New home sales continue to grow at a slower pace than prior cycles, with absolute levels remaining historically depressed. The chart is not population adjusted: Can also be a reflection of what’s going on in China: Another one of those recent moves up that is now likely to reverse:
Category Archives: Asia
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 stimulus is necessary. […]
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 up.’ In a […]
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 barely at minus […]
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 from 7.6% y-o-y […]
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 not go into […]
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 effectively made the […]
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 likely they are […]
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 they stopped was […]
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 banks, in spite […]