The Japanese celebrated their Olympic win with a boosted index and a falling YEN in anticipation of inward investment in the build up to the 2020 games in Tokyo and the £5Bn that is expected to be spent on local infrastructure. This should help in the governments continued effort to boost the countrys growth and fend off the constant threat of deflation.
Closer to home the UK’s cost of borrowing has risen above 3% for the first time in over 2 years. On the face of it this seems like a vote of no confidence, such as with the struggling economies of the Euro zone, but this is actually a pat on the back as the markets aknowledge the efforts of the UK government to turn the economy around and that improved gorwth figures point to fiscal measures stopping in the near future. Across the pond is very much the same story as US employment figures improved by nearly 170,000 which takes it back to 2008 figures of 7.4%.
The dependence of Germany on the Eurozone was highlighted this week as figures show that exports for July fell 1.1% against an expected rise of 0.7% which was blammed on a slow down in orders from their Eurozone neighbours.
Meanwhile the BRICS (Brazil, Russia, India, China and South Africa), who have had a torred time over the past few weeks as money flowed back to the established economies have announced they are to set up a $100bn to protect against any future financial shocks.
