News and Reviews Asian Economic Zone

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News and Economic Review Zone Asia (Japan)

 

Akira Amari: Abe Still 'Neutral' Regarding Tax Increase

Monday, October 6, 2014

 

Japanese Prime Minister Shinzo Abe was "completely neutral" about a national sales tax hike, said Economy Minister Akira Amari said on Sunday although he showed anxiety menegnai strength of the economic recovery. Abe face difficult decisions at the end of the year to raise taxes a second time, double the tax rate in the last 18 months, in an attempt to pressure the Japanese government debt continue to soar. Risks to the strategy of "Abenomics" hers to boost the economy are on the rise, although Abe decided to raise taxes or not. Raising taxes as is hampered recovery can create a chaotic economy, while delaying the move can be barging level of investor confidence in Japan's ability to improve its financial sector.

 

"I think he was completely neutral" to the decision, Amari said on NHK. "Prime Minister carefully'm looking for the most effective combination to achieve economic recovery, the stability of the social security system and fiscal reform."

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News and Economic Review Zone Asia (Japan)

 

BOJ Keep Policy, Industrial Output Weakens

Tuesday, October 7, 2014

 

Bank of Japan (BOJ) on Tuesday maintained a policy of monetary stimulus, but voiced a more pessimistic tone on the economy, warned of a slowdown in factory output. As expected, the BOJ raised the promise of base money with an annual rate of 60-60 trillion yen (343-400 billion pounds) through the purchase of government bonds and risky assets. But the central bank to revise down output prnilaian infustri, admitted that the sales tax increase last April a wider impact on the economy is worse than expected. The focus will be on post-meeting briefing by Haruhiko Kuroda BOJ governor later today. Previously, Kuroda said the positive cycle of the Japanese economy is still running, but warned of potential risks erhadap growth and stressed that the central bank is ready to ease policy again if the economy and the price is below projections.

 

"It is true that the impact of the sales tax increase on the economy increasingly protracted. There is also the impact of poor summer weather," Kuroda said in parliament. Japan's sales tax increase to 8% from 5%, as of last April, has dragged the Japanese economy, which shrank by an annual rate of 7.1% in the second quarter. The central bank has maintained its monetary policy stimulus since the release in April of last year, with a target of achieving an inflation target of 2% in about 2 years.

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News and Economic Review Zone Asia (China)

 

HSBC China PMI Services Sector Down Thin

Wednesday, October 8, 2014

 

The rate of growth of China's service sector slowed slightly in September as the easing of the new business, according to the survey results on Wednesday, amplifies the signal slowdown in the world's second largest economy which can trigger additional stimulus measures. Service sector PMI by HSBC / Markit fell to 53.5 in September from a 17-month high at 54.1 in August. The new business sub-index fell to 53.2 in September from a 19-month high at 53.9 in August, but the sub-index of labor and current business both rose, gives an overview of the mix.

 

"Overall, the service sector appears solidly in September, despite downward pressure on the manufacturing sector. According to our growth is still at risk of fall in the short term, and lead to monetary and fiscal policy accommodative," said Qu Hongbin, chief China economist at HSBC.

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News and Economic Review Zone Asia (Japan)

 

IMF Cuts Growth Projections Japan

Wednesday, October 8, 2014

 

The International Monetary Fund cut its forecast for economic growth in Japan nearly half of the previous projection. IMF calls sales tax increase last April became the cause of the decline in economic growth projections third largest in the world.

 

The IMF now projects 0.9% for this year, from projections released in July plainly amounted to 1.6%, after Japan experienced a sharp contraction in the second quarter. In addition, the IMF also lowered its growth forecast in 2015 to 0.8% from 1%, and advise the Japanese government to make further reforms.

 

Prime Minister of Japan, Shinzo Abe, is considering whether to raise taxes back to 10% next year, while the Japanese government is now also prepared with the possibility of weak economic growth in the third quarter.

 

The IMF also said the Bank of Japan has approached the 2% inflation target, but also adds the BOJ should explain why very optimistic to be achieved by 2015 given many economists doubt it.

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News and Economic Review Zone Asia (Japan)

 

BOJ Governor: Inflation Achievement Strategies It Right

Thursday, October 9, 2014

 

Bank of Japan (BOJ), Haruhiko Kuroda, a few moments ago in New York, said that the economy would benefit from the achievement of the inflation target of 2% is imposed by the government. Japan's central bank boss is convinced that the future increase in the level of consumer prices will hurt the economy and driving up the cost of living.

 

Japan has more or less able to handle the climate of deflation that has lasted for the last decade. However, it must be recognized that efforts to raise the level of inflation with the tax and wage adjustments have hampered the economy. Not surprisingly, the public doubted whether the sacrifice is worth the current residents obtained the effect of a rise in inflation to around 2%.

 

Responding to market skepticism and businesses, Kuroda insisted he was confident the central bank's policy program will be good in the future. He also does not intend to change the way the central bank approach in carrying out the mandate of the constitution. "Some people are asking whether efforts to increase prices appropriate for the current rate of growth (the economy) is slow. My answer is clearly yes," he said in a speech to members of the Economic Club of New York. BOJ Governor insisted that climate termination deflation is a must to boost the national economy.

 

With higher inflation, the company will be able to run its operations. "We've seen a lot of companies progressing well since the price increase happened last year," he added. BOJ itself does not close the door to any new easing the rate of inflation away from the target. "Inflation will reach approximately 2% in March 2016," Kuroda said optimistically. The central bank was first launched in the first easing program in April 2013 with a target of achieving an ideal level of inflation in two years or in 2015, but seiringa many obstacles in the field, the BOJ changed the target date for the achievement of the inflation up to 3 years or in 2016.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

BOJ Members Warn Addition Negative Impact of Monetary Stimulus

Friday, October 10, 2014

 

In the minutes of the monetary policy meeting the Bank of Japan mentioned one of the members of the warning of the possible negative impact of the disbursement of additional monetary stimulus. The warning makes the possibility of voting whether the central bank should further monetary easing will be split for the first time under the leadership of Haruhiko Kuroda.

 

BOJ did not release the names of the members who gave the warning, but it is clear from all the members are not comfortable with a more aggressive monetary stimulus lanut, although Kuroda continues to emphasize will provide further stimulus if necessary in order to achieve the inflation target of 2%.

 

Since Kuroda BOJ Governor position, voting on monetary stimulus is always round, or approved by all members of the BOJ. Previous members of the central bank's policy-makers have also been split in 2% inflation targeting

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News and Economic Review Zone Asia (Japan)

 

Kuroda: Weakening Yen 'Not Excessive'

Monday, October 13, 2014

 

Bank of Japan (BoJ) Haruhiko Kuroda said he was comfortable with the recent depreciation of the yen, warned that the currency solely in the process of strengthening excessive correction. The Japanese currency has fallen more than 6% against the dollar in the last 3 months amid a stronger greenback. Earlier this month, the yen through to the top level of 110 for the first time in more than 6 years. "The movement of currency exchange rates are not excessive so far," said Kuroda on Friday on the sidelines of the annual meetings of the IMF / World Bank in Washington DC. "After the Lehman crisis, the dollar appreciated against many Asian currencies except the Japanese yen. So the current process is the correction of the excessive appreciation of the yen," he said.

 

The market's focus on the difference between the monetary policy in developed countries also support the strengthening of the dollar and a weaker yen, he said. "The United States and the UK are starting the process of normalization while on the other hand the ECB (European Central Bank) and the BOJ continue their accommodative monetary policy and it will certainly have an impact on the exchange rate," he said. The current depreciation of the yen has raised concerns in neighboring countries of Japan, especially Korea, which is worried that it could hurt the export sector kompetitifitas. However, Kuroda underestimate the impact of a weaker yen to other Asian countries. "I think a weaker yen does not create a serious problem for the United States economy, and in this stage as we know economies of Asia, especially East Asian countries are recovering," he said.

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News and Economic Review Zone Asia (China)

 

China Import Export levels skyrocketed in September

Tuesday, October 14, 2014

 

The country's exports rose more than estimated in September and the level of imports rebounded as global demand growth to help shore up the country's second largest economy in the world. The country's exports soared as much as 15.3% in September from a year ago, according to data on Monday, exceeding expectations for a rise of 11.8% and an increase of 9.4% in August. The level of imports also rose unexpectedly by 7%, compared to a forecast for a decline of 2.7% and following a decline of 2.4% in August. However, China's trade surplus narrowed more than expected, reaching $ 31 billion from a record high of 49.8 billion dollars in August and estimated at 41 billion dollars.

 

China benefited from the recovery in As, prop up the economy weighed down by a slump in the property sector and a slowdown in industrial output growth. Analysts expect China's growth rate will slow to 7.3% this year, the slowest level since 1990, and 7% in the year 2015 "the United States economy is recovering and it increased external demand," said Wen Bin, research on China Minsheng Banking Corp. in Beijing. "The level of China's exports are expected to remain healthy."

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

Slowing China Inflation Hint Momentum Loss

Wednesday, October 15, 2014

 

The rate of consumer inflation in China slowed in September, according to data on Wednesday, also adds to the evidence that the world's second largest economy is losing momentum. The level of consumer prices rose by 1.6% from a year ago, a level not reached since January 2010, slightly lower than economists' estimates by 1.7% and 2% sebeasr following a rise in August. Meanwhile, wholesale prices fell as much as 1.8%, compared to expectations for a decline of 1.6% and 1.2% following a decline in the previous month. Producer prices in China have fallen since February 2012, depressed by a drop in commodity prices, excess capacity and weaker demand.

 

"I think this data is very bad. Deflation at the factory gate in China is not new, but this time we had deflation in the housing sector. Primary question is, how far it will continue to happen?" says Richard Iley, chief Asia economist at BNP Paribas. "Right now we are 1.6% below the government's target of 3.5% and Bejing on this before we feel the full impact of the drop in oil prices. We have a decline in oil prices, falling house prices, excess capacity in the industry and currency appreciation. So it refers to deflation is much worse before it can recover, "he added.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

The level of loans in China Rise In September

Thursday, October 16, 2014

 

The level of new loans in China rose to a 3-month high in September, signaling the central bank's policy to boost liquidity has helped spark lending rate. Aggregate loans reached 1:05 trillion yuan (171 billion dollars), said the People's Bank of China in Beijing today, compared with an estimated worth of 1:15 trillion yuan by economists. The number of new loans reached 857.2 billion yuan, and M2 money supply grew 12.9% from a year ago. The amount of foreign currency reserves reached 3.89 trillion dollars as of the 30th of september.

 

While he refrained from cutting interest rates there is a ratio of banks' capital reserves, the central bank tries to encourage lending in certain areas and reported to drain as much as 500 yuan milyan toward the largest banks in China this month. Depressed by the decline of the property sector, China's economy is expected to expand by 7.2% in the third quarter, the slowest pace in more than 5 years. "The scale of easing lending has increased since mid-September," said Hua Changchun, China economist at Nomura Holdings Inc. in Hong Kong.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

BOJ: Inflation Moves to 2%

Friday, October 17th, 2014

 

Bank of Japan, Haruhiko Kuroda, said the central bank is on track to achieve the inflation target of 2%, implying the lack of pressure for Kuroda to provide further monetary stimulus despite a slowing economy and the Japanese stock market plummeted.

 

The Nikkei index has lost more than 10% since hitting a seven-year 16374.14 three weeks ago, and gives an overview of the market is now in a correction phase. Throughout this week the Japanese stock market is down about 5%.

 

"The mechanism of positive growth is at the corporate and household sectors, our economy is still in a moderate recovery trend" Kuroda said at a meeting held Community Bank Shinyo Kumiai.

 

Kuroda added the inflation rate, regardless of the price of food, will be above the level of 1% in some future time, before rising towards 2%. But Kuroda does not give the exact time when it will reach the target of 2%, it only provides an estimate of "likely" inflation of 2% will be reached between April 2014 to March 2017

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

BoJ's Kuroda Still Confident With Japan's economy

Monday, October 20th, 2014

 

Bank of Japan, Haruhiko Kuroda, said that Japan's economic recovery is still awake. "Japan's economy continues a moderate recovery despite weakening as a result of a sales tax increase in April," Kuroda said when opening the BoJ's regional central bank meeting. Japan's central bank chairman stated that the recovery will be maintained as the easing of the decline in demand due to tax increases.

 

Kuroda reiterated that BoJ's monetary easing policies that have been implemented since April 2013 have shown effects on the economy as desired. "The central bank will continue its loose monetary policy until inflation target of 2% to survive in Japan. The BoJ will adjust policy if needed," said the BoJ's Kuroda.

 

Meanwhile, the Nikkei continued to rally and keep the yen weakened after the BoJ's comments Kuroda. Nikkei futures are now traded 15025; 14900. away from low-level daily USD / JPY traded at 107.13 levels; Daily highs near 107.25

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japanese Government Economic Outlook Lower Back

Tuesday, October 21, 2014

 

The Japanese government in two months consecutive decrease the overall economic outlook due to the slowdown of the production side. The decline in the outlook for the Japanese government raises the question whether to raise the sales tax return next year.

 

The decline in the outlook for the economy is also further proves Japan is struggling with a sales tax increase in April. Policy of the government of Prime Minister Shinzo Abe, Japan's lead economic recovery momentum, but momentum is now beginning to weaken.

 

In a monthly report released today, the Japanese government said "attenuation can be seen these days", while in a report last September the Japanese government said "some weakness"

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News and Economic Review Zone Asia (China)

 

Three Quarter Home Sales in China Down Nearly 11%

Tuesday, October 21, 2014

 

Home sales in China in the early period of three quarters of this year fell by 10.8% to 4:05 trillion yuan ($ 661 billion), according to data released by the National Bureau of Statistics on Tuesday.

 

3:43 trillion yuan worth of sales in the period of the first eight months of this year, a decrease of 10.9% from the same peridoe in 2013.

 

China is struggling with the downturn in the property market since the beginning of this year, as home buyers endure while waiting in anticipation of a further decline in prices over the property developers struggle to reduce high inventories. The average home price in September fell for the fifth month in a row in the monthly rate.

 

Analysts and investors in cemasakan the weakening of the property market, which is an important determinant factor of economic growth of China, and whether it will produce a sharp blow to the country with the second largest economy in the world.

 

Sales in September also dropped, but the property developers have said that they expect the strengthening slightly in October after the central bank announced the easing of mortgage rules which will allow home buyers to choose a cheaper mortgage.

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News and Economic Review Zone Asia (China)

 

Expanding China's GDP 7.3% in Third Quarter

Tuesday, October 21, 2014

 

China's economic growth beat analysts' estimates as the government eased restrictions on the property sector and accelerate spending.

 

China's GDP rose by 7.3% in the July-September period from a year ago, reported by the statistics bureau said today in Beijing, compared with the median estimate for a 7.2% rise in the Bloomberg survey. Industrial production in September also exceeded estimates.

 

Chinese leaders have loosened restrictions home purchases and the central bank has injected funds into the big banks to avoid a decline in the property market. The government has sinyalkan that they will tolerate a slower expansion rate and refrain from broad-based stimulus, which it left China to pertunmbuhan late for a full year since 1990, based on the forecast of analysts surveyed by Bloomberg.

 

"The state has shifted the mode to" step into the acceleration "since September," said analysts at Goldman Sachs Group Inc., in a note this month. "We expect there will be a greater pelongaran the rest of the year."

 

Industrial production rose by 8% in September from a year ago, compared with the median estimate for a level of 7.5% and a 6.9% rise in August, in which it is too late level in more than five years. Retail sales rose by 11.6% from a year ago, compared with 11.7% seen in the view of economists, and the results in August rose 11.9%.

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News and Economic Review Zone Asia (Japan)

 

The value of Japan's exports soared in September

Wednesday, October 22, 2014

 

The value of Japan's exports climbed to the highest level in seven months in September, it supports a rebound in the economy in the middle of Prime Minister Shinzo Abe burdened by other sales tax hike plan.

 

Total shipments abroad rose by 6.9% from a year ago, in the report by the industry ministry in Tokyo today, compared with the median estimate for a 6.5% increase in a Bloomberg survey of 27 economists New to. The value of imports grew 6.2%, leaving a trade deficit of 958.3 billion yen ($ 9 billion).

 

Strong exports will support the economy that has shrunk to its lowest level in more than five years after the Rev Abe sales tax in April for the first time since 1997, the Governor of the Bank of Japan Haruhiko Kuroda has sinyalkan support for a decrease in the yen, he said that the weakening currency in line with the economy as a whole is a plus to.

 

"This is positive news for the Bank of Japan," said Junko Nishioka, chief economist at the Royal Bank of Scotland Group Plc in Tokyo and a former central bank official. "Today's data support the view that the BOJ exports will grow gradually and it will continue to continues

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News and Economic Review Zone Asia (China)

 

Deutsche Bank cuts China growth forecast

Wednesday, October 22, 2014

 

The slowdown in property investment push Deutsche Bank lowered its outlook for economic growth in China on Tuesday. China's GDP is expected to grow 7.3% in 2014 and 7% in 2015, lower than previous projections showed growth of 7.8% for this year and 8% next year.

 

In addition to a sharp slowdown in property investment, analysts at Deutsche Bank to assess the rate of inflation is higher than expected and weakening demand from other countries in the world will also be a key risk that characterizes the growth of China. Deutsche Bank also believe that Beijing will likely tend to be more accepting of a hard-landing scenario than launching additional stimulus measures.

 

Downgrade by Deutsche Bank's growth projections were published only a few hours after an economic data showed Chinna grew 7.3% in the 3rd quarter. That marks the slowest growth rate in the 5-year

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News and Economic Review Zone Asia (China)

 

HSBC: China Manufacturing Index Rises In October

Thursday, October 23, 2014

 

China's manufacturing index rose in October, it added a sign that the country with the second largest economy in the world can survive the slowdown in the housing market.

 

Initial PMI index from HSBC Holdings Plc and Markit Economics was at 50.4, the estimates exceed the level of 50.2 in a Bloomberg News survey, which is also the reading level of the end of September. Figures above 50 indicate expansion.

 

Policy makers are trying to avoid a deeper decline after the GDP expanded by 7.3% in the third quarter from a year ago, it was the weakest pace in more than five years. At the time policy makers have loosened controls on home purchases and pumping liquidity into lenders, economists also get the support of the increase in exports in September.

 

HSBC Markit PMI final reading for October will be released on November 3rd. A separate report in the manufacturing index from the National Bureau of Statistics and the China Federation of Logistics and Purchasing will be published on November 1.

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News and Economic Review Zone Asia (South Korea)

 

South Korea's Economic Rise From the rebound Consumption

Friday, October 24th, 2014

 

South Korea's economy strengthened in the last quarter of the rise in public spending and consumption, it has become a support for President Park Geun Hye in the middle of the policy makers try to spur the economy with fiscal and monetary stimulus.

 

South Korea's GDP rose 0.9% from the previous quarter, reported by the Bank of Korea said today in Seoul, these results correspond to the median estimate in a Bloomberg survey. From a year ago, the economy expanded by 3.2%.

 

The decline in investment and export facilities provide a challenge to rebound from the downturn in the beginning of this year after a ferry accident death. Government Park increase spending and loosening regulations on the property market to increase demand and the Bank of Korea has cut their interest rates twice since August to the lowest level in four years, was given the advantage of slowing down inflation to spur permulihan.

 

"Economic growth may be slightly under-estimate the BOK," said Yoon Yeo Sam, fixed income analyst at Daewoo Securities Co. in Seoul, after the data release. "Policy makers may have to come dengtan impulse to more fiscal and monetary policy."

 

Choi Kyung Hwan's finance minister pledged in July to use the stimulus by 31 trillion won ($ 29 billion) this year and the proposed budget of 376 trillion won next year.

 

Bank of Korea Governor Lee Ju Yeoul, in his meeting with the CEOs of large companies in Seoul today, urging them to increase investment.

 

"Our economy is relatively better in comparison with other countries, but the recovery has not been strong," he said. "The central bank cut interest rates this month on the belief that we must maintain the momentum of recovery."

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News and Economic Review Zone Asia (China)

 

China's New Home Prices in 69 Cities Decrease In September

Friday, October 24th, 2014

 

New home prices in China are monitored by the government fell in all cities except one in the last month as easing restrictions on the property failed to stem the decline amid credit tightening.

 

Home prices fell in 69 of the 70 cities during the month of September from August, reported by the National Bureau of Statistics today, it is the highest since January 2011, when the government changed the way to compile the data. Prices dropped in 68 cities during the month of August.

 

The central bank on September 30, loosening regulations for home buyers mortgage already paid off an existing loan, the government swivel halauan after a four-year campaign to curb housing prices as Premier Li Keqiang trying to prevent the growth of the decline is too far from the target The government's annual 7.5% level. Home sales fall by 11% in the first nine months of this year.

 

All but five of the 46 cities that emphasize pembatasa home ownership since 2011 have removed or loosened restrictions amid falling property that has hurt local government revenues from land sales.

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News and Economic Review Zone Asia (Japan)

 

BOJ May Be Cut Inflation Outlook

Tuesday, October 28th, 2014

 

The Bank of Japan will consider to cut the inflation outlook in a report this week dampat related decline in oil prices, according to sources. The central bank may lower or change the assessment that the pace of consumer inflation is likely to "go back to follow the trend of increase in the second half of this fiscal year," according to a source who declined to be identified. Some officials see the potential BOJ will cut its inflation forecast for the year to March and next fiscal year, according to sources.

 

While it amplifies the signal of slowing momentum in the third largest economy in the world, related sources said the impact of a decrease of 21% in oil prices since June is likely to be passed. This will make the BOJ maintains its view that inflation is likely to touch the target of 2% around the middle of the year beginning April 2015, they said.

"It seems that almost certainly will BOJ cut its inflation outlook in the near Sometime given the decline in oil prices," according to JPMorgan Chase & Co. analysts led by Masaaki Kanno. The central bank may also have to admit failure as soon as January to achieve an inflation target of 2% within a period of 2 years. Haruhiko Kuroda BOJ Governor and other board members are expected to keep monetary policy at a meeting on 31 October. the BOJ will release its semi-annual outlook for the economy and inflation on the same day.

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News and Economic Review Zone Asia (Japan)

 

BOJ Governor: Stimulus would Ends Fiscal Year 2015

Tuesday, October 28th, 2014

 

Bank of Japan (BOJ), Haruhiko Kuroda, ensure that the program of monetary easing will end in the period post 2018 kadaluarsatahun. In hearings before the parliament, he insisted he was the one who would end the current loose monetary policy targets inflation of 2%.

 

speculation about the expiration of monetary easing is surfaced in recent weeks. MPs wanted the central bank gives a sense of comfort associated expiry of economic stimulus. When asked about it, the BOJ governor declares the stimulus period is dependent on the achievement of the inflation target of 2%. "I am optimistic that the inflation target will be met in fiscal year 2015, after which we will talk to end the monetary easing," he said. The central bank has no other scenarios because it remains confident that inflation will eventually recover next year.

 

Kuroda also called on all parties not to discuss the timing of the end of monetary easing because everything is still too early. "We are only halfway, not time to talk cessation of stimulus," he added.

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News and Economic Review Zone Asia (South Korea)

 

KOSPI Ends Slump Due to Domestic Negative Sentiment

Tuesday, October 28th, 2014

 

Until the trading session on Tuesday afternoon (28/10), the KOSPI index - South Korea observed still depressed in the relegation zone as a result of getting carried away sell-off in Asian markets and eroded by domestic consumer sentiment index data is decreased.

 

Consumer sentiment index was recorded in October decreased to a level of 105 from the previous month at 107. The data rate is the lowest in the last 3 months also imposes on the Seoul stock movement today.

 

Related to these data, South Korea's central bank (BOK) explains that the decline in the index was in line with the economic outlook for 2015 cuts that have been made by various financial institutions, including the effects of a slowing domestic economy this year.

 

Referring to data released Oct. 24, the third quarter GDP growth rate y / y (GDP annual growth rate) recorded decreases to a level of 3.2% from the previous quarter a year ago at the rate of 3.5%, and slightly below expectations of 3.3%.

 

On the stock exchange floor seem Samsung Heavy Industries and Samsung Engineering each fell more than 1 percent as investors booked profits by selling them after the shares rallied up to 7 percent on Monday.

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News and Economic Review Zone Asia (Japan)

 

Tax Increment Predicted Japanese Automotive Industry Worsens

Wednesday, October 29th, 2014

 

Japan's auto industry has been sluggish in recent months. Unfortunately, the condition can get worse as the government prepares to raise the sales tax for another year.

 

If the Tokyo government really be raising the sales tax from 8% to 10% in October, the car sales are expected to decline to around 4.55 million units in fiscal year 2016. The number was lower than the total cars sold in 2013 and then, the figure reached 5.69 million. Predictions had been expressed by Ministry of Economy, Trade and Industry a few moments ago.

 

For the short term (up to the current fiscal year that ended March 31, 2015), sales are expected to fall to 4.95 million units from the effects of the consumption tax increase in April. Prime Minister Shinzo Abe is likely to give certainty about the plan to increase the sales tax to the public in December. If it is applied, there is a chance he will take the other way instead of raising the sales tax next year.

 

The Japanese economy is still sluggish despite the government released a series of monetary stimulus since last year. Consumer purchasing power is very low and the prices do not go terkerek ride. Weak Japanese citizens' spending power continues until the third quarter as reflected in the decline in sales of motor vehicles both cars, trucks and buses as much as 0.5% in August compared to the volume of sales in the month of July 2014. Reduced consumer transactions in the automotive sector is the ke- two in a row, continuing a decline that occurred in July. Japanese automotive product sales in the country amounted to 206 606 units or less than the previous month's data.

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News and Economic Review Zone Asia (China)

 

Central Bank of China Prepare for Safety Net Savings Bank

Thursday, October 30th, 2014

 

The threat of bankruptcy overshadows Chinese banks. This indication can be seen from the increasing number of financial institutions that went bankrupt for failing to pay debts.

 

Amid the negative judgments made ​​by financiers, the Chinese government asserted bring the banking system was safe despite the presence of small and medium-scale banks are bankrupt. "Sometimes debt debt default is something reasonable. Thus this will make the financial industry players to be more vigilant," said Deputy Head of the Central Bank of China, Yi Gang was quoted as saying in a forum by news portal Sina.com. Statement senior People's Bank of China came out after many parties are concerned with China's banking system is considered to be too loose. The ratio of bad loans or bad debts increased quality, while at the same time companies are the backers for local governments face a sizable debt load.

 

To reduce risk in the credit sector, the government plans to make a deposit insurance scheme. This safety net is made so that the depositors feel calm on the security of their funds in the bank. "Backlog is also a form of Chinese anticipation of the possibility of bankruptcy is usually experienced by small-scale banks," added Yi Gang. However, he has not expressed a certainty issuance of the regulation.