Japan GDP growth revised down to 1%
June 8, 2017--Data defy expectations of upgrade but underlying pace of expansion remains strong.
BetaShares launches Australian Bank Senior Floating Rate Bond ETF
June 6, 2017--We are pleased to announce the launch of the BetaShares Australian Bank Senior Floating Rate Bond ETF (ASX: QPON), the first ETF in Australia to offer exposure to a portfolio of Australian Bank senior floating rate bonds.
QPON aims to provide investors with attractive income paid monthly, along with the diversification benefits and relative capital stability of floating rate notes.
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Source: BetaShares
Weak demand for Shenzhen stock connect even as shares retreat
June 5, 2017-- Quota usage hovers around 5% as cautious investors wait on sidelines
Foreign investors have shown little appetite for Shenzhen-listed stocks available through a new Chinese trading scheme that grants them unprecedented access to mainland shares, as many fund managers remain wary about diving into an expensive and unfamiliar market.
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Source: FT.com
Chinese debt has been downgraded for the first time in almost 30 years
June 2, 2017--Moody's has finally recognized the dangers of instability in China's financial system and economy. This past week, the ratings agency downgraded China's debt one notch from Aa3 to A1.
Although that might not seem like a lot, it's Moody's first downgrade of Chinese debt in almost 30 years; and that is something to take seriously.
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Source: WEF (World Economic Forum)
Renminbi pulls back from six-month high
June 2, 2017--Volume in US dollar-offshore renminbi futures on the Hong Kong Exchange topped 8,600 contracts for the second day in a row on Thursday.
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Source: FT.com
Nikkei 225 breaks above 20,000 for first time since 2015
June 2, 2017--Early Friday morning gains have pushed Japan's Nikkei 225 index over the 20,000-point level for the first time since December 2015.
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Source: FT.com
BetaShares: Geographic lending restrictions could provide scope for lower interest ratesscope for lower interest rates
May 31, 2017--Contrary to the hopes of both the Reserve Bank of Australia and the Federal Treasury, economic growth is off to a bad start in 2017 so far.
Importantly, however, the recent Federal Budget included new powers for the Australian Prudential Regulation Authority to impose geographic-based lending restrictions. If used, these new restrictions could allow scope for the Reserve Bank to further support the economy through lower interest rates later this year if need be, with less risk of further inflaming the already hot Sydney property market.
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Source: BetaShares
IMF-Thailand: Selected Issues
May 31, 2017--THAILAND: BRINGING INFLATION BACK TO TARGET1
A. Context
1. Thailand's headline inflation was below target in 2015-16. The low headline inflation reflected to a large extent external drivers, in particular the sharp decline in oil prices in recent years.
Yet, core inflation also declined and is projected to remain subdued.
2 The causes of weak inflation dynamics warrant closer investigation.
view the IMF-Thailand: Selected Issues report
Source: IMF
IMF Working Paper-Policy Uncertainty in Japan
May 30, 2017--We develop new economic policy uncertainty (EPU) indices for Japan from January 1987 onwards building on the approach of Baker, Bloom and Davis (2016).
Each index reflects the frequency of newspaper articles that contain certain terms pertaining to the economy, policy matters and uncertainty. Our overall EPU index co-varies positively with implied volatilities for Japanese equities, exchange rates and interest rates and with a survey-based measure of political uncertainty. The EPU index rises around contested national elections and major leadership transitions in Japan, during the Asian Financial Crisis and in reaction to the Lehman Brothers failure, U.S. debt downgrade in 2011, Brexit referendum, and Japan's recent decision to defer a consumption tax hike. Our uncertainty indices for fiscal, monetary, trade and exchange rate policy co-vary positively but also display distinct dynamics. VAR models imply that upward EPU innovations foreshadow deteriorations in Japan's macroeconomic performance, as reflected by impulse response functions for investment, employment and output. Our study adds to evidence that credible policy plans and strong policy frameworks can favorably influence macroeconomic performance by, in part, reducing policy uncertainty.
view the IMF Working Paper-Policy Uncertainty in Japan
Source: IMF
China to shift renminbi market guidance to ward off depreciation
May 26, 2017--China's central bank will change the way it guides the renminbi exchange rate, a move that appears designed to discourage renminbi depreciation at a time when authorities are still concerned about capital flight.
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Source: FT.com
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