seemore 66 Posted May 18, 2013 Author Share Posted May 18, 2013 Interesting I thought this would help the Yen The so-called "Abenomics" stimulus program has met with early success, lifting Japan's GDP more than forecast. Japan's economy grew by a strong 0.9 per cent in the March quarter, higher than the 0.7 per cent that economist forecasts centred on in a poll by Reuters. If maintained, such a rate of growth would have Japan's economy back to a healthy annual GDP increase of 3.5 per cent. The March quarter gross domestic product numbers are the first full quarter since Japan's prime minister Shinzo Abe was returned to power in December and launched a concerted stimulus spending combined with increased Bank of Japan money printing. Economists say the result offers early evidence that "Abenomics" is working by boosting consumer sentiment. "Personal consumption was really strong and exports did better than expected," Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management in Tokyo, told Reuters. "Stock gains and expectations for higher salaries are driving consumption now." Consumption makes up around 60 per cent of the Japanese economy and was one of the largest contributors to growth, and grew by 0.9 per cent, adding 0.6 percentage points to the GDP result. More growth ahead Most analysts are expecting the initial momentum from the Abenomics stimulus program to continue, at least in the short to medium term. "The economy will enjoy strong growth for another year or so," Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute, forecast to Reuters. "It's no longer just about brightening sentiment and rises in equities prices. There's now proof that Abenomics is working and that the economy is on a solid footing." One disappointment in the data was a 0.7 per cent decline in private non-residential investment, however Societe Generale's chief economist for the Asia-Pacific region, Klaus Baader, says that figure is likely to rebound as industrial output keeps growing. "Looking ahead, we think GDP will continue to grow strongly, especially as we see more room for a boost in private non-residential investment, a more prominent recovery in exports, and as public investment under Abe's stimulus package kicks in," he wrote in a note on the data. Another of the key growth drivers was a better than expected rise in exports that added 0.4 percentage points to GDP. The export result was helped by a four-and-a-half-year low against the US dollar, making Japanese exports more competitive. The yen was little moved by the GDP result, despite it beating market forecasts, with a US dollar fetching just over 102 yen and an Australian dollar worth 101 yen at 11:33am (AEST). Link to post Share on other sites
Tubby Beaver 209 Posted May 18, 2013 Share Posted May 18, 2013 How much of this "stimulus spending" is the money used to rebuild Tohoku? It's not really abenomics if they are counting the public spending for the tsunami zone Link to post Share on other sites
seemore 66 Posted May 19, 2013 Author Share Posted May 19, 2013 I guess any spending is good I think it relates to export growth due to the lower yen as well Link to post Share on other sites
HeatherLocklearRocks 1 Posted May 19, 2013 Share Posted May 19, 2013 Wish I had some to bring over now. Link to post Share on other sites
Tubby Beaver 209 Posted May 19, 2013 Share Posted May 19, 2013 I guess any spending is good I think it relates to export growth due to the lower yen as well well that may be true....but it isn't due to any magic being waved by Abe.....these towns needed rebuilt and that money would've been spent just the same if another guy was at the helm Link to post Share on other sites
seemore 66 Posted May 19, 2013 Author Share Posted May 19, 2013 I dont know the guys ploicies but yes you are right not a fan TB? Link to post Share on other sites
fukdane 2 Posted May 19, 2013 Share Posted May 19, 2013 I'm guessing that like lots of us here, he's somewhat fed up of hearing the word Abenomics, and everything being assigned to the dude. Link to post Share on other sites
JA2340 16 Posted May 19, 2013 Share Posted May 19, 2013 Predictions going around today that the AUD will drop against most others - so, I've just bought a grands(in dollars) worth at Friday's prices - wondering what the rates will be tomorrow morning! Link to post Share on other sites
Tubby Beaver 209 Posted May 19, 2013 Share Posted May 19, 2013 I dont know the guys ploicies but yes you are right not a fan TB? I'm neither a fan nor a hater of Abe, in fact I don't really have much to do with Japanese politics because I can't actually influence them in any way, so I have no choice but to just roll with whatever is happening. However I find it laughable that (if indeed they are doing so) they are using the huge amount of public spending needed in the rebuild of Tohoku as evidence of the economic wizardry of Abe and his party. If the Japanese public believe this then more fool them Link to post Share on other sites
NoFakie 45 Posted May 19, 2013 Share Posted May 19, 2013 Interesting I thought this would help the Yen The so-called "Abenomics" stimulus program has met with early success, lifting Japan's GDP more than forecast. Japan's economy grew by a strong 0.9 per cent in the March quarter, higher than the 0.7 per cent that economist forecasts centred on in a poll by Reuters. If maintained, such a rate of growth would have Japan's economy back to a healthy annual GDP increase of 3.5 per cent. The March quarter gross domestic product numbers are the first full quarter since Japan's prime minister Shinzo Abe was returned to power in December and launched a concerted stimulus spending combined with increased Bank of Japan money printing. Economists say the result offers early evidence that "Abenomics" is working by boosting consumer sentiment. "Personal consumption was really strong and exports did better than expected," Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management in Tokyo, told Reuters. "Stock gains and expectations for higher salaries are driving consumption now." Consumption makes up around 60 per cent of the Japanese economy and was one of the largest contributors to growth, and grew by 0.9 per cent, adding 0.6 percentage points to the GDP result. More growth ahead Most analysts are expecting the initial momentum from the Abenomics stimulus program to continue, at least in the short to medium term. "The economy will enjoy strong growth for another year or so," Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute, forecast to Reuters. "It's no longer just about brightening sentiment and rises in equities prices. There's now proof that Abenomics is working and that the economy is on a solid footing." One disappointment in the data was a 0.7 per cent decline in private non-residential investment, however Societe Generale's chief economist for the Asia-Pacific region, Klaus Baader, says that figure is likely to rebound as industrial output keeps growing. "Looking ahead, we think GDP will continue to grow strongly, especially as we see more room for a boost in private non-residential investment, a more prominent recovery in exports, and as public investment under Abe's stimulus package kicks in," he wrote in a note on the data. Another of the key growth drivers was a better than expected rise in exports that added 0.4 percentage points to GDP. The export result was helped by a four-and-a-half-year low against the US dollar, making Japanese exports more competitive. The yen was little moved by the GDP result, despite it beating market forecasts, with a US dollar fetching just over 102 yen and an Australian dollar worth 101 yen at 11:33am (AEST). The economic stimulus is coming from even more hardcore than normal money printing so it devalues the yen. The risk is that the market for government bonds blows up. The Japanese government was already running a huge deficit before this stimulus and the need to rebuild Tohoku. Government debt is already comfortably over 200% of GDP. Aside from the stimulus and rebuilding, consumption should rise this year anyway because the consumption tax is scheduled to increase next year. Link to post Share on other sites
muikabochi 208 Posted May 20, 2013 Share Posted May 20, 2013 Surely imported fuel is going to be getting quickly more expensive as well. When are our electricity bills going to go up hugely (again)? Link to post Share on other sites
igloo 3 Posted May 20, 2013 Share Posted May 20, 2013 They always mention wheat, bread, sugar and..... mayonnaise when the prices go up as well! Link to post Share on other sites
Alexander L 80 Posted May 20, 2013 Share Posted May 20, 2013 Mayo. Now that is a staple no doubt. Link to post Share on other sites
pdoull 2 Posted May 20, 2013 Share Posted May 20, 2013 imho. The Japenese mayo is much better than the oz stuff. Really yummy on poach eggs for breakfast before a days boarding, up there with a good benedict sauce. Still looking for a place to buy it over here to help the stimulus measures. Link to post Share on other sites
pie-eater 207 Posted May 20, 2013 Share Posted May 20, 2013 It is nice. Rubbish 'containers' though. Link to post Share on other sites
Alexander L 80 Posted May 21, 2013 Share Posted May 21, 2013 Easy to squeeze though. Link to post Share on other sites
gozaimaas 61 Posted May 21, 2013 Share Posted May 21, 2013 imho. The Japenese mayo is much better than the oz stuff. Really yummy on poach eggs for breakfast before a days boarding, up there with a good benedict sauce. Still looking for a place to buy it over here to help the stimulus measures. Check out JTT. Thats my japanese supply store Link to post Share on other sites
NoFakie 45 Posted May 21, 2013 Share Posted May 21, 2013 It doesn't bother me, but there's quite a lot of MSG in Japanese mayonnaise. For sandwiches and coleslaw, I prefer the western one. Link to post Share on other sites
Tubby Beaver 209 Posted May 21, 2013 Share Posted May 21, 2013 Japanese mayo is more like salad cream than mayo Link to post Share on other sites
pdoull 2 Posted May 21, 2013 Share Posted May 21, 2013 It doesn't bother me, but there's quite a lot of MSG in Japanese mayonnaise. For sandwiches and coleslaw, I prefer the western one. Didn;t know that. Damm. That msg stuff is not good. Reading the label was my down fall Am guessing the mayo's got lots of salt and sugar in it now, as per most processed foods. Link to post Share on other sites
Alexander L 80 Posted May 22, 2013 Share Posted May 22, 2013 MSG actually occurs naturally too. Mayo> 90% fat. Great stuff. Link to post Share on other sites
634-maru 4 Posted May 23, 2013 Share Posted May 23, 2013 Tastes good though. Link to post Share on other sites
BagOfCrisps 24 Posted May 23, 2013 Share Posted May 23, 2013 Looks like it has taken a hit today, volatile markets! Link to post Share on other sites
pie-eater 207 Posted May 23, 2013 Share Posted May 23, 2013 The short term me now sort of wishes I had given the go on 156 last week. Link to post Share on other sites
2pints-mate 0 Posted May 23, 2013 Share Posted May 23, 2013 Lots more data out in the next day or so, so we could be seeing more movements. Link to post Share on other sites
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