Aug. 16 (Bloomberg) — Bloomberg’s Nicole Itano reports from Hamburg on the city’s economy as German economic growth almost stalled in the second quarter. (Source: Bloomberg)
Freris Says `Don’t Buy, Don’t Sell’ Stocks, Most Bonds
Aug. 16 (Bloomberg) — Andrew Freris, a senior investment strategist for Asia at BNP Paribas Wealth Management, talks about the outlook for the global economy and his investment strategy. Freris speaks in Hong Kong with Susan Li, Rishaad Salamat, Zeb Eckert and John Dawson on Bloomberg Television’s “Asia Edge.” (Source: Bloomberg)
Macquarie’s Cavey Sees China Next Raising Rates in 2012
Aug. 16 (Bloomberg) — Paul Cavey, a Hong Kong-based economist with Macquarie Securities Ltd., talks about China’s economy, central bank monetary policy and currency. Cavey speaks from Taipei with Rishaad Salamat on Bloomberg Television’s “On the Move Asia.” (Source: Bloomberg)
Daiwa’s Lai Says Hong Kong Economy Headed for Recession
Aug. 16 (Bloomberg) — Kevin Lai, an economist at Daiwa Capital Markets in Hong Kong, talks about the outlook for the city’s economy. Of nine economists in a Bloomberg News survey, Lai came closest to predicting a 0.5 percent contraction in the city’s economy in the second quarter. Lai also discusses China’s economic growth. He speaks with Susan Li on Bloomberg Television’s “First Up.” (Source: Bloomberg)
Bhundia Says Yen May Strengthen to 75 in Short Term
Aug. 16 (Bloomberg) — Ashok Bhundia, a fixed-income strategist at Bank of America Merrill Lynch in Hong Kong, talks about the outlook for Asian currencies. Bhundia also discusses Reserve Bank of Australia and Bank of Japan monetary policy. He speaks with Rishaad Salamat on Bloomberg Television’s “On the Move Asia.” (Source: Bloomberg)
Gardner Says Commodities Should Make Up 5% of Portfolio
Aug. 16 (Bloomberg) — Robert Gardner, co-chief executive officer of Redington Partners LLP, talks about asset allocation at pensions funds and investment strategy. He speaks wih Francine Lacqua on Bloomberg Television’s “The Pulse.” (Source: Bloomberg)
Norway Pledges to Counter NOK Strength
Headline news in Scandinavia this week revealed a recent pledge by Norway’s central bank to begin addressing its currency’s unnatural rise in strength. The Norwegian krone (NOK) tends to track the value of crude oil in the market, but the past several weeks have seen a rising NOK despite falling oil prices. The result has been a gouging effect on the nation’s exports.
Some analysts see in the recent currency shifts a sudden disconnect emerging between the price of oil and the value of the krone. Though oil prices have slumped significantly these past few days, the NOK has so far risen over 12% against the US dollar (USD) since late last year and recently touched a 4-year peak versus its regional neighbor, the euro (EUR). A recent surge in the nation’s budget surplus, and its still-AAA credit rating, have also driven many investors into the store of value its currency holds during a time of market turmoil.
In order to stave off hastily-made interest rate hikes, Norway’s Finance Minister, Sigbjoern Johnsen, stated his intention to begin adjusting the nation’s fiscal policies in order to help lower the pressure being placed on the nation’s currency, according to an article in Bloomberg. What impact this policy maneuver will ultimately have will depend on the size and scope of the intervention.
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American Housing Growth on Target
Despite recent dips in the output of manufacturing and industrial production across key sectors of the American economy, the housing market does appear to be weathering the storm relatively better. Today’s publication of two significant housing figures supports this notion.
The US Census Bureau published its latest national findings on the issuance of building permits and the initiation of housing starts for the month of July. Forecasts for both figures were near 600,000. The actual results came almost perfectly in line with these expectations. The Building Permits report was 10,000 units below forecast, but this was not significant enough to warrant bearishness. American housing investments seem to be holding steady, and occasionally rising, despite rampant pessimism in the market.
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British Inflation Sign of Progress
This morning’s publication of British inflationary data has helped generate minor elements of market optimism towards the island nation’s economy. Though the growth figures were only modestly above targets, the accelerating growth is a sign of future hikes in demand for the nation’s currency, the pound (GBP).
The consumer and retail price indices (CPI and RPI, respectively) were released Tuesday at 9:30 GMT by the Office of National Statistics in the UK. Though the RPI figure showed an expected 5% growth in retail price inflation, the CPI figure highlighted better-than-forecast growth of 4.4%. Both figures are presented in annualized format and seem to represent solid year-on-year growth for the British economy.
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Wattret Says Euro-Zone Economy May `Decline’ in 2nd Half
Aug. 16 (Bloomberg) — Ken Wattret, chief euro-area economist at BNP Paribas SA, discusses the outlook for the euro-zone economy, which slowed more than economists forecast in the second quarter. He talks with Francine Lacqua on Bloomberg Television’s “The Pulse.” (Source: Bloomberg)
