Posts Tagged ‘Counterparts’
Roubini’s Canada Outlook: Supported by Easier Credit and Commodities Recovery
Tuesday, August 18th, 2009
Nouriel Roubini’s RGE Monitor recently published “Are There Bright Spots Amid the Global Recession?,” which provides a comprehensive global economies roundup, and says that Canada’s economy will lag that of the US, though it is supported by easier credit conditions, stronger banks, and the commodities recovery.
Canada
Despite relatively sound finances that helped it outperform the rest of the G7 in 2008 and early 2009, Canada’s exposure to the U.S. for trade and investment suggests its recovery may lag that of the U.S. (a trend that Q2 2009 data seems to support). However, a more consolidated financial sector with lower leverage, lower default rates, as well as a revival of domestic demand, should support recovery in 2010, albeit one characterized by below- potential growth. Canadian households and corporations still have more access to credit than their U.S. counterparts, a factor that helped buffer Canada from a more severe property market correction. Yet the nascent revival in consumption may be weaker than the Bank of Canada expects. The rebound in commodity prices is mixed news. Higher commodity prices and greater demand for metals, if not yet for oil and cheap natural gas, should contribute to an expansion of mining and energy output–but too strong a surge could boost the Canadian dollar, exacerbating Canada’s manufacturing weakness as it boosts labor costs.
Source: RGE Monitor, August 5, 2009
Tags: Bank Of Canada, Banks Canada, Canada, Canadian Dollar, Canadian Households, Commodities, Commodity Prices, Counterparts, Default Rates, Energy Output, Financial Sector, G7, Global Economies, Global Recession, Leverage, Natural Gas, oil, Rebound, Recovery Canada, Revival, Roubini, Roundup
Posted in Commodities, Markets | No Comments »
Emerging Markets Versus G7
Thursday, April 23rd, 2009
BCA Research has published the following daily note about the relative strength of Emerging Markets versus G7 equity markets.
Our Emerging Markets Strategy service remains bullish on many emerging stock markets in Asia and Latin America relative to their G7 counterparts.
Emerging market equities bottomed late October and did not break to new lows in March along with U.S. and European indexes. Consequently, emerging market relative performance has been spectacular. Heading forward, there is still risk that renewed weakness in the global equity benchmark will weigh on emerging market stocks. Still, in relative terms, we expect outperformance to persist throughout this year. This is consistent with our bias that the current problems in the developing world are cyclical in nature, not structural as is the case in the U.S. and U.K. Bottom line: A correction in global equities would be a drag on emerging market share prices in absolute terms. However, the relative outlook remains appealing and investors should continue to overweight emerging markets in a global equity portfolio.
Tags: Absolute Terms, Bca Research, Benchmark, Counterparts, Developing World, Drag On, Emerging Market Stocks, Emerging Markets, Emerging Stock Markets, European Indexes, Global Equities, Global Equity, Latin America, Lows, Market Share, Relative Performance, Relative Strength, Relative Terms, Share Prices, Strategy Service
Posted in Emerging Markets, Markets | No Comments »
Mobius: Positive on Commodities, China
Monday, September 1st, 2008
Mark Mobius, executive chairman of Templeton Asset Management, is very positive on commodities, especially integrated emerging markets oil companies including Chinese and Indian energy firms like Reliance. He shares his views with CNBC’s Martin Soong and Sri Jegarajah.
click to view video
“China’s Still a Great Investment”
The long-term story in China is still very bright. And investors should take note that H-shares are currently trading at a substantial discount to their A-share counterparts says Mark Mobius, executive chairman at Templeton Asset Management. He also goes further afield to say that Russia is in a sweet spot, that Putin has done all the right things for Russia and comments positively that Russia’s diplomacy in the Georgia affair has far reaching foreign relations benefits.
click to view video
Tags: Asia, Caption, China, China Mark, Cnbc, Commodities, Counterparts, Diplomacy, Emerging Market, Emerging Markets, energy, Energy Firms, Executive Chairman, Foreign Relations, Gold, India, Indian Energy, Iron Ore, Mark Mobius, Markets, Martin Soong, Metals, nickel, oil, Oil and Gas, Oil Companies, Putin, Reliance, risk, Russia, S Martin, Substantial Discount, Sweet Spot, Templeton Asset Management, Trading, Video
Posted in Commodities, Emerging Markets, Markets, Oil and Gas | No Comments »
