Libya: No-fly zone has been put in place over Libya, says US joint Chiefs of Staff chairman
A no fly-zone has now been put in place over Libya, Admiral Mike Mullen, chairman of the US Jouint Chiefs of Staff, said on NBC’s “Meet the Press” yesterday. Qatar will take part in the action against Libya, Prime Minister Sheikh Hamad Jasim Al Thani was cited as saying yesterday by the country’s state-run news agency. Secretary of State Hillary Clinton called Arab participation in talks between the powers on Saturday in Paris ‘extraordinarily important’ and said more can be expected from the Middle East states. United Nations Secretary General Ban Ki-moon said he had been to Libya’s prime minister and foreign minister, but had not had any recent contact with Gaddafi. (Malaysian Reserve)
Japan: BOJ reluctance to finance Japan’s borrowing set to be tested
The Bank of Japan’s reluctance to fund government borrowing is set to be tested by the economy’s need for stimulus in the aftermath of the 11 March earthquake. Prime Minister Naoto Kan’s bill for clearing wreckage and rebuilding roads, housing and utilities is forecast at JPY5trn (USD62bn) or higher by Nomura Holdings Inc., Morgan Stanley and Barclays Capital. With debt issuance poised to rise, BOJ Governor Masaaki Shirakawa warned last week the bank must avoid underwriting debt to retain its credibility.(Bloomberg)
Japan: Yen undermined as G-7 combines with deficits after post-war high
The Kobe earthquake in 1995 sparked a 20% yen surge in three months. After the latest disaster, world leaders are uniting to ensure a stronger currency doesn’t derail efforts to rebuild the economy as Japanese officials flood the financial system with cash. While Japan’s currency rose 3.74% against the dollar in the six days after the March 11 temblor, it is poised to drop in 2011 by the most in six years, Bloomberg surveys of economists show. Derivatives traders cut wagers on further gains 18 March after Group of Seven nations followed Japan’s lead and sold yen as it reached a post-World War II high of 76.25 versus the dollar.(Bloomberg)
Japan: Sony, Nissan to Resume Operations at Plants Idled by Quake
Sony Corp. and Nissan Motor Co. said they’re preparing to resume production at some factories as Japanese manufacturers seek to recover from the strongest earthquake on record to jolt the world’s third-largest economy. Sony plans to resume a plant that makes rechargeable batteries in Tochigi prefecture, northern Japan, from 22 March, Hiroshi Okubo, a Tokyo-based spokesman, said today. Nissan, Japan’s second-largest automaker, said in a statement it will begin the resumption of operations at six factories tomorrow and some vehicle assembly from 25 March. (Bloomberg)
UK: Inflation rate climbed to 4.2% in February
UK inflation probably accelerated to the fastest pace since October 2008 in February, which may sharpen the divide among Bank of England policy makers on whether to raise interest rates to tame price pressures. Consumer prices rose 4.2% from a year earlier compared with a 4% increase in January, according to the median forecast of 32 economists in a Bloomberg News survey. The Office for National Statistics in London will publish the data at 9:30 a.m. on 22 March.(Bloomberg)
US: Treasuries advance on Japan’s radiation concern, Libyan turmoil
Treasuries gained, with the 10-year note yield touching the lowest level this year, as Japan’s nuclear crisis and Libyan political turmoil encouraged demand for the safety of U.S. government debt. Yields on two-year notes dropped for a fifth week in the longest stretch of decreases since August as a surge in the yen following Japan’s earthquake led Group of Seven nations to intervene in currency markets. The Federal Reserve said the US recovery is gaining strength before a report next week forecast to show the economy expanded faster than earlier estimated.(Bloomberg)
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