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February 12, 2013 Sign up Forward Archive   Top Stories    China plans still more spending on infrastructure    Reuters Infrastructure spending is due for another US$19 billion injection in China as the government seeks to shore up the economy amid preliminary signs of a slowdown. The Chinese economy expanded only 7.8% last year despite heavy investment, and the Organization of Economic Cooperation and Development says the outlook is for continued growth at a historically slow pace. Deutsche Welle (Germany)/Deutsche Presse-Agentur (2/11) , China Daily (Beijing) (2/11)      Bank of Japan candidate hints at more aggressive policy One of the candidates for the new chief of the Bank of Japan says "additional" measures are available and could be justified to help meet the 2% inflation target set by the bank and new government. Asian Development Bank President Haruhiko Kuroda also said the yen's recent decline is part of a "natural adjustment." Previously, Kuroda offered the opinion that the central bank should set a 3% inflation target. The Taipei Times (Taiwan) (2/12)      Bad news is expected for eurozone growth as finance chiefs gather Economists are predicting that the fourth quarter will be the worst for the eurozone since the Lehman crisis four years ago, with a 0.4% contraction as seven nations remain mired in recession. Meanwhile, eurozone finance ministers gathered Monday in Brussels to assess the increasingly uncertain situation, with new aid for Greece and Cyprus on the agenda amid signs of political disruption on the horizon in Italy and Spain. Bloomberg (2/11) , Bloomberg (2/11) , Reuters (2/11)      Spain prepares for ratings evaluation with deficit the key factor    Reuters Spanish deficit numbers are considered crucial as the country braces for evaluation by credit rating agencies, with downgrades possible. "A number near and certainly above 8% of gross domestic product in 2012 will raise the risk of a ratings downgrade, and while we expect near 7.5%, the regions have delivered late surprises in the last couple of years," said Harvinder Sian, a strategist at Royal Bank of Scotland Group. Bloomberg Businessweek (2/11)      Germany sees a year of improvement The new year should be one of accelerating gains for the German economy, which already shows signs of turning to positive growth after a 0.5% contraction in the fourth quarter, the economy ministry said. Key to the brighter outlook is the global economy, which "seems to have reached its low point already. International indicators are once again increasingly sending positive signals," the ministry said. Reuters (2/11)      U.K. business confidence plumbs new depths Several years of a stumbling U.K. economy appear to have taken a toll on business sentiment, with a BDO survey of confidence registering at a record low last month. "It seems the damaging effects on businesses of five years' zigzagging economic growth has left them wary of making concrete plans for expansion and resigned to the 'new normal' of economic stagnation. To end this cycle, it is imperative that the government implements plans to expedite growth," said BDO partner Peter Hemington. BBC (2/11)      Despite market buoyancy, U.S. companies lower expectations Despite a better-than-expected fourth quarter for U.S. corporate earnings and a soaring stock market, the outlook is less rosy, beginning with the current quarter, companies warn. Surveys of corporate leaders reveal caution over the domestic consumer market and the still-problematic eurozone as well as restrained plans for new investment. The Wall Street Journal (2/10)      OECD sees little likelihood of broad global recovery With growth prospects for China, India and the eurozone looking less optimistic while the outlook for the U.S. and Japan improve, the Organization for Economic Cooperation and Development says the world's leading economies will be on divergent paths in the near term, meaning a broad global recovery is unlikely. The OECD projects growth for its members this year to be about the same as last year's 1.4% before improving to 2.3% next year. The Wall Street Journal (2/11)      Free Seminar: Effective Risk Management Strategies Join FactSet this March for a free seminar. Hear from representatives of the world's leading risk model providers (Axioma, MSCI, Sungard, Northfield), as well as Steven Greiner, FactSet's Director of Portfolio Risk Research, on strategies for forecasting and managing risk in today's global economy. Register at solutions.factset.com/risk2013.   Reader Survey  What is likely to provide Apple shareholders the highest risk-adjusted rate of return on the company's excess cash balances? Common stock dividends, including a one-time or a series of special dividends Share repurchases Issuance of preferred stock, as proposed by hedge fund manager David Einhorn Acquisitions Current capital investment policy   Market Activities  INTERNATIONAL MARKETS OVERVIEW A sharp decline in shares for Denmark's Novo Nordisk weighed on stocks Monday in Europe as investors kept an eye on eurozone finance ministers gathered in Brussels. In the U.S., the market was quiet after recent gains. The Stoxx Europe 600 fell 0.60% to 285.62, and the S&P 500 barely budged, easing 0.06% to 1,517.01. Here is a continuously updated list of global stock indexes. The Wall Street Journal (2/12) , The Wall Street Journal (2/11) , CNNMoney (2/11)      Asian markets quiet for holiday Most Asian markets were closed Monday for Lunar New Year. In Australia, the S&P/ASX lost 0.24% to 4,959.50 as the market pulled back a bit after strong recent gains. The Australian (tiered subscription model) (2/11)      Reining in Risk CFA Institute report: Investors need better disclosure of derivatives and hedging activities Read the Report   Economic Trends & Outlook  Indian central bank chief warns on current-account deficit    Subbarao/Reuters India's current-account gap, one of the two keys along with inflation that the central bank monitors, is likely to be greater in the fiscal year ending in March than a year before, warns bank Governor D. Subbarao. The remedy should come from "as much foreign direct investment as possible," Subbarao said. "We would not worry so much if the CAD is high ... if it was due to import of capital goods ... but because of import of oil and gold." The Hindu (India) (2/11) , The Economic Times (India)/Reuters (2/11)      South Korean exporters face imminent challenge as yen plummets With the Japanese yen set to depreciate rapidly, South Korean exporters may be facing a more challenging global market sooner rather than later. Analysts now say the yen could reach 105 to the U.S. dollar by the end of this year. The Korea Herald (Seoul) (2/11)      Modest growth is seen for Hong Kong With prospects for economic gains in China this year as well as more stable markets in Europe and the U.S., Hong Kong's economy is likely to improve slightly in 2013, Financial Secretary John Tsang said in a blog post. The remark reveals a switch in sentiment from Tsang's warning in November that Hong Kong faced the possibility of recession, barring a change in the global outlook. Bloomberg (2/10)      Domestic, global factors are seen restraining Philippine economy Philippine GDP growth is expected to come down from last year's 6.6% to 6.1% in 2013 due to a still uncertain export market and domestic "bureaucratic bottlenecks," according to U.S.-based GlobalSource Partners. "Internally, remaining bureaucratic bottlenecks may again stall government spending, keeping a lid on investment ratios and souring investor moods," commented economists Romeo L. Bernardo and Marie-Christine Tang, GlobalSource's Philippine partners. Business World (Philippines) (2/11)        Capital Markets & Financial Products  Asia sets the pace for global IPOs The year is off to a rousing start for equity sales by Asian companies, with a record-setting first five weeks. Financial Times (tiered subscription model) (2/11)        Industry & Regulatory Update  South Korea may cite Citibank for irregularities    Reuters Citibank Korea is due for a scolding from the Financial Services Commission, which cites the bank for negligence in consumer protection. There allegedly were "irregular" terms in sales of the bank's financial products, including loans. The Korea Herald (Seoul) (2/11)        People & Personalities  Goldman taps Gregg Lemkau for global role Gregg Lemkau has been named the new co-chief of Goldman Sachs' global merger unit. Lemkau previously headed the bank's division for mergers and acquisitions in Europe and Asia. Financial Times (tiered subscription model) (2/11)      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 11, 2013 Friday, February 08, 2013 Thursday, February 07, 2013 Wednesday, February 06, 2013 Tuesday, February 05, 2013     Lead Editor:   Jim Berard       Mailing Address: SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004     © 1999-2013 SmartBrief, Inc.®  Legal Information