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Driving economics

  • The Japanese Finance Minister has said no one at the G20 objected to the idea that the Japanese were just trying to reflate their economy. Presumably he did not hear the protests from the Koreans or the Chinese about currency movements.
  • Media reports are suggesting that a Japanese car company is to switch production of a model to the US, which rather undermines the Japanese government's hope that weakening the currency will boost the domestic economy. However, the price of a hamburger in Tokyo is going up 20%.
  • France's finance minister has declared that the existential crisis of the Euro is over. It seems an odd time to say this. While we believe the Euro survives, to declare the existential threat over when Cyprus has been forced to impose capital controls seems somewhat odd timing.
  • The data calendar is relatively light to end the week. Italy is still trying to get a president from somewhere. The Germans are releasing producer price inflation. More noteworthy, the Bank of England trends in lending survey is due.

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