Daily Highlights: 4.13.10

Tyler Durden's picture

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Kina's picture

"Global IT spending expected to rise 5.3% in 2010 - Gartner."


I keep seeing that but I wonder have they considered that cash strapped governments and states will be winding back their IT budgets, sticking with what they have rather than go through the usual progression?

jesusonline's picture

There was some news in the morning about Democratic Party of Japan wanting to conjure up a bill about fighting deflation (which they have been trying for the last 20+ years, i guess). They want to make Bank of Japan and Ministry of Finance to use all means necessary and, if needed, devalue yen up to the tune of 110 - 120. This info was on Reuters i think.

aldousd's picture

On Bloomberg last night they showed whatshisname the japanese finance minister saying they were 'researching how raising taxes might be used to fight deflation' adding that once they figured something out they'd 'start seeking public support.'  Does that sound like throwing darts to you?  Though, admittedly they can probably withstand austerity better than Greece, it didn't sound like they planned to stop stimulus, but just raise taxes in addition.  Robin Hood anyone?

suteibu's picture

That's correct.  They want to raise the consumption tax and pump another 1 trillion yen stimulus into the economy.  They have doubled education allowances for every child from K thru HS...even for children who don't actually live in Japan.  The pension funds will be net sellers of J-bills so they raised the limits on deposits into the Japan Post Bank to create a larger pool of private savings to finance the scheme. 

suteibu's picture

FM Kan has made that his goal, brokered a meeting between PM Hatoyama and BOJ Gov. Shirakawa last week to coordinate efforts, and has been mentioned as Hatoyama's successor by Kozo Watanabe, influencial DPJ operative.  Hatoyama has been tanking in the polls over about every issue he faces.  Our friend Richard Koo and RENGO, the largest union in Japan, have the ear of the BOJ and the Hatoyama administration.  The situation there mirrors that of the US.  They've all gone globalist.  Who knows what they will do to try to weaken the yen.

nedwardkelly's picture

"World oil demand to hit record high this year"

That's probably the most important point on the list. Demand still hitting record highs, production - not so much.

Demand is at record highs with the conomy in the shitter, things will be fun if the 'global engine' gets humming again.

Hulk's picture

It's probably the most important point on the list

It is the most important item on the list.

Gasoline consumption in China up 27% for Jan, YOY. The shit is about to hit the fan. No QE for peak oil. Prepare for resource wars, they are a coming......

jesusonline's picture

Here it is:

Yen slides, Japan party panel says seeks 120 yen

LONDON, April 13 (Reuters) - The yen slipped against the dollar and other currencies on Tuesday after a draft by a panel of Japan's ruling party said it should try to keep the dollar's level against the yen around 120 yen.