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“Brentwood Group” – BRIC Economies Downturn To Be Short.
Brentwood Group, Japan: Debt-laden Western economies face a longer slump than those in emerging markets.
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December 5, 2008 (FPRC) -- Brentwood Group sources suggest that recessions in the US, Europe and the UK will last longer than any downturns in the emerging economies of Brazil, Russia, India and China.
The Asian-based asset management firm is thought to believe that excessive consumer and government debt in the developed economies is not mirrored in the emerging markets and, as such, the governments of those nations will resume their growth uptrend fairly swiftly.
One of the Brentwood Group sources cited China’s foreign exchange reserves as being the largest in the world at nearly $2trn dollars. The country has a large trade surplus with the rest of the world and is better able to maneuver through any inflationary period without sacrificing growth.
Brentwood Group’s analysts are reportedly seeking opportunities for stock acquisition in Brazilian and Chinese companies which have taken a beating broadly in line with those on stock markets around the globe.
Brentwood Group clients have been advised to avoid seemingly cheap US and UK stocks on grounds that price-to-earnings ratios are not as attractive as they appear given that earnings are likely to suffer in the short to medium term.
Brentwood Group – Hedge Funds Burned By Volkswagen.
Brentwood Group, Japan: Hedge funds on the wrong side of speculation on Volkswagen shares.
Brentwood Group sources suggest that several large hedge funds have taken heavy losses after wagers that stock in European car manufacturer, Volkswagen, would fall in the face of economic contraction in Europe.
The performance car maker Porsche revealed that it had built up a 71% holding in Volkswagen which saw the shares nearly quadruple in value in a day. This meant that hedge fund bets that the price of stock would fall had to be unwound.
One of the Brentwood Group sources suggested that Porsche’s clandestine acquisition of stock would not have been permitted in other markets outside Germany because of strict rules on disclosure. The hedge fund losses come as they face increasing difficulty in raising funds to meet obligations in the credit default swap markets.
Brentwood Group believe that the hedge fund community may be the next group of financial institutions to face bankruptcies on a large scale and that they are unlikely to be granted access to funding by central banks as they are not essential to the functioning of the global banking system.
Brentwood Group – Hedge Funds Burned By Volkswagen.
Brentwood Group, Japan: Hedge funds on the wrong side of speculation on Volkswagen shares.
Brentwood Group sources suggest that several large hedge funds have taken heavy losses after wagers that stock in European car manufacturer, Volkswagen, would fall in the face of economic contraction in Europe.
The performance car maker Porsche revealed that it had built up a 71% holding in Volkswagen which saw the shares nearly quadruple in value in a day. This meant that hedge fund bets that the price of stock would fall had to be unwound.
One of the Brentwood Group sources suggested that Porsche’s clandestine acquisition of stock would not have been permitted in other markets outside Germany because of strict rules on disclosure. The hedge fund losses come as they face increasing difficulty in raising funds to meet obligations in the credit default swap markets.
Brentwood Group believe that the hedge fund community may be the next group of financial institutions to face bankruptcies on a large scale and that they are unlikely to be granted access to funding by central banks as they are not essential to the functioning of the global banking system.
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Keywords:
Brentwood Group
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