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February 19, 2013 Sign up Forward Archive   Top Stories    Japan's Abe under scrutiny as he ups pressure on central bank    Abe/Reuters Japanese Prime Minister Shinzo Abe is looking to achieve more accountability from the Bank of Japan in his inflation drive with a call to re-examine the law governing the bank if it falls short. Meanwhile, though Japan escaped any direct criticism over its monetary policy at the recently concluded Group of 20 summit, observers say Abe is under pressure to demonstrate a balanced approach to reviving the nation's economy rather than rely primarily on currency devaluation. Yomiuri Shimbun (Japan) (2/18) , The Wall Street Journal (2/18)      S&P affirms Japan rating with note of caution Standard & Poor's affirmed its AA- credit rating with a negative outlook for Japan, noting that "measures adopted by the new Shinzo Abe administration at the beginning of its term will be critical if it is to arrest what we see as a prolonged decline in Japan's sovereign credit standing." The ratings agency added, "We would lower the ratings if we thought that government policies would be ineffective in ending deflationary pressures or in maintaining current rates of real economic growth." Bloomberg Businessweek (2/18)      India's trade deficit threatens bond rating Ratings agency Moody's says India's bond rating may drop below investment grade if the nation doesn't close its international trade gap. India's January trade deficit widened to US$20 billion, the second highest on record. The Economic Times (India)/Press Trust of India (2/18)      RBI chief sees little rate-cut room; OECD calls for more FDI Hopes for significant help for India's struggling economy from the central bank dimmed as Governor D. Subbarao noted again the restraints imposed by the twin perils of untamed inflation and a growing current-account deficit. Separately, the Organization for Economic Cooperation and Development said India's economy would benefit most from lower barriers to foreign direct investment and firmer action on the regulatory front. The Economic Times (India)/Press Trust of India (2/18) , The Economic Times (India)/Press Trust of India (2/18)      U.S. consumers still strapped despite rebounding shares, home prices    Krueger/Reuter Most of the US$16 trillion lost by American consumers over the course of the economic downturn has been recovered, but mainly in the form of a rising stock market and a recovering housing market, Alan Krueger, chairman of the White House Council of Economic Advisers, said in an interview. With the pressing need to save for retirement and children's educations, U.S. consumer spending is likely to remain subdued, Krueger said. The Wall Street Journal (2/18)      Income gains in recovering U.S. economy bypass most Americans All the income gains from the U.S. economic recovery that began in 2009 have gone, on average, to the upper 1%, according to an analysis by economist Emmanuel Saez of the University of California, Berkeley. In fact, real incomes for the lower 99% are less than they were at the end of the recession. Saez says this pattern of upward income redistribution is expected to persist. CBS MoneyWatch (2/17)      Draghi says ECB keeping on eye on persistently strong euro The abiding strength of the euro poses the threat of lowering inflation too much as the European Central Bank backs off some of its crisis measures, bank President Mario Draghi said. "We will have to assess in the coming projections whether the exchange rate has had an impact on our inflationary profile, because it's always through price stability that we address issues like that," Draghi told European lawmakers in Brussels. Reuters (2/18)      Quick return to growth is seen for Germany After a larger-than-expected 0.6% contraction in the fourth quarter, the German economy is expected to expand in the current period, led by industrial output, the Bundesbank projects. However, stronger growth later in the year will depend on developments in the eurozone, Economy Minister Philipp Roesler said in an interview. Bloomberg Businessweek (2/18) , The Wall Street Journal (2/17)      BlackRock warns over collateral switch for covered bonds Using small-to-medium-sized companies to back covered bonds rather than real estate or public-sector debt runs the risk of devaluing them and undermining their safety, BlackRock warns. "We should be very protective of the covered bond market because it's had certain features for so many years, including the resilience of the collateral, and it's a very safe asset class. We don't think these are covered bonds," said Jozef Prokes, a London-based fund manager at BlackRock. Bloomberg (2/18)        Application for National Membership of MCX-SX MCX Stock Exchange (MCX-SX) has received permission from SEBI to trade in Equity, Equity F&O, Interest Rate Derivatives and Debt Segment. Membership is offered in Composite Member, Professionally Qualified Member and Rural Entrepreneur Member categories. For membership dossier, visit Corporate/Regional offices or visit our website.     Market Activities  INTERNATIONAL MARKETS OVERVIEW European stocks edged down in largely directionless trading Monday, with the Stoxx Europe 600 losing 0.20% to 286.76. The U.S. stock market was closed for a holiday. Here is a continuously updated list of global stock indexes. The Wall Street Journal (2/19) , The Wall Street Journal (2/18)      Japan leads advancing Asian markets Japanese shares surged Monday after Group of 20 ministers refrained from any direct attack on Japan's stimulus policies, and other Asian markets finished with more modest gains. The Nikkei rose 2.09% to 11,407.87, the Hang Seng slipped 0.27% to 23,381.94, the Kospi edged up 0.04% to 1,981.91 and the S&P/ASX added 0.59% to 5,063.40. Bloomberg Businessweek (2/18)      The Gold Standard: A Fifty-Year History of the CFA Charter An exclusive book offer from CFA Institute Order yours now   Economic Trends & Outlook  Crackdown damps Lunar New Year spending in China    Reuters Retail sales were up 14.7% during China's Lunar New Year festival, down from last year's 16.2% gain as a crackdown on lavish official spending took hold. Partly because of the new measures aimed at corruption, the outlook for spending later in the year remains positive. "We expect overall retail sales and consumption to rise again along with the improving economy in the second and third quarters," said Leon Zhao, a Shanghai-based analyst at researcher Frost & Sullivan. Bloomberg (2/17) , China Daily (Beijing) (2/18)      Sound China economy is projected for 2013, backed by service sector HSBC economist Stephen King says extended growth of the Chinese economy will exert a strong pull on the global economy this year. One hopeful sign is seen in recent gains in China's service sector, which as of 2011 accounted for 35.7% of total employment, for the first time topping agriculture and manufacturing. Services are regarded as crucial to generating a resilient job market. Xinhuanet.com (China) (2/18) , Bloomberg (2/18)      S. Korean businesses see tepid growth; warning on household debt A majority of South Korean businesses surveyed project modest economic growth for the nation this year, in line with the 2% gain in 2012. Meanwhile, financial experts identified heavy household debt as the main threat to South Korea's financial system. MK.co.kr (South Korea) (2/18) , MK.co.kr (South Korea) (2/18)      Singapore exports return to plus side with 0.5% gain in January Singapore's non-oil exports returned to growth in January, rising 0.5% from a year before after falling 16.3% in December. The gain, however, was below expectations due to slippage in pharmaceutical and electronics shipments. The Edge Singapore (2/18)      Thai GDP surges 18.9% in 4th quarter Thailand's economy grew 18.9% in the fourth quarter from a year before, topping expectations. The gain was enhanced by comparison with subdued activity in 2011 when there was extensive flooding. By sector, construction, wholesale and retail trade, and financial intermediation all advanced strongly in the latest period. The Wall Street Journal (2/18) , The Nation (Bangkok) (2/18)        Capital Markets & Financial Products  Japanese bond market looking up Investors in Japanese government bonds are largely unfazed even as currency and equity markets are roiled by Prime Minister Shinzo Abe's aggressive economic policies. Financial Times (tiered subscription model) (2/18)      China adds to holdings of U.S. Treasury bonds December marked the third straight month that China boosted its holdings of U.S. Treasury bonds, adding US$19.7 billion worth, according to Treasury figures. That brought China's total holding to US$1.202 trillion, topping second-place Japan's US$1.12 trillion. China Daily (Beijing) (2/18)        People & Personalities  Moderating figure Toshiro Muto may have inside track for BoJ Toshiro Muto, considered to be a moderating voice for financial stimulus, is now believed to be the leading candidate to head up the Bank of Japan. Muto, chairman of the private Daiwa Institute of Research, "is considered as someone who would only follow the traditional approach such as expanding the BoJ's asset buying program. It would merely be an 'enhanced' version of the conventional approach," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. Reuters (2/18)      Learn more about CFA -> About CFA Institute  |  Advertise  |  Educational Resources  |  Social Media     Subscriber Tools     Print friendly format  | Web version  | Search past news  | Archive  | Privacy policy   Read more at SmartBrief.com Industry Home Readers' Choice Search Archive Download a SmartBrief Mobile app today       Recent CFA Institute Financial NewsBrief: Asia Pacific Edition Issues: Monday, February 18, 2013 Friday, February 15, 2013 Thursday, February 14, 2013 Wednesday, February 13, 2013 Tuesday, February 12, 2013     Lead Editor:   Jim Berard       Mailing Address: SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004     © 1999-2013 SmartBrief, Inc.®  Legal Information