Investment Markets Overview — W/E 5th December 2014

Moodys downgraded Japan’s sovereign debt this week by one-notch, from Aa3 to A1, on par with Bermuda, Oman and Estonia and below that of China and South Korea, as the first reaction by one of the big three major credit rating agencies to Abe’s delay in increasing the sales tax whilst continuing to balloon the country’s debt burden. Meanwhile, the divisions evident with the Bank of Japan’s board, highlighted within our overview of a month ago as 4-4, with only the swing vote by Governor Kuroda winning the day for the latest “debt boost,” are growing. Board member, Takehiro Sato, distanced himself this week from Mr. Kuroda’s generally positive assessment of the falling currency, telling business leaders that a weakening yen a ‘risk’ and ‘headwind’ against the Japanese economy. Adding to the heat on both Abe and Kuroda were comments from former B of J senior officials who described the current easing policy as “like a car driving down the highway without brakes.” Japan’s 10-year bond yield remained unchanged, at a record low of 0.416%.

5 Dec 14

Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

As the “herd” continues to hang on every word uttered by the world’s major central banks for “guidance,” a step back reveals  …….

Charts:
1.Indices Weekly
2.US NFP V  US Average Earnings
3.Euro-Zone Q314 GDP
4.OZ Retail Sales V OZ GDP
5.Commodity 1 Week Moves

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

Debt Deflates in two ways, it’s either Repaid or Defaulted on

Click Here to view Details of the full version of this Newsletter which includes full text and detailed Charts for each section

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