Japan Finance Minister Aso: Closely watching China's economy, falling yuan

Japan Finance Minister Aso: Closely watching China’s economy, falling yuan

Japan Finance Minister Aso: Closely watching China’s economy, falling yuan

Investors Buz   –  Global Markets Roundup 

Japan Finance Minister Aso: Closely watching China's economy, falling yuan

Japanese Finance Minister Taro Aso said on Saturday that he was closely watching China’s economy and declines in the yuan as the impact of Britain’s vote to leave the European Union dominated a gathering of the Group of 20 leading economies. Speaking to reporters after the first day of the meeting of G20 finance ministers and central bankers in the southwestern Chinese city of Chengdu, Aso said he had agreed with U.S. Treasury Secretary Jack Lew on the need for structural reform in China and transparency in the yuan currency. “Lew and I agreed to two points, that China needs to implement economic structural reform, and China

 


While declines in emerging market currencies have eased, China’s yuan currency has fallen further since the Brexit vote to levels seen when China made it flexible in June 2010, Aso said.

The June 23 Brexit vote caused a spike in the safe-haven yen to 99 to the dollar JPY=, prompting Japanese authorities to issue verbal warning against investors pushing it up rapidly, which would threaten the export-reliant economy and its exit from deflation.

“Now it has stabilised at around 106 yen. Under such circumstances, I did not make remarks on currencies” in a bilateral meeting with Lew earlier on Saturday, Aso said.

During previous talks earlier this year, Aso and Lew voiced different views on currency moves. While Aso warned that the yen was rising too rapidly, Lew maintained that foreign-exchange moves were orderly, a remark taken by markets as a caution against intervention.

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The Global Economy Is Slow... But Steadier Than Ever

The Global Economy Is Slow… But Steadier Than Ever

The Global Economy Is Slow… But Steadier Than Ever

Investors Buz  –  Global Market Roundup

The Global Economy Is Slow... But Steadier Than Ever

It’s not difficult to come to the conclusion that, economically speaking, we are living in very turbulent times. China’s great slowdown. Europe’s persistent woes. Brexit. Yet on a bigger scale, all that’s just noise blocking the signal that the global economy is less volatile than any period in the modern era. This is the conclusion of new research led by David Hensley, director of global economics at JPMorgan Chase & Co. in New York. Hensley’s work measures standard deviations of quarterly, annualized gross domestic product growth for major developed and emerging markets, plus a selection of regions. The sample compares the

Hensley’s work measures standard deviations of quarterly, annualized gross domestic product growth for major developed and emerging markets, plus a selection of regions. The sample compares the middle of the business cycle leading up to the Great Recession with the middle of the next cycle, i.e 2013 to 2016.

The findings show that whereas some big economies, like the U.S. and Japan are marginally more volatile now than they were during the admittedly very calm “Great Moderation,” others are much less so. The net effect is a global growth pattern less bumpy than any time since 1970.

… (full story)