Posts Tagged ‘ inflation ’

UK economy recovering as unemployment falls

UK economy recovering as unemployment falls.

The Office for National Statistics in London announced today that in June, UK unemployment claims fell at their fastest pace in three years, adding to evidence that the economic recovery is indeed gaining momentum.

Whilst Economists had forecast a decline of 8,000 unemployment claims, data showed that there was a 21,200 drop in June, from a month earlier, 1.48 million – the biggest drop since June 2010.

Moreover, as measured by International Labour Organisation standards, unemployment fell 57,000 to 2.51 million in the three months through May. The UK unemployment rate was however unchanged at 7.8%.

Experts commented that the figures provide a further boost to Prime Minister David Cameron, whose Conservative Party has gained in opinion polls as the economy improves, as the general election is now less than two years away.

Economist Philip Shaw said that, “The labour market numbers are positive and reflect the favorable part of the economy in the first half”. However, he then added that with pay growth running so far below inflation, there is ‘still a question mark over the recovery’.

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Breaking News – Bank Of Japan looking to increase inflation figures !

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The Yen Hitting 100 against $ – In the next 24 hours ?

I have been looking at the Yen fluctuating and slightly strengthen against the USD ahead of data forecast to show U.S. retail sales stalled in March, adding to
signs the Federal Reserve will need to maintain stimulus measures. But I am taking a view that FED might look at reducing liquidity . 

Also the BOJ looking at increasing the inflation forecast !They are so bullish on

I am going against the trend and think the USD will strengthen with the report .

As always only time will say .

Lets lock and load .

Tony Evans , Tokyo American Club

Bloomberg -Dollar Drops Before Retail Sales Data; Yen Halts Decline to 100

“Abenomics ” the winners & loosers

for every action there is always an equal and opposite reaction

Newton said that in 1687 and I can say that that is true today of the effect of “Abenomics” .Don’t get me wrong it’s exactly what Japan needs to kick start its economy but this will effect Japan’s biggest and also faster growing demography the “retired or silver saver as they known here ”

To understand this you need to understand inflation & deflation :
•inflation – increase in prices ( money has less purchasing power”
•deflation -prices fall ( money has more purchasing power )

So in a deflation environment which Japan has been for in the last 20 years “cash was king ” elderly saw their income power increase every year , with Abenomics this would end and this purchasing power would fall . The retired in Japan have assets in excess of $7 trillion ( that’s nearly as much as the GDP of UK ,Germany & half of France !)

The winners will be the stock market , forex and in the Japan Economy .The losers will the retires and people on fixed income ,

Personally I hope Abenomics will succeed Japan needs it, but it all comes down the “silver savers” will they allow it?

No one is bigger than the market forces , but the silver savers is quiet a force,

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