| To: RealMuLan who wrote (26290) | 3/25/2005 2:19:27 AM | | From: mishedlo | | | | Tokyo core CPI falls 0.2 pct in fiscal year to March -
[The price of Chinese cabbage is up however - Mish]
Friday, March 25, 2005 2:09:55 AM
afxpress.com
(Adds fiscal year figures, details)
TOKYO (AFX) - The metropolitan Tokyo core consumer price index (CPI), a leading indicator of price trends throughout Japan, fell 0.2 pct in the fiscal year to March 2005, the sixth straight year of decline, a provisional report released by the Ministry of Internal Affairs and Communications shows
But the same report said deflationary pressure was easing, as the headline figure was the smallest decline in five fiscal years. And for three straight fiscal years, the size of the fall has been decreasing, the report said
The core rate excludes volatile fresh food prices, and thus gives a clearer indication of the underlying rate of deflation
The Bank of Japan has declared that it will maintain its ultra-easy credit stance, under which it seeks to keep short-term interest rates near zero in an effort to stem deflation, until the core national CPI remains above zero for a prolonged period, shows no signs of dropping and the economy is steadily growing
The metropolitan Tokyo overall CPI fell 0.1 pct in the year to March, the sixth straight year of decline. It was the smallest fall in six years
Despite signs that deflation is easing, an official of the Ministry of Internal Affairs and Communications said it is "premature to conclude that the CPIs will show a year-on-year rise in the new fiscal year." Tatsushi Shikano, an economist at UFJ Research Institute, remarked: "Although the data confirmed that the degree of deflation is easing, it will be difficult for the core CPI to form a solid rising trend, especially because macro-economic activity in Japan is deteriorating." Notebook PCs led the fall in the metropolitan Tokyo overall CPI, with their prices dropping by 29.0 pct, followed by the prices of desktop PCs, down 27.9 pct. Prices of TVs declined by 8.3 pct
Prices of Chinese cabbage jumped 33.3 pct and prices of ordinary cabbage rose 21.7 pct because of the weather last autumn
Reflecting surging crude oil prices, prices of regular gasoline jumped 8.8 pct and prices of premium gasoline increased by 7.9 pct
The metropolitan Tokyo core CPI rose 0.4 pct in March from the previous month, while falling 0.5 pct from a year before, the 66th straight month of decline. The index fell 0.5 pct in both January and February
Including fresh food prices, metropolitan Tokyo consumer prices in March rose 0.4 pct month-on-month, but fell 0.3 pct from the previous year
In March, prices of desktop PCs fell 28.6 pct from a year before and prices of notebook PCs dropped 27.6 pct, while prices of regular gasoline rose 10.7 pct and prices of premium gasoline increased by 9.8 pct
The ministry also released national CPI data for February
The core rate fell 0.1 pct from the previous month. Year-on-year the core rate fell 0.4 pct
The index for overall prices nationally in February fell 0.2 pct month-on-month. Year-on-year it fell 0.3 pct
In February, prices of desktop PCs nationally plunged 30.7 pct from a year before and prices of notebook PCs fell 29.0 pct, while prices of regular gasoline rose 11.6 pct and prices of premium gasoline gained by 10.1 pct |
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| To: RealMuLan who wrote (26290) | 3/25/2005 2:22:17 AM | | From: mishedlo | | | | Japan Feb home appliance sales fall 4.86 pct yr-on-yr - association
Friday, March 25, 2005 4:27:55 AM
afxpress.com
TOKYO (AFX) - Sales of home appliances dropped 4.86 pct in February from a year earlier to 136.6 bln yen, the first decline in two months, due to fewer holidays, the Nippon Electric Big-store Association (NEBA) said. Among notable decliners were sales of cameras equipped with video recorders which fell 20.72 pct from the previous year. Sales of personal computers also dropped 20.07 pct while digital cameras slid 16.05 pct, the association said. NEBA consists of 30 large retailers of home appliances. |
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| To: mishedlo who wrote (26298) | 3/25/2005 4:54:42 AM | | From: Haim R. Branisteanu | | | | Euro could collapse in reforms, warns King
By Malcolm Moore, Economics Correspondent (Filed: 25/03/2005)
The Governor of the Bank of England yesterday warned that the euro could collapse in the wake of reforms to the European stability and growth pact.
"In the long run, it is difficult to imagine monetary union being successful without genuine cohesive fiscal discipline," said Mervyn King to a select committee of MPs.
"It is clear that my Central Banking colleagues are seriously concerned, indeed dismayed would be a better word, at this turn of events. The [European] Finance Ministers have driven a coach and horses through the stability and growth pact," he said, stressing that fiscal discipline was crucial to the single currency. "Whatever words you might use to describe those changes to the pact, it is not discipline," he added.
The pact states that members of the European Union cannot have a budget deficit of more than 3pc of GDP. However, since more than half the members of the eurozone have breached the rules since the euro was launched, the pact was redesigned this week with several loopholes.
The watered-down rules will exclude the costs of German reunification, French rearmament, Polish peacekeeping and an array of public investment. The move was immediately attacked by the Bundesbank, which said the exemptions would "crucially weaken the pact".
The Bundesbank also emphasised the risk to the euro, saying: "The possibility of a deterioration in the underlying conditions for the single European monetary policy is a matter of serious concern."
The collective budget deficit across the European Union is currently 2.9pc, and one analyst said that since European interest rates are set collectively, fiscal rules should also be set collectively. "I would only be concerned if the budget deficit was 5pc to 6pc of European GDP," he said.
Simon Hayley, at Capital Economics, said: "The death of the pact will not lead to fiscal anarchy. The pact had already lost all credibility. Replacing it with a watered-down version merely recognises this fact."
The Governor did give his approval to the UK Budget, delivered by the Chancellor last week. He told the MPs, who were questioning members of the Monetary Policy Committee on the February Inflation Report, that the Chancellor would meet his fiscal rules.
He said: "It looks very much as if in a year's time that the Golden Rule will be met." He also said that he did not doubt that the Golden Rule would be met over the course of the next economic cycle, based on the Treasury's projections. "I have no reason to doubt those numbers," he said.
The Treasury is forecasting that the economy will grow at 3pc-3½pc this year, and 2½-3pc next year. By contrast, the Bank of England expects that growth will be lower than 3pc until 2006, under its central projection.
telegraph.co.uk |
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| To: mishedlo who wrote (26287) | 3/25/2005 6:16:00 AM | | From: redfish | | | | The seemingly inevitable how-to guide inspired by Donald Trump - "Trump Strategies for Real Estate" (John Wiley & Sons) by George Ross, one of Mr. Trump's assistants on his hit show "The Apprentice" - is a strong seller, already hitting No. 177 on Amazon.com's list in March, less than a month after its release.
At the Nexus party in Brooklyn, Steve Nguyen, Ms. Romano's fiancé, said he was heeding Mr. Trump's advice. "He says buy, buy, buy," Dr. Nguyen said.
Trump is building a 55 story condo in downtown Tampa that won't be completed for another two years, proving that talking your book isn't limited to stock market gurus. |
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| To: mishedlo who wrote (26287) | 3/25/2005 7:07:47 AM | | From: MoneyPenny | | | | I live in this fantasy land. SW Florida seems to believe that we are immune from any financial difficulty. I have a friend that is positive that real estate values will appreciate 20% a year for the next 10 years as Baby Boomers move to Florida.
I say that if that many people move here, it will be a highly undesirable place to live. I thought the hurricanes that hit last season would dampen this raw enthusiasm. Not so. In Punta Gorda, the hardest hit by hurricanes, people are lining up to buy new development hoping for a 100% appreciation in two years. I think the realtors spike their coffee.
Highrise condo development in the backward Fort Myers is selling out pre-development with about 90% investors/10% actual buyers. I think this is a recipe for disaster and perhaps an opportunity for me to buy a nice penthouse in a few years.
I stand in amazement but I am enjoying the amazing increase in my interior design business. I have never seen anything like it in my long career (37 years).
MP |
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| To: MoneyPenny who wrote (26301) | 3/25/2005 8:05:45 AM | | From: JakeStraw | | | | | I go down to Sanibel Island like 4 times a year and am still amazed by all the building in the Ft. Myers area. I honestly don't see it slowing down anytime soon... |
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| To: mishedlo who wrote (26298) | 3/25/2005 8:47:13 AM | | From: Haim R. Branisteanu | | | | Traders are increasing bets on the extent to which U.S. rates will rise. Eurodollar futures contracts show traders and investors expect the Fed to raise its benchmark rate to at least 4 percent by the end of 2005, from 2.75 percent, after the central bank on March 23 noted ``pressures on inflation have picked up.''
The December Eurodollar futures contract yielded 4.305 percent today, up from 3.905 percent a month ago. It settles at a three-month lending rate that has averaged about 0.21 percentage point higher than the Fed's target rate in the past 10 years.
`Take a Break'
Gains in the dollar may be limited by speculation the rally will prompt some investors to bet the advance is excessive.
A technical indicator suggested the dollar is poised to fall. Its 10-day relative strength index against the euro fell to 29.70, and against the yen was at 68.08. The index is a gauge of momentum in a given period, and a level above 70 or below 30 suggests a change in direction.
``The long weekend in Europe and the U.S. will keep the market quiet, making it more likely the dollar will take a break from its rally,'' said Tetsu Aikawa, a currency sales manager in Tokyo at UFJ Bank Ltd. ``The run-up has been fast enough to trigger concerns of a pause.''
The dollar may drop to 105.80 yen and $1.2990 per euro today, he said.
`Disagree'
Citigroup Inc., the biggest financial services company, advised selling the dollar against the euro as it contested the view that the Fed is more likely to raise interest rates in larger increments this year.
``We disagree with this interpretation of the Fed's statement and disagree with the view that a 50 basis point tightening is more likely,'' Steven Saywell, chief currency strategist in London at Citigroup, wrote yesterday in a report. The bank expects the dollar to drop to $1.3670 per euro.
The Fed's benchmark rate exceeds the European Central Bank's key rate by three quarters of a point, the biggest gap since March 2001. The next U.S. policy-setting meeting is May 3.
`Dollar Supportive'
The U.S. next week is forecast to say the economy added more than 200,000 non-farm jobs for a second month in March, according to a Bloomberg survey of economists.
U.S. consumer prices rose 0.4 percent in February, the most in four months and more than the 0.3 percent median forecast in a Bloomberg survey of economists, the government said on March 23. A Labor Department report the day before showed wholesale prices rose for a second month in February.
``The dollar's upward trend is going to continue,'' said Toru Umemoto, market analyst in Tokyo at Keio University's Global Security Research Center. ``Yields are rising, and the U.S. economy is strengthening. All of this is dollar supportive.''
bloomberg.com |
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