Bob Parker of Credit Suisse spoke to CNBC this morning about the sorry state of the Japanese economy.
- 1:00 The Chinese yuan is 40% undervalued, on a purchasing power parity basis. The yen is severely overvalued against the yuan.
- 1:30 Japanese retail investors will bring their money back home when they lose confidence in the global economy. It’s not just Japanese exporters losing, but deflation in the economy growing.
- 2:00 “Find me today one positive Japanese economic indicator, because I can’t.”
- 4:00 The strength in the euro is not a problem today. Why? German unit labour costs have declined over 10% in the last 10 years, so it’s no problem for Germany, but it is for other states.
- 7:10 Trend U.S. dollar weakness is the fundamental problem facing currency markets, and it is going to continue.
Business Insider Emails & Alerts
Site highlights each day to your inbox.