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March 14, 2013 Sign up Forward Archive   Top Stories    U.S. retail sales strong in February    Reuters U.S. retail sales, a key consumer barometer, surged a surprising 1.1% last month, according to figures released by the Department of Commerce. The gains came despite the continued impact of higher taxes since the beginning of the year and may be augmented in coming weeks by the distribution of income tax refunds. The Wall Street Journal (3/13)      Eurozone factory output slides Eurozone factory output retreated 0.4% in January, swinging from a 0.9% gain the month before and providing further evidence that the region's long-running recession will extend into the current quarter. The drop exceeded the 0.1% decline predicted by economists. "Falling demand within the eurozone was the key drag on production at the end of last year and will remain so at least in the opening months of 2013," said Anna Zabrodzka, a Moody's Analytics economist, who also noted that a strong euro moving forward is likely to stifle exports. The Wall Street Journal (3/13)      Italy's inconclusive election spilling over to bond market Italy's extended struggle to form a government after the election victory of anti-austerity forces is telling in the bond market, where the country's long-term borrowing costs are climbing. Financial Times (tiered subscription model) (3/13)      ECB policymaker quickly dismisses talk of Italian exit from euro    Weidmann/Reuters Recent German theorizing on a possible Italian exit from the euro was quickly slapped down by European Central Bank policymaker Jens Weidmann. "I do not believe it makes sense to speculate about individual countries leaving the euro area," Weidmann remarked Wednesday after an address in Cologne. Reuters (3/13)      U.K. economy in a bind as it tilts toward recession A number of troubling factors underlie the U.K.'s recent economic and trade numbers, which were already dismal enough. Among them is the fact that despite sterling's decline, exports are failing to pick up, and wage gains, meanwhile, are falling behind inflation, creating a double domestic-trade squeeze on the economy. Eyes are now turning to the Bank of England for further monetary easing, which in itself runs the danger of not providing the kind of stimulus needed. The Wall Street Journal (3/12)      China central bank chief signals a focus on inflation With evidence emerging of stronger economic growth, China's central bank is now shifting its attention to inflation, Governor Zhou Xiaochuan indicated at a news conference. Zhou noted that a lower money supply target this year points to a policy "inclined toward tightening." The Wall Street Journal (3/13) , Xinhuanet.com (China) (3/13)      China is said to turn back on currency war    Reuters The value of China's yuan will continue to fluctuate both up and down as the country refrains from engaging in any kind of currency war despite the actions of some trading partners, said former central bank Deputy Governor Wu Xiaoling. "Printing more money and devaluating the currency could be useful to promote economic growth over a certain period. But if a country doesn't have a sound economic structure or strong growth momentum, it would be poisonous to depend on a looser monetary stance," Wu said. Caijing Magazine online (3/13)      Key Bank of Japan nominee wins crucial backing The third member of the Bank of Japan team that Prime Minister Shinzo Abe wishes to install has won the backing of opposition parties. The now nearly assured approval of Kikuo Iwata as one of two deputy governors means the bank will be headed by prominent critics of the bank's previous cautious policies who now favor strong steps toward Abe's stated goal of 2% inflation. The Wall Street Journal (3/13)      Principles of Bank Analysis, Singapore, 24-25 April 2013 This course provides a framework for analysing financial statements of banks to gain a deeper understanding of capital adequacy, management quality, earnings sustainability and sensitivity to credit, market, and liquidity risk. Visit www.spcapitaliq.com/education for more details.   Market Activities  INTERNATIONAL MARKETS OVERVIEW Weak economic numbers from Europe, including lower earnings reports, and better retail sales data from the U.S. had offsetting effects in markets on both sides of the Atlantic on Wednesday, with indexes ending the day little changed. The Stoxx Europe 600 was down 0.02% at 295.32, and the S&P 500 edged up 0.13% to 1,554.52. Here is a continuously updated list of global stock indexes. The Wall Street Journal (3/14) , Bloomberg (3/13) , CNNMoney (3/13)      Asian stocks ease; China shares respond to inflation remarks Most Asian markets extended their pause Wednesday after a recent runup while Chinese shares fell on remarks by the central bank governor indicating a new focus on inflation. The Hang Seng fell 1.46% to 22,556.65, the Nikkei lost 0.61% to 12,239.66 and the S&P/ASX eased 0.50% to 5,092.40 while the Kospi advanced, adding 0.32% to end at 1,999.73. Bloomberg Businessweek (3/13)        Economic Trends & Outlook  Banks lower India growth outlook; Singh projects healthier economy    Singh/Reuters Citing dimmer prospects domestically and globally, HSBC and Morgan Stanley each lowered their outlook for Indian growth to 6% for the coming fiscal year. Meanwhile, Prime Minister Manmohan Singh projected a return to robust growth in two to three years, while central bank Governor D. Subbarao told a London audience that any outlook for a better future hinges on implementation of much-needed structural reforms. The Hindu (India)/Press Trust of India (3/13) , LiveMint.com/The Wall Street Journal (India) (3/13)      Risk is noted in 20% of China's local government financing Projects that are not producing a profit underlie about 20% of local government financing vehicles across China and pose financial risks, said central bank Governor Zhou Xiaochuan. This puts a strain on governments, which have to service the debts from other income sources. "We should not underestimate risks in local government financing vehicles, nor should we overestimate them," Zhou said. Xinhuanet.com (China) (3/13)      Australia's Swan: China will move smoothly to domestic-led growth    Swan/Reuters Although China faces a problem with its shadowy market for unregulated lending, by and large the country is handling well its transition to growth led by consumption from its previous dependence on investment, said Australian Treasurer Wayne Swan. Swan also said a more measured approach to overall growth will allow China to focus more on such factors as the environment and income inequality. "While some pretty clear risks remain in China's economy, I'm confident that the leadership transition -- currently in its final stages -- will bring a renewed commitment to addressing China's economic challenges," Swan said at the Australian China Business Council's Canberra Networking Day. Xinhuanet.com (China) (3/12)      Pick for S. Korea finance chief says all economic options should be open A wide array of fiscal and financial measures should be on the table as South Korea's new government addresses the "serious" condition of the nation's economy, said finance ministry nominee Hyun Oh-seok. "I agree that the economy is facing serious situations. There are many policy packages available. It is necessary to review comprehensive measures," Hyun said. Yonhap News Agency (South Korea) (3/13)        Capital Markets & Financial Products  Amid wider opportunity, yuan's global role to grow step by step The global financial crisis and attendant loss of confidence in some major currencies worldwide have opened a unique opportunity for further cross-border use of the yuan, said China's central bank governor, Zhou Xiaochuan. But the process will proceed slowly, step by step, Zhou said, in a process he described as "quite complicated." Xinhuanet.com (China) (3/13)      Singapore Exchange reaches out to Korean, Philippine counterparts    Reuters Collaborations in derivatives products and clearing functions with the Korea Exchange and the Philippine Stock Exchange are in prospect as the Singapore Exchange reaches out across the region. The Singapore Exchange also said it plans to add Asian foreign exchange futures to its derivatives market in the third quarter. The Business Times (Singapore) (3/13)      Top Islamic fund managers are identified as global interest grows BlackRock/iShares tops Asian Investor's global roll of Islamic fund managers as measured by assets under management. The listing comes as investor interest in Islamic bonds picks up, with record issuance last year as Malaysia confirmed its role as the worldwide hub of Islamic finance. AsianInvestor.net (3/13)        People & Personalities  Teddy Kwong tapped as HSBC office chief in Hong Kong Teddy Kwong has been named to head up HSBC Private Bank's Hong Kong office, succeeding Desmond Liu. Kwong comes to the post from his job as the bank's chief executive officer for Macau. AsianInvestor.net (3/13)      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: Wednesday, March 13, 2013 Tuesday, March 12, 2013 Monday, March 11, 2013 Friday, March 08, 2013 Thursday, March 07, 2013     Lead Editor:   Jim Berard       Mailing Address: SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004     © 1999-2013 SmartBrief, Inc.®  Legal Information