Japan's Nikkei index falls to 4-month low Friday Nov 20, 2009
TOKYO: Japan's Nikkei stock index fell to a four-month low Friday, pressured by uncertainty over the government's handling of the deflation-plagued economy ... Shortly before the market's close, the government said the world's second largest economy is in deflation for the first time in more than three years, warning falling prices and a further worsening of the labor market could drag on the weak recovery ... "We cannot see what the government will do to tackle deflation," said Kazuhiro... (The Star Online, Malaysia)
Japan maintains super-low interest rates Nov 20, 2009
Japan's central bank left its super-low interest rates unchanged on Friday as the government declared for the first time in more than three years that Asia's biggest economy is in a phase of deflation ... The government declared in a monthly report Friday that Japan is "in a mild deflationary situation." ... But Shirakawa denied there was a rift between the bank and the government over monetary policy, saying the BoJ shares its concern about deflation. (Sydney Morning Herald -- World)
Top Eurobank prepares for 'global economic collapse'... Nov 20, 2009
SocGen advises bears to sell the dollar and to "short" cyclical equities such as technology, auto, and travel to avoid being caught in the "inherent deflationary spiral" ... Some people have made noise about potential deflation ... Sell the dollar in a deflationary spiral. (The Drudge Report)
Japan says deflation has returned Nov 20, 2009
BBC News - Deflation returns to the Japanese economy ... Deflation returns to the Japanese economy ... Deflation has returned to the Japanese economy for the first time since 2006, the government has warned. (BBC News -- Asia-Pacific)
Japan Warns That Deflation Can Drag on Recovery Nov 20, 2009
Japan's government says the economy is in deflation for the first time in more than three years, warning that falling prices and a further worsening of the labor market could drag on the weak recovery. The statement about deflation, coming in the Cabinet's monthly economic report Friday, is hardly a surprise as Japan's consumer price index has been declining since March ... Japan's government highlighted the danger of deflation for the first time in three years Friday, warning that falling... (ABC News -- Business)
Bank of Japan defies govt in upbeat outlook Nov 20, 2009
The Bank of Japan has upgraded its economic assessment despite grumblings from the government, which is worried about deflation and the risk of another recession. The move came as government officials piled pressure on the central bank to play its part to keep the country from slipping deeper into deflation ... "From the outside, it may seem like the BOJ is responding to government pressure, but I think people inside the BOJ understand the situation very well. Naoto Kan, minister in charge of... (Sydney Morning Herald -- Business)
Academic Miyao Nominated to Replace Mizuno on Bank of Japan Policy Board Nov 19, 2009
With Japan suffering from deflation even as the economy is improving, his work can make a contribution to policy, said Kumano, now chief economist at Dai-Ichi Life Research Institute in Tokyo ... At the same time, he applauded the banks commitment to keep the so-called quantitative easing stance in place until deflationary concerns subsided, arguing that it had reassured investors. (Bloomberg -- Japan)
Fed Officials Play Down Impact of Weak Dollar Nov 19, 2009
HONG KONG/SINGAPORE (Reuters) - Federal Reserve officials on Thursday downplayed the consequences of the falling U.S. dollar, underscoring that deflation is still a threat, especially with commercial real estate prices falling. Dallas Fed President Richard Fisher said in an interview with Market News International that the weakening dollar, which hit a 15-month low against major currencies on Monday, is only one of the factors the Fed watches when setting policy. (ABC News -- Business)
Japan May Declare Economy Is in Deflation, Boosting Bonds, Citigroup Says Nov 19, 2009
Japans Deflation May Push Yields to 6-Year Low, Citigroup Says - Bloomberg ... Japans Deflation May Push Yields to 6-Year Low, Citigroup Says ... Nov. 19 (Bloomberg) -- Japans government may announce tomorrow that the economy is in deflation, setting off a bond rally that may push 10-year yields to 1 percent, a level unseen since August 2003, Citigroup Global Markets Japan Inc. said. (Bloomberg -- Asia)
Canada records inflation of 0.1% Nov 19, 2009
The increase, as measured by the Consumer Price Index, compares with the deflation of 0 ... Canada experienced deflation in September due to petrol prices being 23% lower than the same month in 2008. (BBC News -- Americas)
Japanese 20-Year Bonds Little Changed Before Tomorrow's $12.3 Billion Sale Nov 18, 2009
Demand for bonds was bolstered on speculation deepening deflation will prompt the to keep near zero ... Deflation, a general drop in prices, enhances the value of the fixed payments from debt. (Bloomberg -- Japan)
Recovery, What Recovery? Nov 18, 2009
With globalization, wage deflation and with the prospects of tepid top-line sales growth, which corporations intend to expand their labor rolls. So, there's going to be a meaningful return to jobs growth in 2010. (The American Conservative)
Japanese govt plans extra stimulus budget Nov 18, 2009
But, at the same time, government stimulus is driving economic growth so a cut in state spending could send the economy back into recession amid talk of a renewed risk of deflation. It is important to have an extra budget to prevent the economy from falling into a double-dip recession, National Strategy Minister Naoto Kan told reporters. (The Star Online, Malaysia -- Business)
Japan doomsdayfears premature Nov 18, 2009
Deflation is worsening. Thus the Japanese economy is burdened with relatively high real interest rates that monetary policy cannot fix since it is not, in practical terms, possible to cut interest rates below zero. (Asia Times Online)
Nikkei dragged down by equity financing, real estate, financial issues Nov 18, 2009
Ongoing uncertainty about the sustainability of government stimulus measures coupled with abstruse economic policies to offset deflation and concerns about a resurgent domestic economic downturn are doing little to appease market sentiment. "All we're seeing are negative cues -- the risk of JAL going bankrupt, an anticipated announcement later today by Mitsubishi UFJ Financial on its equity financing plan, and there are probably more to follow," said Fumiyuki Nakanishi, chief equity strategist... (Xinhuanet, China)
Welcome, comrade Maobama Nov 17, 2009
For our part of the world, we hope you have the opportunity to appreciate how sound are our economic fundamentals - with rising industrial production, retail sales and investments in fixed capital, and moderate deflation, as outlined by Sheng Laiyun, spokesman for the National Bureau of Statistics. Our economy will grow by 8% in 2009. (Asia Times Online)
New central bank chief should focus on demand Nov 17, 2009
The reason for this difference is that while consumers in South Africa still face high inflation, producers are having to deal with significant and dramatic deflation ... The firms that might ordinarily be encouraged to borrow funds to add to stocks and work in progress and to their complement of workers, or to add more plant and equipment, are facing deflation rather than inflation. (Business Report, South Africa)
Ten-Year Government Bonds Rise a Sixth Day on Signs of Deepening Deflation Nov 17, 2009
Japans 10-Year Bonds Advance a Sixth Day as Deflation Deepens - Bloomberg ... Japans 10-Year Bonds Advance a Sixth Day as Deflation Deepens ... Nov. 17 (Bloomberg) -- Japans 10-year government rose for a sixth day, the longest rally this year, on speculation deepening deflation will prompt the to keep near zero. (Bloomberg -- Japan)
DPJ Considers Paring Election Pledges to Prevent Increase in Debt Burden Nov 17, 2009
The report also showed a slide in prices deepened, highlighting the risk that deflation may undermine the recovery. The rebound from the countrys worst postwar recession hasnt been strong enough to lift tax revenue. (Bloomberg -- Japan)
Prospecting for gold Nov 17, 2009
Dr Olivers view however is that the slump in global economic demand and surging levels of excess economic capacity make deflation a greater threat than inflation. However if enough people are worried about inflation this will still benefit gold. (Sydney Morning Herald -- Business)
Nikkei closes down, concerns about gov't economic policy Nov 17, 2009
Despite the Dow Jones index posting a one-year high after positive retail sales data Monday and the Federal Reserve alluding to maintaining low interest rates, investors remained circumspect as domestic issues such as the rise in corporate share issuance, a stronger yen and growing concern about deflation, kept market activity apprehensive ... A cut in state spending could send the economy spiraling back into recession, coupled with this increased reports about issues of deflation and a... (Xinhuanet, China)
Japan's Deflation Concern Mounts Even as Economy Expands Most in Two Years Nov 17, 2009
Japan Deflation Concern Rises Even as Growth Quickens (Update1) - Bloomberg ... Japan Deflation Concern Rises Even as Growth Quickens (Update1) ... The report prompted Deputy Prime Minister to say the government may outline an emergency-spending package as soon as today, adding that Im concerned were entering into a deflationary situation. (Bloomberg)
* Japanese Q3 GDP grows 4.8 percent at annual pace Nov 17, 2009
It warned of a tepid recovery combined with three straight years of deflation. This story has been viewed 257 times. (Taipei Times, Taiwan -- World)
Too early for Victory over Recession Day Nov 17, 2009
The Bank of England sees inflationary pressures remaining muted; it sees deflation as a bigger threat. Yet inflation has continued to be stronger than expected. (Sydney Morning Herald -- Business)
The Home Depot Announces Third Quarter Results; Updates Fiscal Year 2009 Guidance Nov 17, 2009
ATLANTA, Nov. 17 /CNW/ -- The Home Depot , the world's largest home improvement retailer, today reported third quarter of fiscal 2009 net earnings of $689 million, or $0. We grew market share in the quarter, continued to transform our business and improved customer service. (Canada Newswire)
Japan's economy posts strongest growth since 2007 Nov 16, 2009
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Swaps Signal Worst Yen Since '05 as Mounting Debt Overwhelms Market Demand Nov 16, 2009
Economic conditions point toward a possibly extended period of deflation, Riley said in a Nov. 10 statement. Should this happen, it will represent a material risk to the public debt outlook. (Bloomberg -- Japan)
Japan's economy continues growing Nov 16, 2009
However, while this signals that capital spending is starting to rise from the bottom, the size is still not enough to promise the kind of speed that would be required to prevent a slowdown in the first half of 2010," the economist added. Deflation riskEconomists said that the new Democratic Party-led government's measures to support households would eventually help, but they may not make an impact until the second half of next year. The government is still considering whether it will issue... (BBC News -- Asia-Pacific)
Japan Extra Stimulus Likely, GDP Fails to Convince Nov 16, 2009
The government is likely to declare on Friday the economy has returned to deflation, the Nikkei newspaper reported, as the domestic demand deflator fell 2. 6 percent in the third quarter from a year earlier, the largest drop in 51 years. (ABC News -- Business)
Retirement Investing: The End Game Nov 16, 2009
Deflation, the Bigger Concern Now ... Aaron Gurwitz, head of global investment strategy at , says investors should be more worried now about deflation the threat of falling prices and asset values than inflation ... Deflation is so destructive that it's the top enemy of the world's policymakers. (BusinessWeek)
Obama Gets Earful on 5-City Economic Road Show Nov 16, 2009
Japan lost traction in Asia, too, as Chinas growth trumped its return to deflation. Japan was all but ignored during a recent panel discussion I chaired at Insead Business School in Singapore. (Bloomberg -- Columnists)
Hatoyama Says `Worrisome' Japanese Economy Probably Warrants Extra Budget Nov 15, 2009
While economists estimate that growth accelerated in the third quarter, joblessness and deflation threaten to hurt the rebound in 2010. Japans economy probably expanded for a second quarter in the three months ended Sept. 30 as government incentives prompted consumers to buy cars and electronics, according to economists forecasts ahead of a Nov. 16 report. (Bloomberg -- Japan)
Investors eye London mkt above 5,300 Nov 14, 2009
The slide in September had raised fears of deflation in Britain and indications that inflation has picked up would be seen as signs of economic stabilisation ... Deflation, a prolonged period of falling prices, dampens economic momentum as consumers postpone purchases in hopes of even further price declines. (India Times)
Monthly foreclosures drop slightly in metro Atlanta Nov 14, 2009
As unfortunate as it is, we now have to endure the unwinding process, otherwise known as foreclosures and home price deflation. We need to return this country to the middle of the road policies that have served us well so far. (Atlanta Journal-Constitution -- Business)
Wal-Mart offers vendors a way to faster payment Nov 14, 2009
But they're spending less when they get there because the goods are priced lower - because of deflation, especially for meat and dairy items, and discounts designed to bring people into its stores. Wal-Mart approval hangs on crime worries. (Fresno Bee -- Business)
Attention Returns to Economic Data Nov 14, 2009
Fed governors, including the two leading hawks, have been "consistent in a dovish view of ample slack, lack of credit creation, impending bank problems with commercial real estate, and deflation being more of a risk than inflation," said David Ader, head of government bond strategy at CRT Capital Group LLC. "To read anything other than the Fed being on hold for an extended period is entirely missing the point.". Of key interest as the economy shifts into the holiday shopping season is the mood... (ABC News -- Wire)
Wal-Mart posts 3% rise in profit for quarter Nov 13, 2009
4 percent in the period because of continued deflation in such categories as electronics and dairy as well as a tough economy ... Castro-Wright told investors in a pre-recorded conference that grocery sales were up in the low single digits, depressed by deflation in produce, meat and dairy. (San Francisco Chronicle -- Business)
* How the bookshop chain killed bookselling Nov 13, 2009
We have had fantastic price deflation in books because of the end of the NBA and discounts, he says. Isnt that great for our literary culture. (Taipei Times, Taiwan -- World)
Chile Central Bank Pledges Low Rates, Says Traders Overestimating Increase Nov 13, 2009
The bank is saying that Chile has no real risk of deflation or of relapsing back into recession. . (Bloomberg -- Latin America)
Japanese Bonds Advance, Snapping Five-Week Losing Run, as Stocks Decline Nov 13, 2009
Given strong deflationary pressure, the BOJ wont be able to start hiking interest rates before 2013, said , chief economist in Tokyo at RBS Securities Japan Ltd. Deflation and low interest rates will offset concerns over swelling debt. . (Bloomberg -- Japan)
Housing's future changing Nov 13, 2009
Since the first quarter of 2008, however, we have seen a considerable improvement in both measures of affordability, due to the combination of house price deflation and substantial interest rate cuts. Page: 1 of 10 - Digg. (iAfrica.com)
Japanese, U.S. Bonds Rally on Deflation Outlook as Asian Stocks Lose Gains Nov 12, 2009
Prolonged deflation means that the Bank of Japan cant possibly start hiking interest rates anytime soon, said , chief economist in Tokyo at Norinchukin Research Institute Ltd. This will give financial institutions with excess cash the confidence to buy government debt ... Home-Made Deflation ... Japans producer prices have moved into a new phase of home-made deflation linked to a lack of domestic demand, said , chief economist at Barclays Capital in Tokyo. (Bloomberg -- Asia)
Ten-Year Bonds Gain Most in 11 Months; Deflation Signs Spur Auction Demand Nov 12, 2009
Japans 10-Year Bonds Gain Most in 11 Months on Deflation Signs - Bloomberg ... Japans 10-Year Bonds Gain Most in 11 Months on Deflation Signs ... Nov. 12 (Bloomberg) -- Japans 10-year government rose the most in 11 months after a report showed that dropped for a 10th month in October, underscoring the risk that deflation may undermine the economic recovery. (Bloomberg -- Japan)
China's central bank stresses inflation management Nov 12, 2009
The report said the nation's stimulus package implemented since last November had held back price falls and eased deflation fears. However, the loose credit conditions across the globe also pushed up commodity and asset prices, which shaped "a certain perception for inflation". (Xinhuanet, China)
Stocks Fall as Profit Outlook Casts Doubt on Recovery; Drugmakers Decline Nov 12, 2009
The Bank of Japan said today that , or costs companies pay for energy and unfinished goods, fell for a 10th month in October, underscoring the risk that deflation may undermine a recovery in the worlds second-largest economy. The drop was 6. (Bloomberg -- Japan)
Producer Prices Fall for 10th Month, Underscoring Japan's Deflation Risk Nov 12, 2009
Nov. 12 (Bloomberg) -- Japans fell for a 10th month in October, underscoring the risk that deflation may undermine the economic recovery ... Japans producer prices have moved into a new phase of home-made deflation linked to a lack of domestic demand, said , chief economist at Barclays Capital in Tokyo ... Deflation may become less speedy but could also become more sticky. (Bloomberg -- Japan)
Obama Meets Asian Bankers Who May Call His Loan Nov 12, 2009
Trade frictions are rising, the U.S. is mired in recession, Japan is experiencing deflation and big pacts on climate change or denuclearizing North Korea are non-starters. The best way to use this summit is to discuss an exit strategy. (Bloomberg -- Columnists)
Analyst: Another global recession likely in 2010 Nov 11, 2009
He said while inflation was a concern, deflation was a bigger worry in the near term, at a time when Western and Japanese governments were effectively insolvent. If we get an economic downturn next year, when you have got core inflation at half a percent, I think there will be a real deflation panic, a bit like in Japan. (The Star Online, Malaysia -- Business)
Which big countrywill default first? Nov 11, 2009
3 million) was being reflated by Goldman Sachs bonuses indicates the problem, and suggests that the further deflation needed in UK housing will have a major and unpleasant economic effect. A second British problem not shared by the US is its excessive reliance on financial services. (Asia Times Online)
Q&A: Stock Rally Has More To Go, Says Wells Fargo's Hartman Nov 11, 2009
What do you make of the fact that bonds have rallied, a bet on deflation, while commodities have also rallied, a bet on inflation ... People are still talking about deflation; you're still looking at low labor costs, high unemployment, and a slow recovery. (Time.com)
Government Bonds Have Biggest Gain in a Month as Higher Yields Spur Demand Nov 11, 2009
Japan has been in deflation, remains in deflation, , head of Japan economic research at Morgan Stanley in Tokyo, said in a Bloomberg Radio interview yesterday ... Deflation enhances the value of the fixed payments on debt ... The recovery process for Japan in 2010 is expected to be modest and fragile, since domestic economic conditions point towards a possibly extended period of deflation, , head of global sovereign ratings at Fitch Ratings, said in a statement released in Tokyo yesterday.... (Bloomberg -- Japan)
Decline in salaries threatens economic recovery Nov 10, 2009
"Wage deflation deprives national economies of much needed demand and seriously affects confidence.". Based on a sample of 53 countries, it appears that growth in average wages fell from 4. (Business Report, South Africa)
Fitch Ratings Says Japan's Economic Recovery Will Be `Modest and Fragile' Nov 10, 2009
The recovery process for Japan in 2010 is expected to be modest and fragile, since domestic economic conditions point towards a possibly extended period of deflation, , head of global sovereign ratings at Fitch, said in a statement released in Tokyo today ... The Bank of Japan last month forecast deflation will extend into fiscal 2011 even as economic growth picks up. (Bloomberg -- Japan)
Japan Bonds Gain, Snap Four-Day Drop, on High Yields, Demand at Debt Sale Nov 10, 2009
Nov. 10 (Bloomberg) -- Japanese gained, snapping a four-day drop, as near the highest since June and signs of deflation lured buyers ... Theres a risk of prolonged deflation, said , chief strategist in Tokyo at UBS Securities Japan Ltd., one of the 23 primary dealers that are required to bid at government bond auctions ... Deflation, or a general drop in prices, enhances the value of a bonds fixed payments. (Bloomberg -- Japan)
Stocks Jump as G20 Pledges Liquidity Nov 10, 2009
"The Senate remains very unlikely to pass any bill containing an unbridled public plan that could ultimately threaten significant price deflation for U.S. sales," said Andrew Baum, a Morgan Stanley pharmaceutical analyst. Corporate mergers and acquisitions also helped the market, with General Electric Co (GE.N) gaining 3. (Newsmax)
Recovery Looks Like `L' Without Job Growth: David Blanchflower Nov 10, 2009
Deflation remains a major concern in many countries. Central bankers great worry is that they have no idea what to do about hyper-deflation. (Bloomberg -- Columnists)
Stock Rally Just Getting Started in History of Period Preceding Rate Rises Nov 10, 2009
2 percent in the run-up to the July 2006 boost that followed a decade of deflation. There seems to be a common misperception among investors that when interest rates rise, stock prices necessarily , Levkovich wrote. (Bloomberg -- Canada)
Aeon to Raise $1.1 Billion in First Japan Convertible Bond Sales of 2009 Nov 10, 2009
The Bank of Japan last month forecast deflation will extend into fiscal 2011 even as economic growth picks up. To contact the reporters on this story: in Tokyo at in Tokyo at. (Bloomberg -- Asia)
Roubini Versus Rogers Is Right Debate for 2010 Nov 9, 2009
As these well-known market personalities duke it out, theyre doing us a favor by highlighting a critical debate: Which is the bigger threat -- inflation or deflation ... The group said he doesnt understand inflation and deflation ... Yes, inflation must be contained, but so must the forces of deflation in the short run. (Bloomberg -- Columnists)
Zuckerman: U.S. On Brink of Deflation Crisis Nov 7, 2009
The U.S. is on the precipice of a deflation crisis, one which will devastate consumers and businesses alike, publisher Mort Zuckerman writes ... Deflation is already part of the economic picture in the United States ... To reverse the deflationary effects of this demonstrable low capacity utilization, demand growth will need to rally. (Newsmax)
Government Needs to Improve Communication With Bank of Japan, Tsumura Says Nov 6, 2009
Yesterdays minutes showed Tsumura urged the bank to pay due attention to the risk of deflation and take appropriate measures to help companies get access to financing because they continued to face a severe business environment ... Im carefully looking at every downside risk and monitoring the risk of slipping into deflation, Tsumura said, while adding that he doesnt see any major differences in the economic views of the government and the central bank. (Bloomberg -- Japan)
Global equity fund flows turn negative Nov 6, 2009
In Japan, weak domestic demand and renewed deflation posed questions about Japan's economic recovery and Japan equity funds saw outflows for a seventh week. As deflation makes holding cash more attractive, regional money market funds benefited. (India Times)
Latvia Spares Currency, Devalues Economy to Save Path to Euro Membership Nov 6, 2009
Latvias rate may turn to 1 percent deflation in October, according to the median survey of six economists, when the figures are released on Nov. 9. That would be the first annual deflation since the country split from the Soviet Union in 1991 and became a market economy. (Bloomberg)
Productivity Surge: The Dark Side Nov 6, 2009
In a research note, Ashworth said: "The upshot is that deflation is still by far the biggest threat.". University of Texas economist James Galbraith, in an e-mail message, says that "'Productivity' in this situation is a fairly meaningless construct," adding that the decline in hours "is not good for the working population." Galbraith said he sees "little reason for optimism" that economic growth will be strong enough to get employment back on track anytime soon. (BusinessWeek)
How To Find $288 Billion in Hidden Gold Nov 5, 2009
67 to $35 an ounce to battle deflation. It did the trick, but the move was risky. (Slate)
