Salient to Investors: Tom Wainwright said that after years of under achievement and rising violence, Mexico is at last beginning to realise its potential. Mexico can benefit from big, irreversible trends: a falling birth rate, leaders at last tackling home-grown problems, to rising wages in China. Mexico outpaced Brazil in 2011 and will grow
READ MORE... →Salient to Investors: Ifo said its German business climate index had its first gain in 8 months in October and above the median economist prediction. Gernot Nerb at Ifo said the momentum, at least in the next year, will come from outside the euro area. Carsten Brzeski at ING said the report is a positive surprise but certainly doesn’t mean German
READ MORE... →Salient to Investors: Stephanie Schmitt-Grohe and Martin Uribe at the National Bureau of Economic Research said the solution to an economic slump is higher interest rates when the cause of that slump is a confidence shock that cheap borrowing costs are failing to reverse, and ultra-easy monetary policy risks making fears of deflation a self-fulfilling
READ MORE... →Salient to Investors: Economic Outlook said Sandy reconstruction and related purchases and hiring may increase US economic growth by 0.5 percentage point in 2013. Bernard Baumohl at Economic Outlook said construction costs will be more than replacement because much of the work will involve fortifying structures. Goldman Sachs said Sandy may reduce economic growth by
READ MORE... →Salient to Investors: Enrico Tanuwidjaja at Royal Bank of Scotland said growth momentum in Asia is clearly taking off. Kozo Hasegawa at Sumitomo Mitsui Banking said funds continue to come into Asia, which supports regional currencies, data out of China are improving. Kim Dong Young at Industrial Bank of Korea said there’s risk appetite in the
READ MORE... →Salient to Investors: EU leaders didn’t discuss climate strategy at their four summits this year, and the matter didn’t emerge during US presidential debates. Fatih Birol at the IEA said climate policy is sliding off the international policy agenda. Scientists are increasingly concerned that the time to react is passing. Birol
READ MORE... →Salient to Investors: Jack Ablin at BMO Harris Private Bank said the outperformance of 3 upscale retailers versus 3 lower scale retailers indicates investors believe high-income households will fund their higher tax burden from savings, rather than by cutting spending. Read the full article at http://www.bloomberg.com/news/2012-11-23/u-s-stock-futures-rise-s-p-500-may-extend-weekly-jump.html
READ MORE... →Salient to Investors: Julian Callow at Barclays Capital said Europe won’t this time be able to bank on the Chinese recovery to lift its economy out of the quagmire because China is moving to consumption, away from investment, traditionally where Europe’s exporters would have benefited. Chris Williamson at Markit said today’s report suggests the downturn
READ MORE... →Salient to Investors: Deng Wenyuan at Soochow Securities said the economy may only show real improvement from Q2 or Q3 2013. The Shanghai Composite trades at 9.6 times estimated profit for 2012 versus the 17.8 average since 2006. Hao Hong at Bank of Communications said stocks are due for a technical bounce but the
READ MORE... →Salient to Investors: William Pesek writes: Indonesian President Yudhoyono is emerging as a regional powerbroker, having exceeded just about everyone’s expectations, but has sometimes seemed content with the achievements of a half-finished agenda. The OECD praise for Southeast Asia emerging resilient from a period of global turmoil is really recognition of how far Indonesia
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