Salient to Investors: Bloomberg Consumer Comfort Index at a four-month high in September, Thomson Reuters/University of Michigan preliminary sentiment index at second highest level in five years – due in part to rising stocks and property values. The Conference Board’s index decreased in August from in July, the biggest drop in 10 months. Andrew
READ MORE... →Salient to Investors: Scott Anderson at Bank of the West says the economy is in a soft patch, with consumer spending suggesting moderate growth and resilience in auto sales and building materials a bright spot. Carl Riccadonna at Deutsche Bank Securities said lasting damage is being done by the threat of the fiscal cliff. Read the
READ MORE... →Salient to Investors: Song Guoqing at Peking University said the economic slowdown may run into 2013 amid a lack of funding for approved infrastructure projects. Song expects growth of 7.3 to 7.4 percent in Q4 and 7 to 7.5 percent in half1 2013. Wu Kan at Dazhong Insurance sees room for the market to drop. The Shanghai index is
READ MORE... →Salient to Investors: Brazilian small-caps are at 1.59 times book versus 3-yr low of 1.33 in June and the highest versus the Bovespa since February 2009. Consumer stocks account for 30 percent of the small-cap index, almost three times as much as their share in the Bovespa, where commodities producers account for 43 percent. Herculano
READ MORE... →Salient to Investors: The Stoxx 600 is at 12.3 times estimated earnings, its highest multiple since December 2010. Peter Garnry at Saxo Bank A/S said the divergence in the purchasing managers’ index figures between France and Germany shows that Europe is diverging into an A and a B team, with France joining the B team
READ MORE... →Salient to Investors: Ray Dalio of Bridgewater Associates said: The euro will survive because austerity measures deterring growth will be balanced by ECB intervention, says southern Europe will suffer a managed depression lasting as long as 15 years. Countries in northern Europe are more likely to leave the euro currency bloc than indebted countries in the
READ MORE... →Salient to Investors: Jason Rogan at Guggenheim Partners said the economy is not double-dipping into another recession,but growth is not robust. Thomas Roth at Mitsubishi UFJ Securities USA said low volatility is not going to go away. Hedge-fund managers et al reversed to a net-short position in the week ended Sept. 18. David Coard at Williams Capital
READ MORE... →Salient to Investors: UBS said power producers will open six times more coal-burning plants than gas-fed units by 2015. Demand for emission permits will rise because coal-fired generators need twice as many credits as gas users under climate protection rules. Matthew Gray at Jefferies says the outlook for Certified Emission Reductions
READ MORE... →Salient to Investors: Men’s wages are growing faster than women’s in China. Japan and South Korea have famously thick glass ceilings. China has an estimated 20 million to 30 million surplus men, and India is not far behind. In the 2020s in China and northwest India, marriageable men will outnumber marriageable females by 15 to 20
READ MORE... →Salient to Investors: Yuan Gangming at Chinese Academy of Social Sciences said: China’s economic slowdown may last longer than during the global financial crisis and extend into Q1 2013; aggravated by unsustainable local-government spending plans Medium and small-sized businesses are finding it increasingly hard to borrow from banks China’s target for 14 percent growth in M2 too
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