Readings: Investment slowdown, EM Watch, Paul Wilmott

Morgan Stanley: Major Slowdown in Investment Cycle Ahead Capital goods output growth has slowed to 6.8% during the three months ending June 2008 from the peak of 24.2% during the three months ending October 2007. Similarly, the trend for aggregate fundraising has also suffered over the last six months. Bank credit, equity issuance and foreign debt borrowing have trended down. Already many of the Asian and Indian companies are withdrawing their foreign currency bond issuance. Similarly, property companies are finding it very difficult to get access to foreign debt as well as equity capital. We believe that capital inflows into India could slow to US$30-40 billion over the next 12 months compared with US$108 billion in F2008. Will it Be a Repeat of the Mid-1990s Cycle? Watch out for EPS growth (or lack thereof) for the... [read full story]