Wednesday November 19, 2014

// November 17th, 2014 // Daily News

Japan shocks as economy slips into recession

Japan’s economy is in technical recession after gross domestic product (GDP) shrank in the third quarter, defying expectations for growth and paving the way for Prime Minister Shinzo Abe to delay a second sales tax hike.
The world’s third-largest economy contracted an annualized 1.6 percent in the July-September quarter, data showed on Monday, compared with a Reuters forecast for a 2.1 percent gain. The economy contracted a revised 7.3 percent in the second quarter.
On a quarter-on-quarter basis, the economy shrank 0.4 percent in the third quarter, worse than the consensus for a 0.5 percent growth.
Private consumption, which accounts for about 60 percent of the economy, rose a smaller than expected 0.4 percent from the previous quarter, a sign that an increase in Japan’s sales tax to 8 percent from 5 percent in April continued to take a toll.
Dollar-yen jumped to new seven-year highs on the news, hitting 117.04 at one point, levels not seen since October 2007. Japan’s Nikkei 225 closed nearly 3 percent lower.
“The first estimate of the GDP is usually very off the reality, especially we’re lacking the import component from the corporate statistics to see the capex, and today’s number in the capex was a big drag. So, we have to wait to see what the second estimate is but first impression of the result today is shockingly weak for the economy,” Yoshito Sakakibara, executive director of investment research at JP Morgan.
The third-quarter GDP print has been highly anticipated after Abe said he will look would look at the data when deciding whether to press ahead with a second increase in the sales tax to 10 percent in October next year, as part of a plan to curb Japan’s huge public debt, the worst among advanced nations.
April’s hike sent the economy into a tailspin as consumers shut their wallets, and rendered the Bank of Japan’s (BOJ) goal of 2 percent inflation by next year ever more remote.
The BOJ last month shocked markets by expanding its already massive stimulus in an effort to re-energize a fragile recovery and stoke inflation.
“This is absolutely not a situation in which we should be debating an increase in the consumption tax,” said Etsuro Honda, a college professor and economic adviser to Abe, told Reuters on Monday. “Debate needs to focus on how to support the Japanese economy.”
According to Izumi Devalier, Japan Economist with HSBC, an decision could come as soon as Monday.

Today’s Inspiration

What to Do When Trouble Comes

by Joyce Meyer – posted November 17, 2014

Fight the good fight of the faith.
—Ephesians 4:1-2

Sooner or later we all have some trouble in life.We all have some trials and some tribulations. Everybody goes through times of testing. And not every storm shows up in the forecast. Some days we can wake up and think everything is going to be great. Before that day is over, we may be tested by all kinds of trouble we were not expecting.

Trouble is part of life, so we simply have to be ready for it. We need to have a planned response to trouble, because it is more difficult to get strong after trouble comes. It is better to be prepared by staying strong.

The first thing you need to do when trouble comes is pray, “God, help me stay emotionally stable.” Do not let your emotions overwhelm you. The next thing you need to do is trust God. The instant that fear rises up, pray.

Stay emotionally stable, trust God, and pray. Then while you are waiting for God to answer, simply keep doing good. Keep your commitments. Do not stop serving the Lord just because you have a problem. The greatest time in the world to keep your commitments to God is in the midst of difficulty and adversity. When the devil sees that trials and tribulations won’t stop you, he will stop troubling you for a while.

To be prepared for the next time you find yourself in a difficult situation, practice saying, “I am going to be faithful to God, and God is going to give me double for my trouble. Satan, you thought you were going to hurt me, but I am going to get a double blessing, because I am one who diligently seeks the Lord.”

Comments are closed.