Salient to Investors: China’s new elite class, known as princelings, is fueling public anger over unequal accumulation of wealth, unfair access to opportunity and exploitation of privilege. The Immortals’ grandchildren are players in private equity amid China’s integration into the global economy. 26 ran or held top positions in state- owned companies that dominate
READ MORE... →Salient to Investors: Corporate profits are at all time high of almost 12 percent of GDP versus real wages at a record low of almost 2%. Companies have almost $4 trillion in cash, or 13.6% of total assets. Watch the video at http://www.bloomberg.com/video/are-we-facing-a-permanent-decline-in-real-wages-rskODOU8Tzm4u811JZzHQg.html Click here to receive free email alerts of articles as soon as
READ MORE... →Salient to Investors: The S&P/Case-Shiller index of property values increased 4.3 percent from October 2011, the biggest 12-month advance since May 2010. David Blitzer at S&P/Case-Shiller said the housing recovery is gathering strength, confirmed by strong performances in the southwest and California. Property values will keep rising as record-low mortgage rates, a growing
READ MORE... →Salient to Investors: Barclays estimates stockpiles will rise for at least the next four quarters, and production will exceed demand by the most since 2009. The median analyst expects futures to rise as much as 16 percent in 2013. Buyers are waiting a year to get metal. Credit Suisse says as much as
READ MORE... →Salient to Investors: Trickle-down oil wealth and the spread of easily accessible auto financing are lifting auto sales in Russia. The Russian middle class is rising, and becoming a force in both commerce and public life. Russians have shown little nostalgia for their own cars. Russia is projected to surpass
READ MORE... →Salient to Investors: China increased its Treasuries holdings in October to a 5-month high. Liu Dongliang at China Merchants Bank said US treasuries are a good choice for China because the dollar is expected to appreciate and the credit risk is lower than for European and Japanese bonds. Read the full article at
READ MORE... →Salient to Investors: Foreign investors poured a record $7.36 billion into Mexican debt securities in 2012 to take advantage of economic growth that is four times Brazil’s and yields that are still triple those for US Treasuries. Luis de la Cerda at Afore Sura said foreigners won’t leave the bonds and are here
READ MORE... →Salient to Investors: New York Fed President William Dudley said the gap between bond yields and home-loan rates is blunting the economic benefits of the Fed’s record accommodation. Stephen Stanley at Pierpont Securities said banks are disinclined to lower mortgage rates. David Cannon at Royal Bank of Scotland said banks are reluctant to hire
READ MORE... →Salient to Investors: Hedge funds et al lowered net-long positions in futures and options to the lowest since June 26, gold holdings dropped to the lowest since August, silver fell the most since July 24, and turned bearish on wheat for the first time in six months. Simon Ringrose at EPFR Global said money managers last week withdrew
READ MORE... →Salient to Investors: Mohamed El-Erian is to be appointed head of the US global development council. Read the full article at http://www.bloomberg.com/news/2012-12-24/obama-picks-el-erian-to-lead-global-development-council.html. Click here to receive free email alerts of articles as soon as they are posted.
READ MORE... →