Japanese equity rally

Not that the presumptions will turn out to be right, but just based on the presumptions:

The presumption is that the BOJ’s action will weaken the currency, stocks are up due to the weaker yen, which is presumed to support exports and restrain imports, and help with earnings translations

So the presumed increase in exports/higher stocks is not about total global sales/profits increasing. The presumed increase in exports is just about Japan gaining market share.

Which means the same presumptions lead to the further presumption that the equity gains in Japan from increased exports are at the expense of the ‘rest of world’s’ sales/profits/equity valuations/etc.

In other words, the equity rally in Japan is not based on the presumption that Japan will be an ‘engine of growth’ for the rest of world. Quite the opposite, in fact.

Obama Drops Stimulus for Benefit Cut to Woo Republicans

Progressive hero:

Obama Drops Stimulus for Benefit Cut to Woo Republicans

By Mike Dorning

April 8 (Bloomberg) — Less than a week after job-creation figures fell short of expectations and underscored the U.S. economys fragility, President Barack Obama will send Congress a budget that doesnt include the stimulus his allies say is needed and instead embraces cuts in an appeal to Republicans.

This is not our ideal budget, Gene Sperling, director of the White Houses National Economic Council, told Bloomberg Television. This does reflect a compromise offer. Theres measures in here we would prefer not to take.

China Local Debt May Top Estimates, Former Minister Says

It took that much local debt expansion (deficit spending) to support the economy they’ve had.

Supporting said local expansion supports said growth and backing off removes that support.

China Local Debt May Top Estimates, Former Minister Says

April 7 (Bloomberg) — Local Chinese governments may have more than 20 trillion yuan ($3.2 trillion) of debt, exceeding the official estimates, former Finance Minister Xiang Huaicheng said at the Boao Forum for Asia.

Xiangs estimate for provincial and city government borrowings is almost double the 10.7 trillion-yuan figure that the National Audit Office gave for such debt in a 2011 report. The combined debt of Chinas central and local governments may currently be more than 30 trillion yuan, said Xiang, who served […]