Investment Markets Overview — W/E 19th October 2015

It was an enlightening week in respect of the global trend towards deflation, as consumer debt, used particularly for property purchase, moves ever higher just as there is further evidence of either slower or falling house-price inflation, be it in China, the land of OZ,, bastions’ of stability such as Singapore or within the “hearts of economic growth,” the financial centres of New York and London. The increased personal debt has been accompanied by record merger and acquisition deals announced this week by Dell Inc within the tech space and by Anheuser-Busch InBev NV within the booze sector. The two companies are seeking a combined $120BN debt to finance the deals, adding to the $130 billion of bonds and loans already in the pipeline and may prove to be the “indigestion catalyst” that ends the seven-year corporate-debt binge, particularly as the carry cost of this debt is moving up rapidly. All the talk about global deleveraging following the global financial crisis was just that, talk. A recent McKinsey report confirms that governments’ have led the increased leverage of the private and corporate sectors, increasing their 5.8% compound annual growth rate of debt issuance from 2000-2007 to 9.3% annualised between 2007 to 2014, which collectively has added a staggering $US57 trillion of global debt to the $142,000,000,000,000 already outstanding at 2007.

16 October 2015

Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

Ben Shalom Bernanke presided over the most powerful central bank in the world, initially as a member    ……

Charts:
1.  Indices Weekly
2. US Liquiity V US Dow Jones
3. German ZEW V German Munufacturing Orders
4. Japan Conumer Confidence V  Japan Bank Lending
5. Commodity YTD  Moves

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

“Talking the Talk needs to be Fact Based not Fiction.

Click Here to view Details of the full version of this Newsletter which includes full text and detailed

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