Amy Lo has taken over from Allen Lo as UBS Wealth Management’s chief executive officer (CEO) in Hong Kong, according to information published in several media.
The outgoing Lo, who has been in the role since October 2009, is retiring. Edmund Koh, CEO of UBS Wealth Management in South-east Asia and Asia Pacific Hub, will assume Lo’s responsibilities as deputy CEO of wealth management in Asia Pacific.
For the incoming Lo, she moves into her new role from her position of head of UBS’ ultra high net worth group in Asia Pacific. She first joined UBS in 1995.
Photo: HipolitoLuiz, Flickr, Creative Commons.. How Millionaires Invest
According to the new Legg MasonGlobal Investor Survey of 4,320 affluent investors from 20 countries, the vast majority (80.2%) said they were optimistic about investments over the next twelve months. The majority of respondents said they intend to maintain their current asset allocations; however, greater than one-third (37.1%) said they intend to increase their allocation to equities – more than those increasing their allocation to cash (36.8%) or any other asset class.
The top five investments that investors believe offer the best opportunity over the next twelve months are:
Domestic stocks
Real estate
Cash
Precious metals including gold
Domestic bonds
The average asset allocation among all respondents globally consists of:
26.5% cash or cash equivalents
24.7% equities
19.9% fixed income
16.8% investment real estate
6.8% non-traditional investments
5.2% other
“Our survey found a level of optimism shared by investors around the world that is very encouraging,” said Matthew Schiffman, managing director and head of global marketing at Legg Mason Global Asset Management. “The fact that more said they are adding equities, and they believe domestic stocks present the best opportunity, says their optimism could translate into a change in investment behavior that may play out in the equities market.”
Income important but income gap remains a challenge
Seven out of ten (71%) investors said that having income generating investments in their portfolio is an important priority. Yet global investors said the income they are generating continues to fall short of their goals.
More specifically, according to the survey the average rate of return global investors seek to achieve on income-producing investments is 9.5%; but the actual rate of return they receive is 6.2%, creating an income gap of 3.3%.
Investing internationally: increasing interest in US and China
More than three-quarters (78.7%) of survey respondents said they invest outside of their home country with an average allocation of 16.5% to international investments. Those who invest internationally or are likely to do so see the following countries as presenting the best investing opportunities over the next 12 months:
US (51.7%)
China (50.1%)
Emerging markets (45.3%)
Europe excluding UK (35.2%)
Growth, retirement top goals but achieving a challenge
Asked to identify their primary goals of investing, almost three-quarters (73.7%) said “grow my wealth” was their top investment goal, followed by “provide for my own retirement” (61.7%) and “protect my wealth” (58.5%). However, many investors are not doing very well in making progress toward their goals; many are only doing “somewhat” well.
More specifically:
46.9% admit they are doing not well or only “somewhat” well in achieving their goal to “grow my wealth”
41.9% said they are doing not well or only “somewhat” well at achieving the goal to “provide for my own retirement”
39.5% said they are doing not well or only “somewhat” well at “protecting their wealth”
Only 19.6% said they are doing “extremely well” in their progress toward achieving their goal to “provide for my own retirement.” Further, more than half (56.6%) said they are only “somewhat confident” that they will have enough money to “live the lifestyle they want in retirement,” while 28.3% said they were “very confident.”
“When it comes to achieving your retirement goals, only doing ‘somewhat well’ or being ‘somewhat confident’ is concerning,” Mr. Schiffman said. “Investors around the world all have one thing in common – the need for enough assets to provide for their years in retirement. Granted, different countries have different social programs to help their retiree populations, but in the end, our survey found that investors everywhere can, and should, do more to prepare for their retirement. And that includes millionaires.”
How millionaires invest
Included in this year’s Legg Mason Global Investor survey were the responses of 2,164 millionaires– that is, survey participants with over $1 million in total assets measured in US dollars. According to the survey, the average asset allocation of global millionaires is:
25% cash
21.5% equities
19.6% fixed income
18.7% investment real estate
9.1% non-traditional
6.1% other
More than eight in ten (83.2%) millionaires surveyed said they are optimistic about investments over the next year, and 45% said they plan to increase their allocation to equities in the next 12 months – well above the 33.7% of investors below $1 million who said the same.
Millionaires go global for investments
Millionaires are far more likely to be investing outside of their home country than those with fewer assets. More specifically, 88.7% of global millionaires surveyed said they invest outside of their country, compared to 74.6% of investors with less than $1 million. Furthermore, millionaires also have a larger portion of their assets invested outside of their home countries: 20.4% of their assets versus 14.8% for those with under $1 million. Among those millionaires who do invest internationally or are likely to do so, the countries they believe represent the best investment opportunities over the next 12 months are:
US (53.7%)
Emerging markets (45.3%)
China (44.6%)
Europe ex UK (37.8%)
Income gap smaller as millionaires achieve greater return
As a result of receiving greater income from their portfolios, the income gap millionaires are experiencing is smaller than that of investors around the world with fewer than $1 million in assets.
The average rate of return millionaires seek to achieve from income-producing investments is 9.6%, close to the 9.5% for those with less than $1 million in assets. Millionaires reported the actual rate of return they receive is 7% compared to 5.8% for those with fewer assets. As a result, the income gap for millionaires is 2.6%, while the income gap for investors with fewer assets is 3.7% – a 110 basis point difference.
According to the survey, millionaires are more focused on growing their assets than protecting their assets. Specifically, asked to identify their primary goals of investing, the millionaires said:
Grow my wealth (70.9%)
Protect my wealth (60.5%)
Maintain my current lifestyle later in life (55.4%)
Provide for my own retirement (53.3%)
When it comes to retirement, 45% of millionaires around the world said they are only “somewhat” confident in their “ability to retire at the age they want to” and 18.6% are not confident. Just over one-third (36.5%) said they were very confident. Asked to define the decisions they made that have had “the most positive impact on investing success,” millionaires point to the following top five decisions:
Developed a financial plan (43.9%)
Invested in products other than stocks and bonds (35.4%)
Took cash off the sidelines and invested it (34.8%)
Changed my spending habits so I could save/invest more (32.2%)
BNY Mellon Investment Management has announced that Kimberly Mustin has joined the firm as Head of North American Distribution, responsible for leading new business strategy and driving sales, client management and consultant relations efforts across institutional, retirement and retail markets throughout North America.
“Kim has significant leadership experience in all three North American markets and has succeeded within a multi-boutique investment management structure,” said PeterPaul Pardi, BNY Mellon’s Global Head of Distribution. “We are delighted to have Kim lead our North American efforts, and are confident she will further enhance our ability to build a market-leading organization focused on delivering outstanding investment solutions to our clients from across our specialist boutiques.”
In North America, Mustin will oversee centralized distribution and consultant relations across Dreyfus, BNY Mellon Retirement, and Institutional markets. Working closely with BNY Mellon’s investment boutiques, as well as Investment Management’s product and marketing leadership, she will lead the strategic plan for the North American distribution business. She will be based in New York and report to Pardi.
Mustin joins BNY Mellon most recently from Oppenheimer Funds where she was Head of Global Strategic Accounts since 2010, leading all institutional buyer groups including institutional, retail home offices, third party and global private banking platforms. Prior to Oppenheimer, Mustin was with Legg Mason, serving as both Head of Institutional and Co-Head of Americas Distribution for Legg Mason affiliates. Throughout her career of consistently progressive sales leadership positions, Mustin headed the Financial Institutions Group at Deutsche Bank, led Consulting and Relationship Management for Retirement at Scudder Investments, was a Principal at State Street Global Advisors and a Senior Consultant at Putnam Investments. She began her career as an Agent with the US Treasury Department.
“We are working continuously to explore, develop and implement enhancements to our distribution efforts globally,” Pardi continued. “These initiatives have enabled us to achieve top 10 sales performance in both the U.K. and Europe in 2013, as well as a top 10 position in the U.S. Retirement market. It’s a thoughtful approach to strategic planning and investment in our platform that will serve Kim well as she leads us forward in North America.”
Real Estate Investment World Latin America 2013. Photo: Terrapinn. LatAm's Real Estate Investment Industry Meets in Miami
Real Estate Investment World Latin America, organized by Terrapinn, is the leading conference for investors, real estate funds, fund of funds, and developers capitalizing on opportunities in Latin America’s hottest and emerging real estate markets.
In 2014, the event will take place alongside Private Equity World Latin America, bringing even more networking opportunities. It will take place in Miami, on 6th-7th, May.
During two days, the same as Private Equity World Latin America summit, attendants will be able to network with top Latin American investors including AFP Profuturo, Fondo de Fondos and CORFO; hear how international investors are allocating to LatAm from Florida State Pension Plan Board, Chevy Chase Fund, CERN and more; understand how family offices like Quilvest, CV Advisors, Forrestal Capital, WE Family Office, AKRO Group and WLD Enterprises are choosing between direct opportunities and funds; explore opportunities in Mexico’s emerging REIT market with Fibra Uno, Macquarie Group and Terrafina; identify new opportunities in Colombia and Peru’s housing, retail and logistics markets with Terranum Capital, Avenida Capital and Tierra Partners.
Among the companies that will attend are YMCA Retirement Fund, Terranum, Florida State Board of Investments, Terrafina, Coral Gables Trust, Fibra Uno, Chevy Chase Trust, Related Group – Brazil, Prudential Real Estate Investors, Morgan Stanley Alternative Investment Partners, Abraaj Capitaland many more.
To download the brochure, use this link and to register, this one.
Wikimedia CommonsPhoto: Popejon2 . SEC Charges Brokerage Firm Executives in Kickback Scheme to Secure Business of Venezuelan Bank
The Securities and Exchange Commission has announced another round of charges in its ongoing case against several individuals involved in a massive kickback scheme to secure the bond trading business of a state-owned Venezuelan bank.
The SEC alleges that two executives at New York City-based brokerage firm Direct Access Partners (DAP) were integral participants in the wide-ranging fraud. Benito Chinea, who was a co-founder and CEO of the firm, and Joseph DeMeneses, who was DAP’s managing partner of global strategy, devised and facilitated sham arrangements to conceal multi-million dollar kickback payments to a high-ranking Venezuelan finance official of the bank. In one instance, DeMeneses made kickback payments from funds he controlled to a shell entity controlled by the Venezuelan official, and Chinea arranged for the firm to reimburse DeMeneses. The allegations were made in a second amended complaint that the SEC submitted in federal court in Manhattan as part of its pending action against four individuals with ties to DAP as well as the head of DAP’s Miami office, who were charged last year for their roles in the scheme.
In a parallel action, the U.S. Attorney’s Office for the Southern District of New York and the U.S. Department of Justice’s Criminal Division today announced criminal charges against Chinea and DeMeneses.
“The corruption at Direct Access Partners reached the very top,” said Andrew M. Calamari, director of the SEC’s New York Regional Office. “The schemers depended on Chinea as CEO to authorize outsized payments from the firm to be funneled as kickbacks to Venezuela.”
The filing of the SEC’s second amended complaint is subject to court approval. The SEC seeks disgorgement of ill-gotten gains plus interest and financial penalties against Chinea, who lives in Manalapan, N.J., and DeMeneses, who lives in Fairfield, Conn., as well as the five previously named defendants with ties to DAP, which has filed for bankruptcy.
The SEC’s investigation, which is continuing, has been conducted by Wendy Tepperman, Amanda Straub, and Michael Osnato of the New York Regional Office, and supervised by Amelia Cottrell. Howard Fischer is leading the SEC’s litigation. An SEC examination of DAP that that led to the investigation was conducted by members of the New York office’s broker-dealer examination staff. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, the Department of Justice’s Criminal Division, and the Federal Bureau of Investigation.
Wikimedia CommonsPhoto: Heurik at de.wikipedia. Why China's A-Shares Matter Now
Although we often receive questions on mainland China’s A-share equities, which trade on the Shanghai and Shenzhen Stock Exchanges, we currently invest in Chinese equities primarily via Hong Kong-listed companies and also by way of U.S.-listed Chinese firms. China’s domestic A-share market remains largely closed to foreign institutional investors. The only way for foreigners to participate in this market is to enroll in China’s Qualified Foreign Institutional Investor (QFII) program or invest via a manager who has a quota in this program. Even still, relatively few QFII licenses have been granted.
China’s A-share market performance has been lackluster over the long term. Ten years ago, the Shanghai Composite Index traded at approximately 1,800 and had a stellar run to 6,000 in late 2007. But the index has since erased most of its gains and is now trading back around 2,000. This may leave you to wonder: do the A-share markets reward long term investors?
There are a couple of unique characteristics of China’s A-share markets that have, either directly or indirectly, contributed to the country’s stock market performance. First, a key issue has been China’s “non-tradable shares,” which were awarded to the management teams and employees of listed state-owned companies. As their name implies, these shares have been disallowed from trading in the open market. But after a long reform process of the non-tradable shares in from 2005 to 2007, individuals could gradually sell their shares. Over the next few years, batches of non-tradable shares continued to become available for trading and created a situation of excess liquidity, weighing down stock market performance.
Unlike in most markets, another characteristic unique to the A-share market is its trading volatility. This results from the dominance of the A-share market by retail investors, who make up 80% of the market and tend to be short-term market-timers.
All of that said, many of these comments are backward-looking. The non-tradable shares issue peaked around 2009 and provokes less discussion today. High volatility continues to be challenging, but steps have been taken to introduce more institutional and QFII participants to the market, encouraging a longer term investment mentality.
As these markets evolve, they may present more attractive opportunities for investors. For starters, valuations are currently enticing, trading at price-to-earnings (P/E) multiples* currently estimated by Bloomberg at 8x for 2014 and 7x for 2015. These valuations are approaching 10-year historical lows. The A-share markets also broaden the pool of stocks from which investors may choose. For example, in certain fast-growing Chinese sectors as health care, consumer and technology, there are many more selections on the A-share market, compared to the relatively few numbers of firms listed in Hong Kong or the U.S. We may also be able to research the A-share competitors of businesses we currently study.
Matthews Asia currently holds no exposure to A-share equity markets, and we are not commenting on the domestic markets as a whole. Careful stock picking is particularly important here since this market does have its fair share of poorer quality companies, including a large representation of state-owned businesses. However, such a large opportunity set does have the potential for investors to choose from a larger menu of quality companies.
*A valuation ratio of a company’s current share price compared to its per-share earnings.
Opinion column by Winnie Chwang, Senior Research Analyst, Matthews Asia
The views and information discussed represent opinion and an assessment of market conditions at a specific point in time that are subject to change. It should not be relied upon as a recommendation to buy and sell particular securities or markets in general. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. Matthews International Capital Management, LLC does not accept any liability for losses either direct or consequential caused by the use of this information. Investing in international and emerging markets may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. In addition, single-country funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific geographic location. Investing in small- and mid-size companies is more risky than investing in large companies, as they may be more volatile and less liquid than large companies. This document has not been reviewed or approved by any regulatory body.
Foto: Jerry Gunner . Six Reasons Why US Capital Expenditure is on The Rise
In the United States, capital expenditure is lagging the economy as a whole. Some think this is the ‘new normal’. But Robeco’s strategist Peter van der Welle believes there is a strong case for a rebound in investments later this year.
Why investment activity in the US has been subdued
Capital expenditure has been disappointing in recent years. Corporates drastically reduced investments to cut costs following the sharp economic contraction in 2008. On the political front, gridlock on the fiscal situation and ‘Obamacare’ eroded confidence.
The decline in stock prices in 2007-2009 meant that firms that wanted to expand could buy up other companies cheaply and did not need to invest directly in capital goods. In terms of funding, tighter bank lending standards on commercial and industrial loans have also made it more difficult for companies to borrow.
Why investment activity in the US may rebound later this year
It will probably come as no surprise that US investment as a percentage of GDP is still well below historical levels. This situation has spurred an investor debate. Is what we are now facing the ‘new normal’ or just a cyclical trough?
“No”, says Robeco’s strategist Peter van der Welle. “Recent developments in the US economy suggest the tide for capital spending will turn. However, last year, more favorable conditions failed to spur investment growth and market analysts forecasting a pick-up in capital expenditure in 2013 were proven wrong.”
“A combination of pull and push variables could turn the tide for capex”
According to Van der Welle this demonstrates that improvements in one area alone are not enough to trigger the ‘capex call’. A broad-based momentum in the key factors that determine the investment case is required. “We identify a combination of pull and push variables that could turn the tide for capital spending”, says Van der Welle.
Business outlook has gained momentum to spur investments. Economic uncertainty surrounding the US recovery has decreased. Leading indicators have been positive for investment activity for quite a while now. Consumers have deleveraged, US banks have relaxed their lending standards and there is now stronger demand for loans from the industrial sector.
US industrial renaissance could ignite multiplier effects for investment. Growth in strong economic sectors could start a ripple effect, leading to better free cash flow and earnings profiles for related sectors. A good example is shale gas, where abundant supply has caused domestic gas prices to decline and has strongly improved the business case for gas-related industries. The current ongoing industrial renaissance in the US will pave the way for innovation, spurring investment.
Political and economic uncertainty has abated. The gridlock in Congress is over with the Republicans receiving the lion’s share of the blame for the partial government shutdown last November. The hardline Republican stance on fiscal tightening and attacks on ‘Obamacare’ will soften ahead of Congressional elections later this year.
Aging capital stock creates pressure for replacement investments. A push factor for heightened investment activity is aging capital stock. Equipment has not been this old since 1995 and some intellectual-property products date back to the eighties. The delay in replacing buildings and machines will be reversed as higher output levels will become increasingly difficult to achieve with the existing capital stock.
Efficiency gains from existing capital stock are diminishing. The increased efficiency achieved by squeezing the remaining potential out of existing capital stock is diminishing. Businesses will probably need to engage in productivity enhancing capital expenditure, if they are to maintain efficiency advantages. Besides the need to upgrade quality, more capital stock is also required, given that industrial capacity utilization rates in the US have risen above their cyclical average.
More investor pressure for capex. Investors are increasingly encouraging corporate management to pursue growth opportunities. This could encourage firms to increase M&A or stimulate organic growth through direct capital spending on equipment, software and intellectual property rights.
Van der Welle: “Although political developments and healthy corporate balance sheets are important, a broader range of positive conditions are required to trigger a ‘capex call’. Based on these six arguments, we think a rebound later this year is likely and that the lackluster US capital expenditure of the last five years is not a prelude to the ‘new normal’.”
Wikimedia CommonsFoto: Camdiluv, Flickr, Creative Commons.. La rotación hacia acciones y sectores más defensivos puede ser inminente
Investor confidence in global economic growth remains high even as expectations of higher short-term rates increase, according to the BofA Merrill Lynch Fund Manager Survey for April.
The survey, taken between April 4 and April 10, 2014 with an overall total of 239 panelists with US$674 billion of assets under management, showed that the number of investors believing the global economy will grow over the next 12 months was steady at a bullish net 62 percent, unchanged from March and higher than the 56 percent in February. That view supports expectations for profits – a net 44 percent of investors believe profits will improve over the next 12 months, up from 40 percent in March and the same as in February.
However, expectations of higher short-term rates are growing with a net 66 percent believing short rates will rise over the next 12 months, up from 55 percent in both March and February and the highest in three years. This expectation of normalizing monetary policies, though, hasn’t changed sentiment on long-term rates much – a net 72 percent believes they’ll be higher in 12 months, down slightly from 74 percent in March and 73 percent in February. Taken together, expectations for a steeper yield curve are falling away. A net 22 percent of investors are expecting a steepening compared with 39 percent in March and 42 percent in February.
There was a big change in sentiment among investors when choosing between value and growth stocks. In April, a net 40 percent believed value stocks will outperform growth stocks over the next 12 months, more than triple the level in March and an all-time high.
The preference for value might offer one clue to the recent sell-off in technology and biotech stocks. “Recent market volatility has led investors to ‘taper’ their extreme bullishness on U.S. growth-plays and extreme bearishness on emerging markets,” said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research.
Seeking alternative markets
Regionally, a net 66 percent of global fund managers believe the U.S. is still the most over-valued equity market, little changed from March and February. That has many looking again at emerging markets – a net 55 percent think these are undervalued, up from 49 percent in March and the highest reading ever. In addition, only a net 2 percent would like to underweight emerging markets, down sharply from 21 percent in March.
Crowded trades
Fund managers are taking a more guarded view of assets favored in recent years. Topping the list of crowded trades are Long U.S. High-Yield bonds at 22 percent, a notable jump on the 13 percent in March. Also, long peripheral debt was cited as a crowded trade by 19 percent of respondents, up from 16 percent in March.
“After two years of cyclical outperformance in Europe, some of the exuberance we see in investor sentiment and positioning suggests a rotation into more defensive stocks and sectors may be imminent,” said Obe Ejikeme, European Equity and Quantitative strategist.
Abenomics effect wanes
In Japan, the boost provided by the launch of “Abenomics” over a year ago continues to wane. Only a net 13 percent of investors are still overweight Japanese equities, down from 16 percent in March and 30 percent in February. Similarly, a net 16 percent have a favorable outlook for Japanese profits, down from 18 percent in March and 28 percent in February while perceptions of their quality and volatility turn for the worse.
Photo: Torsten Bolten, AFpix.de . What We Expected May Be What We Get
With the first quarter of 2014 behind us, let’s consider where we stand now versus our outlook at the beginning of the year, when we were favoring the US equity market over other equity markets. And our outlook for fixed income was based on a bias toward higher interest rates — not a dramatic hike in rates, but a downward drift in bond prices across the board. So we were favoring credit and shorter maturities.
Among US stocks, we liked the technology sector, where we noted some exuberant pricing but found that the broad swath of tech companies were not trading at bubbly prices — and after the recent market selloff that remains a truism.
My thoughts early this year were that low energy prices and labor costs would persist, keeping the US manufacturing sector competitive. On the corporate side, we would see more spending on capital, or capex, to replace some of the longest-lived assets in history. And on the household side, more jobs in manufacturing would drive pent-up demand for housing and automobiles, helping to revive the construction sector and fuel the economy in general.
Then what happened?
January came along, and we got some poor results from the consumer, with the first inklings that bad weather was at least partly to blame. Then in February there were heavier snowstorms and weaker numbers out of the consumer and factory sectors. While the market grew concerned when job gains seemed to decelerate and hours worked fell, many — but not most — technology stocks reached very heady valuations.
I want to stress that the private sector is still growing at 3.3% to 3.4%, and that’s what really matters to investors
How do things look now in April, as we enter the second quarter of 2014? The numbers from March are starting to come in. US labor markets continue to heal, with nonfarm payrolls again exhibiting modest expansion including upward revisions to January and February. More important, we saw an uptick in the workweek — a figure that I emphasize. So even though the pay rate received by workers has remained flat, which has favored corporate profits, the growth in jobs and the longer workweek bias the total wage bill toward better consumption going forward.
My conclusion? Even after last year’s nearly 30% gain in the S&P 500 Index and this year’s turmoil in the technology sector and the broader markets, the story of the durable US expansion remains intact.
The bigger picture
How do we measure the US economy against what’s occurring in the rest of the world? Let’s go through US trading partners. Number one by percentage of US GDP is the Eurozone, which on the whole is showing better and faster growth. This may not be a V-shaped recovery, but jobs, factory orders and fiscal responsibility all look to be improving in Europe. Another big trading partner is Mexico, and the numbers there remain solid.
Moving across the Pacific to Japan, we saw growth ticking up after the yen was devalued, although some indicators seem to be slowing down right now as the value-added tax is kicking in. I would say the outlook there is a little more uncertain.
China stands out among emerging markets for its major role in the global economy, but it accounts for only 7% of total US exports — and that share is declining. With exports contributing about 12% of the US economy, China directly influences only about 1% of US GDP. I don’t see any near-term excitement coming out of the numbers from China.
What matters on the investment side
We expect the equity market to focus on fundamentals, and earnings season for the first quarter has just begun. S&P profits expanded in the last quarter of 2013, and so did margins. Based on a broader number including privately held as well as publicly traded companies, the profit share of GDP — or the percent of the economy going to capital — actually rose again last year, despite the many predictions that it would have to revert back to the mean. This is really important because we haven’t seen a recession since World War II when the profit share of GDP was rising.
Looking at interest rates, which matter to all financial markets, we’re getting to see the new Federal Reserve chair in action. Janet Yellen seems to be accommodative, though with a view that the US central bank eventually has to step aside and let the market determine longer-term rates. So we continue to expect a slow drift higher in long- and medium-term rates, while short-term rates are likely to remain contained, since she apparently has no intention of raising the target federal funds rate as long as US inflation persists on the low side.
So to sum up, despite all the gloom sellers on the news during the long, dark winter, it appears that a lot of the slowing in the first quarter was temporary. And even though now, in the bright light of spring, we’re seeing a dramatic selloff, we think that US real GDP will continue to expand at around 2¼% — the same moderate pace we’ve been witnessing throughout this whole cycle. Finally, I want to stress that the private sector is still growing at 3.3% to 3.4%, and that’s what really matters to investors.
Post originally published in James Swanson’s blog “On the Lookout“. James Swanson is Chief Investment Strategist at MFS Investment Management
Stella McCartney, Christian Louboutin and William P. Lauder, among the speakers. Photo: kentwang . A Deep-Dive into the Markets of the Future and Opportunities in the Luxury Scene
Now in its tenth year, the FT Business of Luxury Summit has become established as the premium thought leadership gathering for senior luxury executives, industry leaders, corporate decision makers and financiers from around the world.
Taking place in luxurious setting of the St. Regis Hotel in Mexico City, the 2014 Summit will take a deep-dive into the markets of the future, from the geographic to the virtual, and the value systems that make the difference.
The Summit will be lead by Lionel Barber, Financial Times’s Editor, and among the speakers will be the designer Stella McCartney (OBE); Bottega Veneta’s President and CEO Marco Bizzarri; Christian Louboutin’s Founder, Christian Louboutin; and Executive Chairman at Estée Lauder Companies, William P Lauder.
Other speakers will be Caroline Brown, President, Carolina Herrera; Jean Cassegrain, CEO, Longchamp; Roberto Stern, CEO & Creative Director, H.Stern; Andrew Keith, President, Lane Crawford and Joyce; Martin Wolf, CBE, Chief Economics Commentator, Financial Times; Yi Zhou, Multimedia artist, Art Director, tudou.com and Sina & Weibo ambassador.
This Summit will be a good opportunity to learn about 15 key markets of the future – both emerging geographical markets and virtual channels (social media, art, sport and sustainability) and discover how the world’s most prominent brands are looking to capitalise on them. Also, to gain incisive marketing intelligence from industry peers, participate in debates and hear the results of specially commissioned research. And to meet senior luxury executives from around the world at a series of networking functions incorporated into the programme, including a Welcome Reception at the exciting new Museo Jumex and a Gala Dinner at the spectacular Convento de San Hipólito.
Financial Times Business of Luxury Summit will take place on May 11, 12 and 13th. To see the programm follow this link.
