• Wednesday, January 22, 2020 - 04:34 MNI DATA IMPACT: UK YTD Borrowing Higher, Above OBR FY Goal 0


    LONDON (MNI) - A burst of government spending has lifted year-to-date borrowing well above the full-year target, even ahead of a dose of government largesse expected in the March budget.

    The following are the key points from public sector finance data published Wednesday by the Office for National Statistics.

    - The UK's financial position has deteriorated markedly in the current financial year, courtesy of 5.0% surge in government spending on goods and services, the biggest year-to-date increase since records began in 1997.

    - Borrowing has increased by 7.9% over the first nine months of the fiscal year to GBP54.6 billion, far exceeding the Office for...

  • Wednesday, January 22, 2020 - 01:49 MNI POLICY: BOJ: Capex May Turn Cautious; Exports To Stay Weak 0


    TOKYO (MNI) - The Bank of Japan warns that corporate investment may slow if profits at automobile-related goods and capital goods firms declined, according to full text of the quarterly Outlook Report published Wednesday.

    "Business fixed investment, (a main pillar for an economic recovery), is expected to remain steady overall as firm investments in construction as well as in software and research and development offset weak machinery investment by manufacturers," the report said.

    "However, since some weakness has continued in exports and production - particular in automobile-related goods and capital goods, both of which have a large impact on Japan's economy - due attention needs to be paid to the possibility that firms'...

  • Tuesday, January 21, 2020 - 14:11 MNI POLICY: Trump Adviser: Fed's T-Bill Buys 'Basically' QE 0


    By Evan Ryser

    WASHINGTON (MNI) - The Federal Reserve is practically engaging in quantitative easing without officially announcing such a policy, President Donald Trump's top economic adviser Larry Kudlow said Tuesday.

    Asked whether the Fed's Treasury bill purchases is another way for the Fed to quietly do QE, "I basically do," Kudlow said in a panel in Davos, Switzerland.

    "The net effect is they are expanding the balance sheet, whatever you wish to call it. I think it's not a coincidence that the stock market and housing market -- and indeed asset prices -- are rising again," he told the World Economic Forum.

    "The stock market has been a mirror of all this stuff. It's almost uncanny," Kudlow said.

  • Monday, January 20, 2020 - 12:04 MNI DATA PREVIEW: Canada Factory Sales May Post 5th Fall in 6M 0


    --Railway Strike Curbed Shipments Following UAW Strike

    OTTAWA (MNI) - Canada will likely report the fifth decline in factory sales in six months for November, with shipments disrupted again by labor strikes.

    Sales declined 0.4% according to the MNI economist median, following a 0.7% October decline. While the previous report showed disruptions from a UAW strike that hit auto production, November is hurt by a CN railway worker strike.

    The declines could again pull down GDP on the month and take fourth-quarter growth further away from the BOC's estimate to below a 1% annualized pace.

  • Monday, January 20, 2020 - 08:00 MNI POLICY: IMF Ups Japan 2020 GDP At 0.7% Vs Oct 0.5% F'cast 0


    TOKYO (MNI) - The International Monetary Fund on Monday upgraded its forecast for Japan's GDP growth in 2020 to 0.7% from October's 0.5%, due partly to the government stimulus measures.

    Japan's GDP forecast in 2019 was revised up to 1.0% from 0.9% made in October, while the IMF left its outlook for 2021 unchanged at 0.5%.

    "The upward revision to estimated 2019 growth reflects healthy private consumption, supported in part by government countermeasures that accompanied the October increase in the consumption tax rate, robust capital expenditure, and historical revisions to national accounts," the IMF said in the latest World Economic Outlook

    "The upgrade to the 2020 growth forecast reflects the anticipated boost from...

  • Monday, January 20, 2020 - 07:00 MNI POLICY: BIS: CenBks May Be Climate Rescuers Of Last Resort 0


    By Evan Ryser

    WASHINGTON (MNI) - Climate change threatens the price stability targets of central banks and the damage could force them to rescue the financial system again, the Bank for International Settlements said in a research paper Monday.

    Central banks may have to become "climate rescuers of last resort" and buy large sets of devalued or carbon-intensive assets, said the paper from the Switzerland-based BIS.

    "A new global financial crisis triggered by climate change would render central banks and financial supervisors powerless," said the paper by BIS Deputy General Manager Luiz Awazu Pereira da Silva and co-authors Patrick Bolton, Morgan Despres, Frederic Samama and Romain Svartzman.

    Central banks have...