Fisher Capital Management Seoul Korea: Market Overview 1st Quarter 2010

  SEOUL, KOREA October 29, 2010 /24-7PressRelease/ -- Fisher Capital Management Seoul Korea: Market Overview 1st Quarter 2010 - India is in a sweet spot. The central government budget which set the tone for reducing fiscal deficit and an unexpected increase in the policy rate to rein in inflation has convinced the markets and economists that India is on its way to having a robust economic growth. Industrial output also continued to grow at a fast pace in January as companies produced more cars and cement. In the fiscal year 2011 that ends in March 2011, GDP growth of 8.5% is achievable. Long-term predictions for the southwest monsoons are expected to be normal, giving a boost to agricultural production and domestic demand.

Fisher Capital Management Seoul Korea- Inflation in India has been surging, driven by a low base and high food prices as the weakest monsoon rains in 37 years last year hurt farm output. Inflation running at 8.5% may have peaked and it is expected to ease by April as the winter-sown crop comes to market. The year-on-year inflation rate for food articles was 16.22% in the week ending March 13, far above the comfortable zone for the central bank and the government. In order to manage the inflationary expectations, the central bank increased overnight lending and borrowing rates by 0.25 percentages point each, making it one of the first major central banks to raise rates. The central bank further announced that it would continue to roll back its loose monetary policy to manage prices, as the country can't have sustained strong growth with high inflation. We expect a 0.25-percentage-point rate hike in mid-April and another increase of one percentage point through March 2011.

Fisher Capital Management Seoul Korea: Market Overview 1st Quarter 2010 - The rebound in industrial activity also saw a surge in India's exports for the third month running in January. Exports in January rose 11.5% from a year earlier to $14.34 billion, after having increased 9.3% to $14.61 billion in December. Imports increased 35.5% in January to $24.70 billion while oil imports rose by 56% to $7.05 billion. Non-oil imports, a barometer of investment activity, grew 28.8% to $17.65 billion.

On the back of robust economic numbers and policy pronouncements, the rating agency Standard & Poor's raised its rating outlook to stable, expecting the fiscal situation to recover and growth to remain strong in the coming years. The government's commitment to follow the recommendations of the 13th Finance

Commission, as well as its move to reduce fertilizer subsidies and raise domestic fuel prices were taken as positive indicators. The country's external position continues to be in a comfortable zone.

Fisher Capital Management Seoul Korea: Market Overview 1st Quarter 2010 - It is unlikely that India will benefit from the Google-China spat as the Indian government will not provide the kind of benefits China extends to the manufacturing sector in China. But some relocation is likely to emerge. For example, American companies GoDaddy and Dell have threatened to pull out of China and relocate themselves in India.

Fisher Capital Management Korea is a leading global financial institution holding extensive relationships with financial institutions, institutional investors and corporations across the world.

As a full service company Fisher Capital Management Korea provides a full range of investment banking services including advanced risk management, corporate strategy and structure, plus raising capital through debt and equity markets. With this as our backbone we continue to provide a client service second to none.

Fisher Investments Acquires Lighthouse Capital Management Assets

Renowned Investment Management Firm Continues Acquisition Strategy

    WOODSIDE, Calif., Aug. 18 /PRNewswire/ -- Fisher Investments, a leading
independent investment management company, today announced the acquisition
of assets from Lighthouse Capital Management L.P. of Houston, TX, which
managed over $460 million as of June 27, 2008. Financial terms were not
disclosed. Lighthouse clients will be served by Fisher Investments' Private
Client Group.

    The Lighthouse acquisition is Fisher's second in six months. On
December 31st, Fisher closed a transaction with Econostrat, of Bloomfield
Hills, MI.

    "Lighthouse has a rich history of serving clients over the last 20
years, a tradition we will build upon as Lighthouse's clients are entrusted
to our care," said Mark Scalzo, Group Vice President and Head of M&A at
Fisher Investments. "From an M&A perspective, the shortage of other RIA
buyers, created by the scarcity of capital and financial disarray among
some larger financial institutions, leaves Fisher Investments
well-positioned to quickly act on opportunities such as Lighthouse."

    Paul Horton, Lighthouse Founder and Principal, said: "Fisher
Investments' performance record, global perspective and dedication to
client service makes this the right decision for our clients."

    Luis Gutierrez, Senior Vice President, M&A, of Fisher Investments said:
"This acquisition, coupled with the one completed several months ago,
demonstrates our ability to successfully acquire RIAs. In these
transactions and other on-going conversations, many traditional issues of
concern for RIA owners -- for instance, maintaining a local presence --
have been successfully addressed after learning more about Fisher
Investments' robust client service and portfolio management capabilities."

    About Fisher Investments

    Fisher Asset Management, LLC, doing business as Fisher Investments,
founded in 1979, is a respected investment management company serving the
needs of investors demanding superior performance, competitive fees and
exceptional service. Fisher Investments' clients include large corporate
and public pension plans, foundations and endowments, as well as more than
20,000 high net worth investors. As of June 30, 2008, the firm managed over
$45 billion in assets under management. The firm is headquartered in
Woodside, California, and registered as an investment adviser with the
Securities and Exchange Commission (SEC). Ken Fisher, founder, CEO and
Chief Investment Officer, is the author of four finance books and many
academic studies, and is a well-respected market forecaster, having written
Forbes magazine's "Portfolio Strategy" financial investment column since
1984. In 2007, in association with John Wiley and Sons, Inc., Fisher
Investments introduced Fisher Investments Press, a publishing imprint
offering advice and education for broad investment audiences.
http://www.fi.com

    About Lighthouse Capital Management

    Lighthouse Capital Management, L.P. was established in 1988 with the
guiding principles of providing exceptional client service and always
putting the client's interests first. Lighthouse offered investment
management and financial support services to individuals, families, trusts
and institutions with the mission of providing superior performance over
time in the creation and preservation of wealth for clients while being
mindful of their unique, personal needs. Lighthouse is registered as an
investment adviser with the SEC but will soon be withdrawing its
registration. https://www.lighthousecapital.com/

Fisher capital management avoid boiler room - Hot Hubs | Clipmarks

Fisher Capital Equipment Update - Market Slams Fisher and Paykel on Profit Warning Viiii

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Birmingham, AL -- (SBWIRE) -- 12/20/2010 -- The share market has come down hard on Fisher & Paykel Appliances - with its shares falling 40 per cent after the company issued a profit warning today. The...

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Richard Fisher on Boiler room management - with the current state of the economy, it is extremely important that you are fully aware of the ways in which you can make savings around your home, along with the...
Triad Boiler Room Systems Launched New Commercial Boilers Liiii

South Korea - Market Overview 2010 Fisher Capital Management Seoul

(1888PressRelease) November 09, 2010 - South Korea - The government's efforts were seriously questioned when it clipped the independence of the central bank when the government sent its observers to the central bank's policy meetings.

However, the central bank will start raising interest rates in the third quarter to prevent inflation and asset bubbles. For the time being inflation is stable. It fell from 3.1% in January to 2.7% in February, but inflation will accelerate in the second half due to higher oil prices and rising imports. This should see policy interest rates to go up by 25 basis points in the third quarter and another 25 basis points in December.

South Korea: Market Overview 2010 Fisher Capital Management Seoul - The government appointed Mr. Kim, who has served as a presidential economic secretary and is currently South Korea's ambassador to the Organization for Economic Cooperation and Development. Under the new leadership, the central bank may cooperate even more closely with the government than it has under Governor Lee. The central bank under Mr. Kim may be more willing to risk inflation in order to ensure that the economic recovery remains on track. The Korean policy

interest rate has been at an all-time low of 2.0% for more than a year now and the bank expects inflation to stay around 2.5% in the near future.

South Korea: Market Overview 2010 Fisher Capital Management Seoul - Fisher Capital is a leading global financial institution holding extensive relationships with financial institutions, institutional investors and corporations across the world.

As a full service company Fisher Capital provides a full range of investment banking services including advanced risk management, corporate strategy and structure, plus raising capital through debt and equity markets. With this as our backbone we continue to provide a client service second to none. The Fisher Capital Difference While many financial institutions talk about wealth management, few actually provide the resources to deliver an integrated solution.

Access to industry leading Investment Advisors- Investment Advisors who are invited to join Fisher Capital are recognized leaders in financial services who share our values of trust and integrity. They have built successful practices and are respected by clients for delivering results and superior service.

Exclusive and industry leading products and services - Our Investment Advisory teams constantly review the marketplace searching for trends and opportunities to enhance wealth. Core investment solutions are complemented by our ability to deliver institutional power allowing you to invest alongside Fisher Capital through exclusive offerings such as private equity as well as hedging strategies and other alternative investment strategies.

Personal Investment Management - Fisher Capital is home to many leading Portfolio Managers who assist private clients and institutional investors preferring the convenience of delegating the day-to-day decision making in their portfolio.

Experience our difference - Learn how your Investment Advisor, with the support of the team of professionals at Fisher Capital, can help address the issues you face while preserving, enhancing and transferring your wealth.

Contact your Investment Advisor today.

Let us keep you informed of all the latest news and developments with our free monthly newsletter of analysis and recommendations.

Join our mailing list to recieved our free monthly Fisher Capital newsletter, with analysis of the latest financial and investment news and developmetns, plus of course our current research findings and recommendations.

Fisher Capital Management: Government Bond Markets Global Outlook Part2 Read more: http://www.articlesnatch.com/Article/Fisher-Capital-Management--Government-Bond-Markets-Global-Outlook-Part2-/1803939#ixzz1A0oXY4Uo Under Creative Commons License: Attribution No Derivatives

Fisher Capital Management: Government Bond

Markets Global Outlook Part 2 - Our position remains unchanged; any existing exposure to bonds should be further reduced in favor of US & Euro equities.

The European Central Bank appears to share this view, although it has warned that the recovery is likely to remain uneven, and has kept short-term rates at very low levels. The bond markets have therefore continued to receive considerable support from the economic background and the actions of the central bank.

Fisher Capital Management Seoul, South Korea: However, these factors have been much less important than the fears about the debt problems in Greece and in other weaker members of the euro-zone. After considerable prevarication, due primarily to strong German opposition to a bail-out; an agreement has been reached amongst the member countries that, in conjunction with the IMF, they will provide support for Greece if this becomes necessary to prevent a defaulton its sovereign debts.

But the details of the agreement are very vague, and there is certainly no guarantee that the country can carry out its promises to introduce significant reductions in spending levels to reduce the size of its debts. The agreement has helped the country to issue a further 5 billion bond; but it was forced to offer an interest rate of 5.9% on a seven-year bond, 325 basis points above the equivalent German bund, and that issue has subsequently moved to a substantial discount. Conditions have also been made worse by the downgrade in Portugals credit rating, and so the pressures on the bond markets are continuing.

Fisher Capital Management Seoul, South Korea: The gilt edged market has coped fairly well so far with the latest weakness in the bond market, an inadequate response in the latest Budget to the debt problems in the UK, and a warning from the Fitch rating agency that the governments timetable for reducing the fiscal deficit was frankly too slow, and that the countrys credit rating was at risk. The economic recovery remains very slow, and the Bank of England is holding short-term interest rates close to zero, so the market is receiving some support; but in all the circumstances it is perhaps surprising that it has managed to perform so well.

Fisher Capital Management Seoul, South Korea: The economic background in the UK remains depressed, but is slowly improving. Retail sales bounced back strongly; the public sector continued its recruitment programmed; and there has been a pickup in activity in both the manufacturing and service sectors of the economy.

It was not surprising therefore that the Bank of England kept short-term interest rates unchanged at the latest meeting of its Monetary Policy Committee and even suggested that it would be prepared to reactivate its quantitative easing programmed if this proved to be necessary. But this may not be enough to sustain gilt edged prices at current levels.

Fisher Capital Management Seoul, South Korea: The latest Budget statement is forecasting a slightly lower fiscal deficit of 167 billion in the 2009/10 fiscal year, and a halving of the deficit by 2013/14; but there is considerable skepticism in the markets about the growth assumptions underlying the figures, and about the willingness of the politicians to address the real problems
involved in reducing the deficit. If there is no credible plan to achieve this reduction, the country may well lose its AAA credit rating. Prospects have therefore become even more uncertain, and a move to higher yield levels seems unavoidable.

Fisher Capital Management Seoul, South Korea: The Japanese bond market is slightly weaker over the past month. It is likely that this year, for the first time, bond issuance may provide greater support for the fiscal deficit than tax revenues. This has already led to a downgrade on Japanese public debt by Standard and Poors, and with new bond issuance this year estimated to reach 44,300 billion, and to reach 55,300 billion by 2013, further downgrades seem likely. Japanese institutional investors are used to financing massive deficits, but it seems unlikely that deficits of this size can be adequately financed at present yield levels. Prospects for the Japanese market therefore remain unattractive.

Fisher Capital Equipment Update - Market slams Fisher and Paykel on profit Warning from shanhyletrez

BigNews.Biz - Dec 28,2010 - The share market has come down hard on Fisher & Paykel Appliances - with its shares falling 40 per cent after the company issued a profit warning today. The whiteware manufacturer's shares, which were worth $2.94 this time last year and worth $1 on Friday, went into free fall and are currently trading at just 60 cents, a 40 cent fall. Earlier today the company said it expected a net profit of $25 million to $30m, down up to 54 per cent on last year. Due to the deterioration in the New Zealand dollar, Fisher & Paykel Appliances' total bank debt grew $122 from March last year to $512m at the end of January. It was predicted to be $570m by the end of March. It is now looking at reviewing its capital structure and alternative sources of capital. Fisher Capital Equipment Update - Market slams Fisher and Paykel on profit Warning - The market was very concerned the company had to come back with a capital raising, which was unexpected, said Hamilton, Hindin, and Greene director Grant Williamson. The home appliance market had dropped off in all areas Fisher & Paykel exported to and there did not appear to be too many signs of a turnaround in world housing at the moment, he said. "I think investors are starting to say; how long is it going to be before conditions change for the company? I think that's the biggest concern." Williamson said Fisher & Paykel Appliances' wares were sold into most new homes but when very few new homes being built it would have a serious effect on their sales. A 40 per cent drop in share value was a big hit for the share price to take but that was the general state of the market. "If any company disappoints the market then the market is very harsh on their share price and we have certainly seen that this morning with Fisher & Paykel Appliances." The company announced it would not proceed with a capital note issue and was looking an alternative source of capital. The directors were considering the merits of issuing equity, including to a cornerstone investor. Williamson said he did not believe a capital notes rising would have been particularly well received. He did not see any short term bounce in the price until there was clarification around the structure of equity rising. That was expected to be announced in early March. "At the moment there's still a fair degree of selling in the market place, around the 60c level."- NZPA About Fisher Capital Management Equipment Leasing Construction Machineries, Suppliers Directory, business or construction machineries and other

Fisher Capital Management: Government Bond Markets Global Outlook Part2

Fisher Capital Management: Government Bond Markets Global Outlook Part 2 - Our position remains unchanged; any existing exposure to bonds should be further reduced in favor of US & Euro equities.
The European Central Bak appears to share this view, although it has warned that the recovery “is likely to remain uneven”, and has kept short-term rates at very low levels. The bond markets have therefore continued to receive considerable support from the economic background and the actions of the central bank.
Fisher Capital Management Seoul, South Korea:However, these factors have been much less important than the fears about the debt problems in Greece and in other weaker members of the euro-zone. After considerable prevarication, due primarily to strong German opposition to a bail-out; an agreement has been reached amongst the member countries that, in conjunction with the IMF, they will provide support for Greece if this becomes necessary to prevent a defaulton its sovereign debts.
But the details of the agreement are very vague, and there is certainly no guarantee that the country can carry out its promises to introduce significant reductions in spending levels to reduce the size of its debts. The agreement has helped the country to issue a further ¤5 billion bond; but it was forced to offer an interest rate of 5.9% on a seven-year bond, 325 basis points above the equivalent German bund, and that issue has subsequently moved to a substantial discount. Conditions have also been made worse by the downgrade in Portugal’s credit rating, and so the pressures on the bond markets are continuing.

Fisher Capital Management Seoul, South Korea:The gilt edged market has coped fairly well so far with the latest weakness in the bond market, an inadequate response in the latest Budget to the debt problems in the UK, and a warning from the Fitch rating agency that the government’s timetable for reducing the fiscal deficit was “frankly too slow”, and that the country’s credit rating was at risk. The economic recovery remains very slow, and the Bank of England is holding short-term interest rates close to zero, so the market is receiving some support; but in all the circumstances it is perhaps surprising that it has managed to perform so well.
Fisher Capital Management Seoul, South Korea:The economic background in the UK remains depressed, but is slowly improving. Retail sales bounced back strongly; the public sector continued its recruitment programmed; and there has been a pickup in activity in both the manufacturing and service sectors of the economy.
It was not surprising therefore that the Bank of England kept short-term interest rates unchanged at the latest meeting of its Monetary Policy Committee and even suggested that it would be prepared to reactivate its quantitative easing programmed if this proved to be necessary. But this may not be enough to sustain gilt edged prices at current levels.
Fisher Capital Management Seoul, South Korea:The latest Budget statement is forecasting a slightly lower fiscal deficit of £167 billion in the 2009/10 fiscal year, and a halving of the deficit by 2013/14; but there is considerable skepticism in the markets about the growth assumptions underlying the figures, and about the willingness of the politicians to address the real problems involved in reducing the deficit. If there is no credible plan to achieve this reduction, the country may well lose its AAA credit rating. Prospects have therefore become even more uncertain, and a move to higher yield levels seems unavoidable.
Fisher Capital Management Seoul, South Korea:The Japanese bond market is slightly weaker over the past month. It is likely that this year, for the first time, bond issuance may provide greater support for the fiscal deficit than tax revenues. This has already led to a downgrade on Japanese public debt by Standard and Poor’s, and with new bond issuance this year estimated to reach ¥44,300 billion, and to reach ¥55,300 billion by 2013, further downgrades seem likely. Japanese institutional investors are used to financing massive deficits, but it seems unlikely that deficits of this size can be adequately financed at present yield levels. Prospects for the Japanese market therefore remain unattractive.

Fisher Capital Equipment Update - Market Slams Fisher And Paykel On Profit Warning

Birmingham, Alabama (PressExposure) December 15, 2010 -- The share market has come down hard on Fisher & Paykel Appliances - with its shares falling 40 per cent after the company issued a profit warning today.
The whiteware manufacturer's shares, which were worth $2.94 this time last year and worth $1 on Friday, went into free fall and are currently trading at just 60 cents, a 40 cent fall.
Earlier today the company said it expected a net profit of $25 million to $30m, down up to 54 per cent on last year.
Due to the deterioration in the New Zealand dollar, Fisher & Paykel Appliances' total bank debt grew $122 from March last year to $512m at the end of January. It was predicted to be $570m by the end of March.
It is now looking at reviewing its capital structure and alternative sources of capital.
Fisher Capital Equipment Update - Market slams Fisher and Paykel on profit Warning - The market was very concerned the company had to come back with a capital raising, which was unexpected, said Hamilton, Hindin, and Greene director Grant Williamson.
The home appliance market had dropped off in all areas Fisher & Paykel exported to and there did not appear to be too many signs of a turnaround in world housing at the moment, he said.
"I think investors are starting to say; how long is it going to be before conditions change for the company? I think that's the biggest concern." Williamson said Fisher & Paykel Appliances' wares were sold into most new homes but when very few new homes being built it would have a serious effect on their sales.
A 40 per cent drop in share value was a big hit for the share price to take but that was the general state of the market.
"If any company disappoints the market then the market is very harsh on their share price and we have certainly seen that this morning with Fisher & Paykel Appliances."
The company announced it would not proceed with a capital note issue and was looking an alternative source of capital.
The directors were considering the merits of issuing equity, including to a cornerstone investor.
Williamson said he did not believe a capital notes rising would have been particularly well received.
He did not see any short term bounce in the price until there was clarification around the structure of equity rising. That was expected to be announced in early March.
"At the moment there's still a fair degree of selling in the market place, around the 60c level."- NZPA

Fisher Capital Equipment Update - Market slams Fisher and Paykel on profit Warning

The share market has come down hard on Fisher & Paykel Appliances - with its shares falling 40 per cent after the company issued a profit warning today.
The whiteware manufacturer's shares, which were worth $2.94 this time last year and worth $1 on Friday, went into free fall and are currently trading at just 60 cents, a 40 cent fall.
Earlier today the company said it expected a net profit of $25 million to $30m, down up to 54 per cent on last year.
Due to the deterioration in the New Zealand dollar, Fisher & Paykel Appliances' total bank debt grew $122 from March last year to $512m at the end of January. It was predicted to be $570m by the end of March.
It is now looking at reviewing its capital structure and alternative sources of capital.
Fisher Capital Equipment Update - Market slams Fisher and Paykel on profit Warning - The market was very concerned the company had to come back with a capital raising, which was unexpected, said Hamilton, Hindin, and Greene director Grant Williamson.
The home appliance market had dropped off in all areas Fisher & Paykel exported to and there did not appear to be too many signs of a turnaround in world housing at the moment, he said.
"I think investors are starting to say; how long is it going to be before conditions change for the company? I think that's the biggest concern." Williamson said Fisher & Paykel Appliances' wares were sold into most new homes but when very few new homes being built it would have a serious effect on their sales.
A 40 per cent drop in share value was a big hit for the share price to take but that was the general state of the market.
"If any company disappoints the market then the market is very harsh on their share price and we have certainly seen that this morning with Fisher & Paykel Appliances."
The company announced it would not proceed with a capital note issue and was looking an alternative source of capital.
The directors were considering the merits of issuing equity, including to a cornerstone investor.
Williamson said he did not believe a capital notes rising would have been particularly well received.
He did not see any short term bounce in the price until there was clarification around the structure of equity rising. That was expected to be announced in early March.
"At the moment there's still a fair degree of selling in the market place, around the 60c level."- NZPA



Fisher Capital Management Equipment Leasing Construction Machineries, Suppliers Directory, business or construction machineries and other

Fisher Capital Management Bookmarks | Blurpalicious

(Free-Press-Release.com) November 22, 2010 --
Fisher Capital Management: Government Bond Markets Global Outlook Part 2 - Our position remains unchanged; any existing exposure to bonds should be further reduced in favor of US & Euro equities.
The European Central Bank appears to share this view, although it has warned that the recovery "is likely to remain uneven", and has kept short-term rates at very low levels. The bond markets have therefore continued to receive considerable suppo...

Fisher Capital Management: Government Bond Markets Global Outlook Part2-ii

November 22, 2010 --

Fisher Capital Management: Government Bond Markets Global Outlook Part 2 - Our position remains unchanged; any existing exposure to bonds should be further reduced in favor of US & Euro equities.

The European Central Bank appears to share this view, although it has warned that the recovery “is likely to remain uneven”, and has kept short-term rates at very low levels. The bond markets have therefore continued to receive considerable support from the economic background and the actions of the central bank.

Fisher Capital Management Seoul, South Korea: However, these factors have been much less important than the fears about the debt problems in Greece and in other weaker members of the euro-zone. After considerable prevarication, due primarily to strong German opposition to a bail-out; an agreement has been reached amongst the member countries that, in conjunction with the IMF, they will provide support for Greece if this becomes necessary to prevent a defaulton its sovereign debts.

But the details of the agreement are very vague, and there is certainly no guarantee that the country can carry out its promises to introduce significant reductions in spending levels to reduce the size of its debts. The agreement has helped the country to issue a further ¤5 billion bond; but it was forced to offer an interest rate of 5.9% on a seven-year bond, 325 basis points above the equivalent German bund, and that issue has subsequently moved to a substantial discount. Conditions have also been made worse by the downgrade in Portugal’s credit rating, and so the pressures on the bond markets are continuing.

Fisher Capital Management Seoul, South Korea: The gilt edged market has coped fairly well so far with the latest weakness in the bond market, an inadequate response in the latest Budget to the debt problems in the UK, and a warning from the Fitch rating agency that the government’s timetable for reducing the fiscal deficit was “frankly too slow”, and that the country’s credit rating was at risk. The economic recovery remains very slow, and the Bank of England is holding short-term interest rates close to zero, so the market is receiving some support; but in all the circumstances it is perhaps surprising that it has managed to perform so well.

Fisher Capital Management Seoul, South Korea: The economic background in the UK remains depressed, but is slowly improving. Retail sales bounced back strongly; the public sector continued its recruitment programmed; and there has been a pickup in activity in both the manufacturing and service sectors of the economy.

It was not surprising therefore that the Bank of England kept short-term interest rates unchanged at the latest meeting of its Monetary Policy Committee and even suggested that it would be prepared to reactivate its quantitative easing programmed if this proved to be necessary. But this may not be enough to sustain gilt edged prices at current levels.

Fisher Capital Management Seoul, South Korea: The latest Budget statement is forecasting a slightly lower fiscal deficit of £167 billion in the 2009/10 fiscal year, and a halving of the deficit by 2013/14; but there is considerable skepticism in the markets about the growth assumptions underlying the figures, and about the willingness of the politicians to address the real problems
involved in reducing the deficit. If there is no credible plan to achieve this reduction, the country may well lose its AAA credit rating. Prospects have therefore become even more uncertain, and a move to higher yield levels seems unavoidable.

Fisher Capital Management Seoul, South Korea: The Japanese bond market is slightly weaker over the past month. It is likely that this year, for the first time, bond issuance may provide greater support for the fiscal deficit than tax revenues. This has already led to a downgrade on Japanese public debt by Standard and Poor’s, and with new bond issuance this year estimated to reach ¥44,300 billion, and to reach ¥55,300 billion by 2013, further downgrades seem likely. Japanese institutional investors are used to financing massive deficits, but it seems unlikely that deficits of this size can be adequately financed at present yield levels. Prospects for the Japanese market therefore remain unattractive.