News
Market Watch | Bank of Japan expands lending, holds rates
The Bank of Japan expanded its special lending facility for growth industries on Tuesday, while keeping its key policy rate steady as expected and slightly tweaking upward its assessment of the country’s economy.
Financial Times | Inflation in China hits 34-month high
Consumer inflation in China rose to ites highest level in nearly three years in May, up 5.5 per cent from a year earlier, according to government figures released on Tuesday.
Market Watch | China tightens bank-reserve rules after CPI data
China on Tuesday lifted the proportion of funds banks must set aside as reserves by a half-point effective from June 20, marking the sixth such increase so far this year. The move reinforces its efforts to contain inflation, which is running at a nearly three-year high.
Bloomberg | Treasuries Fall as U.S. Retail Sales Dropped Last Month Less Than Forecast
Treasuries fell, pushing the 10-year note yield to the highest level in almost two weeks, as retail sales dropped in May less than economists forecast and producer prices rose more than projected.
Market Watch | Retail sales, producer prices in spotlight
Retail sales fell for the first time in 11 months, while producer prices climbed 0.2%.
CNN: Money | QE3? Don't bet on it just yet
Investors will be watching for any clues about what the central bank plans to do now that its controversial bond purchasing program is about to wind down at the end of the month -- just as the economy has hit a rough patch.
USA Today | Survey: Economists lower outlook, warn against Fed easing
The economists are lowering their forecasts for job creation and economic growth for the rest of this year, mainly because of high oil prices. A batch of bleak data over the past month has suggested that the 2-year-old economic recovery is slowing.
Econ Comments
Minyanville | Exporters to the US Lost the War on Deflation
Loose money pulled the prices of producer goods higher worldwide; goods exported to the US faced downward price pressures from competition and American economic struggles.
Blogs
Financial Times: A-List | The myth of China’s unbalanced growth
China's announcement today that inflation in May hit a three-year high of 5.5 per cent and industrial expansion exceeded expectations will buttress those who see an inevitable economic crash coming. But even those who remain confident that a soft ladning is possible seem to agree that China's economic growth is unbalanced.
