Precious Metals Quotes

Gold Price    3months Futures        US$   1,275.59

Silver Price  3months Futures        US$        19.31

France: Hollande says recovery is here

Despite a faltering growth and still-rising unemployment, French Socialist President Francois Hollande is banking on his "historic" economic measures to get the ailing economy out from a recession and to achieve financial targets that analysts say are over optimistic.

In a traditional TV interview on France 2 and TF1 channels to mark the National Day on Sunday, Hollande stressed that "the economic recovery is here," arguing that a slight pick-up in industry output and consumption showed that the end of the crisis was in the air.

He added having "an already insurance that the second quarter will be better than the first."

But will France's 2.5 trillion -U.S.- dollar-economy which had not grown since the third quarter of 2011 show some muscles and defy the downbeat outlook?

Working to convince the nation that the economy is in its hands, Hollande's executive staff hoped tailwind will overcome headwinds thanks to their economic roadmap based on public spending squeeze, taxes rise on banks, big firms and the rich to help reduce the public deficit while pumping more funds into state-aided job creation.

In its recent economic report, the Bank of France revised up its gross domestic product forecast to 0.2 percent in the second quarter, citing a slight improvement in businesses in the short term. That would be music to the ears of Hollande who suffered a setback in his approval rating.

Blaming "persistent uncertainty and weakness of economic indicators,"the International Monetary Fund (IMF) lowered its 2013 forecast for the second largest European economy to minus 0.2-percent from a previous forecast of 0.1- percent contraction.

It also pointed that high risks of persistent stagnation in the eurozone may taint the expected "gradual turnaround of economic conditions in the second half of this year."

On Wednesday, local media reported that the government will announce later on the day 3 billion euros in subsidy cuts and tax rebates as part of reforming measures designed to reduce public spending and meet European Uuion-mandated deficit targets which has been extended for two more years to reach 3 percent of French GDP.

Source: Xinhua

China: Overall Mergers & Adquisitions trends and 2013 outlook Part I

There was a sharp overall M&A decline of 25% in China in year 2012,the lowest of the last five years.
Although there was a strong growth of value 50% in China's outbound M&A deals.This trend is expected to continue in 2013.
 Foreign companies are more inclined to sit on their cash, uncertanties hampers M&A deals. They
want to get more familiar with a slower growth rate of GDP and change of Chinese leadership.The latter has resulted in a slowdown in deals in 2012, and those have gone to 2013.
What is leading outbound M&A are Chinese Private Companies. They are adquiring technology and
brands to bring them to the chinese market.
  But also they are growing in confidence to M&A deals in material, energy and power and to grow
in the world market

IMF Outlook for China's Economy Part I

According to the Executive Board of the International Monetary Fund (IMF):
China’s economy is expected to grow at around 7¾ percent this year, notwithstanding a moderate slowdown during the first half, with resilient domestic demand offsetting lingering weakness in the external environment. Inflation has continued its downward path, and with persistently high investment contributing to excess capacity in many sectors, is likely to remain subdued around 3 percent this year and next.
Macroeconomic policies have been supportive toward achieving this year’s growth target. The overall fiscal deficit is likely to be around 2 percent of GDP.
 Strong growth in total social financing is expected to underpin a slight rebound of activity in the second half of this year. Capital inflows have resumed in recent months and the renminbi has appreciated by around 1½ percent against the U.S. dollar in the year through June, and by about 6 percent in real effective terms. International reserves have risen to about US$3.44 trillion at the end of March (up from US$3.31 trillion at the end of 2012).
China’s progress on external rebalancing has been substantial—the current account as a share of GDP is now less than a quarter of its pre-crisis peak in 2007. By contrast, domestic imbalances remain large. National accounts data show that last year gross fixed capital formation grew further as a percent of GDP, while private consumption was broadly unchanged, indicating that a decisive shift toward a more consumption-based growth path has yet to occur. Accelerating the transformation of the growth model remains the main priority, as reaffirmed in recent policy announcements by the new administration.

From WSJ: Increasing investment interest in Palladium and Platinum

"While prices of base metals such as copper wallow and as gold and silver stand on shaky ground, precious metals with industrial uses are rising as their supply outlook tightens, subsequently upping their investment appeal.
Precious metals with industrial uses, platinum and palladium, rose more than gold last week".

 "They have gained on persistent risks to their supply picture, a nuanced demand outlook and continued investor interest.

Labor uncertainty persists in key producer South Africa with Cigroup expecting production to suffer, while some say palladium supply from Russian stockpiles is all but exhausted. Meanwhile on the demand-side, the jewelry sector represents an interesting growth area for platinum and exchange-traded products backed by the white metals continue to receive healthy interest".

Pension Funds and private-equity firms searchig for cheap minig assets

According to the Wall Street Journal, amid the slump of metal prices, long term investors like pension funds, and private equity Institutions are looking to cheap mining assets from Australia to Canada.
"The slide in the price of iron ore and other commodities has hammered mining companies’ share prices, forcing many to shed assets and opening the door to other investors, including big institutions and private-equity firms with no mining experience but with time to wait for prices to rise.
Canada’s two largest pension funds—CPP Investment Board and Caisse de depot et placement du Quebec—are each seeking possible partners for separate bids for Rio Tinto PLC's  59% stake in Iron Ore Co. of Canada, valued at about $4 billion, people familiar with the matter said last week".

"And last month, Japanese trading companies Itochu Corp.  and  Mitsui & Co. agreed to buy stakes in BHP Billiton Ltd's Jimblebar iron-ore mine in Australia for a total of around US$1.5 billion. Itochu agreed to purchase an 8% stake in the mine for around US$800 million, while Mitsui agreed to pay around US$700 million for a 7% stake". 

"Pension funds, known for investment horizons of 20 to 30 years, can wait for prices to rise and the sector to turn around, said Kelly Teoh, a strategist with IG in Singapore. “People are talking about the commodity super-cycle being over, but commodities will always have a place in society because, if you look at global population growth, we are reaching unprecedented levels”

From WSJ China's Slowdown has little effect on Japanese economy

The effects of China's slowdown have rippled through the global economy. But for the region's next-largest economy, Japan, the blow has so far at least been cushioned by its own recovery in domestic demand, and a new boost to exports from the sharply weaker yen, which makes Japan-made goods more competitive on global markets.

Sales of many Japanese products in China were also curtailed sharply last year by a boycott over a territorial dispute, so Japanese shipments are rebounding from that low base to a more natural market share, even as overall demand in China may be softening. And Japanese companies have been gearing up to tap into China's growing consumer market, which is expected to grow in a recalibration of the Chinese economy, even as other sectors decline.For May, the most recent data available, Japan's exports to China rose a healthy 8.3% over the previous year, showing a sharp recovery from recent softness - though not quite as robust as Japan's 10.1% increase in exports overall. That, despite the fact that China reported Monday that its GDP growth slowed to 7.5% in the second quarter, down from 7.7% in the first quarter.

IMF Report China's economy can withstand Schocks.

The International Monetary Fund (IMF) said the Chinese economy has the capacity to withstand shocks, while accelerating growth model transformation remains its main priority.

In its annual China economic assessment report, the IMF said Wednesday that the world's second-largest economy "is expected to grow at around 7.8 percent this year, notwithstanding a moderate slowdown during the first half, with resilient domestic demand offsetting lingering weakness in the external environment."

They predicted that the growth would pick up moderately in the second half of the year, as the lagged impact of recent strong growth in total social financing takes hold and in line with a projected mild recovery in the global economy.

The report also said inflation in China has continued its downward path, and is likely to remain subdued around 3 percent this year and next.

"Macroeconomic policies have been supportive toward achieving this year's growth target," said the IMF, noting that although substantial progress has been made in external rebalancing, domestic imbalances remain large in China with private consumption was broadly unchanged as a percent of the gross domestic product.

"Accelerating the transformation of the growth model remains the main priority, as reaffirmed in recent policy announcements by the new administration," 

"Growth outlook is clouded by mounting domestic vulnerabilities in the financial, fiscal, and real estate sectors. At the same time, potential spillovers from developments in the euro area and major advanced economies continue to pose external risks"

  "China has the capacity to withstand shocks, but considered that a further strengthening of policy buffers over time would be desirable", said the latest FMI report

Source   Xinhua

China´s expansion of property tax plan

The long-discussed expansion of China's property tax plan has once again come under the spotlight following a renewed pledge by tax authorities to research the plan.

The State Administration of Taxation (SAT) said in a circular issued late Tuesday that it will research the possible expansion of property tax pilot programs.

However, like similar statements previously made by other authorities, the circular did not include any details regarding a timetable for the expansion.

The comment is the latest in a string of official statements in which authorities have vowed to implement a property tax plan currently being used in the cities of Shanghai and Chongqing.

Despite repeated emphasis, the government has yet to make any substantial moves regarding the property tax, although recent media reports indicate that several cities, including Hangzhou, Wuhan and Xiangtan, are ready to implement the plan.

The government introduced property taxes in Chongqing and Shanghai on a trial basis in 2010 as part of efforts to cool the property market down amid growing public complaints about skyrocketing property prices.

The Chongqing trial focused on taxing high-end housing, while Shanghai's program mainly targeted the ownership of multiple houses.

But due to limited rates that ranged from 0.5 to 1.2 percent, the taxes imposed were seen as too low to be effective in keeping local housing prices in check.

Source  Xinhua

Government Bonds Quotes.

Goverment Bonds.

U.S. 5 Year			10/32	1.308
U.S. 10 Year			13/32	2.486
U.S. 30 Year			11/32	3.569
Germany 2 Year			0/32	0.091
Germany 10 Year			2/32	1.546
Italy 2 Year			-3/32	2.150
Italy 10 Year			-6/32	4.492
Japan 2 Year			0/32	0.130
Japan 10 Year			2/32	0.818
Spain 2 Year			-2/32	2.034
Spain 10 Year			-8 6/32	4.720
U.K. 2 Year			0/32	0.307
U.K. 10 Year			-8/32	2.295

  Source   WSJ

Precious Metals Quotes

Gold Price      3months Futures         US$     1,281.79

Silver Price    3months Futures         US$          19.67

FMI Spain Latest Report Part I

Implementation of Spain’s financial sector program remains on track. The vast
majority of measures specified in the program have now been implemented, as envisaged
under its frontloaded timetable. Most notably, actions to recapitalize parts of the banking
sector and the asset transfers to SAREB have provided an important boost to the system’s
liquidity and solvency.
Correction of Spain’s large external, fiscal, and financial imbalances is
well underway, with policy actions at both the European and Spanish levels helping to ease
market pressures over the last year. Nonetheless, further adjustment remains, and the process
continues to weigh heavily on domestic demand, with output still shrinking and unemployment
rising to record levels. Financial sector dynamics still contribute to recessionary pressures, with
credit contraction accelerating, lending standards tightening, and lending rates to firms rising.

From Reuters Fed Chairman tap to bond buy program subject to U.S. Economic Conditions

Fed Chairman Bernanke in testimony to Congress said on Wednesday, that the Central Bank will
start to taper its bond buying program, later this year.
"Our asset purchases depend on economic and financial developments, but they are by no means on a preset course," 

In his remarks on Wednesday, Bernanke said the pace of asset purchases could be reduced "somewhat more quickly" if economic conditions improved faster than expected. On the other hand, the current pace "could be maintained for longer" if the labor market outlook darkened, or inflation did not look like it was rising back toward the Fed's 2 percent goal.

"Indeed, if needed, the (Fed's policy-setting) committee would be prepared to employ all its tools, including an increase (in) the pace of purchases for a time, to promote a return to maximum employment in a context of price stability,"

Precious Metals Quotes

Gold Price    3months Futures           US$  1,295.85

Silver Price  3months Futures           US$      20.05