September 1, 2011
JLN Interest Rates - http://www.jlninterestrates.com
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City Index Strategist Says Nonfarm Payroll Report Could Pressure Fed To Start QE3
Looking ahead to Friday's nonfarm payroll report, Joshua Raymond, chief market strategist of financial trading firm City Index (http://www.cityindex.co.uk/), states that if nonfarm payrolls miss general consensus and the U.S. unemployment rate continues to rise, this could apply even more pressure on the Fed to start QE3. What's more, the "market is optimistic that, despite Ben Bernanke's refusal to commit to QE at Jackson Hole, the extension of the FOMC meeting in September from one to two days is a sign that this could be the moment when QE is much more readily considered, with the extra time used to re-align the fragmentation of the FOMC after three members dissented in the last meeting," Raymond writes in a release by City Index today.
"That said, a stronger reading could dash hopes for QE whilst also helping to show signs of a strengthening U.S. labor market, which considering that consumer spending is responsible for roughly 70 percent of US activity, could calm fears of a sharp slowdown in U.S. growth. Either way, it is shaping up to be a very interesting and potentially volatile trading session on Friday," he adds.
See Raymond's entire report here.
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Lead Stories
Opinion: CFTC eager to clean up swap market - Gary Gensler - POLITICO.com
Before the 2008 financial crisis, our country’s largest financial institutions were trading complicated derivatives, called swaps, in the shadows, which helped propel the economy into a downward spiral. Though the crisis had many causes, it’s evident that swaps – created to lower risk for Main Street businesses – heightened risk on Wall Street. Further, the swaps market created the belief that certain financial institutions were not only too big to fail but too interconnected to fail. When AIG, Bear Stearns and others faltered or crumbled, it was the taxpayers who were left with the bill. It wasn’t just the financial system that failed; the regulatory system designed to protect the public also failed.
http://jlne.ws/pqigiP
**CN: Gensler says two key reforms will help combat the forces that helped cause the financial crisis: bringing transparency to the swaps market and lowering the risks of this market to the overall economy.
A Few Fed Policy Makers Favored ‘More Substantial’ Move Aug. 9
By Jeannine Aversa and Scott Lanman, Bloomberg
A few Federal Reserve policy makers this month favored more aggressive action to stimulate the economy and lower unemployment, minutes of their meeting released today showed.
http://jlne.ws/pxXDlw
FRB: FOMC Minutes, Aug. 9, 2011
A joint meeting of the Federal Open Market Committee and the Board of Governors of the Federal Reserve System was held in the offices of the Board of Governors in Washington, D.C., on Tuesday, August 9, 2011, at 8:00 a.m...
http://jlne.ws/pal4GB
Fed Minutes Reveal Sharp Division
By Mark Gongloff, WSJ.com
The minutes of the Fed’s August 9 meeting just came out, and sure enough, policy makers were just as divided as we expected about whether to tighten or loosen monetary policy.
http://jlne.ws/r09Mrw
Bernanke Must Act Calmly on Policy, Economist Says
Bloomberg
Stephen King, chief economist at HSBC Holdings Plc, talks about Federal Reserve Chairman Ben S. Bernanke's speech at the Kansas City Fed's annual symposium in Jackson Hole, Wyoming. King also discusses the sovereign debt crisis in Europe and funding for Greece.
http://jlne.ws/pEqccQ
The Fed must print money to head off a global crash
By Adam Posen, Reuters
It is past time for monetary policy to be doing more to support recovery. The Jackson Hole conference has come and gone, and no shortage of excuses was provided for central banks to hold their fire — even though most economists acknowledged the grim outlook for the advanced economies.
http://jlne.ws/qiLF1e
White House could unveil mortgage plan next week
Reuters
By Margaret Chadbourn, Reuters
The Obama administration is considering unveiling new plans next week to revive the ailing housing market and reduce foreclosures, including an effort to help troubled borrowers refinance their mortgages.
http://jlne.ws/nZRv0Y
Low rates good — and bad — for consumers
By Jennifer Waters, MarketWatch
Borrowers breathed a collective sigh of relief when the Federal Reserve said earlier this month that it would hold interest rates at rock bottom for the next two years. But savers were far from happy.
http://jlne.ws/q5K0ZT
U.S. economy: Saved by the consumer?
The Globe And Mail
Maybe Ben Bernanke knows what he's talking about after all. Just a few days ago, the Fed boss was telling the world (via his much-anticipated speech at the annual economicpolicypalooza in Jackson Hole, Wyo.) that he wasn't convinced the U.S. economy was really in as dire straits as many people feared. Now we have some strong evidence to back up his assertion - and from the long-suffering U.S. consumer, no less.
http://jlne.ws/q7qiTU
Riccadonna Says U.S. to Grow About 2.5% in 4th Quarter - Video
Bloomberg
Carl Riccadonna, senior U.S. economist at Deutsche Bank Securities Inc., talks about the outlook for the U.S. economy. Riccadonna also discusses the U.S. labor market and manufacturing, and Federal Reserve monetary policy. He speaks with Tom Keene and Michael McKee on Bloomberg Television's "Surveillance Midday."
http://jlne.ws/rh1JtJ
The World Doesn't Need More Stimulus
BY ANDREW SENTANCE, WSJ
In late 2008 and early 2009, it was quite right for economic policy to seek to head off a self-sustaining downward spiral in the major economies around the world. Dramatic interest-rate cuts, unconventional monetary policies and expansionary fiscal policies combined to support demand, helping to stabilize economic conditions and restore confidence.
http://jlne.ws/nz2nI1
Alan Krueger's New White House Job
By CATHERINE RAMPELL, The New York Times
Alan B. Krueger, an economist at Princeton, has been chosen to be the next chairman of the president’s Council of Economic Advisers.
http://jlne.ws/reMPrT
Robert Mundell on global finance: The secret to growth
The Economist
The Nobel prize-winning economist on why Obama must lower corporate income tax, and on tough but vital adjustments in Europe
http://jlne.ws/oliILY
Euro crisis requires market solution
By Lee Robinson and Patrick Young, FT.com
Ultimately the euro crisis remains a pressure cooker building up steam despite the protestations of the currency system being saved by multiple political interventions. Yet after a half dozen supranational attempts to instil order within the sovereign nations of the EU, the markets are clearly not listening. Instead a market solution is now needed.
http://jlne.ws/pz2mAZ
**CN: See Patrick Young's MarketsWiki bio. He's worn many hats in the financial industry over the years.
Euro Bonds Are Not Enough: Eurozone Countries Need A Government Banker
FT.com
The eurozone‘s public finance crisis continues to fester, reflecting both political and intellectual failure. The intellectual failure is that the crisis has been interpreted exclusively as a debt crisis when it is also a central bank design crisis resulting from the euro’s flawed architecture. The flaw is the inability of eurozone governments to harness the central bank’s power to assist government finances. This systemic weakness explains why US and UK government bonds are weathering the storm, whereas Spain confronts default rumors despite having roughly similar debt and deficit profiles.
http://jlne.ws/o2MtmD
Euro Rescue Fund Faces Political Demands
By Brian Parkin and James G. Neuger, Bloomberg
Europe’s rescue fund faces political demands that risk hobbling its response to emergencies as the 17 euro-area governments prepare to ratify its overhaul. The fund, known as European Financial Stability Facility, would have to wait for a request from a debt-hit government before buying its bonds in the secondary market, its new statute shows.
http://jlne.ws/rezbY7
Lagarde’s ugly truth on debt
Financial Times
Jackson Hole may be a central bankers’ conference, but the most important thing to come out of this year’s gathering had nothing to do with central banking policy. Christine Lagarde has said publicly what most policymakers have avoided addressing since the crisis began. Using her new bully pulpit at the International Monetary Fund she has conceded that the common problem facing the developed world is an excessive overhang of claims on debt that financed worthless investments. These claims will have to be liquidated, and the quicker the better.
http://jlne.ws/pFslQV
European officials round on Lagarde
By FT Reporters
European officials rounded on Christine Lagarde on Sunday, accusing the managing director of the International Monetary Fund of making a “confused” and “misguided” attack on the health of Europe’s banks.
http://jlne.ws/p14Sqi
IMF's Lagarde Warns World Economy Entering 'Dangerous' Phase
BusinessWeek
Christine Lagarde, the new managing director of the International Monetary Fund chief, warned that the world economy is in a "dangerous new phase" and that officials must take new steps to strengthen growth.
http://jlne.ws/nHzIDb
Sovereign spreads challenging cherished notions
By Gillian Tett, Financial Times
A few years ago, I pointed out in a column that the cost of insuring the US government against a default in the credit derivatives market, had risen above that of McDonalds, the US fast food company, for the first time.
http://jlne.ws/qeru4f
Banks, State Reach a Deal
BY LIZ RAPPAPORT, WSJ
The mortgage industry will take a step toward cleaning up some of its most controversial practices under a deal between a New York regulator and three financial firms, including Goldman Sachs Group Inc.
http://jlne.ws/qCG7oM
Banks Decry Surcharges as Basel Plans Capital 'Punishment' for Size, Risk
By Cheyenne Hopkins and Craig Torres - Bloomberg
Global banks are launching a counterattack against new capital guidelines, warning that they could reduce lending and harm growth as well as alter competition in the financial system.
http://jlne.ws/oQsRWs
Bill Gross At Long Last Admits Wrongness
Wall Street Journal Blogs
Well, we can stop our long "when will Bill Gross be right" vigil. He's admitted he was wrong.
http://jlne.ws/omASrT
Pimco’s Gross rues US debt ‘mistake’
By Dan McCrum in New York, Financial Times
Bill Gross, manager of the world’s largest bond fund for Pimco, has admitted that it was a mistake to bet so heavily against the price of US government debt. Mr Gross emptied his $244bn Total Return Fund of US government-related securities earlier this year in a high-profile call that has backfired as the bond market has rallied. As of Monday, Pimco’s flagship fund ranked 501th out of 589 bond funds in its category.
http://jlne.ws/p90q2e
ISDA Names George Handjinicolaou Deputy CEO, Head Of Europe
By Katy Burne, DOW JONES NEWSWIRES
The International Swaps and Derivatives Association has tapped George Handjinicolaou as its deputy chief executive and head of Europe, the association announced Tuesday.
http://jlne.ws/qRpS7U
Irene Losses Appear Less Than Worst-Case for Insurers
Forbes
Hurricane Irene blazed a trail from North Caroline to New England over the weekend. While she caused plenty of damage from her punishing winds, heavy rains and resulting flooding, the ultimate course and strength of the hurricane was far from the worst-case scenario.
http://jlne.ws/pcbnqY
Events
Valuation and Pricing Methodologies of Debt Instruments - Auction Rate Securities
Sept. 1, 2011
Madison Street Capital (MSC) Is Lead Presenter In This Financial Research Associates Webinar Segment
http://jlne.ws/pxF2sq
FIA Treasury & Rates Forum
Sept. 14, 2011
FIA Program On Growing Role Of Treasury Futures - New York City
http://jlne.ws/fQFQXP
SEFCON II
Oct. 3, 2011
WMBAA To Examine Role And Operation Of Swap Execution Facilities Under Dodd-Frank
http://jlne.ws/pY4N7S
MarketsWiki Questions: Exploring Financial Technology
Oct. 5, 2011
MarketsWiki Event Will Tackle Topics Addressed In The MarketsWiki Video Series
http://jlne.ws/oHRGmC
Economic News
Mortgage rates stay near record lows
By Derek Kravitz, Associated Press
Fixed mortgage rates were mostly flat this week after hitting their lowest levels in decades. But few Americans are able to capitalize on them.Freddie Mac says the average rate on the 30-year fixed mortgage stayed at 4.22% for a second week. The rate hit 4.15% two weeks ago, lowest level on records dating to 1971.
http://jlne.ws/pKNZ83
Retailers report solid gains for August
By ANNE D'INNOCENZIO, Associated Press
Shoppers remained resilient in August despite wild stock market swings and worries about the economy, resulting in what's winding up to be a respectable back-to-school shopping season for many merchants.
http://jlne.ws/nJsJdy
Unemployment benefit applications fell to 409K
By CHRISTOPHER S. RUGABER, Associated Press
Fewer people applied for unemployment benefits last week, a sign that the job market may be improving slightly.
http://jlne.ws/qfgEN6
US small business loan activity drops in July, PayNet says - Video
http://jlne.ws/qxLp0h
Employment in Most Cities Makes Gains From 2010 - Real Time Economics
By Andrew Ackerman, WSJ.com
Unemployment rates in most metropolitan areas in the U.S. fell during July from a year earlier, according to a Labor Department report released Wednesday. The report said jobless rates were lower in 257 of the 372 metropolitan areas measured. Unemployment rates were higher in 94 areas and unchanged in 21 areas.
http://jlne.ws/prZsFx
Chicago PMI slows in August
By Steve Goldstein, MarketWatch
The Chicago business barometer, which also is called Chicago PMI, slowed in August to a 56.5% reading from 58.8% in July, as managers in the region reported slowing production and new orders and a shrinking in order backlogs. Though the reading was ahead of expectations -- economists polled by MarketWatch had anticipated a 53.0% reading -- the indicator is at a 21-month low
http://jlne.ws/oK4QIn
Moody's: United States: Factory Orders (M3)
Orders for manufactured goods rose 2.4% in July, above expectations. The previously released figures for durable goods orders were revised up slightly to 4.1%. Shipments of durable goods got a significant upward revision, growing 2.4%. Unfilled orders rose, while inventories grew for the 15th consecutive month. Revisions to core capital goods data were positive. Core capital goods orders fell only 0.9%. Shipments fell 0.2% with a slight downward revision.
http://jlne.ws/poDERD
US house prices fall 4.5% in June
By Shannon Bond, FT.com
http://jlne.ws/nbOpLr
Economy: Confidence Drops to Lowest Level Since April 2009
Reuters
U.S. consumer confidence crumbled in August to its lowest level in more than two years as the fallout from political wrangling over a budget deal took its toll, according to a private sector report released Tuesday.
http://jlne.ws/pCQYvR
US consumer spending rises in July
BBC News
US consumer spending rebounded last month, driven by a rise in car sales, official figures have shown. Sales increased by 0.8% in July compared with June, the biggest rise in five months, the Commerce Department said. In June, sales had fallen 0.1%.
http://jlne.ws/n8Yr1T
Texas Manufacturing Outlook Survey, August 2011 - Economic Data - FRB Dallas
Texas factory activity was largely unchanged in August, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, remained positive but fell from 10.8 to 1.1, suggesting growth stalled this month. Most other measures of current manufacturing conditions indicated slower growth in August. The new orders index fell from 16 to 4.8 this month, suggesting order volumes continued to increase, but at a decelerated pace. The shipments index was positive and little changed, edging down from 7.8 to 6.7. The capacity utilization index dipped into negative territory in August, with one-quarter of manufacturers noting a decrease.
http://jlne.ws/n3Uaeo
Core Prices Edge Up in July :: Brent Meyer :: Economic Trends :: 08.29.11 :: Federal Reserve Bank of Cleveland
Brent Meyer, Federal Reserve Bank of Cleveland
The headline CPI jumped up at an annualized rate of 6.2 percent in July, surprising forecasters’ expectations to the upside. Over the past 12 months the CPI is up 3.6 percent, somewhat above its longer-term (5-year) annualized growth rate of 2.1 percent. Increases in food at home (up 7.2 percent) and a rebound in motor fuel prices (up 72 percent after falling 56 percent in June) accounted for a little over half of the overall gain.
http://jlne.ws/qqmOh8
Exchanges, Clearing Houses & MTFs
CME Urges US Regulator To Delay Dodd-Frank Rules
Dow Jones Newswires
CME Group Inc. (CME) is urging the U.S. Commodity Futures Trading Commission to delay adoption of rules set by the Dodd-Frank law on Wall practices, saying the law is flawed and vulnerable to legal challenges, Crain's Chicago Business reported Wednesday.
http://jlne.ws/nIiMND
Firms & Banks
Gerald L. Hassell Named Chairman And Chief Executive Officer Of BNY Mellon - Robert P. Kelly Steps Down As Chairman And CEO
Press Release
BNY Mellon, the global leader in investment management and investment services, today announced that Gerald L. Hassell, BNY Mellon's president and a board member since 1998, has been appointed chairman and chief executive officer of the company, effective immediately. Hassell also continues as BNY Mellon's president. Robert P. Kelly has stepped down as chairman, chief executive officer and director by mutual agreement with the board of directors, due to differences in approach to managing the company.
http://jlne.ws/n5OZWv
BNY Mellon Replaces Kelly as CEO After Disagreement With Board
BusinessWeek
Bank of New York Mellon Corp., beset by legal challenges and an underperforming stock, said Chairman and Chief Executive Officer Robert P. Kelly left after a dispute with directors over the way he ran the company.
http://jlne.ws/oEm3h
HSH Nordbank Sues JPMorgan in New York Over Mortgage-Backed Securities
By David McLaughlin, Bloomberg
HSH Nordbank AG sued JPMorgan Chase & Co. (JPM) to recover damages it incurred after buying $159 million in mortgage-backed securities from the New York bank that allegedly were less safe an investment than advertised.
http://jlne.ws/oVR6MQ
Pimco Launches Hedge-Fund-Like 'Go Anywhere' Bond Fund
BY MIN ZENG, WSJ.com
Pacific Investment Management Co., the big money manager founded by Bill Gross, is wooing investors with a new bond fund that aims to provide returns in any market environment with a broad range of fixed-income strategies.
http://jlne.ws/pRJ2g6
Lehman set for creditor vote on $65-billion payout
By Nick Brown, The Globe And Mail
Creditors of Lehman Brothers Holdings Inc. were granted approval Tuesday to vote on the failed bank’s $65-billion (U.S.) payback plan, clearing a major hurdle in the path to ending the biggest bankruptcy in U.S. history.
http://jlne.ws/nJx2nW
Lehman Credit Veteran Joins Newedge Bond Team
By Katy Burne, DOW JONES NEWSWIRES
Newedge Group has hired Larry McDonald as a senior director in corporate credit sales, a newly created position as the brokerage firm continues to build out its fixed-income platform. He started Aug. 22 in New York and focuses on corporate bonds -- specifically convertible and junk bonds -- reporting to David Blanquart, Newedge's global head of fixed income.
http://jlne.ws/ofQYMB
UBS' $20 million "loan" for staying in Stamford comes after city fined bank $2 million
Stamford Advocate
Gov. Dannel P. Malloy is giving UBS $20 million to stay in Stamford, but it was not long ago the city, under then-Mayor Malloy, was quietly reaping financial penalties from the Swiss banking giant for failing to construct more offices.
http://jlne.ws/owLwuG
UBS And Credit Suisse To Take Lumps from Swiss-British Tax Agreement
Forbes
The U.K. added itself to the growing list of governments seeking to cinch the noose on tax evaders hiding behind the secrecy imparted by Swiss banks, including UBS and Credit Suisse.
http://jlne.ws/n8mO2n
B. of A. to raise $8.3 bln from sale of CCB stake
By Sue Chang, MarketWatch
Bank of America Corp. /quotes/zigman/190927/quotes/nls/bac BAC -0.12% said Monday that it will sell 13.1 billion shares of China Construction Bank Corp. in a private deal to raise about $8.3 billion in cash. Bank of America is still expected to retain a 5% stake in the Chinese bank after the transaction. "This sale of approximately half of our shares of CCB stock is expected to generate about $3.5 billion in additional Tier 1 common capital and reduce our risk-weighted assets by $7.3 billion under Basel I," said Chief Financial Officer Bruce Thompson in a statement. The deal is likely to close in the third quarter.
http://jlne.ws/nHRfZK
Regulators
Lockhart Says Fed Should Be Ready to Weigh More Easing to Aid Weak Economy
By Steve Matthews, Bloomberg
Federal Reserve Bank of Atlanta President Dennis Lockhart said the Fed should be ready to consider more monetary easing even while it can’t be expected to eliminate some of the forces impeding economic growth.
http://jlne.ws/qITnWK
FSA Fines Trading Firm £8 Million - one of its largest-ever fines
BY TIM CAVE, WSJ.com
The U.K.'s Financial Services Authority has handed one of its largest-ever fines to a now defunct Canadian trading firm for alleged abusive trading techniques, in a clear sign that it is clamping down on computer-driven practices it regards as damaging to domestic markets.
http://jlne.ws/odR2Sn
Fed should not undo rate commitment: Kocherlakota
Reuters
A top Federal Reserve official who dissented from the U.S. central bank's move this month to ease monetary policy further signaled he would drop his opposition.
http://jlne.ws/r2oBRL
Fed's Evans backs strong policy accommodation
By Leah Schnurr and Jonathan Spicer, Reuters
Chicago Federal Reserve Bank President Charles Evans said on Tuesday he favored strong central bank accommodation for a substantial period of time, as the U.S. economy looks to be moving "sideways."
http://jlne.ws/qtfepv
CFTC's Sommers: Blocking FIA-Isda document was "huge waste of resources"
Risk.net
A contentious draft rule from the Commodity Futures Trading Commission (CFTC) has revealed partisan divisions within the agency. The CFTC's two Republican-appointed commissioners argue the proposal - which shuts the door on a documentation project run by the Futures Industry Association (FIA) and the International Swaps and Derivatives Association - was unnecessary, and claim they were kept in the dark ahead of the agency's rule-making meeting on July 17.
http://jlne.ws/ox6oXo
IASB criticises Greek debt writedowns
By Adam Jones in London and Jennifer Thompson in Paris - Financial Times
Some European financial institutions should have taken bigger losses on their Greek government bond holdings in recent results announcements, according to the body that sets their accounting rules.
http://jlne.ws/oXA9nL
Jean-Claude Trichet: Achieving maximum long-term growth
Trichet, President of the European Central Bank, at the Federal Reserve Bank of Kansas City Economic Symposium, Panel: Setting priorities for long-term
growth, Jackson Hole, 27 August 2011
http://jlne.ws/nuqr1e
ECB to reassess inflation risks
By Ralph Atkins, FT.com
http://jlne.ws/qwMiw6
Global News
IMF and eurozone clash over estimates
By Alan Beattie in Washington and Chris Giles in London, Financial Times
International Monetary Fund staff have provoked a fierce dispute with eurozone authorities by circulating estimates showing serious damage to European banks’ balance sheets from their holdings of troubled eurozone sovereign debt.
http://jlne.ws/qEH65L
Italian Austerity-Plan Drama
Berlusconi Changes Tack on Cuts as He Seeks a Politically Palatable Solution
By STACY MEICHTRY And GIADA ZAMPANO - WSJ
ROME—Italian Prime Minister Silvio Berlusconi's penchant for dramatic flourishes is out of sync with a slow-burning debt crisis that demands steady political leadership and a clear plan to tackle Italy's chronically low economic growth, some analysts and observers say. In the space of two months, Mr. Berlusconi has unveiled a flurry of budget-tightening measures and countermeasures, sowing confusion among both supporters and critics.
http://jlne.ws/nCfbj7
Germany OK's eurozone rescue fund changes
By Geir Moulson, Associated Press
German Chancellor Angela Merkel's Cabinet on Wednesday approved a plan to beef up the eurozone's rescue fund, the first step toward its passage in Europe's biggest economy.
http://jlne.ws/qGIPk6
German Inflation Eases
By WILLIAM LAUNDER And MARGIT FEHER, WSJ.com
Preliminary consumer-price inflation slowed slightly in Germany in August on a monthly basis, meeting economists' expectations as food and energy prices retreated in six German states.
http://jlne.ws/nfljDm
Doubts over German role in Greek debt deal
By James Wilson in Frankfurt, Financial Times
German “bad bank” agencies holding billions of euros of Greek debt have still to decide whether to join a bond swap designed to cut Athens’ refinancing burden as part of an EU bail-out.
http://jlne.ws/nEZ4eU
India's Economic Expansion Slows in Second Quarter
By VIKAS BAJAJ, The New York Times
India’s growth rate continued to slide in the second quarter of the year, falling to 7.7 percent, the government reported Tuesday.
http://jlne.ws/pAkTvL
Vietnam Central Bank Lifts Dollar Reserve Ratios 100bps
Central Bank News
The State Bank of Vietnam raised the required reserve ratios on foreign currency for credit institutions by 100 basis points. The ratio on non-term foreign currency deposits and deposits of less than 12 months will be 8% (7% previously) for most State-owned commercial banks, joint stock banks, 100 percent foreign owned banks, joint venture banks, and foreign bank branches. The ratio will be 7% (6% previously) for the Bank for Agricultural and Rural Development, the Central People's Credit Fund, and cooperative banks. The ratio on deposits longer than 12 months will be 6% (5%) and 5% (4%) respectively for those two groups.
http://jlne.ws/nR5DaD
Japan’s economic prospects: Out of the ruins
The Economist
FIVE months after a tsunami and nuclear meltdown assailed Japan, the economy has been pummelled by fresh blows. Share prices have followed global stock markets down, with the Nikkei 225 index revisiting its nadir in the days after the earthquake in March. As if the fears about a global slowdown that have depressed equity investors were not enough, the yen has been soaring, which will hurt Japanese exporters. Adding to the pain, Moody’s, a credit-rating agency, downgraded Japan’s debt rating one notch to Aa3 on August 24th because of its huge public debt and chaotic politics.
http://jlne.ws/nBCWGF
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