World economy talk

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US 10 yr yield

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Apple Bonds Are Hot Sellers - WSJ.com

Investors Go Bananas for Apple Debt

Apple Inc.'s $17 billion of bonds are the shiny new toys of the debt market.

Investors clamored to buy up bonds from the largest corporate debt deal ever on their first day of trading Wednesday, sending their prices up and making them the most popular to trade in the investment-grade bond market Wednesday. When bond prices rise, their yields fall.

Eager for the new name in their portfolios, buyers sent the Apple bond yields down to levels nearly as low as its main rival Microsoft Corp., MSFT -1.15% despite the iPhone maker's slightly lower credit rating. The Apple debt was rated AA-plus by Standard & Poor's Ratings Services and Aa1 by Moody's Investors Service. Microsoft's is rated triple-A.

Apple's $5.5 billion chunk of 10-year debt, which matures in May 2023, was the most-traded security on the bond platform MarketAxess, closely followed by its other debt. The bonds were priced to yield 2.415% but yielded on average 2.378% late Wednesday. Microsoft's 10-year debt traded Wednesday to yield 2.35%.

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China April HSBC PMI eases on weak external demand | Reuters

(Reuters) - China's factory-sector growth eased in April as new export orders fell for the first time this year, a private survey showed on Thursday, suggesting the euro zone recession and sluggish U.S. demand may be reining in China's economic recovery.

The final HSBC Purchasing Managers' Index (PMI) dropped to 50.4 in April from March's 51.6 and was largely in line with a flash reading last week of 50.5. Fifty divides expansion from contraction on a monthly basis.

China's official PMI on Wednesday painted a similar picture, falling to 50.6 in April from an 11-month high of 50.9 in March as new export orders fell.

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later

ECB decision

LONDON (Reuters) - The euro remained near a two month high and European shares eased on Thursday, as investors waited to see if the European Central Bank will cut rates and hint at more measures to boost struggling eurozone economies.

The ECB is expected to react to the recent downturn in even core euro zone countries like Germany by trimming its main interest rate for the first time in 10 months to a new all-time low of 0.5 percent from 0.75 percent in a statement at 1145 GMT (7.45 a.m. ET).

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S&P upgrades Philippines from BB+ to BBB-

[Ry_Tower]

S&P upgrades Philippines from BB+ to BBB-

Moody's na lang kulang.

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ECB: Monetary policy decisions

PRESS RELEASE

2 May 2013 - Monetary policy decisions

At today’s meeting, which was held in Bratislava, the Governing Council of the ECB took the following monetary policy decisions:

The interest rate on the main refinancing operations of the Eurosystem will be decreased by 25 basis points to 0.50%, starting from the operation to be settled on 8 May 2013.

The interest rate on the marginal lending facility will be decreased by 50 basis points to 1.00%, with effect from 8 May 2013.

The interest rate on the deposit facility will remain unchanged at 0.00%.

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today.

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boom!

USDJPY



S&P 500 e-mini futures

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China services growth slows sharply, adds to recovery risk | Reuters

(Reuters) - Growth in China's services sector slowed sharply in April to its lowest point since August 2011, a private sector survey showed on Monday - fresh evidence of rising risks to a revival in the world's No.2 economy.

The HSBC services Purchasing Managers' Index (PMI) fell to 51.1 in April from 54.3 in March, with new order expansion the slowest in 20 months and staffing levels in the service sector decreasing for the first time since January 2009.

Two separate PMIs last week had already shown that China's manufacturing sector growth slowed, With the weakness spreading to services, which make up almost half of gross domestic product, the risk to the recovery may be increasing.

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RBA rate cut

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Toyota Profit Surges - WSJ.com

TOKYO—Toyota Motor Corp. said its net profit for the January-March quarter surged as solid U.S. sales and a dramatically weaker yen helped lift its bottom line.

The strong finish by the world's top-selling auto maker in the last quarter of its fiscal year was spurred by the deflation-fighting policies of Japan's five-month-old government. Toyota posted a net profit of ¥313.9 billion ($3.17 billion), up from ¥121.0 billion a year earlier and well ahead of FactSet's median forecast of ¥263.8 billion.

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Press Releases < Press Releases - View | THE BANK OF KOREA. #2

The Monetary Policy Committee of the Bank of Korea decided today to lower the Base Rate by 25 basis points from 2.75% to 2.50%.

(LEAD) BOK unexpectedly cuts key rate to 2.5 pct for May | YONHAP NEWS

SEOUL, May 9 (Yonhap) -- South Korea's central bank slashed the key interest rate for the first time in seven months on Thursday as the yen's weakness threatens to hurt the economy.

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did i say the weaker yen makes everybody else's currency stronger so the effect is like everybody else is getting a rate hike?

from page 749

as Japan fights deflation it is exporting deflation

the weaker yen makes everybody else's currency stronger

it's like everybody has a rate hike

which slows down the economy which is deflationary

at a time when the global economy is already weak Japan's war on deflation is actually bad for the world

so what does everybody else do?

rate cut

South Korea Joins India-to-Europe Rate Cuts for Growth: Economy - Bloomberg

The Bank of Korea cut interest rates, following the lead of policy makers in Australia, Europe and India this month, as strength in the won and weakness in the yen dim the outlook for the nation’s exports.

As central banks around the world move to counter currency appreciation, the won’s 24 percent jump against the yen in six months is hampering South Korean exporters of autos and electronics and aiding their Japanese rivals. In Seoul, ruling New Frontier Party floor leader Lee Hahn Koo yesterday urged a “more active role” for the BOK, adding to political pressure that the central bank resisted last month.

As Japan’s monetary easing drives down the yen, nations including Australia, New Zealand and Switzerland are moving to counter currency gains. Sweden’s Finance Minister Anders Borg warned May 7 the krona’s strength is becoming a concern for the nation’s export-oriented economy and called on the central bank to consider that.

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for the nth time USDJPY tries to reach 100



not gonna happen tonight

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for the nth time USDJPY tries to reach 100



not gonna happen tonight

and it happens!

look at that...

amazing

After several weeks of trying and failing, currency traders were finally able to push the U.S. dollar past the psychologically significant 100 level against the the Japanese yen Thursday.

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sorry Korea

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a few days ago it was reported George Soros is shorting the AUD



he just made a ton of money

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sorry Korea

South Korean Stocks Fall Most in Four Weeks as Exporters Drop - Bloomberg

South Korean stocks fell the most in four weeks, led by exporters, after the won climbed to its highest level against the yen in more than four years.

The Kospi index lost 1.3 percent, the most since April 12, to 1,954.58 as of 11:41 a.m. in Seoul. Samsung Electronics Co., the world’s biggest maker of mobile phones, sank 2.1 percent, while Kia Motors Corp. dropped 3.9 percent. Lotte Shopping Co. (023530) slumped the most since October 2011 on lower-than-estimated operating profit.

The Kospi has declined 2.1 percent this year, compared with a 0.1 percent loss by the MSCI Emerging Markets Index, as a 13 percent gain in the won against the yen hurt the competitiveness of South Korean exporters against Japanese rivals. Kia, South Korea’s second-largest automaker, reported on April 26 a 35 percent drop in first-quarter profit as the won’s strength dragged on sales.