Salient to Investors: Latin America is disappointing investors, economists and businesses with slower-than-forecast growth as waning commodity prices and strong currencies hit nations that failed to diversify and become more competitive. Economists cut Brazil’s 2013 outlook for the second time in 7 days, forecasting the worst 3-year period in a decade.
READ MORE... →Salient to Investors: Michael Amey at Pimco said sell the pound as it may drop to a 4-year low of $1.37 during Mark Carney’s tenure at the BoE because he will want to see it decline, while a similar move against the euro is unlikely because of the euro bloc’s challenges.
READ MORE... →Salient to Investors: Pier Carlo Padoan at OECD said: Global economic growth will accelerate at multiple speeds in 2014 with both the US and Japan continuing to outpace the euro area. Rising unemployment is the most pressing challenge and euro countries with trade surpluses such as Germany need to allow wages to rise Reform fatigue is mounting
READ MORE... →Salient to Investors: Jack Schwager writes: As long as no one cares about it, there is no trend. All markets look liquid during the bubble but illiquidity after the bubble ends matters more. Markets tend to overdiscount the uncertainty related to identified risks and underdiscount risks not yet identified. Low-quality
READ MORE... →Salient to Investors: Andrew Balls at Pimco said Spanish and Italian government bonds offer reasonable risk-reward but are not attractive and the firm is neutral-to-underweight on the securities. Read the full article at http://www.bloomberg.com/news/2013-05-29/pimco-s-balls-says-neutral-to-underweight-spain-italy-bonds.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Kevin Adams at Henderson Global Investors said his biggest worry is that central banks will lose their credibility, and that the Fed will lose the faith of investors. The International Monetary Fund lowered its forecasts for China’s growth to 7.75 percent in 2103 and 2014. Read the full article at http://www.bloomberg.com/news/2013-05-29/european-stock-index-futures-decline-after-two-day-rally.html Click here to
READ MORE... →Salient to Investors: Bonds around the world are headed for their steepest monthly loss in almost a decade on concern the Fed will trim its debt purchases. Tomohisa Fujiki at BNP Paribas said there is more selling left and we cannot rule out higher yields. A two-year Treasury auction yesterday drew the
READ MORE... →Salient to Investors: Bloomberg Editors write: 59 percent of Greeks, 56 percent of Spaniards, and 38 percent of Italians and Portuguese ages 16-24 were unemployed in March 2013. It is already clear that Europe’s “New Deal for Europe,” is no “New Deal”. The scale is still too small as millions
READ MORE... →Salient to Investors: David Lipton at the IMF said: IMF lowered its forecast for China’s growth to 7.75 percent in 2013 and 2014 Decisive policy changes would put the economy on a more sustainable path. The record expansion of credit is concerning, and China has significant but narrowing policy space and financial capacity to
READ MORE... →Salient to Investors: Most analysts say OPEC needs to conform better with the limit to keep supply from overwhelming demand. Societe Generale says the necessary reduction could be substantial. The Centre for Global Energy Studies says prices may tumble without output curbs. OPEC accounts for 40 percent of global oil supply. Seth
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