_Economy and Finance

Gallileo Gallileo is a 38-storey 136 m (446 ft) skyscraper in the Bahnhofsviertel district of Frankfurt , Germany . It was built from 1999 to 2003. The towers architecture is made up of two towers linked by a connecting central core. The north tower is 136 m (446 ft) with 38 storeys, and the south tower is 114 m (374 ft). The core is the building's full height. Together with its 49,000 m2 (530,000 sq ft) floor space, it is the 14th tallest building in the city. Its name is an intentional misspelling of the scientist Galileo's name; the extra l comes from the building's other namesake, the nearby park Gallusanlage. Along with the nearby Silberturm, it served as the corporate headquarters of Dresdner Bank since 2008. A year later, after the takeover of Dresdner Bank by Commerzbank, the new owner plans to use only the Gallileo. Gallileo has a glass facade with 400 individual windows forming an approximately 22,000 m2 (240,000 sq ft) large transparent outer skin. In the...

Turkey: Gold export story reaches an end At USD 7.3 bn, January’s foreign trade deficit was slightly above the market expectations (USD 7.0bn). As a result, 12-month cumulative trade deficit increased to USD 84.2bn in January from USD 84.0bn in December. Similarly, 12-month cumulative non-energy trade deficit increased to USD 31.9bn from USD 31.6bn. On a seasonally adjusted basis, exports and imports increased by 2% m/m and 9% m/m, respectively. Imports excluding gold and energy rose by 6% m/m on a seasonally adjusted basis, according to our calculations. On a 3m/3m basis, imports increased for the first time since August 2012, signalling that the monetary easing of the CBRT has finally reflected on import figures. Based on broad economic categories, imports of consumption goods increased 7.6% y/y, intermediate goods by 3.4% y/y, and capital goods by 8.2% y/y.

'Big Box' Outlook The ‘Big box’ outlook covers warehouse and distribution facilities of at least 250,000 square feet located around the United States. View report

Global Office Rent Cycle MarketView and Charts (Q4 2012) Prime Rent Performance Divergent in Q4 2012 Executive Summary (Read More: Global Office Rent Cycle MarketView and Charts (Q4 2012) ) ▶ Occupier demand remains circumspect and still broadly focused on prime space.

White House: Military, school and health cuts will hurt Kansas if sequester not averted Kansas will lose at least $79 million in funding for the state’s military bases and face about $10.8 million in cuts to education if Congress and the president can’t reach agreement to head off automatic budget cuts scheduled to begin Friday, according to a new White House report. http://blogs.kansas.com/gov/2013/02/25/white-house-military-education-and-health-cuts-will-hit-kansas-if-sequester-is-not-averted/

Economics Research | Asia Ex-Japan 25 February 2013 First Insights: China: HSBC flash PMI drops surprisingly The HSBC flash PMI dropped surprisingly to 50.4 in February from 52.3 in January (Consensus: 52.2; Nomura: 53.3). The new orders subcomponent fell to 50.9 from 53.1 in January and new export orders to 49.8 from 53.7. The output subcomponent fell to 50.9 from 53.1, while that for the stock of finished goods rose slightly to 49.8 from 49.6.

25 February 2013 Gustavo Arruda,Marcelo Carvalho,Nader Nazmi - Market Economics Daily Latam Spotlight | 25 Feb 2013 06:00 | Chile – We look for stronger IP and retail sales data this week. The focus this week will be on January industrial production and retail sales data, both due out on Thursday. We look for another month of performance divergence between manufacturing production and retail sales. Manufacturing production likely rebounded in annual terms in January, rising 3.6% y/y. In sequential (sa) terms, we look for a +1.9% m/m rebound in January, following a 2.2% monthly contraction in December. Real retail sales are estimated to have contracted in sequential terms in January, but should still post a strong 9.8% gain over a year ago.

Economics Research | Asia Ex-Japan | Nomura 25 February 2013 First Insights: China: Fuel price hikes add to inflationary pressures China last night announced a hike in gasoline and diesel retail prices, effective today. Increases of 3.5% and 3.8% have been applied, respectively, adding RMB300 and RMB290 to the prices per ton. This is the second major price hike announced in five days – on 20 February we saw the largest hike in the rail freight tariff rate since 2003, which was unusual in terms of timing as tariff hikes in Q1 are not common.

Uncovering ‘Diamonds in the Rough’ in Today’s Credit Markets Key Points: · There are still good opportunities for yield and total return in the credit markets, but there has been a shift in where and how investors can find them. · The credit markets have had a strong run since the market bottomed in 2009. Many investors searching for income have moved into riskier assets. · A "diamond in the rough" is a credit that is under-covered, or not actively followed or researched by many investors. At PIMCO, we identify these opportunities through our top-down and bottom-up investment process. · We’ve identified a number of sectors that appear poised for above-average growth. Housing is at the top of the list, and one of the few bright spots in the U.S. economy. Energy is another industry in which we’re seeing opportunity, and we are also bullish on select credits in emerging economies. http://www.pimco.com/EN/Insights/Pages/Uncovering-Diamonds-in-the-Rough-in-Todays-Credi...

Real Estate News Lenders more willing to provide debt for commercial – survey 22 February 2013 GLOBAL – The level of senior debt for UK commercial real estate projects could reach as much as £36bn (€41.4bn) in 2013 and new lenders could be willing to offer development financing for the property market, according to a survey conducted by the Real Estate Lending Forum (RELF). http://www.ipe.com/realestate/lenders-more-willing-to-provide-debt-for-commercial-survey_50236.php

Real Estate News Survey shows spike in real estate debt interest by institutionals 21 February 2013 GLOBAL – Institutional investors' interest for real estate debt has jumped over the past 12 months, with more than one-third seeking to allocate capital to the asset class against 8% a year ago, research from Preqin shows. The report found that, out of the more than 100 investors surveyed, 53% expect to make commitments to private real estate funds in 2013, while only 36% expressed similar views a year ago. http://www.ipe.com/

Eco Analysis - China's stubborn housing inflation risks further policy tightening (W. Yao) China January housing inflation accelerated to the fastest pace since early 2011. This report justifies Beijing's renewed hawkishness on the housing market. Further acceleration of housing inflation will most likely trigger more policy tightening. Meanwhile, RBA Governor Stevens sounded rather upbeat on the economy in testimony to Parliament, and rather disinclined to cut rates in the short term. Key points were that there is a good deal of stimulus in the pipeline from previous easing, and that the high A$ has been a key factor in the current low rate setting. In response, the A$ strengthened nearly 1c and short-term rates rose.

Will Floating LNG Revolutionise The Natural Gas Industry? Posted February 21, 2013 Floating liquid natural gas, the notion of performing gas liquefaction offshore on a floating vessel near the point of extraction, has seen a growth in interest since around 2006. Several companies prepared a Floating LNG concept and performed research to develop some non-existing, though indispensable, technological components. During the following years, the industry was marked by some long debates about whether the technology had progressed sufficiently for the deployment of the first unit. After years of discussion and investments, the first Floating LNG project, Shell’s Prelude, has finally been announced in 2011. Today the industry counts over 20 other FLNG projects and its business is sized to exceed 60 Billion USD for the next decade. http://theenergycollective.com/celinerottier/189491/will-floating-lng-revolutionise-natural-gas-industry

Economics Research | Asia Ex-Japan 22 February 2013 Asia Chart Alert: China: Property prices rose faster in January This should further pressure the government to tighten monetary and property market policies. Fig. 1: Property price growth and M2 growth

Housing and Core Inflation – It’s Complicated Laura Rosner - Market Economics US Daily Spotlight | 22 Feb 2013 03:15 | Markets were risk-off on Thursday, as equity markets sold off by more than 0.6% for the second day in a row, while the 10yr Treasury closed the day at 1.98%. Data for the day were unimpressive with jobless claims for the week suggesting only modest improvement in February payroll employment, existing home sales edging marginally higher and the February Philly Fed manufacturing index falling sharply (details of the report were less negative than the headline index implied). Meanwhile, core inflation was slightly stronger than expected in the January CPI report, mainly reflecting a rebound in core goods prices, but also modestly firmer increases in housing costs.

Fixed Income | Asia Ex-Japan 21 February 2013 Asia Insights: Reasons not to be too bullish on China · We reiterate our view that the consensus forecast for China’s economic growth is too optimistic. We expect GDP growth to slow in H2 to 7.3% y-o-y while the consensus expects it to be 8.1%. · We list five recent developments that support our cautious view, including local governments lowering their 2013 GDP growth targets by 0.5 percentage points (pp), and the severe air pollution problems that could spur Beijing to rethink its growth model. · The strength of coincident macro data may continue in Q1, but we believe leading policy indicators such as total social financing and M2 growth will soon moderate from currently high levels.

Oil and gas industry facing ‘a roller-coaster ride’ JOSH O’KANE The Globe and Mail Thursday, Feb. 21 2013, 6:00 AM EST Canada is home to the world’s third-largest proven oil reserves and is the sixth-largest producer of oil. But global economic conditions are pressuring fuel prices worldwide, and Canada’s oil and gas sector has the added frustration of a deficit in infrastructure that, among other things, is driving the price of western Canadian oil down by nearly $25 from benchmark West Texas Intermediate crude. http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/oil-and-gas-industry-facing-a-roller-coaster-ride/article8900814/

The Asian energy equation This article appears in full in the January/February issue of LNG Industry, to view the full article log-in here or you can register as a reader here . If, as the International Energy Agency speculates, we are about to enter a ‘Golden Age of Gas’, the Asia-Pacific region will be a major player in it. In particular, the region’s robustly growing energy needs, of which natural gas will play no small part, means that it will become a major focus for both existing and prospective exporters of LNG for the rest of this decade and beyond. http://www.energyglobal.com/

US LNG export capacity seen at 70 billion cu m/year by 2020: Goldman Sachs Houston (Platts)--20Feb2013/442 pm EST/2142 GMT The US likely would build liquefaction capacity totaling 70 billion cubic meters/yr (6.77 Bcf/d) between 2016 and 2020, according to Goldman Sachs analysts. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6177738

Asian Real Estate, Asset Owners Return LiveTradingNews.com wire staff report@livetradingnews.com Asian Real Estate, Asset Owners Return JLL An estimated $110-B is expected to flow into Asian commercial real estate in Y 2013, making up about 25% of the global total, according to Jones Lang LaSalle NYSE:JLL http://www.livetradingnews.com/asian-real-estate-asset-owners-return-105583.htm

20 February 2013 Asia Chart Alert: China: The largest hike in the rail freight tariff since 2003 It reinforces our view that CPI inflation will rise above 3.5% in H2 and lead to two interest rate hikes. Fig. 1: Rail freight tariff and its growth

http://www.realestate.bnpparibas.com/bnppre/en/market-research/overview/2012-reserved-growth-strong-fundamentals-february-2013-p_1567281.html 20/02/2013 Western Europe | Hotels Property Report H2 2012 2012: reserved growth with strong fundamentals - February 2013 At € 6 billion invested during 2012, the hotel investment volume in France, Germany, Italy, Spain and the United Kingdom suffered a 5% drop compared to the previous year.

LONDON REGAINS WORLD’S MOST EXPENSIVE OFFICE MARKET CROWN 19 Feb, 2013, London - London leapfrogs Hong Kong to take top spot for first time since 2008 - Rio de Janeiro soars from 8th to 3rd with a rental uplift of 43% on previous year - Global office rents increase by 3% http://www.cushwake.com/cwglobal/jsp/newsDetail.jsp?Country=GB&Language=EN&repId=c58100005p

U.S. LNG Exports: Increasingly A Reality February 19, 2013 | Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The past two months have been marked by a whole series of significant announcements in the U.S. LNG sector indicating that large-scale natural gas exports from the U.S. and Canada are firmly on track to become a reality. The headlines included three major long-term LNG supply agreements and the decisions by Chevron and Royal Dutch Shell to take equity stakes in LNG export projects. The announcements have several important implications and suggest that the LNG exports will not only have material consequences for the North American natural gas market but are already impacting pri...

Chelsea Harbour Chelsea Harbour is a mixed-use development in Central London, situated on the north bank of the River Thames, in the Sands End area. It lies within the eastern boundary of the London Borough of Hammersmith and Fulham and on the southwestern boundary of the Royal Borough of Kensington and Chelsea. It contains luxury apartments, a luxury hotel named Wyndham Grand, and offices and showrooms, surrounding a small marina. The development was designed by Architects Moxley, Jenner & Partners, - and built by P & O & Globe Investment Trust, through their subsidiary, Chelsea Harbour Ltd. The project management contractors were Bovis Homes Group and the development is now owned by Compco Holdings Ltd. The showrooms were originally named "Chelsea Garden Market", and are now known as the "Chelsea Harbour Design Centre". They consist of almost 66,000 sq.ft gross internal space with three large glazed domes over a galleria. The offices are in two build...

London regains crown as most expensive market for office space -report By Ilaina Jonas NEW YORK | Tue Feb 19, 2013 9:19 pm GMT (Reuters) - London elbowed its way past Hong Kong to regain the title as the world's most expensive market in which to rent office space, while Rio de Janeiro jumped to the No. 3 spot from No. 8, according to a report by global real estate services firm Cushman & Wakefield. http://uk.reuters.com/article/2013/02/19/uk-globalproperty-officerents-idUKBRE91I17N20130219

Biggest Buyers Retreat from Junk Bonds (Source: Bloomberg, February 15, 2013 ) According to Bloomberg, major institutional investors pulled back from junk bonds as exchange-traded funds (ETFs) experienced record withdrawals, marking the first losses in eight months. The combined value of the five largest junk-debt funds fell 7% from January highs, with State Street’s $11.9 billion fund alone seeing nearly $1 billion in withdrawals over 12 days. Analysts noted that institutions such as hedge funds and banks are shifting away from broad indexes, instead targeting specific bonds. Junk bond ETFs, which attracted $8 billion in 2012 amid strong returns, are now facing outflows as strategists forecast weaker performance in 2013. Prices have declined from record highs, with concerns that valuations are stretched after years of double-digit returns. Prominent investors including Dan Fuss of Loomis Sayles and Howard Marks of Oaktree Capital warned that the market is “overbought” and calle...

Are High Yield Corporate Bond ETFs Worth The Risk? by Daniela Pylypczak on February 15, 2013 Though equity markets may have started out 2013 with a bang as the Dow and S&P both hit multi-year highs, the fixed income space remains rather uncertain. With interest rates expected to stay at near-zero levels for the foreseeable future, investors have found it challenging to find meaningful yields. This task, however, is certainly not impossible as there are dozens of exchange-traded products that offer the potential for some big payouts [see 101 High Yielding ETFs For Every Dividend Investor ]. http://etfdb.com/2013/are-high-yield-corporate-bond-etfs-worth-the-risk/

Junk Bond ETFs: Are 5% Yields Worth the Risk? February 14th at 6:18am by John Spence High-yield corporate bond ETFs have been immensely popular but yields have been pushed so low that newcomers may not be getting adequately compensated for the risk of investing in speculative-grade debt. http://www.etftrends.com/2013/02/junk-bond-etfs-are-5-yields-worth-the-risk/

Lend Lease drives office wedge in Docklands Date February 13, 2013 Read later Simon Johanson Property Editor for The Age LEND Lease is set to launch a nine-level commercial building into a tight office market in Melbourne's Docklands after gaining planning approval on Tuesday. http://www.smh.com.au/business/property/lend-lease-drives-office-wedge-in-docklands-20130212-2eazj.html

http://www.colliers.com/en-us/sanfrancisco/insights 2012 | Year-End San Francisco Office Report >> San Francisco remains a bright spot in an otherwise cautious national office market. http://www.colliers.com/en-us/sanfrancisco/insights

Metals - Chile Chile's copper exports off to a good start in 2013 By Alexandra Demo-Dananberg - Tuesday, February 12, 2013 Chilean copper exports increased 8.52% to US$3.47bn in January, compared to US$3.20bn during the same month in 2012, according to figures compiled by the central bank. http://www.bnamericas.com/news/metals/chiles-copper-exports-off-to-a-good-start-in-2013

Carbon Markets Threatened If EU Backload Plan Fails, CEPS Says By Mathew Carr Europe will struggle to convince the rest of the world that carbon trading is the best way to tackle climate change if a plan to revive the price of the region’s permits fails, said the Centre for European Policy Studies.

Market Insight: Are High-Yield Bond ETFs Getting Too Risky? English 한국어 Hello. Today, we are reviewing an insightful piece from ETF Trends that asks a critical question: Have high-yield bond ETFs become too dangerous for investors after their massive rally? The article points out a shifting tide in the junk bond market. After a long period of attracting yield-hungry investors, these high-yield ETFs are starting to lose momentum and are currently slipping toward key technical support levels. A major red flag comes from Moody's, which notes that the safety covenants on these junk bonds have plummeted to all-time lows. This essentially means lenders have fewer protections if a company defaults. To make matters worse, investors are not being rewarded for taking on this extra risk. Because so many people are eager to buy these bonds, the extra yield they offer over safer investments has shrunk dramatically. Looking at the charts, ...

Freeport LNG signs liquefaction tolling agreement with BP February 11, 2013 By PennEnergy Editorial Staff Source: Freeport LNG Freeport LNG Expansion, L.P. (Freeport LNG) today announced that it had entered into a binding 20-year Liquefaction Tolling Agreement (LTA) with BP for 4.4 million tons per annum (mtpa), equivalent to the production capacity of the second train of Freeport LNG's proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas. The LTA with BP will commence upon completion of construction of the second liquefaction train. http://www.pennenergy.com/articles/pennenergy/2013/02/freeport-lng-signs-liquefaction-tolling-agreement-with-bp.html

February 7, 2013 Global Carbon Market Value Drops 35 Percent The value of global carbon markets fell 35 percent to €62 billion ($84 billion) in 2012, largely due to an oversupply of credits, according to analysis from Thomson Reuters Point Carbon.

Vacancy rates a tale of two cities February 7, 2013 Carolyn Cummins Commercial Property Editor The lack of new buildings in Sydney and too many in Melbourne has led to a dramatic difference in office vacancy rates since July last year. http://news.domain.com.au/domain/real-estate-news/vacancy-rates-a-tale-of-two-cities-20130207-2dzt2.html

Thursday, February 07, 2013 2:22:08 PM Institutional Investors in Real Estate Target Debt Funds Debt funds are being featured more prominently in the private real estate industry, data firm Preqin has claimed. (February 7, 2013) -- Institutional investors are increasingly interested in the value that real estate debt can add to their existing portfolios, Preqin has revealed. According to the data firm, a growing number of institutions believe that these funds can generate returns with a lower level of risk than equity investments in real estate. Consequently, a significant number of investors plan to commit to funds with a debt strategy in 2013. http://www.ai-cio.com/channel/NEWSMAKERS/Institutional_Investors_in_Real_Estate_Target_Debt_Funds.html

The Real Estate Debt Fund Market - February 2013 Recent years have seen debt funds feature more prominently in the private real estate industry, with many firms diversifying their businesses to include specialist debt platforms and a growing number of fund managers incorporating the acquisition or origination of real estate debt into their existing investment strategies. As the availability of bank financing has fallen in the US and Europe, many fund managers, alongside other non-traditional lenders, are increasingly stepping in to help fill the funding gap. https://www.preqin.com/blog/101/6189/re-debt-fund-market

70 per cent of London offices sold in 2012 went to foreign buyers 05 February 2013 Today Knight Frank unveiled its latest analysis and forecasts for the central London office market at the Dorchester Hotel. Key points were: http://www.knightfrank.com/news/70-per-cent-of-london-offices-sold-in-2012-went-to-foreign-buyers-01595.aspx

http://news.efinancialcareers.com/uk-en/133810/so-you-want-to-work-for-bill-winters/ Bill Winters, ex-investment banking head at JPMorgan, seems to be hiring by Sarah Butcher 6 February 2013 Yesterday’s appearance of a tanned and erudite (if not entirely relaxed) Bill Winters in front of the UK Parliamentary Commission on Banking Standards, was a reminder that the popular JP Morgan banker hasn’t faded into obscurity as Jamie Dimon might have hoped.

The City That Oil Built Gets a Retrofit for The Latest Gusher 02/5/2013 HOUSTON -- On the outskirts of this sprawling city's core, Royal Dutch Shell PLC is in the midst of a major expansion of its corporate offices. http://www.energycorridor.org/news/news-list/news-item?title=the-city-that-oil-built-gets-a-retrofit-for-the-latest-gusher

Chile: Robust economic performance continued in December Florencia Vazquez - Market Economics Latam Macro Snapshot | 05 Feb 2013 14:03 | 42 Kb Economic activity was reported to have advanced 4.7% y/y in December according to the monthly proxy for real GDP (Imacec) unveiled by the central bank. Performance stood fairly in line with our forecast and visibly ahead of the Bloomberg consensus (4.8% and 3.7% y/y, respectively).

First Insights: China: Government announces reform plan to improve income distribution The Chinese government announced its plan to reform income distribution today. This is an important reform plan which has been debated by the government for many years. Our comments:

High-Yield Bond ETFs: Rush for the Exits? February 5th at 1:00pm by John Spence The cash outflows in the largest junk bond ETFs such as iShares iBoxx High Yield Corporate Bond (NYSEArca: HYG) and SPDR Barclays High Yield Bond (NYSEArca: JNK) have analysts wondering whether the pullback is a healthy correction after a strong rally, or a sign of something more serious in credit markets. http://www.etftrends.com/2013/02/high-yield-bond-etfs-rush-for-the-exits/

Sabine Pass Liquefaction Closes USD 1.5 Billion Private Placement, USA Posted on Feb 4th, 2013 Cheniere Energy Partners said that its wholly owned subsidiary, Sabine Pass Liquefaction, has closed the previously announced private placement of $1.5 billion aggregate principal amount of its 5.625% Senior Secured Notes due 2021. http://www.lngworldnews.com/sabine-pass-liquefaction-closes-usd-1-5-billion-private-placement-usa/

First Insights: China: First annual capital account deficit since 1998 China’s capital account recorded a deficit of US$117bn in 2012, the first capital account deficit since 1998. Net FDI inflows rose slightly to US$180bn in 2012 from US$179bn in 2011, but were offset by net portfolio and other financial outflows.

Chile: Policy minutes reflect increasing concerns about inflation Florencia Vazquez - Market Economics Latam Macro Snapshot | 01 Feb 2013 14:34 | The minutes of the January monetary policy meeting showed that the central bank is less concerned about (diminished) external downside risks to growth and increasingly worried about the implications for inflation of the persistently robust economic performance (which have not yet materialized).

Is the Trend Our Friend? Julia Coronado - Market Economics US Daily Spotlight | 04 Feb 2013 00:20 | Last week’s US data provided some big headline surprises, but, on balance, provided some key signals on the state of the US recovery. While Q4 GDP surprised sharply to the downside with a small decline, December construction data on Friday already suggested a small upward revision to a flat reading. Smoothing through the Q3 and Q4 offsetting surprises, the message seems to be the underlying run rate of the economy through 2012 was about 1.5%, somewhat below our prior estimate closer to 2.0%. While January payrolls were close to expectations, benchmark revisions going back to March 2011 suggest a higher trend pace of hiring. Nonfarm payrolls averaged 181k in 2012 and 175k in 2011. This more robust estimate of hiring coupled with a gradual, steady decline in the unemployment rate suggests trend growth in the US may be slower than most current estimates.

Chile Sees 2013 Copper Production Boost Contributing to Global Surplus Friday February 1, 2013, 4:00am PST By Ragnhild Kjetland - Exclusive to Copper Investing News Even as copper producers are halting or delaying large new projects, Chile — the world’s largest source of copper — is expecting record output to push global supply above demand for the first time since 2009, potentially depressing copper prices toward the end of the year. http://copperinvestingnews.com/13768-chile-copper-production-boost-2013-contributing-global-surplus-bhp-anto-price.html