Posts Tagged ‘BMW’

Notes From Underground: Japan Revs Its Engine As the Wisdom of Pundits Stalls

April 11, 2013

Over and over, financial news airwaves are filled with noise about since the Bank of Japan–under the supervision of Governor Kuroda–has embarked on a massive dose of Quantitative Easing, there has been no real outflow of YEN around the world. The only problem with this bloviating is that its devoid of fact. The BOJ’s action, or rather, call to action has led to a drop in European bond yields as well as a new pillar of support for U.S. Treasuries. Further proof is last night’s employment data from Australia, which was much weaker than expected (a  36,000 job loss and a 0.2% jump in the unemployment rate to 5.6%), but the AUSSIE DOLLAR rallied after an initial selloff as Japanese investors are seeking higher returns. A favorite place for higher yields for Japanese seekers has been Australia and New Zealand. Many financial institutions offer what are known as Urudashi and Samurai bonds. These are bonds issued in Japan in foreign currency of usually kiwi and Aussie. Those who say that the Japanese don’t invest afar and remain in Japan–what is called HOME BIAS–are badly misinformed.

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Notes From Underground: Friday is unemployment and we will need the patience of JOB

September 2, 2010

The unemployment data has become much more difficult to trade as the breakdown of information is filled with so much countervailing data. We need to look at the private sector job creation as the census jobs roll down, then the average hours worked because average hourly earnings take on more importance as an indicator of possible increased consumer spending. However, the overall jobless rate may stay the same or go higher. The consensus number for non-farm payrolls is 105,000 lost , but we caution to wait for the full breakdown before getting too excited.

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