• Thursday, July 9, 2020 - 12:00 MNI POLICY: US Needs Fiscal Push, Fed May Need Guidance: OECD 0

    By Greg Quinn and Brooke Migdon

    WASHINGTON (MNI) - Congress should extend fiscal stimulus as damage from Covid-19 lingers while the Federal Reserve should be ready with forward guidance and expanded QE if the economy weakens further, the OECD said Thursday.

    The banking system also faces risks if stimulus is withdrawn and there is a surge in bankruptcies from highly leveraged companies, the Paris-based group said in an annual review of the world's largest economy.

    "A sharp fiscal retrenchment would be counter-productive and as such the temporary provisions in the recent tax reform should not be allowed to expire. Furthermore, automatic stabilizers and additional measures implemented as part of the crisis reaction should...

  • Thursday, July 9, 2020 - 01:36 MNI POLICY: BOJ: All 9 Regions Cut Econ Assessment From April 0

    --Second Straight Meet All Nine Regions Cut View

    TOKYO (MNI) - All nine of Japan's regions lowered their economic assessment from three months ago, as the coronavirus impacted personal spending, production and capital investment, the Bank of Japan's quarterly regional economic report showed Thursday.

    It is the second straight time that all nine regions lowered their assessment from their previous meeting.

    "According to assessments from regions across Japan, all nine regions revised down their assessments from the previous ones, as was the case in April 2020,due to the impact of the novel coronavirus (COVID-19), and reported that their economy had deteriorated or had been in a severe...

  • Wednesday, July 8, 2020 - 22:00 MNI POLICY: BOJ Kuroda: Japan Economy To Remain Severe 0

    TOKYO (MNI) - Bank of Japan Governor Haruhiko Kuroda has maintained his cautious view that economic conditions in Japan are expected to remain severe due to the impact of the coronavirus.

    "Looking ahead, economic activities are expected to resume but (the) severe situation will likely continue for the time being due to the infectious disease," Kuroda said at the opening of the quarterly branch managers' meeting on Thursday.

    He also said the BOJ will not hesitate to take additional policy easing measures if they are necessary to support the economy, while keeping a close eye on the impact of the coronavirus.

    However Kuroda did not elaborate on when or how the bank would consider additional policy easing.

  • Wednesday, July 8, 2020 - 16:56 MNI POLICY: 35% of US Households Expect Income Loss in Next 4W 0

    By Brooke Migdon

    WASHINGTON (MNI) - More than one-third of U.S. households anticipate a loss in employment income in the next four weeks, led by deteriorating sentiment in the South and West following an uptick in Covid-19 cases that is triggering new businesses shutdowns.

    Approximately 35% of households expect to lose sources of income in the latest Census Bureau Household Pulse Survey, reflecting data from 250 million households across the U.S. from June 25-30.

  • Wednesday, July 8, 2020 - 14:11 MNI POLICY: TEXT: Canada Fin Minister Fiscal Speech Highlights 0

    By Greg Quinn

    OTTAWA (MNI) - Following are highlights of Canadian Finance Minister Bill Morneau's speech to Parliament to deliver a fiscal snapshot Wednesday:

    Through rapid and broad support, our government has been able to protect millions of jobs, provide emergency income support to families, and help keep businesses afloat during the worst of the storm.

    This support is helping Canadians get back on their feet, and has prevented long term damage. But this pandemic is not over and we cannot let up on our commitment to one other.

    Forecasts are always uncertain. So with this Snapshot, we are providing our best prediction of the economic situation in Canada to the end of the current fiscal year, to March 31st,...

  • Wednesday, July 8, 2020 - 14:11 MNI POLICY: TEXT: Highlights of Canada Debt Strategy 0

    By Greg Quinn

    OTTAWA (MNI) - Following are highlights from the Canadian Finance Department's annual Debt Management Strategy for the fiscal 2020-21 year, published Wednesday from Ottawa:

    The current environment provides a unique opportunity for the government to issue an unprecedented level of long term bonds at historically low interest rates. This will ensure Canada's debt remains affordable and is less vulnerable to increases in interest rates for future generations.

    In pursuing a historic level of issuance in long-term bonds, the government will consult over the coming months with market participants to assess the market's capacity for long-term debt.