Asia Archive

Draghi Comments, Global Comments

ECB will do what is needed to keep inflation target on track: Draghi By Stephen Jewkes Oct 31 (Reuters) — “If we are convinced that our medium-term inflation target is at risk, we will take the necessary actions,” ECB president Draghi told Il Sole 24 Ore. “We will see whether a further ...Read More

China, Germany, Productivity, NFIB Index, Redbook, Wholesale Trade

A few thoughts: China’s US Tsy holding had been falling perhaps because they were selling $ to buy Yuan to keep it within in the prior band. Pretty much all exporting nation’s currencies have already weakened vs the $, including the Yen and Euro, so this is a bit of a ‘catch ...Read More

Chicago Fed, KC Fed, Japan Exports

Note the details and the conclusion: source: Econoday Highlights June proved to be a slightly stronger month for the economy than expected, based on the national activity index which came in at plus 0.08 vs Econoday expectations for a 0.05 dip. The 3-month average is still in the negative column though just ...Read More

Asia Chart Alert: The destination of Asian exports – 30 Jul 2013

We need more QE :( From Nomura: Seven countries in emerging Asia – China, Hong Kong, India, Korea, Singapore, Taiwan and Thailand – have released trade data for June, and year-on-year export growth in six of these was negative, the exception being Taiwan. For the “Asian 7” in aggregate, export growth slowed ...Read More

Asia Insights: China: Why GDP growth has weakened despite strong credit growth – 25 Apr 2013

So some was gross, not net, and some unspent: Nomura: Asia Insights: China: Why GDP growth has weakened despite strong credit growth Economic growth in China has weakened surprisingly despite rapid credit growth in H2 2012 and Q1 2013. We believe a large part of the new credit supply in Q1 did ...Read More

Noda Makes Consumption Tax Hike Pledge At G-20 Summit

The world’s poster child for losing decades looks to stay a step ahead: (Nikkei)–Prime Minister Yoshihiko Noda vowed Thursday to gradually raise the nation’s consumption tax to 10% by mid the 2010s during a summit meeting of the Group of 20 leading economies in Cannes, France. The announcement at the summit has ...Read More

Welcome to the 7th US depression, Mr. bond market

Looks to me like the lack of noises out of Japan means there won’t be a sufficient fiscal response to restore demand. If anything, the talk is about how to pay for the rebuilding, with a consumption tax at the top of the list. That means they aren’t going to inflate. More ...Read More

Japan intervention comments

Market Color Short~medium term JGB rallied due to additional monetary ease expectation related to unsterilized FX intervention money. First, intervention in this direction- buying dollars- does ‘work’ and is infinitely sustainable. It’s a political decision, much like the ECB buying national govt. debt. There is no nominal limit. Second, the only reason ...Read More

euro zone issues

Asian players are a worry for eurozone By Gillian Tett July 14 (FT) The saga behind next week’s stress test release is a case in point. During most of the past year, governments of countries such as Germany, Spain and France have resisted the idea of conducting US-style stress tests on their ...Read More

Geithner Pledges Smaller Deficit as China Talks Start

[Skip to the end] Geithner Pledges Smaller Deficit as China Talks Start By Rebecca Christie and Rob Delaney July 27 (Bloomberg) — Treasury Secretary Timothy Geithner pledged the U.S. will shrink its budget deficit over the next four years and boost national savings, Ah, ‘national savings,’ that gold standard measure that’s inapplicable ...Read More