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  • 2019-03-19 20:43


    TOKYO (MNI) - Policy coordination with the government will be more important if downside risks to economic activity and prices materialized, argued a few Bank of Japan board members argued, the minutes of the January 22-23 policy meeting released Wednesday showed.

    However, the board largely saw no imminent need to consider taking additional easy policy, as Japan's economy is expanding moderately underpinned by the virtuous cycle from profits to spending.

    However, one member "expressed the recognition that hastily changing policy amid a situation of high uncertainties would instead entail risks including accumulation of financial imbalances and increasing swings in economic activity, and therefore, it was important for the BOJ to take appropriate action in light of the pre

  • 2019-03-19 16:17


    - No Plans To Issue Ultra-Long Bonds

    OTTAWA (MNI) - Canadian Finance Minister Bill Morneau tabled a C$19.8 billion budget deficit for fiscal year 2019-2020 in the House of Commons Tuesday, creating a federal debt-to-GDP ratio of 30.7% that is forecast to diminish through 2024.

    Still, the budget won't be balanced throughout the projection horizon: the deficit would still be C$9.8 billion for fiscal year 2023-2024, when the federal debt would represent 28.6% of GDP.

    Finance Minister Bill Morneau, during a press conference, declined to suggest any timeline to bring back the budget to balance, arguing that it is more important to invest in Canada's middle class.

    To finance its budget deficit and other requirements, the government will issue a gross amou

  • 2019-03-19 16:11


    By Courtney Tower

    OTTAWA (MNI) - Higher than expected revenues notably reduced the federal government's deficit for the fiscal year just ending, but its projections show that the deficit rises again for the coming fiscal year.

    Finance Minister Bill Morneau brought down a 2019-2020 budget in Parliament Tuesday that projects real GDP growth of 1.9% for calendar year 2018, 1.8% for 2019 and 1.6% and 1.7% for the two subsequent years.

    The GDP projections are much in line with recent Bank of Canada estimates, as are the CPI inflation estimates of 1.9% for 2019 and 2.0% for 2020.

    The projected deficit for FY2018-2019 is now C$14.9 billion, down from the C$18.1 billion gap expected last fall.

  • 2019-03-19 10:15


    --Factory Inventories Up 0.5%
    --Orders Up On Machinery, Electrical Equipment, and Transportation

    WASHINGTON (MNI) - The value of new factory orders rose 0.1% in January, below the 0.3% increase expected by analysts in an MNI survey and the Bloomberg consensus, data released by the Commerce Department Tuesday morning showed.

    Durable goods orders were revised down to a 0.3% gain from the 0.4% increase in the advanced estimate. Nondurable goods orders fell 0.2% on declines in chemical products, petroleum and coal products, and textile products. Nondurable goods new orders are equivalent to nondurable goods shipments in this report.

  • 2019-03-18 08:30


    By Yali N'Diaye

    OTTAWA (MNI) - The following are the key points from the January data on Canada's international transactions in securities, released Monday by Statistics Canada:

    - Foreign investors bought C$28.4 billion in Canadian securities in January, the largest investment since May 2017, following a C$20.5 billion divestment in December. Investment in Canadian securities fell to C$67.1 billion in 2018 from C$189.2 billion in 2017.

    - In January, foreign investment focused on Canadian debt securities (C$19.4 billion), led by a C$14.3 billion investment in bonds. Investors favored Canadian government bonds, increasing their portfolio exposure by C$15.2 billion, led by a record C$12.9 billion investment in federal government bonds.

  • 2019-03-17 20:34


    --Japan February Exports Fall 1.2% Y/Y After -8.4% In January

    TOKYO (MNI) - Japan's exports fell again in February, posting a year-on-year drop for a third-straight month, indicating that exports continue to be hit by slowing global demand, with Bank of Japan officials increasingly watchful over the outlook for exports.

    BOJ officials expect Japan's exports to remain weak for the time on the back of China's slowing economy and sluggish capital investment overseas, at least until the impact of the Beijing's economic stimulus measures kick in.

    Exports, a main driver for Japan's economy, fell 1.2% on year in February following -8.4% in January and weaker than the MNI median forecast of +0.7%, led by lower exports of motor vehicles, iron/steel products and chip-making equipmen

  • 2019-03-15 10:43


    By Yali N'Diaye

    OTTAWA (MNI) - Canada's existing home sales plummeted 9.1% in February following a 3.6% gain in January, reaching their lowest level since November 2012, the Canadian Real Estate Association reported Friday.

    Both prices and activity indicators were weak, which should leave to Bank of Canada firmly on the sidelines, in search for further clarification about the state of the country's housing market.

    Sales have been down 4 of the past 5 months.

  • 2019-03-15 08:31


    By Yali N'Diaye

    OTTAWA (MNI) - The following are the key points from the January data on the Canadian manufacturing sales released Friday by Statistics Canada:

    - Sales increased 1.0% on the month, topping the market consensus of +0.4%. The upside surprise was reinforced by the upward revision to December reading, now at -1.1% instead of the -1.3% initially reported. Real sales were up 1.4% on the month, the largest gain since February 2018, following two months of 1.0% decreases.

    - Gains were widespread in 15 of 21 industries, representing 55.9% of manufacturing trade, with durables up 1.1% and non-durables up 0.8%. Petroleum and coal was unchanged as volumes rose 2.0% while prices fell 1.9%.

  • 2019-03-15 03:33


    BEIJING (MNI) - The People's Bank of China should consider raising the deposit reserve rate to help banks lower lending costs to companies, Dai Xianglong, the former central bank governor said.

    "The interest rate the PBOC pays for the deposit reserves that banks are required to set aside has been set at 1.62% for a long term, and the authorities should raise it to a level not lower than the average deposit rate," Dai told in a forum held by China Finance 40 Forum, a prominent Chinese think tank.

    Dai, also warned China must be alert to systemic risk as the financial markets open up, including a plunge in the stock market, increases in defaults and a sharp yuan depreciation, adding that the authorities must do their best to avoid them.

    Dai noted China has made efforts

  • 2019-03-14 23:10


    TOKYO (MNI) - The Bank of Japan left monetary policy unchanged Friday, voting 7-2 vote to continue with yield curve control and the asset purchases, as Japan's economy is expanding moderately, despite heightened downside risks.

    The BOJ board maintained the overall economic assessment, saying "Japan's economy is expanding moderately, with a virtuous cycle from income to spending operating," adding that the economy "is likely to continue its moderate expansion."

    However, in the wake of weaker data, the BOJ lowered its assessment of exports and overseas economies, reflecting slowing in China and Europe.

    "Exports have shown some weakness recently," the BOJ said.