.
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: 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: Investors say difficulty trading debt from fledgling markets is driving them away. Timo Boehm at Pimco said new markets, such as South Korea or Turkey, don’t have sufficient liquidity. Georg Grodzki at Legal & General Investment Mgmt said home loans used to support covered bonds vary across
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