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Bank of Japan unexpectedly expanded its asset- purchase fund...

Wednesday, September 19, 2012 4:03 AM GMT

       Good Morning  ,


§  Another one to ease... Bank of Japan unexpectedly expanded its asset- purchase fund by JPY 10 trillion today. USDJPY rose a a consequence to a one month high at 79.21 and Nikkei hit a 4 month high today also. EMG- and commodity currencies remained fairly firm, while EURUSD rallied from 1.3034 in line with a firmer EURJPY.

§  Stocks: Nikkei +1.70 %, Hang Seng +1.24 %, Shanghai Composite +0.48 %, Dow Jones +0.09 %, S+P500 -0.13 %

§  Luxembourg's Prime Minister Juncker said he's for "thorough preparation" for centralized bank supervision in the EU, in interview with Bavarian television. * Said he's "close" to opinion of German Fin Min Schaeuble that supervisor shouldn't directly oversee 6000 banks * Spain will face "very hard conditions" for bailout

§  The Bank of Japan eased monetary policy on Wednesday by boosting asset purchases by double the usual amount, as slowing global demand and mounting tensions with China have hurt chances of a near-term recovery in the export-reliant economy. The central bank increased its asset buying and loan programme, currently its key monetary easing tool, by 10 trillion yen ($127 billion) to 80 trillion yen, with the increase earmarked for purchases of government bonds and treasury discount bills. "We expect today's decision ... will help ensure that Japan's economy resumes a sustainable growth path with price stability," the BOJ said in a statement.

§  Richmond Federal Reserve President Jeffrey Lacker said the shock from the credit crisis may impede efforts by the central bank to quickly bring down unemployment even with the use of record stimulus.

§  Federal Reserve Bank of New York President William C. Dudley said the central bank's new stimulus is vital for boosting "unacceptably slow" improvement in economic growth.

§  Foreign direct investment (FDI) into China fell for the third consecutive month in August as global economic woes continued to weigh heavily.

§  China Data Recap Period Survey Actual Prior * Actual FDI yoy Aug -5.8 % -1.4 % -8.7 %

§  China is likely to grapple with weaker external demand during the rest of 2012 due to the slowing global economy, Shen Danyang, spokesman for the Ministry of Commerce, said on Wednesday.

§  Zhou Xiaochuan says the central bank will keep the continuity and stability of monetary policies and at the same time make adjustments more forward-looking, targeted and effective, Zhou writes in a commentary published in the Financial News. * External environment affecting China's growth are "grim" * Downward pressure on China economy are still "relatively large" * Zhou wrote the article in anticipation of the 18th party congress * Yuan's flexibility has significantly strengthened and is gradually at a reasonable, balanced level * Yuan's use in adjusting balanced of international payments is starting to show


§  An official from the Chinese Academy of International Trade, which is a branch of the commerce ministry, Jin Baisong said China should invoke the "security exception" rule under WTO to punish Japan unless Tokyo reverses its decision to nationalise the disputed Senkaku/Diaoyu inlands.

§  Australia Data Recap                Period      Survey      Actual     Prior  

§  * Westpac Leading Index mom   Jul              -             0.4 %     0.5 %

§  Christopher Kent, the RBA's assistant governor for economics, answered questions from the audience at a conference in Canberra: * "It's true to say that it appears as if the exchange rate is somewhat overvalued but it's hard to be too definitive" * Effect of a strong currency on tradables inflation likely to wane * Forecasting exchange rates is difficult, a 'mug's game' * Economic adjustmment smoother than in previous resources booms

§  Standard & Poor's Ratings Services said that it has affirmed its unsolicited 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on the Commonwealth of Australia. The outlook remains stable.

§  New Zealand Data Recap    Period    Survey    Actual      Prior

§  * Current Account Balance     Q2      -1.620b   -1.310b  -1.072b

§  * Curr. Acc. to GDP Ratio       Q3        -5.2 %     -4.9 %    -4.5 % rev



US Housing Starts Aug


Us Building Permits Aug


US Existing Home Sales Aug


Fed George


Fed Bernanke meets with Senate Finance Committee privately


Eurozone Construction Output Jul


Bank of England Minutes


Switzerland ZEW Sep


Riksbank Ingves


Riksbank Wickman-Parak


Have a nice day !

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