Kuroda’s Yen Problem Isn’t Going Away No Matter What The Fed Does, Goldman Says
The Bank of Japan's yen problem isn't likely to go away no matter what the Fed does.
That's the message implicit in Goldman's call to stick with the safe-haven at least through Jackson Hole.
The yen is near its strongest levels since March of 2018 (barring the January flash event) and that's weighed on Japanese equities. The Topix this week wiped out its YTD gains and the Nikkei has woefully underperformed its developed market benchmark counterparts.
The problem for the BoJ is a familiar on
Meanwhile, as dark clouds spread:
Chancellor Angela Merkel and Finance Minister Olaf Scholz would be willing to increase debt in order to offset a tax revenue shortfall due to an economic slump, the magazine said, citing sources in the chancellery and the finance ministry that it did not identify by name.
https://heisenbergreport.com/2019/08/16/hope-floats-as-germany-seen-abandoning-black-zero-fiscal-straightjacket-in-recession/
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