Salient to Investors: FedEx, regarded as an economic bellwether, predicted Q1 profit lower than analyst estimates. Barnes & Noble Q4 revenue trailed analysts’ estimates. Predictions: Tom Wirth of Chemung Canal Trust sees the risks easing slightly, but expects any market action should the Fed extend Operation Twist to be short-lived. Myles Zyblock of RBC Capital Markets says growing uncertainty – due to
READ MORE... →Salients Points: The residential real-estate market is weathering the U.S. economic slowdown. Single family starts rose at the highest rate this year, while apartment construction slumped. Building permits climbed to the highest level since September 2008 on lower prices and record-low mortgage rates. Overall starts in May declined 13 percent in the Midwest, 20 percent in
READ MORE... →Predictions: Templeton’s Mark Mobius sees emerging-market stocks in a sweet spot as Chinese economic growth remains buoyant and valuations plunge from historical averages, and is increasing holdings in China, Russia, Turkey, Thailand and Africa. Read the full article at http://www.bloomberg.com/news/2012-06-19/most-emerging-stocks-decline-on-europe-debt-crisis-oci-rallies.html
READ MORE... →Salient to Investors: The Fed’s structure has its origins in efforts to find a balance of power between politicians in Washington, representing farmers and small businesses, and Wall Street financiers. Professor Allan Meltzer said the Fed’s image problem has been there for 100 years – Congress reduced the role bankers play on
READ MORE... →Salient to Investors: Congress is nowhere near an agreement on what to do about $607 billion of tax increases and spending cuts slated to kick in at the beginning of 2013. CBO says if Congress does nothing the economy will probably fall into a recession in early 2013. The Tax Policy
READ MORE... →Salient to Investors: The Greek election bought Europe time without fixing the cleavages between the northern and southern Greek economies. Professor Niels Thygesen identifies eight clashes in economic philosophy between Germany and France. Predictions: Professor Paul de Grauwe expects Merkel to remain an incrementalist, temporarily pacifying markets until it is clear it is
READ MORE... →Salient to Investors: American exporters are preparing for a further decline in demand from Europe. U.S. exports to the European Union dropped 4.8 percent in the year ended April, the worst 12-month performance since November 2009. Predictions: Bank of America expect weaker exports over the long-term, and the trade deficit to widen to
READ MORE... →Salient to Investors: Foreign ownership of Japanese government debt rose to a record in 2011, signaling increasing dependence on investors abroad to finance the world’s largest public debt. The crisis in Europe has increased demand for the yen and Japanese bonds as a haven. Japanese household wealth funds has stagnated over
READ MORE... →Salient to Investors: Rubber shortages to turn into a flood as China, the biggest consumer, grows at the slowest pace in three years. This quarter’s 22 percent decline is the worst since the global financial crisis in 2008 and exceeds a 16 percent retreat in commodities. China accounts for 33
READ MORE... →Salient to Investors: Mexico last month passed China to become the US’s second-largest trade partner after Canada. Mexico is Texas’ No. 1 trade partner, and the ports of Laredo, El Paso and Houston rank among Mexico’s top five trading partners. One-third of the content of Mexico’s exports are made in the
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