ZuluTrade Blog

The Japanese government will cut its economic assessment...

Market View | Wednesday, November 14, 2012 3:24 AM GMT

Good Morning,

 

- USDJPY rose to 79.94 in Asia today, after PM Noda said that he will dissolve parliament on Nov 16. Japan is also expected to downgrade its economic assessment. Kiwi fell from 0.8190-00 area after weaker than expected retail sales. In absence of any positive news and lack of interest EURCHF continues to drift lower, low so far 1.2035.

- Stocks: Nikkei +0.04 %, Hang Seng +0.96 %, Shanghai Composite +0.23 %, Dow Jones -0.46 %, S+P500 -0.40 %

- Federal Reserve Bank of Dallas President Richard Fisher said the U.S. central bank can’t act as a backstop for the economy should lawmakers fail to prevent the country from going over the so-called fiscal cliff.

- Federal Reserve Vice Chairman Janet Yellen backed a proposal to link the Fed’s zero interest-rate policy to progress toward meeting its goals for inflation and employment rather than to a calendar date. “The Committee might eliminate the calendar date entirely and replace it with guidance on the economic conditions that would need to prevail before liftoff of the federal funds rate might be judged appropriate,” Yellen said. She is “strongly supportive” of such a change, she said.

- Treasury Secretary Timothy F. Geithner said the U.S. must raise personal income-tax rates on the highest earners to reduce long-term budget deficits because capping deductions won’t raise enough revenue. President Obama is “not prepared to extend the upper-income tax cuts,” Geithner said yesterday at the Wall Street Journal’s CEO Council meeting in Washington. “There’s obviously universal support for the middle-class tax cuts. Doing that would remove the greatest source of anxiety and much of the greatest risk in the fiscal cliff.”

- Japanese Prime Minister Yoshihiko Noda said he will dissolve the Diet on Nov. 16, paving the way for elections.

- The Japanese government will cut its economic assessment for the fourth straight month in November, a senior official said Wednesday, the latest in a series of moves showing Tokyo's growing concerns over a sharply deteriorating economy. In its monthly report scheduled to be released on Friday, the Cabinet Office will tone down its previous assessment to say that the economy is "in a weak tone recently due to deceleration of the world economy, although some components still show steady movements," a senior Japanese government official told Dow Jones Newswires. Four successive months of downgrades would be the longest since a five-month cut in the aftermath of the collapse of U.S. investment bank Lehman Brothers in late 2008.

- Strong government finances combined with solid banking institutions and a stable political framework mean Australia is highly likely to keep its triple-A ratings in the foreseeable future, ratings agency Moody's says.

- Australia Data Recap                      Period        Survey         Actual          Prior

* Westpac Consumer Confidence         Nov             -               -104.3         99.2

* Wage Cost Index qoq                       Q3            0.8 %            0.7 %       1.0 %

* Wage Cost Index yoy                       Q3            3.8 %            3.7 %        3.7 %

 

- New Zealand Data Recap           Period      Survey      Actual      Prior

* Retail Sales ex inflation qoq        Q3          0.4 %        -0.4 %     1.3 %

 

- "The South Korean economy will not get any worse, although it won't recover in a V-shape. It remains to see if it does in an L-shape but I expect it to bounce back harder than that," said Bank of Korea Governor Kim Choong-soo.

- USDBRL rallied for the 5th consecutive day and triggered barriers at 2.0700 (more to come up around 2.08/10). BRL gained on ground after 'unnamed source' reported BCB will not rollover the USD derivatives position maturing by end of the month.

 

14:30

US PPI Oct

14:30

US Retail Sales Oct

16:00

US Business Inventories Sep

20:00

US FOMC Minutes

08:45

France CPI Oct

10:00

Bank of Spain publishes banks ECB borrowing data

10:00

Bank of Italy Saccomanni

11:00

Eurozone Industrial Production Sep

11:00

Bundesbank Lautenschlager & Dombret

16:45

ECB Asmussen

10:30

UK Claimant Coutn Rate Oct

10:30

UK ILO Unemployment Chane Sep

11:30

Bank of England Inflation Report

11:00

Switzerland ZEW Nov

08:00

Sweden PSE Unemployment Rate Oct

  (CET)


Have a nice day

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