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Japanese Manufacturing PMI Collapses At Fastest Pace On Record; Drops To 14 Month Lows
Not much to add to this total and utter disaster... Markit's Japan Manufacturing PMI plunged from 53.9 to 49.4 - it's first contractionary print since Feb 2013 and its biggest MoM drop on record. Under the surface the picture is just as bad with output falling at the fastest pace since December 2012 and New orders also down. The blame for all this - the tax hike... hhm (well, it's better than the weather we guess). Both prices charged and input prices rose in April with some panellists attributing inflation to an increase in raw material prices (stunned?). And if you think this terrible news is great news (because more QQE), forget it - Kuroda already say no and inflation is near the BoJ's target.
Chart: Bloomberg
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We'll see how long this lasts.
Japan is the walking dead. quality manufacturing moved on to S Korea and the cheap shit is turned out in China.
Calling Kyle Bass, is Kyle Bass in the house ?
Tyler, all inflation is not created equal.
If you get inflation because there is so much demand for workers that you have to pay them more, then that's good inflation and thou shalt not print any more.
But if oil import prices are killing you and driving up costs, this is not good inflation and you can print and pretend oil price is from other factors. So . . . let's not presume the BOJ is done.
FINALLY, A number that can push us to 1900 spx
And exactly who is going to pay those higher wages?
If it were all so simple, the gov't could just pass a giant minimum wage increase and do nothing else. You will never see an increase in wages without a rise in demand and/or productivity. Japan versus the current world economy is going to have a difficult time generating that growth. It has shown difficulty in that regard during the last decade(s) and has had to resort to massive fiscal imbalances to keep the consumer up.
Before you see inflation adjusted real wages increase, you will see unemployment rise, thus putting the downward pressure on wages.
It is simply not going to happen. Japan is getting poorer and needs to become even more poor in order to save its national soul.
Relax. The Japanese will be able to reduce their energy consumption on lighting. With the blessings from Fukushima, they will start glowing in the dark.
OT but whats the latest news on the US carrier crew members who claimed to suffer radiation poisoning from Fukushima ?
fire the pmi guy
Yeah that inflation target is completely arbitrary. They will either change the target or change the inflation calculation in order to stave off the deflation monster. A stronger Yen kills the carry trade and we can't have that.
Krugman sez, if it didn't work you must not have done it hard enough.
That was not Krugman. It was Reggie scolding Barack.
NSA - FIFY.
Summon the douchebags. Let the dick eating commence!
Back door QE for Japan. Let's see how much poor Belgium will raise its JGB next month...
Kyle Bass is the man
so i guess the nikkei should be up 450 pts tonight?
And the NIKKEI is up? Go figure!!!
Japan implodes first. Be patient. It's the Federal Reserve's grand printing experiment. Later the US follows.
Repeat.
When japan says no more QE what they mean is no more QE till we anounce more QE.
Remember what happened last time their PMI dropped like this? The US markets went straight up for two years gaining basically 50%.
Bullish!
Those Japanese PMI numbers are dreadful.
I'm old enough to remember the Japanese economic miracle in 1970/80's.
That was then this is now.