Richard Cayne of Meyer Asset Management Ltd explains that China’s economy, the world’s second-largest, is showing signs of stabilization, as 2013 growth rate was equal to that in 2012.
Gross domestic product (GDP) grew at an annual rate of 7.7% in the October-to-December period, down from 7.8% in the previous quarter, but it was still higher than the government’s target rate of 7.5%.
China is trying to maintain strong growth while rebalancing its economy explains Richard Cayne Meyer Asset Management.
China has said it wants to move away from an investment-led growth model to one driven by domestic consumption.China’s central bank has injected fresh liquidity into the country’s large commercial banks ahead of the Lunar New Year holiday later this month.
The bank did not say how much cash it injected, but said the move was aimed at ensuring the “stability” of the monetary market ahead of the holidays.The Lunar New Year is China’s most important festival and sees increased demand for cash among consumers. The move also comes as China’s key interbank lending rate rose on Monday.
The seven-day repurchase rate, a key gauge of liquidity among banks, rose to nearly 6.5% on Monday, up from 4% earlier this month.
Richard Cayne of Meyer Asset Management has a view that the Bank of Japan has chosen to maintain current levels of quantitative easing as inflation continues to move closer to the central bank’s inflation target.
Members of the central bank’s policy board voted unanimously to avoid changing its massive stimulus package and instead continue with current levels of monetary easing.
The Bank of Japan’s stimulus plan involves the expansion of the monetary base by an annual pace of around ¥60-70trn through a series of asset purchases.
Bank of Japan governor Haruhiko Kuroda believes this level of stimulus can continue to support economic improvement and rising inflation.
Retail investors continued to steer clear of emerging markets funds last week. This means emerging market equity funds have not seen new retail money since early in the second quarter of 2013.
Richard Cayne at Meyer Asset Management Ltd notes that the U.S. Treasury Department will offer $15bn in its first auction of floating-rate notes next week, trying to capitalize on robust investor demand for the safest short-term investments.
“Floating rate notes bring additional diversity to Treasury’s current portfolio and help support our goal of saving taxpayer dollars by financing the government’s borrowing needs at the lowest cost over time,” Mary Miller, the Treasury’s undersecretary for domestic finance, said in a separate statement.
Richard Cayne who worked at Meyer Asset Management Japan before moving to Thailand explains that Euro-area consumer confidence increased more than economists forecast in January, adding to signs that the currency bloc’s recovery is gathering momentum.
An index of household confidence in the euro area rose to minus 11.7 from minus 13.5 in December, the European Commission in Brussels said in a preliminary report on Thursday. That exceeds the median forecast of minus 13 in a Bloomberg News survey of 27 economists.
Positive economic signals are accumulating in the euro zone, with manufacturing output expanding more than forecast in January and retail sales up 1.4% in November from the previous month. European new-car sales surged the most in almost four years in December as price cuts by producers such as Renault SA and Ford Motor Co. helped generate a recovery that industry executives say will last in 2014. This will further strengthen the European automotive industry’s recovery explains Richard Cayne.
Richard Cayne Meyer originally from Montreal, Quebec Canada currently resides in Bangkok Thailand and runs the Meyer Group of Companies. Prior to which he was residing in Tokyo Japan for over 15 years and is currently CEO of Asia Wealth Group Holdings Ltd a London, UK Stock Exchange listed Financial Holdings Company. Richard Cayne has been involved in the wealth management space in Tokyo Japan and has assisted many High Net worth Japanese families create innovative international tax and wealth management planning solutions. https://www.isdx.com/Asia Wealth Group .
