Global Strategy Roundup

A synopsis of the major reports issued globally by Morgan Stanley strategists in the past week. Please see full versions of these articles on our Client Link Website. Please contact your Morgan Stanley representative for access if needed.

US Equity Strategy: The 2 x 2 Grid
Adam S. Parker

We launched coverage at Morgan Stanley the first day of 2011. As we evaluate our market calls and their efficacy, there's a potentially worrisome pattern. Imagine a 2x2 grid, with bearish and bullish being two choices on one side, and correct and incorrect the two choices on the other side.

Asia FX & Rates Strategy: China: What Now for USD/CNH?
Geoff G Kendrick
USD/CNH jumped 600 pips last week to levels not seen since October 2013, prompting investors to question whether a bigger RMB sell-off could be coming. In terms of timing, we see next week's National People's Congress meeting (March 5) and potential political maneuvering against the US as the most likely catalysts.
European Credit Strategy: Corporate Hybrid Primer - 2014 Edition
Andrew P Sheets
European corporate hybrids have structures and language which may be alien to many credit investors. We examine the market technicals, terms and valuation frameworks for this rapidly growing asset class.
US Economics: Making Cents: A Minimum Wage Brief
Vincent Reinhart
As the debate over the minimum wage drags on in DC, we outline the key economic issues at play. We also discuss weather impacts on Q1 GDP tracking, the Fed minutes, MSBCI, and the macro housing outlook.
Global EM Investor: China Currency Crosswinds
Rashique Rahman
We maintain a cautious outlook on EM, and continue to believe that credit remains the most vulnerable asset class - targeting a 7.5% yield for sovereign credit. We stay at Sell for Credit and Reduce in FX and Rates.



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