Salient to Investors: Daragh Maher at HSBC said Moody’s downgrade was not unexpected, and the drop in the pound in 2013 is small when framed in the context of a longer time-frame, so further falls would not represent an overshoot. Maher said the comfort expressed by the gilt market is largely built
READ MORE... →Salient to Investors: Moody’s said the U.K.’s high and rising debt burden means deterioration in the government’s balance sheet is unlikely to be reversed before 2016, and while the U.K. has considerable structural economic strengths, expected slow growth of the global economy and the reduced speed of debt reduction in the
READ MORE... →Salient to Investors: Marc Chandler at Brown Brothers Harriman said G-20 basically said Japan can continue to reflate their economy, so it will continue to pursue aggressive fiscal easing and monetary easing, and just not talk about the currency so much. S&P retained its negative outlook on Japan’s credit rating, pending policy
READ MORE... →Salient to Investors: Previous yen declines in the 1990s and early 2000s failed to pull Japan clear of 15 years of deflation. The IMF estimates that from From 1994 to 2003, Japan’s economy grew an average of 0.9 percent, a third of the pace of all advanced nations, and despite back-to-back
READ MORE... →Salient to Investors: The NIESR said: Britain will grow more slowly in 2013 than previously forecast and stagnation may persist: 0.7 percent in 2013 and 1.5 percent in 2014. Britain is in its slowest post-recession recovery in 100 years and GDP won’t regain its previous peak until 2015. Net debt will
READ MORE... →Salient to Investors: Bank of England policy maker David Miles said UK growth will rise to 2 to 2.5 percent a year within 18 months without a substantial increase in inflation. MIles expects the cruising speed of the economy to return to the long-run average 2-2.5 per cent. Jane Foley at Rabobank Intl
READ MORE... →Salient to Investors: Executives and economists said Britain’s pledge to hold a referendum on leaving the EU may damage investment and jeopardize an economy facing its first triple-dip recession. Adam Posen said the prospect of a referendum will hurt investment in the UK, and to stretch it out until 2017 is
READ MORE... →Salient to Investors: Martin Ellis at Halifax expects continuing broad stability in house prices nationally in 2013 and end the year close to where they begin. Nationwide Building Society says UK house prices may decline modestly in 2013. Blerina Uruci at Barclays expects the subdued trend in 2012 to continue in 2013 and then gradually
READ MORE... →Salient to Investors: Crispin Odey at Odey Asset Mgmt said the UK lacks leadership. Odey said history doesn’t allow precise identification of inflection points, but to ignore its lessons dooms one to repeat its mistakes. Phil Irvine at PiRho Investment Consulting said the biggest risk is not to take a risk.
READ MORE... →Salient to Investors: S&P lowered its outlook on Britain’s top credit rating to negative, citing weak economic growth and a worsening debt profile – there is a 1-in-3 chance the rating could be cut in the next 2 years. S&P however expects economic growth to accelerate slowly. Investors often ignore such
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