09-21-2016, 10:59 PM
One of the biggest spots was the global imbalance of current accounts, according to HSBC Chief Economist Janet Henry. The imbalance from a world where some countries were hoarding and others were spending too freely led to malinvestment and ultimately bubbles, according to Henry. The worrying issue that faces the world now, Henry said in a note to clients, is that these imbalances are growing once again. "Just under a decade ago, the global savings glut was widely blamed for the misallocation of resources that led to bubbles, busts and ultimately the global financial crisis," wrote Henry. "The fact that global imbalances widened again in 2015 and that in dollar terms they will be close to record highs this year poses risks for both debtor and creditor countries."
Current account 'global imbalances' financial crisis growing again - Business Insider
These surpluses have built up to nearly historic levels for a few reasons, said Henry. Weak internal demand in countries with current-account surpluses means those countries' citizens are under-consuming and thus saving too much money. Additionally, the savings are being invested outside of the country. "Running persistent current account surpluses implies that these economies are constantly saving more than they are investing, preferring to invest those savings overseas," said Henry in the note. "In other words, they are building up a large net international investment position: something countries with aging populations (including Japan, Germany, China and South Korea) can argue is necessary to sustain living standards."
Current account 'global imbalances' financial crisis growing again - Business Insider
Investors will want to see whether the BOJ is willing to push rates even lower despite fears that negative rates actually encourage cash hoarding instead of spending, while also undermining pension funds, long-term savers and the business models of banks and insurance firms. If the BOJ does move further into negative territory, it could move to offset the pernicious effects through a range of measures, including negative-rate loans to banks and stronger guidance on just how far into negative territory rates can go, wrote analysts at DBS Bank in Singapore.
4 things to know about the Bank of Japan’s policy meeting - MarketWatch
T-Mobile Chief Technology Officer Neville Ray laid out his vision for the carrier's move into 5G, which it's making in a big way. Working with Nokia, Ericsson and Samsung, T-Mobile was able to show off speeds of 12 gigabits per second. That's more than three times as fast as the trials Verizon conducted back in February. Just to put these speeds into perspective, Verizon's 5G trials alone represented a connection that was several hundred times faster than today's LTE and three and a half times faster than Google's superfast Fiber internet service.
T-Mobile's 5G speed is mind-bogglingly faster than Verizon - CNET
Indonesia’s crackdown on illegal fishing -- with the public spectacle of seized boats blown to smithereens -- may have sparked tensions with China, but the country’s fisheries minister says it has led to a significant drop in overfishing. The rejuvenation of fishing stocks will help Indonesia’s economy as other growth drivers falter, Maritime Affairs and Fisheries Minister Susi Pudjiastuti said Thursday in an interview in Washington, DC. Growth is under pressure and set to be closer to the lower end of the central bank’s 4.9 percent to 5.3 percent target this year.
Blowing Up Boats Sets Indonesia’s Scarce Fish Swimming Again - Bloomberg