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January 7, 2013 Sign up Forward Archive   Top Stories    U.S. jobs report suggests sluggish economy; smaller trade gap is seen    Reuters December's U.S. unemployment report confirms an economy stuck in low gear, with only 155,000 jobs added and a jobless rate unchanged at 7.8%. Separately, economists expect numbers this week will show a narrower U.S. trade gap in November due to lower oil prices and improved exports. The Wall Street Journal (1/4) , Bloomberg Businessweek (1/6)      U.S. economy on steady but uninspiring course The picture of the U.S. economy that's emerging at this late date in the recovery is one of 2% annual growth in both GDP and wages and not enough job growth to make much progress on those fronts. This is the new normal for at least the first half of the year, economists predict, but the second half might see some improvement. MarketWatch (1/6)      Fed is urged to focus on inflation, not recoil from a little deflation Keeping a sharp eye on inflation should be the U.S. Federal Reserve's primary mission, said Federal Reserve Bank of Philadelphia President Charles Plosser, and a "small but steady deflation is not something we should ... be terrified of." Financial stability, on the other hand, should be addressed via other means through the Fed's "regulatory and supervisory power," Plosser said. The Wall Street Journal (1/5)      Japan's finance minister: Formal pact with central bank unnecessary    Aso/Reuters A written pact between the new Japanese government and the central bank is not needed to align their goals for reviving the country's economy, Finance Minister Taro Aso said. At issue is the inflation target, which the government wants to set at 2%. "We don't have to stick to the idea of a 'formal accord.' It's not a matter of whether or not to establish such an accord," Aso said. Yomiuri Shimbun (Japan)/Jiji Press (Japan) (1/6)      China may raise debt ceiling for 2013 Changes in China's tax code and planned increases in government spending mean that Beijing might raise its debt cap to about 2% of GDP this year, according to Jia Kang, director of the Research Institute for Fiscal Science under the Ministry of Finance. Among the spending goals will be measures to curb the rich/poor gap and continued efforts to upgrade infrastructure. AutomatedTrader.net/Dow Jones Newswires (1/6)      Germany's Ifo predicts 0.7% growth, 1.6% inflation With other estimates ranging between 0.3% and 0.8% for German growth this year, the Ifo economic research institute leans toward the upper end with a forecast of 0.7%, albeit with a caveat of high uncertainty. Ifo also projects inflation of 1.6% and unemployment averaging 6.9%. MarketWatch (1/5)      U.K.'s Cameron de-emphasizes importance of credit rating    Cameron/Reuters The U.K.'s credit standing ultimately rests with the markets and not with agencies, Prime Minister David Cameron said in a BBC interview. Cameron was referencing the country's AAA rating, currently better than that of the U.S. but perhaps headed for a downgrade if the country slips into a third recession. Bloomberg (1/6) , Reuters (1/6)      U.K. seeks return of powers or will oppose eurozone integration U.K. Prime Minister David Cameron says some regulatory powers must be returned to Britain or his government will thwart any deeper eurozone integration. Financial Times (tiered subscription model) (1/6)      Kaplan Schweser, the global leader in CFA® exam prep, is proud to be a platinum sponsor of the CFA Institute Research Challenge. Each year, Schweser helps thousands of students pass the CFA exam and join the elite segment of the financial industry. www.schweser.com/cfa   Market Activities  U.S., European markets end week on up note, but focus will shift Relief over the U.S. budget deal that helped lift U.S. and European shares over the past week is likely to give way this week to more pedestrian matters such as corporate earnings reports and the lingering problems besetting the eurozone. On Friday, the Stoxx Europe 600 ended with a 0.35% gain for the day at 287.83 and the S&P 500 was up 0.49% at 1,466.47. Here is a continuously updated list of global stock indexes. The Wall Street Journal (1/7) , Reuters (1/5) , Bloomberg (1/4) , CNNMoney (1/4)      Japan gains as other Asian markets ease Japanese shares surged Friday, building momentum on a declining yen. But concern over indications of a possible end to the U.S. Federal Reserve's bond buying put a lid on other Asian markets. The Nikkei jumped 2.82% to 10,688.11 while the Hang Seng edged down 0.29% to 23,331.09, the Kospi lost 0.37% to 2,011.94 and the S&P/ASX slipped 0.36% to 4,723.80. MarketWatch (1/4)      Live Webinar Meeting the Global Challenge of Funding Retirement: A Case Study of Financial Engineering in the Design and Implementation of a "Next-Generation" Solution Featuring Nobel laureate Robert C. Merton Thursday, 10 January 2013 9:00 a.m. GMT (London) 5:00 p.m. HKT (Hong Kong)   Economic Trends & Outlook  Reform is deemed indispensable to China's growth    Xi/Reuters Maintaining China's growth rate of 7% to 8% over the next several years will require the new government under Xi Jinping to pursue reform that breaks up state-owned monopolies and opens the way to easier financing for small companies, says Pang Yang, chief of the financial-service advisory unit of Shanghai Alliance Investment. "China needs to find one or two drivers to sustain its growth. Reforms of big state-owned enterprises such as breaking big ones apart and introducing competition can unleash a lot of value," Pang said in an interview. Bloomberg (1/7)      Hong Kong private sector remains strong in December Hong Kong's private sector was a bit less buoyant in December than in the previous month but still firmly on the upswing with a reading of 51.7 on HSBC's purchasing managers' index. Fewer order inflows from the mainland were noted but attributed in part to a slowdown after a rush of Christmas orders. China Daily (Beijing) (1/6)      Yuan is expected to stabilize, gain a bit in 2013    Reuters After a 2012 marked by fluctuations and then sharp gains, China's yuan is expected to stabilize this year in the face of a narrowing trade surplus. However, slight gains are likely as other nations extend their programs of quantitative easing. Xinhuanet.com (China) (1/5)      External factors weigh on India's economy A surge in India's current account deficit to 5.4% of GDP in the second quarter of its fiscal year and a US$20 billion rise in external debt reveal the inability of government to address key economic factors outside its range of influence. This leaves India more dependent than ever on foreign institutional investment, which recently has been strong but can reverse. The Hindu (India) (1/6)      South Korean job outlook, corporate finance numbers bleak South Korea's employment situation looks increasingly problematic, with rising numbers of unemployed and employment contracts becoming a thing of the past. The situation at the dawn of 2013 means the new government is likely to face pressure to urge businesses to hold on to the workforces they have. Separately, in another sign of stress, the business survey index on corporate finance for the current quarter registered 86, remaining well below the 100 benchmark for the seventh quarter in a row. The Korea Times (Seoul) (1/6) , Yonhap News Agency (South Korea) (1/6)        Capital Markets & Financial Products  South Korean mutual fund investors favored China in 2012    Reuters Mainland China was an increasingly favored destination for South Korean investors in mutual funds, with total funds invested rising by US$234.1 million last year. The total average return was 4.9%. MK.co.kr (South Korea) (1/4)      Pilot program brings overseas yuan to mainland PE market Shanghai is designated the pilot city for a Renminbi Qualified Foreign Limited Partnership (RQFLP) program in which yuan raised abroad will be repatriated to the mainland to invest in unlisted companies through private-equity investment vehicles, according to the Finance Office of Shanghai. The RQFLP quota is reported to be about 1 billion yuan. The overseas yuan, however, will still be treated as foreign currency attributes. China Daily (Beijing) (1/6)      With South Korea seen as haven, foreign holdings top 500 trillion won With the world awash in liquidity and investors looking for safe harbor, the total of South Korean stocks and bonds held by foreign investors exceeded 500 trillion won for the first time in 2012. The gain from the previous benchmark of 400 trillion won in September 2010 took 27 months. MK.co.kr (South Korea) (1/4)        Industry & Regulatory Update  Mizuho Financial launches Japan's 4th-largest securities firm    Reuters Japan's fourth-largest securities firm, Mizuho Securities, made its debut Friday, merging two previous Mizuho entities. "By integrating a bank and a securities company, we aim to offer services that other financial institutions cannot," said Yasuhiro Sato, president of parent Mizuho Financial Group. Yomiuri Shimbun (Japan) (1/5)      Indian regulator to be more aggressive, proactive The goal is deterrence rather than cleaning up after the fact as greater powers are invested in India's Serious Fraud Investigation Office this year. One key to effective enforcement will be adding the necessary staff. SFIO "needs a pool of people with different backgrounds and with experience in areas like investigation, regulation, taxation, accountancy, forensic auditing, capital markets and information technology," said Corporate Affairs Minister Sachin Pilot. The Economic Times (India)/Press Trust of India (1/6)      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: Friday, January 04, 2013 Thursday, January 03, 2013 Wednesday, January 02, 2013 Monday, December 31, 2012 Friday, December 28, 2012     Lead Editor:   Jim Berard       Mailing Address: SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004     © 1999-2013 SmartBrief, Inc.®  Legal Information