Salient Ponts: Professor Nouriel Roubini at NYU said at some point Germany has to decide if it takes the credit risk to backstop Spanish and Italian debt in exchange for some loss of natural fiscal sovereignty by Italy and Spain, giving the Eurozone a chance to survive, or otherwise Europe dissolves in the next few
READ MORE... →Salient to Investors: Home prices are beginning to rise in cities that appeal to younger and affluent buyers. Professor Robert Shiller at Yale said speculative fervor comes back, sees signs of strength, though surveys of home buyers show a continued lowering of expectations on prices. Chris Rupkey at Bank of Tokyo-Mitsubishi UFJ said glamour
READ MORE... →Salient to Investors: Joseph LaVorgna at Deutsche Bank Securities says the economy is muddling through, while concerns about the collapse of manufacturing are grossly overblown, and we’re in a housing recovery. Britons repaid more mortgage debt than they borrowed in May for the first time in at least 15 years. Manufacturing
READ MORE... →Salient to Investors: Adam Klopfenstein at Archer Financial Services said the Chinese news is positive for gold, though gains will be limited as some investors are waiting for some kind of statement from the European leaders. Read the full article at http://www.bloomberg.com/news/2012-06-27/gold-may-advance-before-european-summit-as-investors-seek-haven.html
READ MORE... →Salient to Investors: Corn supplies in the U.S. are declining at the fastest pace since 1996. The worst Midwest drought in more than a decade is wilting a harvest that the U.S.D.A. says will be the biggest ever. Dennis Gartman at the Gartman Letter said the harvest is about two months away and dry
READ MORE... →Salient to Investors: The Shanghai Composite trades at 9.69 times estimated profit, versus the MSCI BRIC Index (MXBRIC), at 8.36 times profit. Qu Hongbin at HSBC Holdings said China hasn’t responded quickly enough to the economic slowdown. Predictions: Yu Guang of Invesco Great Wall Fund Management says China’s economy will remain in the doldrums in
READ MORE... →Predictions: Mike Lenhoff at Brewin Dolphin Securities said China is prepared to ease, which will be good for European markets, particularly cyclical stocks – investors sense a more determined spirit to push through tangible measures in Europe. Julian Callow at Barclays Capital forecasts ECB rates will be cut on July 5. Read the full article
READ MORE... →Salient to Investors: Mark Mahaney at Citigroup said super-high multiples and decelerating growth don’t mix well. Read the full article at http://www.bloomberg.com/news/2012-06-27/facebook-analysts-see-shares-climbing-10-cents-above-ipo-price.html
READ MORE... →Predictions: Binky Chadha at Deutsche Bank said: Economic reports are due to improve, lifting U.S. stocks. Investors are suffering from data disappointment that has become extreme by historical standards – the typical pattern from here would be for fewer negative surprises and then positive ones. Economic data has been the key driver of equities,
READ MORE... →Predictions: Khiem Do at Baring Asset Management (Asia) said China has many available tools but will implement their policies gradually, not aggressively, because it sees the economy slowing but not in a hard landing. Read the full article at http://www.bloomberg.com/news/2012-06-27/yen-gains-south-korean-stocks-drop-before-europe-crisis-summit.html
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