Potential growth has likely slowed to 7.0-7.5%, while we expect inflation to exceed consensus levels in 2013.
Monday, January 21, 2013
Asia Chart Alert: China: Working-age population falls in 2012; sooner than expected
Asia Chart Alert: China: Working-age population falls in 2012; sooner than expected
Potential growth has likely slowed to 7.0-7.5%, while we expect inflation to exceed consensus levels in 2013.
Potential growth has likely slowed to 7.0-7.5%, while we expect inflation to exceed consensus levels in 2013.
Searching for ‘Safe Spread’ with PIMCO’s Diversified Income Strategy
Searching for ‘Safe Spread’ with PIMCO’s Diversified Income Strategy
· Diversified Income can add yield potential to global credit portfolios while managing risk in different market environments.
· Many investors are reluctant to invest in more volatile asset classes after the financial crisis.
· The search is on for “safe spread” – sectors that we believe are most likely to provide attractive yields while withstanding the fluctuations of a wide range of possible economic scenarios.
· PIMCO’s Diversified Income Strategy, a diversified blend of corporate and emerging market securities, seeks to offer higher yields without taking on excessive additional risk.
· Diversified Income can add yield potential to global credit portfolios while managing risk in different market environments.
· Many investors are reluctant to invest in more volatile asset classes after the financial crisis.
· The search is on for “safe spread” – sectors that we believe are most likely to provide attractive yields while withstanding the fluctuations of a wide range of possible economic scenarios.
· PIMCO’s Diversified Income Strategy, a diversified blend of corporate and emerging market securities, seeks to offer higher yields without taking on excessive additional risk.
Saturday, January 19, 2013
Chile: BCCh kept policy rate unchanged at 5.0% and issued little changed statement
Chile: BCCh kept policy rate unchanged at 5.0% and issued little changed statement
Florencia Vazquez - Market Economics
Latam Macro Snapshot | 17 Jan 2013 21:47 |
Chile’s central bank decided to keep the policy rate unchanged at 5.0% at today’s monetary policy meeting. The decision stood in line with both our forecast and the consensus. January is the 12th straight month of no changes to the policy rate after the monetary authority eased 25bp in January 2012.
Florencia Vazquez - Market Economics
Latam Macro Snapshot | 17 Jan 2013 21:47 |
Chile’s central bank decided to keep the policy rate unchanged at 5.0% at today’s monetary policy meeting. The decision stood in line with both our forecast and the consensus. January is the 12th straight month of no changes to the policy rate after the monetary authority eased 25bp in January 2012.
Friday, January 18, 2013
Focus on West Houston: Energy Corridor, Katy and Westchase
Jan 18, 2013, 5:00am CST
Geographic Spotlight
Focus on West Houston: Energy Corridor, Katy and Westchase
Emily Wilkinson
Assistant Managing Editor-
Houston Business Journal
Home to several Fortune 500 companies as well as prominent private businesses ranging from health care to manufacturing, it’s been boom times lately in west Houston. With several significant projects on the horizon bringing hundreds of thousands of jobs to the area, indicators signal west Houston’s growth momentum will not be slowing anytime soon.
http://www.bizjournals.com/houston/print-edition/2013/01/18/west-houston-energy-corridor-katy.html
Geographic Spotlight
Focus on West Houston: Energy Corridor, Katy and Westchase
Emily Wilkinson
Assistant Managing Editor-
Houston Business Journal
Home to several Fortune 500 companies as well as prominent private businesses ranging from health care to manufacturing, it’s been boom times lately in west Houston. With several significant projects on the horizon bringing hundreds of thousands of jobs to the area, indicators signal west Houston’s growth momentum will not be slowing anytime soon.
http://www.bizjournals.com/houston/print-edition/2013/01/18/west-houston-energy-corridor-katy.html
Wednesday, January 16, 2013
China has the capacity to lead in carbon trading
China has the capacity to lead in carbon trading
Pilot schemes launched this year could be the start of a world-class system — if the country can solve its data-gathering problems, says Qiang Wang.
15 January 2013
The value of the world’s carbon market fell for the first time last year. More than one-third was wiped from the price of carbon credits in a plunge that reflects the continued global economic crisis and uncertainty over the future of emissions-trading schemes.
http://www.nature.com/news/china-has-the-capacity-to-lead-in-carbon-trading-1.12212
Pilot schemes launched this year could be the start of a world-class system — if the country can solve its data-gathering problems, says Qiang Wang.
15 January 2013
The value of the world’s carbon market fell for the first time last year. More than one-third was wiped from the price of carbon credits in a plunge that reflects the continued global economic crisis and uncertainty over the future of emissions-trading schemes.
http://www.nature.com/news/china-has-the-capacity-to-lead-in-carbon-trading-1.12212
Fitch affirms Gas Natural at 'BBB+'; stable outlook
Fitch affirms Gas Natural at 'BBB+'; stable outlook
Wed Jan 16, 2013 7:17am EST
Jan 16 - Fitch Ratings has affirmed Gas Natural SDG, S.A.'s Long-term Issuer Default Rating (IDR) at 'BBB+' and removed it from Rating Watch Negative (RWN). The Outlook is Stable. A full list of rating actions is below.
The rating actions follow the approval by the Spanish government of a set of measures on 27 December 2012 designed to prevent generation of future tariff deficit (TD) in the electricity system in Spain. The current regulatory scheme presents slight changes compared with the draft measures published in September 2012. The main difference is that a flat 7% tax has been fixed to all power generation compared with the previous proposal of 6%. Fitch does not expect this to have a significant impact on Gas Natural's credit metrics. The other approved measures were largely unchanged.
Wed Jan 16, 2013 7:17am EST
Jan 16 - Fitch Ratings has affirmed Gas Natural SDG, S.A.'s Long-term Issuer Default Rating (IDR) at 'BBB+' and removed it from Rating Watch Negative (RWN). The Outlook is Stable. A full list of rating actions is below.
The rating actions follow the approval by the Spanish government of a set of measures on 27 December 2012 designed to prevent generation of future tariff deficit (TD) in the electricity system in Spain. The current regulatory scheme presents slight changes compared with the draft measures published in September 2012. The main difference is that a flat 7% tax has been fixed to all power generation compared with the previous proposal of 6%. Fitch does not expect this to have a significant impact on Gas Natural's credit metrics. The other approved measures were largely unchanged.
Tuesday, January 15, 2013
Germany: 2013 Will be Better Than it Looks
Germany: 2013 Will be Better Than it Looks
Evelyn Herrmann
The German economy grew 0.7% in 2012 compared to the previous year. After adjusting for calendar effects, German GDP grew 0.9% in real terms for 2012, according to the preliminary estimates released by the German federal statistics office yesterday. We typically watch and forecast seasonally and calendar-adjusted growth. The average annual growth would imply a quarterly contraction of 0.3% q/q in Q4 2012, in line with our forecasts.
Evelyn Herrmann
The German economy grew 0.7% in 2012 compared to the previous year. After adjusting for calendar effects, German GDP grew 0.9% in real terms for 2012, according to the preliminary estimates released by the German federal statistics office yesterday. We typically watch and forecast seasonally and calendar-adjusted growth. The average annual growth would imply a quarterly contraction of 0.3% q/q in Q4 2012, in line with our forecasts.
Turkey: Unemployment rate declined despite the record high participation rate
Turkey: Unemployment rate declined despite the record high participation rate
In October, unemployment rate remained unchanged at 9.1% while non-farm unemployment rate decreased 0.2pp to 11.4%. On a seasonally adjusted basis, unemployment rate decreased to 9.3% from 9.4% in September and non-farm unemployment rate declined 0.3pp to 11.7%. The unemployment rate declined in spite of the new record high participation rate which increased to 50.7% from 50.3% in September.
In October, unemployment rate remained unchanged at 9.1% while non-farm unemployment rate decreased 0.2pp to 11.4%. On a seasonally adjusted basis, unemployment rate decreased to 9.3% from 9.4% in September and non-farm unemployment rate declined 0.3pp to 11.7%. The unemployment rate declined in spite of the new record high participation rate which increased to 50.7% from 50.3% in September.
Monday, January 14, 2013
US: Open-mouth Operations at Work
US: Open-mouth Operations at Work
Yelena Shulyatyeva and Bricklin Dwyer
Chairman Bernanke stuck very close to the party line during his conversation today at the University of Michigan, and did not alter or deviate from that message. When given the chance to push back on the market's response to the December FOMC minutes, he didn't. Unlike some of the FOMC participants we heard from yesterday, Chairman Bernanke did not provide any guidance on the timing of asset purchases. In our view, he is likely in the camp of FOMC members who “emphasized the need for considerable policy accommodation but did not state a specific time frame or total for purchases.” The Chairman said that QE has been effective in the past and that the latest round looks like it is working, but cautioned that it is too early to make an assessment. He still sees the labour market as weak, the economy as fragile and the cost of letting unemployment persist at current levels enormous. He reiterated two main tools are at the Committee's disposal: forward guidance, otherwise known as “open-mouth operations,” and QE. Going forward, the FOMC will need to consider how effective these policies are and evaluate their costs and benefits.
Yelena Shulyatyeva and Bricklin Dwyer
Chairman Bernanke stuck very close to the party line during his conversation today at the University of Michigan, and did not alter or deviate from that message. When given the chance to push back on the market's response to the December FOMC minutes, he didn't. Unlike some of the FOMC participants we heard from yesterday, Chairman Bernanke did not provide any guidance on the timing of asset purchases. In our view, he is likely in the camp of FOMC members who “emphasized the need for considerable policy accommodation but did not state a specific time frame or total for purchases.” The Chairman said that QE has been effective in the past and that the latest round looks like it is working, but cautioned that it is too early to make an assessment. He still sees the labour market as weak, the economy as fragile and the cost of letting unemployment persist at current levels enormous. He reiterated two main tools are at the Committee's disposal: forward guidance, otherwise known as “open-mouth operations,” and QE. Going forward, the FOMC will need to consider how effective these policies are and evaluate their costs and benefits.
UK: House Hunting
UK: House Hunting
David Tinsley
One of the interesting and potentially useful developments in the UK recently has been some signs that the housing market might be firming up. The latest indicators in this regard will bear watching carefully over the first few months of this year.
David Tinsley
One of the interesting and potentially useful developments in the UK recently has been some signs that the housing market might be firming up. The latest indicators in this regard will bear watching carefully over the first few months of this year.
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