Japan
Japanese Economy During Shinzo Abe’s Term as First Prime Minister
December 17, 2012
Abe’s first stint as Japan’s prime minister lasted exactly one year and ended on September 27th. His reputation back then was much as it remains now. He’s a foreign policy hawk. In 2006-7, he practiced toughness in dealings with North Korea and other Asian neighbors and denied atrocities committed by Japan during and before the […] More
Japanese 2Q GDP Better than Forecast
August 14, 2011
Japanese real GDP contracted 1.3% at an annualized rate (SAAR) between 1Q and 2Q, half as much as expected and less than the drops of 2.5% in 4Q10 and 3.6% in 1Q11. Real GDP was 1.0% lower than a year earlier, the same on-year drop as in 1Q11 and below forecasts of minus 2.5%. Nominal […] More
Fearful Markets
May 12, 2011
Commodities and stocks have been hammered. The dollar and yen are stronger. Investors fear a commodity market squeeze from higher margin requirements. Another worry is that European leaders may not agree to a larger aid package for Greece. Weak overnight data are meanwhile weighing on economic growth prospects. Then there is the fast-approaching end of […] More
In Limbo Between the ECB Decision and the U.S. Jobs Data
May 6, 2011
The ECB’s apparent decision to delay a second interest rate hike until at least July sent the euro down as much as 2.6% intra-day against the dollar on Thursday. As investors await the other main event of the week, the U.S. Department of Labor April Jobs report, the dollar is unchanged from its close yesterday […] More
Stronger Euro and Commodity Prices
April 8, 2011
Gold at $1471.20 per ounce is at another record peak. Silver hit a 31-year high of $40.23 per ounce. Oil reached a 30-month high of $111.68 per barrel and is 1.1% stronger on the day. The ECB’s tightening yesterday has buoyed the euro, which at $1.4411 is 0.7% above yesterday’s closing level. The dollar also […] More
Concerted Intervention by G7 Lifts Yen
March 18, 2011
G7 finance ministers and central bankers released a joint statement announcing that Japanese authorities had requested and been granted the help of concerted intervention by the United States, Canada, U.K., and ECB to join Japan in providing intervention support today. The statement expresses confidence in the “resilience of the Japanese financial sector and economy” and […] More
All-Time Record Low in Dollar/Yen
March 17, 2011
The yen strengthened to a new historic high of 76.25 per dollar before the Asian open, breaking the old peak of 79.85 reached April 19, 1995. At 78.35/USD, Japan’s currency still shows a net overnight advance of some 2%. An unnamed source claims that G7 finance ministers and central bankers plan a conference call at […] More
These are Trying, Confusing and… Yes, Even Interesting Times
March 11, 2011
Recovery from the severest global financial crisis and recession since the 1930s is less than two years old, and many advanced economies continue to experience crippling rates of unemployment that have kept central bank interest rates at historic lows. A tripling of oil prices from less than $34 per barrel in February 2009 to more […] More
End of February Data Releases
February 28, 2011
Monday’s tend to have fewer data releases than other days of the week but not when they coincide with the end of the month. Oil prices are steady and below $100 at $97.89 per barrel amid confidence that Gaddafi will be squeezed out of power. The dollar has lost 0.6% against the euro and 0.7% […] More
Japan’s Safe Haven Appeal
February 24, 2011
The yen’s advantage in times of geopolitical turmoil and rising oil prices is not intuitively obvious. Japan imports virtually all of its energy needs, and Middle Eastern hydrocarbon fuel comprises a big share of that purchase. Japanese economic activity is looking better but only in relation to late 2010 when such stumbled rather badly. Prime […] More
