Death Star Economics



Central bank center stage: Japan is riding the QE dragon

The Bank of Japan has locked step with the Fed and expanded its quantitative easing program by ¥10tn. It now amounts to ¥80tn, ot $1.01tn. The deadline for the policy program was extended to the end of 2013. The added ¥10tn, will be split 50:50 between short and long-term Japanese government bonds. As a result, the dollar rose against the yen and the Nikkai exploded upwards. read article

But Japan’s worries are not only domestically. After yesterday’s anti-Japan protests in China, forcing many factories to shut down, Japanese car manufacturer are getting ready to face the consequences. According to Bloomberg:

The collective market share of Japanese car brands, No. 1 among foreign nameplates in China since 2005, will probably fall to 22 percent this year, whil eGerman marques could increase their share to 22.5 percent, according to projections by China’s Passenger Car Association.

Nissan has the biggest plans in the country, with its China venture budgeting 50 billion yuan($7.8 billion) in investments to raise sales to more than 2.3 million vehicles in China by 2015 from 1.3 million in 2010. Toyota said this month it aims to increase Chinese deliveries to 1.8 million vehicles by 2015, more than double the tally last year, by adding at least 20 new models. Honda said in April it plans to double deliveries in the country over four years after being “too cautious” in its expansion.

The Bank of England confirmed to keep its rates and QE target steady for the moment. The current asset-purchasing program is capped at £375bn, but after yesterday’s inflation data came out, it is very possible for the target to be reset in November’s policy meetingread article

Meanwhile, the US is waiting for the announcement of an awful lot of housing data this morning.

Saudi Arabia is feeling socially responsible and wants to combat high oil prices, by adding some more to the market. It’s like oil-QE. The Saudi oil production amounts to 10 million barrels per day. read article

Otherwise, Goldman Sachs has found a new CFO to pay $15.8m annual remuneration to (final salary of departing David Viniar). With 12 years in the role, Viniar is the longest serving CFO on Wall Street. Harvey Schwartz, who will move into the new position in early 2013, is yet another one for the next-CEO-question-mark list.

And the fun fact of the day, according to the Telegraph, journalists rank higher than bankers in the least trusted professions (probably because bankers don’t trust journalists…).

So long.

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One Response

  1. princess1960 says:

    is time to come back the muchinery industri ..i think all the profit they have is enough .
    i read about the conphlict between CH-J island’s we say ..every land is for the people who speaking they languages SO this island speaking JAPAN Lang…
    GOLDMAN-SACHS they keeping wichothers very good THIS IS the reason GS and all THE jewish culture is the best in WORLD ..goodluck for MR H SCH .
    Saudi Arabia is rich country with oil and frist country for highe unemployment ..???
    Jornalist is profession who can help one ”case”or destroyt case or GV ..everywere ..i think free speech with bad objective needed limit..(law international)
    THANK YOU for to day tomorrow next one

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