WORLD ECONOMIC REPORTS (MAY 14-21): STILL BAD, BUT FLOOD OF SHOCKING REPORTS EBBS
This week was a tiny light upon tellurian data. Given which a traffic interpretation is seeking “better” in a little areas (which unequivocally equates to not descending as fast in some cases, see this post as well as this post), it is expected which Q1 will be a worse entertain for most Asian economies who rest heavily upon exports for growth. It’s bad, though, with Japan, Taiwan, as well as Singapore all descending 9% or some-more over a year! Inflation is negligence almost in a little areas, disastrous in others. And finally, it looks similar to US collateral markets got a tiny strike in March, as foreigners returned to risk. Overall, a tellurian mercantile reports sojourn in a red, yet a shockingly bad reports have been fading.
GDP in Asia: watchful to exhale
The draft spell out annual GDP expansion by Q1 2009 for Hong Kong, Japan, Taiwan, Indonesia, as well as Singapore. Looks bad, yet Indonesia is display a little resilience, nonetheless GDP is right away flourishing during a slowest gait given Jan 2004.
More frightful acceleration charts: Disinflationary pressures clever - deflation in some
The draft illustrates annual acceleration opposite pass economies by Apr 2009. The UK is an engaging case: a British bruise has been receiving a violence as well as pressuring prices, as well as a consumer cost index is land upon (can’t contend a same for a sell cost index) improved than in alternative economies (US acceleration right away disastrous for dual uninterrupted months). Today, though, S&P downgraded a UK outlook to negative, as well as a argent took a hit; consternation what which will do to prices?
Amid a ease building in collateral markets, unfamiliar investors returning to U.S.-denominated risk
The draft illustrates a 12-month rolling total of net collateral inflows by Mar 2009, as reported by a Treasury International Capital interpretation (TIC). Good thing for a Treasury, which is formulation upon using $trillion deficits in entrance years, which foreigners competence buy their notes. In March, foreigners showed a slight change toward risk, with net long-term flows flourishing for a initial time over a year given a finish of 2008 (second time over a month).
Auf Wiedersehen, Rebecca Wilder
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