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March 12, 2013
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  Top Stories 
  • China consumer price rise exceeds expectations
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    Coming a day after disappointing production and retail sales figures, China's consumer price index offered another unpleasant surprise, rising 3.2% in February and raising concerns that monetary tightening may soon follow. The rate marked a 10-month high. Separately, in a move seen as offering reassurance over China's financial reforms, the government has devised a way to keep central bank Governor Zhou Xiaochuan in office past the normally mandatory retirement age of 65. Caijing Magazine online (3/11) , Financial Times (tiered subscription model) (3/11) LinkedInFacebookTwitterEmail this Story

  • Japan's machinery orders plunge far more than forecast
    A steep 13.1% plunge Japan's core-machinery orders in January from December may cancel government hopes for a first-quarter rebound in the sector. The drop, the first in four months, was much worse than the 1.4% forecast by economists and was attributed to moribund export markets in the U.S. and Europe. More broadly, the latest figure indicates that despite the arrival of Prime Minister Shinzo Abe's government and a surge in Japan's stock market, "positive sentiment has yet to result in an actual increase in capital spending activity," said Koya Miyamae, an SMBC Nikko Securities economist. The Wall Street Journal (3/11) LinkedInFacebookTwitterEmail this Story
  • German exports rise; domestic market rebounds
    Strong demand from China and the U.S. lifted German exports 1.4% in January, and imports rose a stronger 3.3%, indicating a rebound in domestic demand. The trade figures offer the first evidence confirming an earlier Ifo survey revealing improved business sentiment for the new year. BBC (3/11) LinkedInFacebookTwitterEmail this Story
  • French industrial output falls
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    Further evidence of an ailing French economy emerged as industrial production skidded 1.2% in January, much more than expected after the nation's fourth-quarter economic contraction. Factory output was down 4.6% in the November-January period. "France remains stuck in a recessionary mode. ... The stabilization we had expected from the beginning of 2013 does not seem to have taken place," said Philippe Gudin, a Barclays economist in Paris. Bloomberg Businessweek (3/11) LinkedInFacebookTwitterEmail this Story

  • Italy's economy shrinks in 4th quarter, dimming recovery outlook
    Italy's economy contracted 0.9% in the fourth quarter, bringing the economic contraction for the full year to 2.8%. Economists now believe the country's longest recession in two decades won't begin to come to an end before the latter half of the year. The latest blow comes three days after Fitch downgraded the country's credit rating to BBB+. Deutsche Welle (Germany) (3/11) LinkedInFacebookTwitterEmail this Story
  • OECD tempers economic outlook for China, India
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    India and China are the world's only major economies on track for further economic slowing this year, according to the latest compilation of composite leading indicators by the Organization for Economic Cooperation and Development. "The performance of China's manufacturing and services sectors have not been encouraging, while in India, the central bank had cut interest rates by 25 basis points in January, its first reduction since April 2012, to support economic growth," the OECD said. Wall Street Journal (India)/Reuters (3/11) LinkedInFacebookTwitterEmail this Story

 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 
    European investors focused on disturbing economic indicators out of China and a ratings downgrade for Italy, sending shares a bit lower Monday with the Stoxx Europe 600 losing 0.10% to 295.26. In the U.S., a brighter outlook for a long-delayed budget resolution helped buoy the market, with the S&P 500 rising 0.32% to 1,556.22. Here is a continuously updated list of global stock indexes. The Wall Street Journal (3/12) , Bloomberg (3/11) , CNNMoney (3/11) LinkedInFacebookTwitterEmail this Story
  • Asian markets mixed
    Asian markets were mixed Monday as investors weighed positive economic data in the U.S. against less than stellar numbers from China. The Nikkei added 0.53% to 12,349.05 while the Hang Seng was virtually unchanged at 23,090.82, the Kospi edged down 0.13% to 2,003.35 and the S&P/ASX rose 0.46% to 5,146.90. MarketWatch (3/11) LinkedInFacebookTwitterEmail this Story
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  Economic Trends & Outlook 
  • India's stubborn inflation seen improving
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    India's disappointing inflation performance of late may be about to improve, which in turn may encourage an easier monetary policy, said Ruchir Sharma, managing director and head of emerging markets and global macro at Morgan Stanley Investment Management. However, the central bank "is not the main player out here; the whole issue is that inflation is symptomatic of a wider problem in India," Sharma said. The Economic Times (India)/Press Trust of India (3/11) LinkedInFacebookTwitterEmail this Story

  • "Alarming" rate of corporate insolvencies is feared in South Korea
    More than 200 listed South Korean companies are in danger of facing corporate restructuring as of midyear as the rate of corporate insolvency reaches what one financial industry official describes as an "alarming level." The estimate is based on an interest coverage ratio (ICR) of less than 1, at which companies are unable to cover their interest expenses with operating profits. "Including nonlisted small and midsize businesses, nearly half the total would see their ICR below one," said an official of the Financial Supervisory Service. (South Korea) (3/11) LinkedInFacebookTwitterEmail this Story
  • South Korea's foreign-currency deposits rise
    In a measure of South Korea's strengthening trade surplus, foreign-currency holdings returned to positive growth last month from January, rising US$2.14 billion to US$34.65 billion. Corporate sales of overseas bonds also drove the increase, the Bank of Korea said. (South Korea) (3/11) LinkedInFacebookTwitterEmail this Story

  • Action is urged as influx of foreign money boosts Philippine currency
    With foreign investment rushing into the Philippines, the nation's currency is rising and raising the risk of pricing exports out of world markets, analysts say. The situation, they say, calls for more intervention by the central bank. "The benefits [of central bank action] are so clear. An undervalued peso makes exports cheaper and encourages import-competing firms," said University of the Philippines economist Solita Collas-Monsod. Business World (Philippines) (3/11) LinkedInFacebookTwitterEmail this Story
  • Philippines tops target for 2012 FDI
    Net foreign direct investment in the Philippines totaled US$2.033 billion last year, exceeding the government's target and marking a five-year high. "The country continued to benefit from strong foreign investors' confidence in the resilience of the domestic economy, given strong economic growth amid low and stable inflation, as well as strong external payments dynamics," the central bank said. Business World (Philippines) (3/11) LinkedInFacebookTwitterEmail this Story
  Capital Markets & Financial Products 
  • India equities underperforming in Asia
    India's equity market lagged those of the nation's Asian counterparts over the first two months of 2013 despite a large influx of foreign institutional investment. The Sensex benchmark index was up only 1.3% for the period for a return well under the double-digit gains common to most other developing markets in the region. The Economic Times (India) (3/11) LinkedInFacebookTwitterEmail this Story
  • Southeast Asia seen as focus for rise in private equity deals
    Southeast Asia should be a standout in what should be a year of modest improvement for private-equity deals across the Asian region, according to a report by Bain & Co. This would come after a 22% drop in such activity last year, when China and India lost much of their appeal. "As China slows and India looks for a path forward, the emerging economies of Southeast Asia continue to enjoy strong GDP growth that is attracting the increased attention of PE investors looking for green-field opportunities, said Vinit Bhatia, a partner in Bain's private equity practice. (3/11) LinkedInFacebookTwitterEmail this Story
  • Central banks buying Australian bonds as Japanese investors sell
    Australian bonds are drawing a lot of buying interest from central banks, notably Germany's Bundesbank, even as Japanese investors have been selling. The banks are taking advantage of the world's highest-yielding AAA-rated debt. "What you're seeing is sovereign buying in the Aussie market filling the gap left by Japanese investors and our belief is that a lot of that is coming from the European central banks," said Damien McColough, head of fixed-income research at Westpac. The Sydney Morning Herald (Australia) (3/11) LinkedInFacebookTwitterEmail this Story
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