Salient to Investors:

Mohamed El-Erian at Pimco said:

  • Europe may contract 1 percent to 1.5 percent in the next 12 months with the private sector starved for credit and austerity policies limiting growth.
  • Ireland’s first sale of 10-yr government bonds since its 2010 bailout is a sign of the gradual healing in Europe’s financial sector.
  • The US will grow 1.5 to 2 percent in the next 12 months. The only thing stopping the growth rate increasing to 3 percent by the end of 2013 is uncertainty caused by congressional dysfunction.

Bill Gross at Pimco says the US is moving toward a 3 percent growth rate in 2013 because of the US housing recovery.

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