Merrill Lynch

Bank of America's (NYSE: BAC) Merrill Lynch unit released a research note on Adobe Systems (NASDAQ: ADBE) and Autodesk, Inc. (NASDAQ: ADSK) today. The note said that they view the stocks as growth cyclical stocks and expect them to outperform as the market enters a recovery phase. They said that...

Merrill Lynch retained its positive stance on Asian credit in 2010 and expected excess returns in the low to mid-single digit area for investment grade. The high single digit to low double-digit is for high yield. It believes that the outperformance in investment grade will come from Asian Bank...

Merrill Lynch expects Japan’s economy to contract by 5.5% in 2009 but then grow by 2.8% in 2010. It noted that rising credit default swaps suggested that markets were starting to question Japan’s fiscal sustainability. Still, Merrill Lynch does not expect a spike in bond yields as it believes the...

Merrill Lynch recommended currency trade involving Chinese Yuan Renminbi (CNY)(FREE stock trend analysis), South Korean Won (KRW) and Indonesian Rupiah (IDR). Merrill Lynch believes that 1) Economic growth and capital inflows are supportive 2) Valuations remain supportive 3) The current account...

Merrill Lynch is underweight on Japanese equities like Honda Motor Co., Ltd. (ADR) (NYSE: HMC) from a global standpoint but sees Japanese equities as a good hedge against the tail risk of a debt crisis in Japan. It noted that equity hedging costs had dropped more quickly than for other assets and...