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• Americans feel austerity’s bite as payroll taxes rise
• German job market not prepared for long downturn – Labour Office
• Japan’s Abe Says He’ll Seek ‘Bold Leader’ to Head Central Bank
• Greek Lawmakers Pass Tax Bill Required for EU, IMF Bailout Funds
• Hollande Backs French Labor Deal Allowing Cuts to Wages
• FT: Billions pumped into global equities
• FT: Abe takes first step on path to recovery
• Opinion piece: Abe administration needs to make Japan’s presence felt
• Japan to state 2% inflation target: Abe
• Abe considering tax breaks for firms increasing wages
• The Economist: Can a fiscal and monetary splurge reboot Japan’s recessionary economy?
• What’s your most valued Investment/Trading book?
• Chinese data needs to be good for political purposes
• US Economy Outlook: 2013
• China – Weekend Press
• WSJ: BOJ Likely to Take Easing Steps + China Car Sales to grow in 2013
• Japan – Weekend Politics
• Australia – Weekend Press
• Japan Press – Weekend developments
• US Treasury agrees with ForexLive, won’t mint the coin

Americans feel austerity’s bite as payroll taxes rise Posted: 12 Jan 2013 10:33 PM PST Paychecks across the country have shrunk over the last week due to higher federal tax rates, and workers are already cutting back on spending, which will drag on the economy this year. Nevertheless, for most workers, rich and poor alike, taxes went up on December 31 as a temporary payroll tax cut expired. That cut – a 2 percentage point reduction in a levy that funds Social Security – was put in place two years ago to help the economy… About 160 million workers pay this tax, and the increase will cost the average worker about $700 a year, according to the Tax Policy Center, a Washington think tank. Yeah, raising taxes is great for the struggling US economy (where’s that roll-eyes emoticon?) Americans feel austerity’s bite as payroll taxes rise

German job market not prepared for long downturn – Labour Office Posted: 12 Jan 2013 10:30 PM PST (Reuters) – Germany’s so far robust labour market is not sufficiently prepared for a deep recession but unemployment should not rise above three million on average this year, Labour Office chief Frank-Juergen Weise was quoted as saying on Saturday. German job market not prepared for long downturn – Labour Office

Japan’s Abe Says He’ll Seek ‘Bold Leader’ to Head Central Bank Posted: 12 Jan 2013 10:26 PM PST Abe seeks a "bold policy leader" as the next Bank of Japan … The choice of a successor to Masaaki Shirakawa, whose term ends in April, will be made after consultations with Yale Professor Emeritus Koichi Hamada and others, Abe said today on public broadcaster NHK's "Sunday Debate" program. When’s Bernanke’s term at the Fed finished … ? Japan's Abe Says He'll Seek 'Bold Leader' to Head Central Bank

Greek Lawmakers Pass Tax Bill Required for EU, IMF Bailout Funds Posted: 12 Jan 2013 10:23 PM PST Greek lawmakers passed a tax bill seeking to raise state revenue by 2.3 billion euros ($3.1 billion), part of commitments demanded by international creditors in order to continue to receive further bailout funds. Things move slowly in Greece, but they are moving … Greek Lawmakers Pass Tax Bill Required for EU, IMF Bailout Funds

Hollande Backs French Labor Deal Allowing Cuts to Wages Posted: 12 Jan 2013 10:21 PM PST President Francois Hollande backed an agreement between French business leaders and three out of five national unions that gives employers more flexibility to reduce working time and salaries when the economy slows. Negotiations between business leaders and unions wrapped up last night in Paris, with the CGT and FO refusing to offer their support. "We hope this agreement will be ratified by parliament as soon as possible," Laurence Parisot, head of the Medef business lobby, said in an e-mailed statement. Not a done deal yet.

FT: Billions pumped into global equities Posted: 12 Jan 2013 10:09 PM PST Investors this week poured the most money into equity funds in more than five years, as global shares surged and a compromise deal on the US fiscal cliff boosted confidence. Billions pumped into global equities (FT articles are gated, a news search on the headline may be helpful) Also – Reuters article: In the week ended Wednesday, investors in U.S.-based funds poured $7.53 billion into stock mutual funds while exchange-traded funds investing in equities gained $10.78 billion in new cash, according to data from Thomson Reuters’ Lipper service. The inflow into U.S. stock mutual funds was the biggest since May 2001, and the $18.32 billion aggregate injection of money into equities funds was the biggest since mid-2008.

FT: Abe takes first step on path to recovery Posted: 12 Jan 2013 10:06 PM PST Step one, the prime minister said, was to push for fiscal stimulus of up to Y10tn ($112bn). On Friday …  he did just that, step two – looser monetary policy from the Bank of Japan – is well under way. Hiromasa Yonekura, chairman of Keidanren, the powerful business lobby group, says the latest package was "well-timed" given the current weak conditions. But he urged the government to put Japanese businesses on an "equal footing" with global competitors by rebuilding the national energy policy after the nuclear crisis, and by joining negotiations on the Trans-Pacific Partnership, a free-trade bloc, among other "bold" reforms to the framework of industrial policy. Mr Abe considers such measures to be the third step of his big reflationary push Abe takes first step on path to recovery (FT articles are gated, a news search on the headline may be helpful)

Opinion piece: Abe administration needs to make Japan’s presence felt Posted: 12 Jan 2013 09:59 PM PST Opinion piece published in The Asahi Shimbun from an interview with Robert M. Kimmitt (former U.S. Deputy Secretary of the Treasury). I would say Japan needs to take fundamental steps to increase dynamism in the Japanese economy. start with deregulation in the services area… Second, a more flexible labor market is necessary, third, Japan needs an increased openness to foreign direct investment and trade liberalization. One of the ways to do that would be to make sure that Japan is an active participant in forums such as the G-20, the Organization for Economic Co-operation and Development (OECD), and the Asia-Pacific Economic Cooperation (APEC), and in the Trans-Pacific Partnership negotiations. The TPP will not only help lead to trade liberalization in the Asia-Pacific region, but it will also help bring increased dynamism into the Japanese economy itself.

Japan to state 2% inflation target: Abe Posted: 12 Jan 2013 09:54 PM PST From Kyodo News: Abe said the BOJ’s current goal of 1 percent inflation lacks “strong determination” and that the government and central bank will come up with “a definite goal and write that it will be 2 percent.” Japan to state 2% inflation target: Abe Also – Reuters article: Prime Minister Shinzo Abe said the Bank of Japan (BOJ) must set a 2 percent inflation target and make it a medium-term, not long-term, goal to show markets it was determined to pursue bold monetary easing

Abe considering tax breaks for firms increasing wages Posted: 12 Jan 2013 09:52 PM PST It a headline, at the moment I have no further information/link: Japan gov’t mulls tax breaks for firms increasing wages: Abe

The Economist: Can a fiscal and monetary splurge reboot Japan’s recessionary economy? Posted: 12 Jan 2013 07:57 PM PST on January 10th Mr Abe approved a massive public-spending bonanza, expected to exceed ¥13 trillion ($150 billion)—more than was spent in emergency measures after the 2011 earthquake, and about 2.6% of GDP. It is being accompanied by pressure on the Bank of Japan (BoJ) to print more money to weaken the yen Robert Feldman of Morgan Stanley says that if the money is spent well, on projects like energy-saving technologies, the rewards could be huge, bolstering efficiency and tax revenues. But if the cash is wasted on projects with no economic merit, it will add to a gross public debt without materially boosting output, raising a debt-to-GDP ratio that already exceeds 200%. There’s much more in the article: Keynes, trains and automobiles (Love that headline)

What’s your most valued Investment/Trading book? Posted: 12 Jan 2013 07:48 PM PST What’s your most valued Investment/Trading book? The question was brought to my mind by this post at Business Insider: Jeff Gundlach’s Favorite Investment Book Of All Time

Chinese data needs to be good for political purposes Posted: 12 Jan 2013 07:46 PM PST The Calculated Risk blog again; with a brief point about the Chinese data. It is useful to note that; Yes indeed,Chinese data does need to be good for political purposes, but does that necessarily rule out the possibility that the data is, in fact, good? There has been plenty of stimulus in China in the most recent months. Nomura on China: Expect 8% Year-over-year growth in Q4

US Economy Outlook: 2013 Posted: 12 Jan 2013 07:39 PM PST From the Calculated Risk blog a look at Goldman’s Jan Hatzius’ outlook for the US for the year. McBride starts with two of my favourite words “short excerpts” Goldman’s Hatzius: 10 Questions for 2013

China – Weekend Press Posted: 12 Jan 2013 07:32 PM PST Not so much new delevoplments in China over the weekend (so far), but recaps: China Responds to Japan’s Planned Defense Boost China’s 2012 Foreign Trade Growth Slows to 6.2 Pct December data raises eyebrows Accuracy of surprisingly good trade figures is questioned, amid suspicions of manipulation   Cold winter pushes up mainland inflation The higher-than-expected inflation came after vegetable prices soared 17.5 per cent from November due to the cold weather and difficult transport.

WSJ: BOJ Likely to Take Easing Steps + China Car Sales to grow in 2013 Posted: 12 Jan 2013 07:27 PM PST The Bank of Japan is nearing acceptance of a 2% inflation target being demanded by Prime Minister Shinzo Abe, but a deal has yet to be reached as the central bank wants to ensure that any pact doesn’t force its hand in future policy decisions, people familiar with the negotiations say. With Abe and other members of the new government consistently and persistently applying the blowtorch its not surprising the BOJ is ‘nearing acceptance’ … (Article is Gated – a news search on the headline to this post may turn up something) - Also: China Car Sales Set to Surge in 2013 (Gated – a news search on the headline may turn up something) China’s auto sales are set to grow faster in 2013 on the back of an improving economy

Japan – Weekend Politics Posted: 12 Jan 2013 07:16 PM PST Some more from Japan over the weekend with a focus on domestic and regional politics: Abe huddle with Nippon Ishin duo just on economy? Abe may be seeking to get Nippon Ishin to join forces with his Liberal Democratic Party-New Komeito ruling bloc before or after the July Upper House election.   If you want a friend, get a Facebook page Prime Minister Shinzo Abe … Instead of giving short daily media interviews, he has launched a new Facebook page Abe to strengthen ASEAN ties to contain China’s maritime advances Prime Minister Shinzo Abe will emphasize strengthened economic ties with Vietnam, Thailand and Indonesia next week, but his trip to Southeast Asia will also give him a chance to solidify cooperation against China's maritime advances. I love the graphic accompanying the article:                         China rebukes Japan after both sides’ planes fly near islands

Australia – Weekend Press Posted: 12 Jan 2013 07:07 PM PST First home buyer boost comes with a catch (May be gated) The new round of first home owner incentives, introduced by state governments in the past six months and targeted at new construction, is starting to have an impact.   Growing cabinet push for dole rise The BudgetSurplus is getting further away.   Australian iron ore port to reopen, cyclone threat passes The Australian port of Dampier, which handles close to a fifth of the world's seabourne iron ore trade for resources giant Rio Tinto , will reopen on Saturday after a two-day closure due to a cyclone off the northwest Australian coast. "The cyclone danger has passed and we will be resume ship loading later on Saturday morning," a spokeswoman for the port told Reuters, adding the port had suffered no damage   Australia ranked 3rd most free world economy The score placed Australia among five nations ranked as free, with Hong Kong topping the index for the 19th straight year, followed by Singapore, New Zealand in fourth and Switzerland.

Japan Press – Weekend developments Posted: 12 Jan 2013 05:38 PM PST Parties agree to set lower tax for food The LDP and New Komeito Coalition have agreed on a lower rate consumption taxon food and some other items,  “to help ease the impact of the planned consumption tax hike on low-income households”. Details are messy and still to be agreed to – best to read the article. Amari negative about employment goal in agreement with BOJ Economic revival minister Akira Amari expressed a negative view Saturday about including employment stabilization as a policy goal News during the week was that some sort of employment goal was to be part of the government accord with the BOJ (see this: Jobs for the BOJ) so Amari’s opposite view is curious. See this also (gated) Ruling Coalition Sees Need For Lower Taxes On Food Thats about it for new developments so far this weekend, but there is plenty to recap: Current account deficit second-biggest Cabinet OKs ¥20 trillion stimulus plan Japan hatches 20tr yen recession escape plan ANALYSIS: Sky’s the limit for Abe budget, adding to debt mountain (editorial opinion but good information)

US Treasury agrees with ForexLive, won’t mint the coin Posted: 12 Jan 2013 02:46 PM PST Because its an incredibly stooopid idea. Details from the WSJ.

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