Salient to Investors: Democratic gains in the Senate will make it more likely to focus on “advise and consent” than “obstruct and destroy.” Sanctions continue to erode the Iranian economy and incite public dissatisfaction with the Islamic regime. The rial has slumped as much as 40 percent against the dollar since
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: Municipal debt is more attractive after the re-election of Obama. Investors should be careful of the long-end of the yield curve. TIPs are attractive. Bernanke is likely relieved as he knows he has more scope to continue with his unusual activism. The Fed will continue
READ MORE... →Salient to Investors: Robert Shiller at Yale said the housing recovery is fragile and should be spurred by reducing the role of government in the mortgage-finance system. The economy needs further fiscal stimulus to create jobs, with increases in spending offset by higher taxes on the wealthy to avoid enlarging the national debt. Read the full article
READ MORE... →Salient to Investors: Douglas McWilliams at Centre for Economics and Business Research said London’s financial-services jobs may drop to a 20-year low in 2013 due to the weak economy, hangover effect from the financial crisis, and increasing regulation. Read the full article at http://www.bloomberg.com/news/2012-11-06/london-financial-jobs-to-fall-to-20-year-low-in-2013-cebr-says.html
READ MORE... →Salient to Investors: German factory orders fell for a second straight month and by the most since September 2011. Thomas Harjes at Barclays said today’s data are a catastrophe – the huge problem in the rest of the euro area seems to be reaching Germany and its labor market. Harjes said the economic outlook is gloomy for
READ MORE... →Salient to Investors: Mark Gertler at NYU said Obama’s activism reflects a much larger federal-government role 80 years after Hoover, as well as the development of macroeconomics, giving officials more tools now to combat a slump. Gertler said Obama’s policies in this crisis are the mirror image of what happened during the Depression. Hugh
READ MORE... →Salient to Investors: Pimco is the biggest holder of peso bonds. get loads of money Bank of America says that a Romney win could spark a selloff in Treasuries that will be mirrored in Mexican notes, the most correlated to US government bonds of any debt in Latin America. Kevin Daly at Aberdeen Asset
READ MORE... →Salient to Investors: The UBS Swiss Real Estate Bubble Index entered the risk zone for the first time since 1991. Matthias Holzhey and Claudio Saputelli at UBS said: Population growth continues to favor price increases, but prices are increasingly being supported by investment demand and by low interest rates, Continued strong increase in
READ MORE... →Salient to Investors: A deepening credit crunch for European companies adds to the risk of another recession. Small and medium-sized companies that generate as much as 70 percent of the economy are starved of credit. The median of 48 analyst estimates is for a drop of 2.3 percent against the dollar by
READ MORE... →Salient to Investors: Investors can’t get enough government securities even though rising debt loads are blamed for curbing global growth. For the first time since 2008, all 26 markets tracked by Bloomberg and the EFFAS are poised to generate positive returns on an annual basis. Governments are getting a handle
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