Death Star Economics



China vs Japan, round 81

Adding on to the trade war round-up from yesterday, conflicts between China and Japan are re-igniting just in time for the 81st anniversary of the Manchurian invasion by Japan. Awkward. Chinese protesters advocate the boycott of Japanese products, allegedly circulating lists. Canon has shut three factories until tomorrow, Sony shut two until EOP today, Panasonic shut three plants after attacks. Toyota and Honda suspended Chinese operations, and Nissan stopped production in two factories for the time being, as did Mitsubishi and Mazda. And that’s just a sample of industrial companies… The Chinese retailer for Uniqlo closed its Beijing stores; 7-11, which is owned by the Japanese company Seven & I Holdings, also shut its stores. You get the point, I take it. read article

Meanwhile, Europe is pretty mute.

In the UK, consumer price inflation for August came in at 2.5%, a slight decrease measuring 0.1% from July, matching the median forecast, despite rising energy costs. This, of course, given the Bank of England green light to pump more money into the economy. read article

On the opposite side of the pond in the US, we can observe the aftershock. Upon the QE3 announcement last week, inflation expectations have risen to new highs (highest since May 2006), measuring 2.78%. Both in 2008 and 2010, the Fed’s money printing didn’t have that effect. read article

But there is good news too. In Germanyinvestor confidence has not only risen, but also beaten expectations. Expected at 20, the reading came in at -18, as opposed to 25.5 in August. So things are better then? Well, let’s see. Since the ECB more decisive undefinable action in terms of stopping the crisis once and for all, the German market has seemed jolly and stocks rose to a 14-month peak on 6 September. But of course, the weak demand across Europe will weigh on the export economy, so the rest of the year may not look so rosy. read article

In the US, the Winkelvoss twins, famously screwed over by Mark Zuckerberg, have invested $1m into a social networking site. Hm.. That sounds strangely familiar and begs the questions why they didn’t just buy find themselves a new industry to play with. SumZero will focus exclusively on the investment community, featuring research and trading ideas. read article

So long.


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3 Responses

  1. jumpingpolarbear says:

    With all the tention between the countries at this moment, I hope they find a peaceful way out of it!

  2. princess1960 says:

    hello and thank you for posting intristing news .
    JAPAN -CHINE is long long time contradite.(i have to say i don’t know exacte) who are right .BUT about the companyes Panasonic SHarp.Toyota end end JAPAN HAVE RIGHT
    UK inflation ok EN can not be out the crisis but how i know the GV have under the control all the state and this is very good ..
    USA is in very good time now because of the election all the (metra)they take is in favor to Obama…I lestening B B and for me he take a effective action ..and this is good too.
    GER I don
    t trust invest there in this moment maybe after election and action they tak for the economy ..GER have inflation and unemployment too.
    have a nice evening

  3. […] Following last month’s conflict between China and Japan, Toyota, Honda and Nissan are cutting their production targets for Chinese plants by about half until further notice, due to a slump in Chinese demand. In direct response, sales for South Korea’s Hyundai rose 15%, while German brands Audi, BMW and Mercedes-Benz rose 20%, 55% and 10% respectively last month. read article […]

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