I keep hearing that the US economy is weak and that Japan is weakening as well. Thats what I hear when I tune into Bloomberg at night, yet the markets only show strength. I guess this is just made up.
Japan's Machine Orders Fall 4.5%, Undermining Growth (Update5) By Jason Clenfield May 15 (Bloomberg) -- Japan's machinery orders fell unexpectedly in March and companies said the slump will deepen, undermining growth in the world's second-largest economy. Orders dropped 4.5 percent from a month earlier after declining a revised 4.9 percent in February, the Cabinet Office said today in Tokyo. The median estimate of 38 economists surveyed by Bloomberg News was for a 1.5 percent increase. The report also shows companies expect orders to plunge 11.8 percent this quarter, weakening the central bank's case for raising interest rates, the lowest among major economies. NEC Electronics Corp., Japan's third-largest chipmaker, said yesterday it plans to reduce capital investment by 30 percent. ``Today's data cast dark clouds over the state of capital expenditure,'' said Masaki Fukui, a senior economist at Mizuho Corporate Bank Ltd. ``On every count, machine orders were bad.'' The yen traded at 120.30 per dollar at 3:33 p.m. in Tokyo compared with 120.38 before the report was published. The Nikkei 225 Stock Average fell 0.9 percent, led by Fanuc Ltd., the world's largest maker of industrial robots. Japan's economic growth probably slowed in the first quarter as investment cooled in anticipation of waning demand in the U.S. The world's second-largest economy expanded an annualized 2.7 percent in the three months ended March 31, half the rate of the previous three months, according to the median estimate of 36 economists surveyed by Bloomberg. Bank of Japan The government releases its gross domestic product report on May 17, the same day the Bank of Japan decides interest-rate policy. Governor Toshihiko Fukui and his policy board colleagues will hold the key rate at 0.5 percent at the end of the two-day meeting, according to all 49 economists asked by Bloomberg. Companies expect orders to decline the most in 20 years in the three months ending June 30, after they dropped 0.7 percent in the first quarter, according to today's report. The numbers exclude orders made by the government and those for shipping and utilities. Economic and Fiscal Policy Minister Hiroko Ota said the outlook for machinery orders is ``somewhat worrisome.'' The Cabinet Office downgraded its assessment of the orders for the first time in six months, and described them as ``weak'' for the first time since November 2004. Still, Cabinet Office spokesman Itsushi Tachi said companies tend to be conservative in their forecasts at the start of the fiscal year, and actual orders are usually stronger. In 2006, companies forecast a 2.5 percent drop in orders for the three months ending June before boosting them 8.9 percent. Conservative Spending Tokyo Electron Ltd., the world's second-largest supplier of chip-making equipment, said last week sales of machines used to make flat-panel displays will probably fall by a third this year because of a glut of the devices. Rival Nikon Corp. predicted shipments of machines that burn circuits on glass substrate will fall by half. ``Companies are becoming more uncertain about the outlook and that's prompting them to be more conservative in their spending plans,'' said Takeshi Minami, an economist at Norinchukin Research Institute Ltd. in Tokyo, who predicted orders would drop. ``Should a slowdown in capital spending intensify that could prompt the bank to delay raising rates.'' Orders for manufacturing equipment fell 7.5 percent from a month earlier, the Cabinet Office said, while those made by non- manufacturers declined 7 percent. From a year earlier, orders declined 5.8 percent, the government said. Economists expected a 2.1 percent gain. Tankan Survey The drop in orders came even as companies plan to step up investment in the year ending March 31. The Bank of Japan's Tankan business survey last month showed the nation's largest manufacturers plan to increase spending 2.5 percent this fiscal year. Service companies said they'll boost outlays 3.1 percent. ``I don't see any reason to worry about a slump in capital investment because interest rates are so low,'' Tomoko Fujii, a senior economist and strategist at Bank of America N.A. in Tokyo, said before today's report. ``But because the pace of investment is already so high, it may moderate.''
Its a bull market, goes up on bullish news, goes up on bearish news. Destroys those who think they are smarter through their analysis of the economy or even better, technical indicators, snicker, snicker.
While that story may seem negative regarding the japan orders it was somewhat expected and has had no affect on the US markets. It isn't anything worth worrying about.
I'm still waiting to see a trade call posted by you big mouth !!! I've put my balls on the line with my calls so were are your trade threads? Your nothing but a big mouth A D D troll and everyone can easily see that. Keep posting though cause I need the laughs.