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January 29, 2013 Sign up Forward Archive   Top Stories    U.S. durable-goods orders rise as pending home sales ease    Reuters For the first time since comparable records have been kept, U.S. durable-goods orders were up for the fourth consecutive month, advancing a strong 4.6% in December after a 0.7% rise in November. However, in the key housing market, pending home sales were down last month, registering the first decline since August. The slippage may be traced to a shortage of inventory. Bloomberg (1/28) , Bloomberg (1/28)      Fitch: U.S. downgrade now a more remote possibility With the risk of a U.S. debt default at bay for the time being, Fitch has lowered its threat level for scaling back the nation's credit rating. "Without the distraction of a near-term funding crisis for the federal government, Congress and the administration have the space to focus on the substantive fiscal policy choices necessary to place public finances on a sustainable path over the medium to long-term," Fitch said. The Economic Times (India)/Reuters (1/28)      U.S. "fiscal cliff" spending cuts likely in March The automatic U.S. spending cuts that were part of the "fiscal cliff" that was narrowly avoided at the start of the year are likely to take effect in March, according to Rep. Paul Ryan, chairman of the House Budget Committee. "I think the sequester is going to happen," Ryan said in a TV interview, referring to the cuts that were set aside for two months as part of a bipartisan deal. The Business Times (Singapore) (1/28)      India's central bank notes little room for rate relief    Reuters Ahead of a decision on interest rates today, India's central bank says its room to maneuver is hemmed in by persistent inflation and the scale of the country's current-account deficit. The bank also called for more economic reform, noting that the last round has "not decisively lifted business sentiments and further action may be needed to restore confidence." The Hindu (India)/Press Trust of India (1/28) , The Hindu (India)/Press Trust of India (1/28)      2 eurozone indexes reveal growing optimism Although no strong recovery is in prospect, the Conference Board's leading confidence index for the eurozone rose 0.4% to 105.5 in December for its second consecutive monthly gain. Meanwhile, a separate Sentix survey of investors found only 17.2% projecting that one or more nations will exit the eurozone over the coming year, down from 25% last month and 73% in July. RTT News (1/28) , Reuters (1/28)      Japan raises growth forecast, citing stimulus, better export markets Japan's economy should grow 2.5% this year due to new stimulus policies and an improving and less uncertain global situation, the government predicts. Tokyo's new focus on the yen, however, is one of several currency moves globally that drew another sharp warning from China, whose foreign exchange regulator, Yi Gang, called for coordination among Group of 20 nations to avoid any threat of a currency war. United Press International (1/28) , Caijing Magazine online (1/28)      U.S. banks looking a lot less risky in bond market Having responded to calls for new prudence emerging from the global economic meltdown, banks are regaining their luster as safe investments in the U.S. corporate bond market and are expected soon to surpass industrial companies by that measure. "Financial institutions are a favored sector for investment-grade investors" as regulatory actions now mean that "their balance sheets are far more conservatively funded," said Edward Marrinan, a macro credit strategist at RBS Securities. Bloomberg (1/28)      World succeeds in taming the beast of inflation Better policymaking, sustained independence for central banks and the simple fact that there have been no external shocks have all contributed to historically low inflation worldwide that economists expect to continue. However, a little inflation isn't necessarily regarded as a bad thing, particularly when economies are stagnant. Bloomberg Businessweek (1/28)        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 http://www.mcx-sx.com/membership.     Reader Survey  Are the fiscal and monetary policy initiatives being undertaken by Japan's new government likely to lead the country out of the deflationary and slow-growth environment that has persisted for the past two decades? Yes No   Market Activities  INTERNATIONAL MARKETS OVERVIEW Monday saw little decisive movement in share prices in European and U.S. markets amid conflicting signals for U.S. housing (down) and the earnings outlook for Chinese companies (up) and caution after the recent runup in U.S. share prices. The Stoxx Europe 600 edged down 0.12% to 289.36, and the S&P 500 ended 0.18% lower at 1,500.18. Here is a continuously updated list of global stock indexes. The Wall Street Journal (1/29) , MarketWatch (1/28) , CNNMoney (1/28)      Japanese shares end winning streak as other Asian markets advance A generally brighter outlook for the global economy buoyed stocks Monday across much of Asia, but Japanese shares eased after their best week of gains in 40 years. The Nikkei fell 0.94% to 10,824.31 while the Hang Seng rose 0.39% to 23,671.88, the Kospi lost 0.36% to 1,939.71 and the S&P/ASX advanced 0.52% to 4,835.20. Bloomberg (1/28)      Each charterholder has a tale to tell. What's yours? celebrate.cfainstitute.org   Economic Trends & Outlook  Brokerages step into China's shadow banking sector As China's banks last year sought to shed questionable funds from their balance sheets, brokerages took over, immersing themselves in the country's suspect shadow banking industry. Financial Times (tiered subscription model) (1/27)      South Korea consumer sentiment picks up, but banks are wary    Reuters Although South Koreans remain skeptical about the nation's current economic condition and their assessment of personal living conditions has improved only slightly, they have turned positive in their outlook for the immediate future, according to a January index. However, South Korean banks, contemplating the nation's record household debt and the new government's determination to bring levels down, are reducing their growth targets for household lending this year. RTT News (1/27) , Yonhap News Agency (South Korea) (1/28)      Singapore projects less investment this year Fixed-asset investments in Singapore are expected to be down from last year's record S$16 billion. The Economic Development Board projects a range of S$11 billion to S$13 billion this year in light of a still shaky global economy within the context of limited land and manpower in the city-state. The Business Times (Singapore) (1/28)        Capital Markets & Financial Products  South Korean IPOs, rights issuances drop sharply in 2012 South Korea's falling stock market last year took a toll in the number of initial public offerings and rights offerings, with the total down 82% from a year before. Meanwhile, regular corporate bond issuances were down 7.5% and financial bonds and bank bonds were off 3.8% and 6.8%, respectively. MK.co.kr (South Korea) (1/28)      Eastern institutions taking the lead over West in Islamic finance    Reuters Financial institutions in Southeast Asia, the Middle East and Africa are taking the place of some of the leading Western institutions in worldwide investment executed in accordance with Islamic law. Such Western leaders as Citigroup, HSBC and UBS are pulling back in the sector even as it's projected to grow to US$1.8 trillion globally in 2013, according to Ernst & Young. Xinhuanet.com (China) (1/27)      Goldman is reported ready to shed ICBC stake In what could amount to the largest share sale in Asia outside Japan to date this year, Goldman Sachs is reported ready to raise about US$1 billion from its stake in Industrial & Commercial Bank of China. The move by Goldman is said to be part of its effort to manage overall risk. The Wall Street Journal (1/28)      Range of risks arrayed against Asian bond investors Investors in Asian bond markets these days are wary of an array of risks, including the possibility of default, rate increases and a sudden lack of liquidity. Financial Times (tiered subscription model) (1/28)        Industry & Regulatory Update  China regulator follows up on IPO crackdown The China Securities Regulatory Commission is following up on warning letters sent out to six brokerage firms over rule violations in a number of initial public offerings last year. Penalties may be in store for the firms, which reportedly failed to disclose timely information when their newly listed clients reported sharply declining profits. Xinhuanet.com (China) (1/28)      South Korea's Hana to own 100% of Korea Exchange Bank A share swap planned for April will make Korea Exchange Bank a wholly owned unit of South Korea's Hana Financial Group, Hana announced Monday. Hana said the new combination will enhance collaboration between affiliates and improve customer service. MK.co.kr (South Korea) (1/28)      Payoff of new Nomura strategy to be reflected in results Nomura is set to report that its cost cutting and narrower regional strategy are paying off with positive third-quarter results. Financial Times (tiered subscription model) (1/28)      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, January 28, 2013 Friday, January 25, 2013 Thursday, January 24, 2013 Wednesday, January 23, 2013 Tuesday, January 22, 2013     Lead Editor:   Jim Berard       Mailing Address: SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004     © 1999-2013 SmartBrief, Inc.®  Legal Information