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25 Feb 2014
Flash: Bearish on Japans outlook - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman is not bullish for the Japanese economy.
Key Quotes
"Yet, the lesson from Japan's Abenomics is that a weakening currency does not necessarily boost exports very much. Nor is a weaker currency the key to arresting deflationary forces."
"Earlier today, Japan reported Corporate Service Price Index. It eased 0.6%, the first decline in five months."
"The y/y rate fell to 0.8% from a revised 1.1% in December, which was initially reported at 1.3%. There is some concern that Abenomics has reached the point of diminishing returns."
"The economy has begun under-performing. Consumer confidence has stalled and there is a decline in the sentiment among economic watchers. And the retail sales tax increase is around the corner (April 1)."
Key Quotes
"Yet, the lesson from Japan's Abenomics is that a weakening currency does not necessarily boost exports very much. Nor is a weaker currency the key to arresting deflationary forces."
"Earlier today, Japan reported Corporate Service Price Index. It eased 0.6%, the first decline in five months."
"The y/y rate fell to 0.8% from a revised 1.1% in December, which was initially reported at 1.3%. There is some concern that Abenomics has reached the point of diminishing returns."
"The economy has begun under-performing. Consumer confidence has stalled and there is a decline in the sentiment among economic watchers. And the retail sales tax increase is around the corner (April 1)."