_Economy and Finance

Chile: Two Activity Roads Diverged More Nader Nazmi, Oscar Munoz - Market Economics Latam Macro Snapshot | 28 Jun 2013 18:26 | 242 Kb Supply and demand data diverged further in May. Retail sales data showed continued strong consumer demand while manufacturing and IP data reflected slowing production. Manufacturing production declined 4.2% y/y in May, surprising our and market expectations projecting expansions of 1.3% and 1.7% y/y, respectively. The setback in manufacturing production was broad-based with eight of its thirteen divisions retreating in the month. Apart from being impacted by a high comparison base, the main contribution to the annual contraction came from lower production of chemicals (-12.6% y/y).

Commerzbank Corporates & Markets Economic Research https://research.commerzbank.com Economic Briefing Germany: Inflation back in the 2% area German consumer prices surprisingly rose 0.2% month-on-month in June. Food prices were up significantly once again, probably at least in part due to the floods in Germany. Numerous services became more expensive as well. This development seems to be a consequence of strong wage growth. The rate of inflation jumped from 1.5% in May to 1.9% in June. Kind regards, Ulrike Rondorf

http://www.ft.com/intl/cms/s/0/beb522f2-da80-11e2-a237-00144feab7de.html#axzz2ovCeaSgm June 23, 2013 4:57 am Brookfield overtakes CBRE as top real estate manager By Steve Johnson Los Angeles-based CBRE Global Investors has lost its position as the world’s largest real estate fund manager.

Money never sleeps pal. - Michael Douglas as Gordon Gekko from Wall Street (1987)

http://sf.uli.org/san-francisco/bay-area-office-market-still-hot/ Bay Area Office Market Still Hot Posted on June 20, 2013 by ULI On Tuesday, June 11 well over two hundred industry enthusiasts gathered at the Hyatt Regency in San Francisco to hear the office sector’s finest professionals opine on market conditions as well as inform attendees about their current projects.

MELBOURNE DOCKLANDS NEW HOME TO MARSH & MCLENNON COMPANIES' THIRD LARGEST OFFICE Australia, Melbourne Publication date: 17 June 2013 Melbourne is now home to Marsh & McLennan Companies’ (NYSE: MMC) third largest office worldwide, behind only New York and London. The relocation of the Melbourne headquarters of Mercer, Marsh, Guy Carpenter and Oliver Wyman to the newly-built Collins Square development at 727 Collins Street adds further support to Docklands’ claim of being Melbourne’s financial services hub. http://www.mercer.com/press-releases/office-move-docklands

Melbourne office market weakness to be sustained beyond 2013 – New BIS Shrapnel report by BIS Shrapnel The new BIS Shrapnel Melbourne Commercial Property Prospects 2013-2023 report reveals sustained weakness in the Melbourne office market. http://www.infolink.com.au/c/BIS-Shrapnel/Melbourne-office-market-weakness-to-be-sustained-beyond-2013-New-BIS-Shrapnel-report-n2502654

Property Investor Europe News European CRE funding gap down 42% as non-banks take over – DTZ 06 June 2013, 06:24 AM Europe’s net debt funding gap for commercial real estate in 2013-2014 has fallen by 42% to $50bn over the past six months due to continued bank de-leveraging and strongly growing non-bank lending, says realtor DTZ. http://www.pie-mag.com/articles/5503/european-cre-funding-gap-down-42-as-non-banks-take-over-dtz/

CHINA NEWS June 6, 2013, 5:30 a.m. ET China's Jinchuan May Halve Its Copper Supply The Company's Force Majeure Will Likely Push Copper Prices, Premiums Higher By CLEMENTINE WALLOP And YUE LI A major Chinese copper producer has declared force majeure at one of its smelters, in a move that is likely to halve the amount of metal it supplies to customers for the next few months. http://online.wsj.com/article/SB10001424127887324299104578528731246475470.html

A new Secular Outlook Series Q&A with Josh Thimons and Lupin Rahman is available on pimco.com . Will Green Shoots Flourish in U.S. and Latin America? · The U.S. economy is much further along the road to repair relative to its developed market peers, but it is still dealing with an unsustainable fiscal situation. · Latin America is closely coupled to the rest of the world. What happens in the U.S., China and Europe over the secular horizon is especially critical. · Our secular investment outlook calls for a more defensive posture toward risk. In U.S. fixed income, this suggests positioning for alpha rather than capital appreciation. And given increasing differentiation across Latin America, investors should stay consistently aware of credit risks.

June 3, 2013 5:50 pm How Shinzo Abe could win the Nobel Peace Prize By James Clad and Robert Manning A grand gesture will endear Japan to its neighbours, say James Clad and Robert Manning Shinzo Abe has summoned the ghosts of nationalism in the Pacific. Neighbouring countries are worried by the Japanese prime minister’s revisionism concerning the historical behaviour of his country. The impact of this on Sino-Japanese relations tends to receive most attention in the western media. But there is also an increasingly fractious relationship between Japan and South Korea. Here, though, Mr Abe can and should make a bold move to dramatically improve his standing and transform the region. http://www.ft.com/intl/cms/s/0/d22d9bb2-cc2e-11e2-bb22-00144feab7de.html#axzz2VI5rN4LG

Our brothers keep careful accounts. - Chinese Proverb

Eco Analysis - UK economy shaping up for a strong Q2 (H. Amourda, B. Hilliard) Very few data were released today. Spanish registered unemployment change declined by nearly 98.3k people ahead of the summer. In the UK, the BRC survey points to a rebound in sales in May while the construction PMI rose to 50.8 from 49.4 on the back of a strong jump in the housing component. On Wednesday, we expect the May services PMI to post some strong gains in Spain and Italy, while the divergence between the euro area and the UK should pause in May.

Interviews In anticipation of the GRI Europe Summit 2013, we have asked some of the participating industry leaders for their comments on the European market’s challenges and solutions. “The more turmoil in the world, the more people will appreciate the stability and the continuity of Europe” Samih Sawiris CHAIRMAN & CEO Orascom Development Holding SWITZERLAND “… as always, property is a local business, therefore picking specific sectors in specific locations will continue to differentiate the good investor from the average investor.” Fergal Feeney HEAD OF ASSET RECOVERY IBRC UK http://www.globalrealestate.org/Europe2013/Interviews