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"We're Gonna Need A 4th Arrow" Japanese Manufacturing PMI Misses, Slips To 7 Month Lows

Tyler Durden's picture




 

It would appear that monetizing more than 100% of your debt and constant daily reassurances that everything is awesome are not enough to create real world economic growth. Japanese manufacturing PMI slipped to 51.5 in February (missing expectations of 52.2), its lowest since July 2014 as New Orders & Employment slowed. Perhaps most worrying for the deflation-death match Abe is wagering, Output prices tumbled. Japanese stocks don't care of course, having entirely decoupled from JPY when The BoJ scared the FX carry markets with its 'hawkish' bias and 5-4 vote.

 

PMI slipping...

 

As Output Prices tumble...

As Markit notes,

“However, employment growth weakened for the second successive month in February despite reports of an improving economy.”

*  *  *

Meanwhile, Japanese stocks and JPY have entirely decoupled since the BoJ hawkishness scare - almost as if someone wants the world to believe that Grexit is entirely irrelevant...

 

 

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Thu, 02/19/2015 - 22:01 | 5806337 That_shits_broken
That_shits_broken's picture

Get to work Mr. Bullard!

Thu, 02/19/2015 - 22:07 | 5806352 ml8ml8
ml8ml8's picture

This is weak given where the Yen is.  Manufacturing should be ramping. Not a good sign.  But not to worry, the BoJ is buying Y1.8trln JGBs tomorrow.  Yay QE!  /s

Thu, 02/19/2015 - 22:17 | 5806379 aVileRat
aVileRat's picture

Agreed, a strong dollar and dirt cheap oil / natty should make PMI and all Japanese confidence metrics jump just on export only restock orders.

The problem is the big arrow was to be the privatization of major pork centers. That sudden stakeholder value jumpstart was supposed to come back in 2013, and if CapEx deflation strikes early into the profit centers of Japan's big 3 trading giants, I can't see a positive scenario where BoJ could do anything that will offset the capex slowdown and convince Japanese grama-san's to buyout their Japan Post pension plans ahead of -0.4% inflation.

 

Thu, 02/19/2015 - 22:06 | 5806353 booboo
booboo's picture

crack head meet pavement

Thu, 02/19/2015 - 23:27 | 5806517 HardlyZero
HardlyZero's picture

The only reasonable solution, which is completely virtual...would be to steal time.

 

They did that on the Matrix movie, that was how many did 'tricks' like floating without falling.  If you can steal computer clock cycles in the big simulatorium, then you can 'stop time' and thereby stop physical effects.  You could violate all sorts of rules if the 'watchdog' has stopped in-time, so there would be no witnesses.

I guess if you could 'stop time' you could steal all the gold and make off like a bandit while time is stopped.

 

Since it is really impossible in our daily world, there really no other possibilities to somehow gain against all the debts and losses.

 

Maybe this is how some computer crimes are committed, if you can just stop the computer or clocks, you can run around for a while 'invisible' or violating 'rules'.  

 

So instead of borrowing against the future (debt), the perps (or instigators) can actually steal time and clock cycles.  Kinda sorta...

 

If we do not ever take time, how can we have time.

https://www.youtube.com/watch?v=3td5UpAXeJ4

Thu, 02/19/2015 - 22:34 | 5806418 sun tzu
sun tzu's picture

NIKKEI just hit 15 year highs

Thu, 02/19/2015 - 22:17 | 5806341 Yen Cross
Yen Cross's picture

 The currency it's being shorted against comprises a majority of it's holdings.

 Bitchez

 BTW the MICEX pe is still under 5.

 U.S. T10 have gone parsbolic in yield over the last two weeks. Japan is a fucking joke financially..

 Look at the foriegn investment holdings w/w with the postal system and kampo.

 Even Japanese insurers have been divestin their holdings abroad

 They were holding 2-5 year high yield notes Australia. The massive decline in the australian and cxanadian dollars has been largely due to japanese speculation.

Thu, 02/19/2015 - 23:32 | 5806540 The Blank Stare
The Blank Stare's picture

Have another shochu

Thu, 02/19/2015 - 22:20 | 5806385 khakuda
khakuda's picture

The 4th arrow should be reserved for Abe and Kuroda.

Thu, 02/19/2015 - 23:03 | 5806476 SillySalesmanQu...
SillySalesmanQuestion's picture

The equities ramp will end just as Custer's last charge did...badly.
BANZAI!

Fri, 02/20/2015 - 05:21 | 5806998 scatha
scatha's picture

Abenomics is complete failure. Japan economy is collapsing, with all social costs. The confidence in politics is non-existent outside courtier class. The only effect of policies concocted by son of executed war criminal is rampant poverty, pauperization of middle class in enormous rate. Global oligarchs march on in Japan just like everywhere else.

For background how Japan, one of most prosperous nation on earth collapsed can be found at:

https://contrarianopinion.wordpress.com/2015/02/20/japan-miracle-that-wa...

Sat, 02/21/2015 - 00:28 | 5811172 IronForge
IronForge's picture

Tylers:

I though some JPNese Politician actually called out this thread's Titular Quote; and looked frantically around. 

It would have been hilarious to see that in the JPN Press.

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