Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (30030)	3/15/1999 8:17:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116764

Record trade surplus in Japan The Japanese government wants a weak yen Japan's trade surplus hit a new record in January, as the collapse of the Japanese economy continues to cause imports to plummet. The surplus is rising despite a fall in Japanese exports to its main markets in the USA and Asia. The January trade surplus rose by 72% compared to one year ago to ¥807bn ($6.8bn), while the merchandise trade surplus was even higher at ¥927bn ($7.8bn). Economists warned that the figures, while indicative of the serious condition in the Japanese domestic economy, demonstrate that Japan cannot rely on exports to pull itself out of recession. "We cannot expect external demand to support the economy," said Koichi Ono of the Daiwa Institute of Research. The Japanese economy is in its worst recession for fifty years. In 1998 GDP (gross domestic product) fell by 2.8%. Growing trade tensions The growing Japanese trade surplus, and the record US trade deficit, are adding to protectionist pressures in both countries. The US has threatened to introduce punitive sanctions against Japanese exports of steel which it says are being sold at below market prices. It also may try and force Japan to open its markets to foreign goods, using the broad powers in Section 301 of the US trade legislation, which has just been reactivated. Japan, in turn, has said it will not negotiate on steel imports, and has joined the EU in challenging Section 301 at the World Trade Organisation. Yen reverses course The strong trade figures gave the currency markets a jolt as they wondered whether the Japanese government's policy of a weak yen was sustainable in the long run. The yen strengthened to ¥118 to the dollar, its best level in several weeks, after the news was announced. But Japanese officials continued to talk down the currency. Eisuke Sakakibara, Japan's "Mr Yen" and vice-finance minister for international affairs, again warned that "excessive yen strength was undesirable." And the Governor of the Bank of Japan, Masura Hayami, also said that he was prepared to loosen monetary policy even further to boost domestic growth. Japan already has the world's lowest interest rates, with a base rate of only 0.15%. By mid-day the yen had fallen back to 118.53, still stronger than its Friday close. news.bbc.co.uk