A Cautious BOJ Stands Pat

By Claus Vistesen: CopenhagenAs the discourse is slowly but surely tilting towards exit strategies, by part of central banks, from ultra low interest rates and unconventional measures the BOJ opted to day to maintain a very cautious stance towards the incoming green shoots and whether they will prove enough to lift Japan out of the mire. (quote: Bloomberg) Officials kept the benchmark overnight

A brief look at the possible economic impacts of the DPJ victory

It appears that the DPJ has not promised much change in economic policy. In analysis leading up to the election the NY Times stated that"The main opposition Democratic Party, which polls indicate will end half a century of nearly uninterrupted rule by the Liberal Democrats, has not offered much more than piecemeal remedies to Japan’s biggest problems. Neither party has proposed politically

Corporate Capex in Japan (Q2-2009) - So, is This What a Recovery Looks Like?

By Claus Vistesen (Copenhagen)Much pomp and circumstance was certainly made in relation to the fact that Japan actually grew in the second quarter at a full annualized 3.7 percent in the second quarter of 2009. Yet, the underlying numbers to suggest a recovery are still sorely missing. Deflation now seem to have taken hold, unemployment is rising fast and although the recent manufacturing

Japan Emerges From Recession, But The Slump Continues

Amidst a huge fanfare of euphoria from the press, Japan's GDP expanded by 0.9% quarter on quarter between April and June, or at a 3.7% annualized rate. In doing so it clocked up the first positive growth in five quarters. Many now claim the worst is over is over for Japan, and in terms of the depth of contraction it may well be, but I fear that recovery may be a much more distant prospect than

Japan still a major factor in US Treasury market

as reported in the US Treasury's TIC report. It's interesting that China did not surpass Japan until September of 2008; and that those two countries dwarf all the other holders. How long can Japan avoid having to redeem some of these assets to fund domestic social programs?

June Exports Sustain Upward Momentum But Surplus Employment Rockets

Japan’s June exports fell at the slowest annual pace this year, helping the trade surplus widen for the first time in 20 months. Shipments abroad were down 35.7 percent from a year earlier, following a 40.9 percent in May, according to the Finance Ministry. The surplus widened to 508 billion yen ($5.4 billion).Real exports (adjusted for price change impacts) rose an estimated 8.0% over May (

Daniel Gross on Mellowing Japan

By Claus Vistesen: CopenhagenIn a recent article published in Slate, Daniel Gross gets to the heart of the matter. Essentially, he argues that one of the principal reasons that Japan is not rising is that it has failed to do the homework in the human capital department or as Gross phrases it; while Japan is still leading in engineering, this is not the case with respect to social engineering.