World economy talk

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long Nikkei

short Japan govt debt



10 yr JGB yield

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king dollar!

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^^^

nothing to post...

still KING DOLLAR!

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huge drop

US 10 yr yield

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king dollar!

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silver

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the darkside of yen devaluation --- commodities become expensive for Japan

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Bernanke Says Premature Tightening Would Endanger Recover - Bloomberg

Federal Reserve Chairman Ben S. Bernanke said the U.S. economy remains hampered by high unemployment and government spending cuts, and tightening policy too soon would endanger the recovery.

“A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further,” Bernanke said today in testimony prepared for a hearing at the Joint Economic Committee of Congress in Washington. Monetary policy is providing “significant benefits,” he said.

USD index


S&P 500

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Bernanke: "Fed could reduce bond purchases in the next few meetings if data supports it"

boom!

[jhnkvn]

the darkside of yen devaluation --- commodities become expensive for Japan

Local manufacturers would be hurting but Japan's an export driven country to begin with. So, hopefully, end result is a positive driven one.

52 week improvement of +70%~ na yun exchange nila. Bloody hell.

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Local manufacturers would be hurting but Japan's an export driven country to begin with. So, hopefully, end result is a positive driven one.

52 week improvement of +70%~ na yun exchange nila. Bloody hell.

yup

like i said months ago --- short yen long nikkei

[Ry_Tower]

yup

like i said months ago --- short yen long nikkei

Tagal naman magmura ng japanese exports dito. hehehehe

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China HSBC flash PMI hits 7-mth low, fans growth fears | Reuters

(Reuters) - China's factory activity shrank for the first time in seven months in May as new orders fell, a preliminary survey of purchasing managers showed, adding to concerns that a recovery in the world's second-largest economy is sputtering.

The flash HSBC Purchasing Managers' Index (PMI) for May fell to 49.6, slipping under the 50-point level demarcating expansion from contraction for the first since October. The final HSBC PMI stood at 50.4 in April.

A sub-index measuring overall new orders dropped to 49.5, the lowest reading since September, suggesting China's domestic economy is not strong enough to offset soft external demand.

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JGB dump

Nikkei.com - Japan Business News Online

Thursday, May 23, 2013

DJ: BOJ Announces Y2 Tln Fund-Supplying Op After JGB Yield Spikes

TOKYO--The Bank of Japan responded to the recent turbulence in the Japanese government bond market Thursday, announcing a 2 trillion yen ($19 billion) fund-supplying operation after the 10-year JGB yield shot up to its highest level in over a year during the morning.

[Monseratto]

Consequence of an appreciating Aussie dollar...

Ford to Close Australian Car Plants After 9 Decades on Costs - Bloomberg

Ford Motor Co. (F) will stop making cars in Australia, nine decades after founder Henry Ford first began building Model Ts in the country, as a surge in the currency undermines the local industry’s ability to compete with imports.

Ford Australia faces costs double those in Europe and four times those of its Asian divisions, local President Bob Graziano told reporters today. He announced the loss of 1,200 jobs from October 2016 at two plants in Melbourne and Geelong.

Australia’s three car makers have struggled as a 28 percent rise in the local dollar against the yen over the past year stoked sales of cheaper imported vehicles and cut exports. The closure of one threatens the viability of the whole industry and is a blow to Prime Minister Julia Gillard, whose Labor party is trailing in polls ahead of a Sept. 14 election.

“Australian manufacturing can’t keep its head above water,” said Katrina Ell, an economist at Moody’s Analytics in Sydney. “High labour costs mean we can’t compete long-term against lower cost countries, especially in Asia. The strong exchange rate is exacerbating Australia’s lack of competitiveness.”

Ford, which began assembling Model Ts at Geelong west of Melbourne in 1925, is the smallest of the nation’s three manufacturers after units of Toyota Motor Corp. (7203) and General Motors Co. (GM)

The removal of one could spark a “domino effect” as the industry as a whole becomes too small to support its own supply chain, Jac Nasser, chairman of the world’s largest miner BHP Billiton Ltd. (BHP) and former chief executive of Ford globally, told an event in Melbourne last month.

Ford’s forecasts showed its local plants weren’t able to make a return, even if the company assumed almost double the likely level of government assistance, Graziano said today.

“Manufacturing is not viable for Ford in Australia for the longer term,” he said. “Our locally-made products continue to be unprofitable, while our imported products continue to be profitable.”
The car industry directly employs more than 45,000 people across the country, according to industry group the Federation of Automotive Products Manufacturers. A further 250,000 jobs are derived from related activities.

“There will certainly be very large implications for businesses on the supply chain,” Richard Reilly, chief executive officer of the Federation, said by phone today ahead of Ford’s announcement.

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so expect the RBA to ease more

RBA signals more rate cuts coming | News.com.au

ANOTHER round of interest rate cuts later this year remains on the agenda after the Reserve Bank clearly signalled it retains an "easing bias'' despite this month slashing the cash rate to a record low, economists said.

In a break from tradition, the May rate cut of 0.25 per cent to 2.75 per cent seems to have been aimed more at boosting confidence in the business sector by driving down the Australian dollar, rather than boosting consumer spending.

The minutes from the central bank's May board meeting released yesterday show that with a "surprisingly low'' inflation reading, which was expected to keep it within its target range of 2 to 3 per cent for the next few years, more cuts are a real possibility.

The futures market is already pricing in another cut to official rates in September or October, being the last in this cycle, with the RBA tipped to start lifting them again towards the back end of 2014.

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7.3% drop

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risk off

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