Bank of Japan puts off big asset buying until January 2014 temporarily reversing the yen’s decline

Today the Bank of Japan gave in to political pressure and raised its inflation target to 2% from 1% as “recommended” by Japan’s new Prime Minister Shinzo Abe. But the bank delayed a huge program ($146.6 billion a month) of asset purchases until January 2014. Today’s market reaction in Tokyo says investors think the delay is very temporary

Why is this market so incredibly confident?

To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...

Growth rate starts cooking again in China

Today the National Bureau of Statistics reported that China’s GDP grew at a 7.9% annual rate in the fourth quarter. That was up from a 7.4% rate in the third quarter. Economists had speculated that China’s economy had bottomed in September and would show a higher growth rate for the rest of 2012 and into 2013. The fourth quarter results brought the growth rate for 2012 to 7.8%.

Drop in initial claims for unemployment not as good as it seems

This morning the Labor Department announced that new applications for unemployment fell by 37,000 to 335,000 in the week ended January 12. That’s the lowest number since initial claims in the week ended January 19, 2008. Unfortunately, as a spokesman for the Bureau of Labor Statistics explained when the data was released, the improvement is likely to be a result of problems in adjusting the data for seasonal effects.