Japan's new fiscal plan likely to reduce downside risks to economic growth

Jul 30, 2015 04:32 am UTC| Commentary Economy

The downside risks to Japans economic growth are likely decreased with the new revised fiscal plan, and the chance for a complete exit from deflation increased. The relief effect having proved ineffective, it was...

A weaker BRL and the need to tolerate higher inflation

Jul 30, 2015 04:29 am UTC| Commentary

A worsening in the sovereigns external outlook should imply a weaker currency and a higher tolerance for heightened inflation in an environment in which Brazils growth picture looks uncertain.As of now, FX and local rates...

Daily Economic Outlook: 30th July, 2015

Jul 30, 2015 04:24 am UTC| Commentary

The data focus for the morning is likely to centre on European inflation trends, with Spanish and German data providing partial colour in advance of the aggregate Eurozone release on Friday. While Spanish inflation is...

Effect on ratings with S&P Brazil outlook

Jul 30, 2015 04:24 am UTC| Commentary

SPs revised outlook on the Brazil sovereign, and a potential rating downgrade, affects most Brazilian corporates, but not all. SP rates most non-sovereign entities at the lower of each credits local currency rating and the...

A soft fiscal “guideline” in line with achieving Japan economic growth rate target

Jul 30, 2015 04:02 am UTC| Commentary

The primary objective is to exit Japan deflation as soon as possible, while achieving a primary balance surplus is only secondary. Against this backdrop, the government has set up a soft fiscal guideline which is in line...

Japan fiscal deficit likely to improve substantially with revised mid-to-long-term forecast

Jul 30, 2015 03:58 am UTC| Commentary

The new Japans fiscal forecast shows a significant upward revision in the governments projection of the fiscal balance. Japans primary deficit is expected to improve to -JPY6.2tn, or -1.0% of GDP by FY2020. This is a...

Implications of S&P’s outlook change on Brazil assets

Jul 30, 2015 03:49 am UTC| Commentary

Following the SP recent change in the Brazils sovereign rating (BBB-) outlook to negative, the expected rating trajectory and potential consequences of Brazil losing IG status, from a sovereign credit, corporate credit,...