Nomura sees Nikkei 225 at 20,500-21,000 end-2017

Recovery in earnings, a lower yen, a relatively attractive valuation ratios, favorable technicals (higher demand for Japanese equities), continued support from BoJ, a rebound from capex and high cash distribution potential might be the main driver of a pursuit of the rebound in Japanese equities in 2017, according to Matsuura Hisao, Nomura’s chief strategist. Lire la suite

« The potentiel for yield mania in 2015 looks big » – BofAML

Yield search isn’t a new theme. It’s actually been around for a couple of years. But with a growing number of bond yielding zero or less, due to the « globalization » of ZIRP, the chase for yield is intensifying.

Here’s the stock of bond yielding below 0, that is that investors have to pay for to own… Japan is a clear leader, but we now see Germany, France, the Netherlands joining the club. While Japan is above 2tn€, the Eurozone is close to 1.4tn€…

Source: Bank of America Merrill Lynch

Source: Bank of America Merrill Lynch

Lire la suite

Europe equities are cheap, but for one (or two) reason(s)

Source: Goldman Sachs

Source: Goldman Sachs

This might look simplistic, but when you look for cheap equities around the world, Europe is not alone. Asia Pacific and even Japanese equities look interesting. Of course, currencies make equity investing a little bit more tricky when you look globally.

The problem with European equities is twofold: first, the debt crisis is far from over (public deficits and debts are astronomically high, economic and earnings growth are subpar and deflation is here); second, all hopes rely on the decision of the ECB to start buying government debt, which from a cautious investor standpoint is worrysome, all the most in a region where economic and political governance is inefficient.

Big Picture: earnings consensus figures in the world

Thanks to Deutsche Bank, this single page sums up the consensus view on equity markets around the world: what are the expectations for 2014 -> 2016, what were the revision rates by region/market/sector.

Lire la suite

A more favorable backdrop for risk assets – Barclays

On the back of slightly better global growth in 2015 and most importantly accommodative monetary policies, risk assets should prevail next year, says Barclays in its freshly published outlook. Attached is the summary per asset class, and some key introductory remarks to this 168 page document distributed to investors and clients. Enjoy!

Lire la suite

Is Europe the Next Japan ? (from Goldman)

Well, this question is far from new. Actually it was raised soon after the first tention in EZ sovereign bond market in 2010. As already mentioned on this blog, the theme of a balance sheet recession is rooted deep down the EZ economy. Unfortunatelly, the public and governments don’t seem to properly grasp the issu. But some people do, especially in Japan…  Lire la suite

Japan/Earthquake Donation – Japanese Red Cross Society

We heartily appreciate your kind offer of donation.If you wish your fund to be distributed directly among the affected population of the earthquake and tsunami, please direct your fund to the following bank account. If you need the receipt of your fund, please state so clearly in the comment section of the bank transfer order. All the fund received under this account will be transferred to the Distribution Committee, which is formed around the local government of the disaster-affected prefecture and to administer the distribution of fund.

Name of Bank: Sumitomo Mitsui Banking Corporation

Name of Branch: Ginza

Account No.: 8047670 (Ordinary Account)

SWIFT Code: SMBC JP JT

Payee Name: The Japanese Red Cross Society, Donation for Japan earthquake/tsunami

Payee Address: 1-1-3 Shiba-Daimon Minato-ku, Tokyo JAPAN

http://www.jrc.or.jp/english/relief/l4/Vcms4_00002070.html

Page de la Croix Rouge Française: http://www.croix-rouge.fr/