Japan’s economy set to show 7 straight growth quarters

Japan’s quarter-on-quarter growth of 0.3 percent is expected after a revised 0.6 percent rise in the second quarter. (Reuters)
Updated 10 November 2017
0

Japan’s economy set to show 7 straight growth quarters

TOKYO: Japan’s economy was expected have grown for a seventh straight quarter in July-September, a period of unbroken expansion last seen between 1999 and 2001, a Reuters poll found on Friday.
Gross domestic product (GDP) is expected to have grown at an annualized rate of 1.3 percent in the third quarter, the poll of 20 analysts showed.
That result would mark a seventh straight growth quarter, the longest period of expansion since an eight-quarter run from April-June 1999 to January-March 2001.
Quarter-on-quarter growth of 0.3 percent is expected after a revised 0.6 percent rise in the second quarter.
“Consumer spending was seen stalling in July-September but export growth likely supported solid economic expansion,” said Atsushi Takeda, chief economist at Itochu Economic Research Institute.
The poll found that private consumption, which accounts for roughly 60 percent of GDP, probably slipped 0.4 percent in the third quarter, the first fall in seven quarters.
External demand — or exports minus imports — was seen contributing 0.4 percentage point to growth, the poll found, after it subtracted 0.3 percentage point from GDP growth in April-June.
Capital spending was seen rising 0.3 percent in the third quarter, growing for a fourth straight quarter, following a 0.5 percent rise the previous quarter.
“We forecast the economy will continue to grow as both domestic and external demand pick up thanks to the global economic recovery and a softer yen,” said Hidenobu Tokuda, senior economist at Mizuho Research Institute.
“But there is downside risk from the Chinese economy and we also need to closely monitor geopolitical risk from the North Korean situation,” he said.
The Cabinet Office will announce the GDP data on November 15 at 850am.
The Bank of Japan’s corporate goods price index (CGPI), which measures the prices companies charge each other for goods and services, was seen likely to have risen an annual 3.1 percent in October, the poll found.
Such a result would mark a 10th straight rising month and the fastest annual rate of increase since October 2008, excluding the effect of a sales tax hike in 2014.
The central bank will release the CGPI data on November 13 at 850am Japan Time.


BlackRock boss remains bullish on Saudi Arabian market

Updated 17 July 2018
0

BlackRock boss remains bullish on Saudi Arabian market

LONDON: Larry Fink, the head of the world’s biggest asset manager, is confident about the future of the Saudi Arabian market following a visit to the
Kingdom.
Fink, CEO of BlackRock, said that he was “more excited about the opportunity” in Saudi Arabia following his visit.
He added that he would not be surprised to see an initial public offering of Saudi Aramco in some form next year, perhaps on the Saudi stock market, known as the Tadawul.
He was speaking on the day Black Rock reported smaller demand for its funds on Monday, and its stock dropped despite a better-than-expected quarterly profit. Net income attributable to the company rose to $1.07 billion in the second quarter, up more than 25 percent from $854 million a year earlier, Reuters reported.
The company faced a difficult market during the quarter, reporting an industrywide slowdown in the demand for exchange-traded funds (ETFs).
The BlackRock CEO said he would not be surprised to see an initial public offering of Saudi Aramco in some form next year.