Labor Market, Housing in U.S. Strengthen Into 2013: Economy – Bloomberg 12-27-12

Salient to Investors: Neil Dutta at Renaissance Macro Research said the economy is holding up just fine with no feared year-end cataclysmic economic shock, and the steady housing recovery will continue. Dutta said we’re in the early stages of a positive feedback loop of cheap credit, tight inventory and rising prices. John Ryding at RDQ Economics

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Consumer Comfort in U.S. Hovers Near Highest Since 2008 – Bloomberg 12-27-12

Salient to Investors: Joseph Brusuelas at Bloomberg said households are increasingly confident about their finances, which will sustain the improvement in consumer sentiment in 2013, albeit at low levels. Lynn Franco at the Conference Board said consumers are quite negative short-term, but more upbeat about current business and labor market conditions. Read the full

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Billionaire Princelings Ruin a Chinese Vision – Bloomberg 12-27-12

Salient to Investors: William Pesek writes: Woodward-and-Bernstein style tactics are helping to unearth the rot that has taken hold in China – princelings that are reaping outsized benefits from China’s growth, causing inequality levels at pre-Communist levels. One of modern history’s greatest wealth grabs is delaying the reforms needed – of the

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Fourth-Quarter M&A Surge Spurs Optimism After 2012 Deals Decline – Bloomberg 12-26-12

Salient to Investors: Global M & A  in Q4 rose to the highest level since Q3 2008. Gene Sykes at Goldman Sachs said the pickup may extend into 2013 once the fiscal cliff and euro crises find a solution, with driven by continuing consolidation in natural resources, industrials, technology and financial services. Corporations sit

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Heirs of Mao’s Comrades Rise as New Capitalist Nobility – Bloomberg 12-26-12

Salient to Investors: China’s new elite class, known as princelings, is fueling public anger over unequal accumulation of wealth, unfair access to opportunity and exploitation of privilege. The Immortals’ grandchildren are players in private equity amid China’s integration into the global economy. 26 ran or held top positions in state- owned companies that dominate

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Are We Facing a Permanent Decline in Real Wages? – Bloomberg 12-26-12

Salient to Investors: Corporate profits are at all time high of almost 12 percent of GDP versus real wages at a record low of almost 2%. Companies have almost $4 trillion in cash, or 13.6% of total assets. Watch the video at http://www.bloomberg.com/video/are-we-facing-a-permanent-decline-in-real-wages-rskODOU8Tzm4u811JZzHQg.html Click here to receive free email alerts of articles as soon as

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Home-Price Gains Pick Up as U.S. Real Estate Market Rebounds – Bloomberg 12-26-12

Salient to Investors: The S&P/Case-Shiller index of property values increased 4.3 percent from October 2011, the biggest 12-month advance since May 2010. David Blitzer at S&P/Case-Shiller said the housing recovery is gathering strength, confirmed by strong performances in the southwest and California. Property values will keep rising as record-low mortgage rates, a growing

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Pimco’s Gross Savors Free Lunch as Peso Bonds Beat Stocks – Bloomberg 12-24-12

Salient to Investors: Foreign investors poured a record $7.36 billion into Mexican debt securities in 2012 to take advantage of economic growth that is four times Brazil’s and yields that are still triple those for US Treasuries. Luis de la Cerda at Afore Sura said foreigners won’t leave the bonds and are here

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