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JapanUnveilsItsWorstCurrentAccountDeficitEver
Any day, month, quarter, year, decade now; Goldman Sachs’ mythical J-Curve will arise from the cinder-strewn ashes of Japan’s current account. Japanese bond markets are rallying and JPY is weakening modestly after Abe’s increasingly disapproved-of government announced the worst balance ofpaymentscurrentaccountdeficitonrecord. At JPY -592bn vs expectations of JPY -36bbn and its 5th miss in the last 7 months as economists and analysts and pretend portfolio managers just keep getting it wrong. The tradedeficitplunged once again, missedexpectations once againandprintedatthe 3rd worstdeficiteverwiththe 16th monthlytradedeficitin a row. But apart from that, the Nikkei is -1000 points from the 2013 close highs and apart from rumors of a big bank selling JPY to defend 103, the trend ain’t Abe’s friend for now…
Charts: Bloomberg