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Nikkei Slides Back Below 18,000 On Deeper-Than-Expected Recession, Record Bankruptcies
Remember when that absolute disaster of a Q3 GDP print hit Japan and the world of talking-heads proclaimed... "yeah, but.. capex revisions and stuff and things will make it all better" or some such nonsense? Well that's exactly what it was - utter nonsense. Going entirely the opposite direction to expectations of a revision up to -0.5% QoQ, Japanese GDP was revsied even lower to -1.9% QoQ (from -1.6% QoQ initial) confirming the quadrupled-dip-recession. Add to that the fact that Abenomics has ushered in record bankruptcies this year as small- and medium-sized businesses have been crushed by soaring import costs amid the collapsing JPY and you have a recipe for domestic disaster... and having rallied in anticipation of the exuberant revisions in Friday's US session, Japanese stocks are sliding quickly off the 18,000 level.
Quadruple-dip recession... well played Abe...
Goldman was surprised... and is not very hopeful about the future...
Government revised down real GDP, contrary to expectations: The government’s second estimate for Jul-Sep (3Q) 2014 real GDP came in at -1.9% qoq annualized, a slight downward revision from the first estimate of -1.6% and contrary to the market forecast for an upward revision to -0.5%. In the second set of estimates, the government mainly adjusts its capex and inventory figures to reflect MOF Corporate Statistics announced the week before. In the latest MOF Corporate Statistics, capex turned upward qoq, and the market accordingly expected the capex figure in the second set of GDP estimates to be raised (from -0.9% qoq annualized in the first preliminary data). In a surprise move, however, the government revised down the capex figure to -1.5% qoq annualized. Meanwhile, it slightly raised its estimate for the contribution from inventories to -2.5 pp, from -2.6 pp, and slightly lowered estimates for government spending and public fixed capital formation.
Nominal GDP was revised downward from -3.0% to -3.5% qoq annualized.
We expect a GDP rebound in 4Q, but the momentum of recovery will likely be weak: The pullback from pre-tax-hike rush demand is gradually fading. However, we see potential for declining real disposable incomes and high inventory levels to continue exerting downward pressure on domestic demand that deals a setback to the economy for a comparatively long time. We look for real GDP to rebound from two quarters of contraction in 4Q, but we think the strength of recovery will be weak.
Oh, and don't forget record bankruptcies...
Japanese stocks are - for once - actually selling off modestly haveing ripped higher on Friday in anticipation of the exuberant upward revision everyone hoped for...
Rather notably decoupling from USDJPY!!
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On a side note, PBOC fixed the Yuan at its strongest against the USDollar since March as the market's view of USDCNY started to rapidly weaken...
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Paul Krugman just tweeted:
"Japan can't have sustainable recovery until 1 USD = 1,000 JPY"
They need to find a new method for calculating GDP before the depression sets in.
Something that fully embraces the "less is more" theme...
Krugman can help,they will do just what usa did.
well now ~ this news will help smash the 130 level
Is Christine Hughes' EPIC warning on Japan coming true?
http://www.planbeconomics.com/2013/05/must-watch-christine-hughes-of.html
This might throw a little kink into Kevin’s long Nikkei short gold pair.
Good vid... my takeaway is the weaker yen is = the weaker gold is, therefore gold is to go further down almost like a one way bet.
Hookers and narcotics
Hookers and narcotics
...are two things I think we could all use at this junction.
Paul Krugman just tweeted:
"World can't have sustainable recovery until I disguise as alien and attack earth"
He wouldn't need much makeup...
my best friend's mother makes $82 /hr on the internet . She has been without work for five months but last month her pay check was $20842 just working on the internet for a few hours. browse around this website... www.yelptrade.com
But you are still the diseased afterbirth of a mother who is a whore.
Bullish for gold!
Nah, just bullish...
The Mylchreest prophecy unfolds.
+1 for coining "The Mylcreest prophecy". Gotta like it.
Nice going, Krooogmaaahnnn.
His reply is always "not enough stimulus".
And Abe falls for it.
BTFDATFH
Let me write this Fridays headline for you; Markets close at new record high on rumors of more QE.
"Draghi farts; Goldman Sachs lays out case why this likely means LSAP by ECB is coming in January."
Next Sunday is the japanese election. The Nikkei will be closing at new highs by Friday. Abe wants to win by a landslide so the QE floodgates can not only be opened but removed entirely.
BULL NUTS!!!
Are US futures up on this news?
Krugman did it ...
They will print more, they need stock all time high becuaseq4 will be negative too
Banzai!
Kuroda and Abe to unleash another fleet of Kamikaze QE!
If 100 don't work, send 1,000! Do it for the Emperor!...er....the children!
Oops there goes another water bug.
Western banks nuked Japan again.
Pearl Harbor Day bitchez.
Short Netflix, short Wynn, Short Priceline. All January Puts.
Wait until intraday reversal to short SPY and IWM.
If you get pure joy out of beating the shit out the squid.
What really bit them in the ass was also repealing the law requiring all prices be displayed inclusive of tax. Now some do and most don't, and people are often shocked at the register to find that they have to pay 8% more than they expected.
They were bit by endless printing.
Japan never gets any better. The moment the Japaneses stock market fails to rise enough to offset inflation and the people of Japan realize that even a weaker yen will not help we will see a tsunami of money fleeing Japan.
This will constitute the end of the line for those left holding both JGBs and the yen. This has been a long time coming and I contend the cross-border flow of money leaving Japan is why some stock markets have remained so resilient . When Japan crumbles it will be felt across the world. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/05/japan-sliding-towards-abyss.html
Japan needs to introduce black friday to spruce up that economy.
Oh wait it didn't work in the US
Hey, where did Abe put those fraudulent invoices?