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Morning Meeting: Avoid bonds, Faber says

Royal Bank of Canada

NATHAN DENETTE/Nathan Denette/The Canadian Press

A look at some must-read news on deals and deal makers around the world.

Marc Faber joins anti-bonds Buffett

Investors are making a big mistake if they are buying bonds because interest rates must soon rise, in the opinion of investor Marc Faber. In an inflationary environment, stocks are a better bet. That puts him in the same camp as Warren Buffett, Bloomberg reported.

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Currency wars spread to Thailand

Thailand has introduced a tax to dissuade foreign investors from buying the country's bonds in a bid to restrain the rising baht, which hurts the country's exports.

RBC takes top spot in Brendan Wood analyst rankings

The 29-year streak of BMO Nesbitt Burns at the top of the Brendan Wood International survey of investors' opinions on brokerage research has come to an end, and the new champion is RBC Dominion Securities. The focus in research is increasingly shifting from research for research's sake to producing ideas that focus on profitable trades, and the race is on to capitalize on that.

Potash shares rise with corn

Potash Corp. of Saskatchewan Inc. chief executive officer Bill Doyle says that his company would be trading at $130 (U.S.) or better in the absence of a bid from BHP Billiton, just given market conditions. There's no doubt that other potash producers have been jumping, and some investors say Mr. Doyle is right.

Banker pay expected to rise

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For the second year in a row, banker pay in the U.S. is going to set a record. That's the conclusion of a study by The Wall Street Journal. Most firms surveyed expected an increase in compensation.

The results echo those in another survey by eFinancialCareers that found that half of financial industry staff polled expect a higher bonus.

However, those bonus cheques are unlikely to come early to avoid higher taxes in the New Year because of the public relations implications, Reuters reported. All this is amid talk that there could be significant staffing reductions at investment banks in the coming months as firms look at adjust to slowing demand for their services and lower profits.

Except, it seems, at Citibank, where Bloomberg reports that the company is spending money in hopes of making money.

Google to create price index

There has long been a group of people who don't believe government price measures -- generally they are some of the same folks who fear inflation. Will they believe Google Inc? The web giant is creating its own measure of inflation based on all the price data its massive search engines collect, the FT reports. For the record, the index shows a deflationary trend, the FT said.

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