Low interest rates are harder for US and Japanese pension stocks

Following the loss of Japanese pension stocks, the United States also follow the footsteps.
On Monday, Calpers, the largest public sector pension fund in the United States, reported a return on the 2015-2016 fiscal year, setting a new low since the financial crisis, largely because of stock losses.
Karls manages 1.7 million US dollars in California public sector staff pension, about $ 295 billion, while the fiscal year returns were only 0.6%, failing to reach 7.5% of the investment target.
This is the second consecutive year that the Fund’s investment income is not up to standard, after a fiscal year earnings of 2.4%.
In this regard, Hoover Institute senior researcher and Stanford Business School professor of finance, Joshua & middot; Lal has questioned the government for the high return on pension investment assumptions are too optimistic.
However, the National Public Employees Retirement System Committee head of Hank & middot; Kim said that the reason why the pension fund return rate set to 7.5%, is entirely based on historical experience.
A study by Cliffwater, an investment adviser, shows that the average annual rate of return on US public pensions is as high as 7.3 percent in the decade of 2005-2014.

About a week ago, Morgan Stanley data show that one of the world’s largest pension fund – Japan government pension investment fund (GPIF) held by the stock market value is also a serious shrink.
In the last fiscal year ended March 31, GPIF book losses of about 5 trillion yen, the first quarter of the new fiscal year, that is, the second quarter of this year and lost 4.4 trillion yen, the total loss close to
$ 100 billion.
As of June, Japan’s East China Index has fallen 19% during the year.
While the GPIF position is 25% investment in Japanese stocks, 35% of the investment in Japanese government bonds.
As the stock in the total investment in the weight of the decline, GPIF or will be forced to further increase the stock purchase, in order to achieve the goal of equity investment.

Pensions to invest in the stock market goes back to 2014, the Japanese government will be worth 1.4 trillion yen in the huge government pension fund from the bonds out, switch to stock.
As optimistic expectations of Abe’s policy will be successful, since the end of 2012 the policy has boosted Japan’s benchmark stock index doubled.
But not two years, Abe economics on the fragmented, the Japanese economy from the recession to the negligible growth, the stock market fell more than the recent high of nearly 1 / 4.

In fact, whether the United States or Japan, pension investment
Losses are related to low interest rates.
At present, many countries around the world interest rates are deviated from the normal track, many countries to implement ultra-low interest rates, some countries even into the negative interest rate era.
Interest rates deviate from the normal track, leading to a sharp rise in stock and risk asset prices, which means that the return on these overvalued assets will fall in the future.
As a result, the fixed income of the pension is even more difficult.

Japanese stock market slump, largely because the Bank of Japan to implement a negative interest rate policy, which makes the yen a substantial appreciation.
Right now, the Fed hike slowly, Morgan Stanley predicted that by 2018 the Fed will not raise interest rates.
If so, the United States will remain low interest rates for a long time.


G20 should promote the IMF share adjustment to improve the emerging markets, the proportion of developing countries

Daily economic journalist Zhu Dandan “In the first half of China’s economic operation is generally stable, steady progress, economic growth in a reasonable range.”
“July 24, the People’s Bank of China Governor Zhou Xiaochuan in 2016, the third time the Group of Twenty (G20) finance ministers and central bank governors meeting” said.

“Daily Economic News” reporter noted that Zhou Xiaochuan further revealed that the People’s Bank of China is studying the issue of Related companies Stocks trend Gao Xingxing Bank of China Bank of Communications SDR bond possibilities.
Zhang Jun, director of the International Division of the People’s Bank of China, also said that an international development agency was preparing to issue the first SDR-denominated bonds, and the details were still being discussed at the end of the meeting.

G20 should promote the IMF share adjustment

face the United Kingdom and the United States and other complex and severe domestic and foreign environment, the Chinese economy under the new normal “smooth forward” and “rdquo ;.
Data from the National Bureau of Statistics show that the first half of the gross domestic product 34.06 trillion yuan, calculated at comparable prices, an increase of 6.7%.
July 24, Zhou Xiaochuan pointed out that the first half of China’s economic operation in general stable, steady progress, economic growth in a reasonable range, prices and employment situation remained stable.
The Chinese government to maintain the stability and continuity of macroeconomic policies, while efforts to promote the supply side of the structural reform, which is to solve the structural problems such as excess capacity of the United States, the United States,
only way.
The first half of the year, thanks to the support of the previous national steady growth policy, China’s economic operation is generally stable, some indicators better than expected…….
However, the driving force of economic growth is still weak, the economic stability of the foundation is fragile, especially the slowdown in private investment, the Northeast region and other areas of economic transformation difficulties and high prices and other issues worthy of special attention.
In addition to mentioning the Chinese economy, Zhou Xiaochuan pointed out that the G20 should continue to promote the IMF 15th share of the total inspection, to further increase the share of emerging markets and developing countries accounted for.

“Looking forward to the 2017 annual meeting to complete the 15th total share of the total inspection, including the formation of a new share of the formula.
We reiterate that share adjustment should increase the share of viable economies in order to reflect its relative position in the world economy, and as a result, the share of emerging markets and developing countries is overall.
“The meeting issued a bulletin yesterday.

is the possibility of research and issue of SDR bonds

On Friday (July 22), the central parity of RMB against the US dollar rose sharply 203 points, ending the previous continuous decline in the situation.
July 24, Zhou Xiaochuan pointed out that the current RMB exchange rate on a basket of currencies to maintain a basic stability, market confidence and further solid.
After a period of adaptation, market participants have a deeper understanding of the RMB exchange rate formation mechanism.
Zhou Xiaochuan said that China will continue to improve the market supply and demand in the future, with reference to a basket of currencies to adjust the RMB exchange rate formation mechanism, and constantly improve the policy rules and transparency, and strengthen communication with the market.

Bank of China Financial Research Center to the “Daily Economic News” reporter pointed out that despite the devaluation of the RMB pressure, but the depreciation rate is basically controllable.
The future of the RMB exchange rate “reference exchange rate” + & ldquo; reference to a basket of currency exchange rate “double reference pricing model, the two-way floating rate of RMB exchange rate will be more obvious, the exchange rate flexibility will be further enhanced, the yuan against a basket of currency exchange rate is expected
Maintain basic stability.

It is noteworthy that Zhou Xiaochuan also revealed that the use of SDR should be expanded, and the People’s Bank has released the foreign exchange reserves, international balance of payments and international investment position data with SDR as the reporting currency, and is studying the possibility of issuing SDR bonds.
“In the first half of this year,” G20 International Financial Architecture High-level Seminar “last week, Ogawa has said that China will use the US dollar and SDR as foreign exchange reserve data
Of the reported currency, and actively study the issuance of SDR-rated bonds in China.
Zhou Xiaochuan pointed out that SDR helps to enhance the stability and toughness of the international monetary system.
The role of enhanced SDR is a long-term work that can begin to take practical measures to actively expand the use of SDR.
11,209,209,129,129,129,129,129 and its customers, SDR-denominated bonds offer diversified investment products that reduce exchange rate and interest rate risk, which is particularly attractive to the initial investors.
As the market continues to advance, it will attract more private sector participation, thus developing the SDR bond market.
G20 should continue to promote the IMF 15th total share of the total inspection, to further increase the share of emerging markets and developing countries accounted for…….
Should continue to promote sovereign bonds into the enhanced terms of the contract, welcomed the Paris Club members will be extended to more emerging creditors.

Finance Minister Lou Jiwei:

At present, some companies in China’s debt rate is relatively high, individual enterprises have also occurred breach of contract, but did not break the systemic or regional debt risk.
Public finance needs to be involved only if there is a systemic or regional debt risk that will cause huge losses to the economy.

financial money is the taxpayer’s money, before the intervention, the need to assess the rescue measures on the taxpayer caused by the loss of how much, that is, can not lightly intervene.
But it does not mean that the government will not act.

The government should strengthen the macro and prudent management according to the law, to prevent risks, especially for those who can not fall “financial institutions.
Because, when they have catastrophic risk, in fact, kidnapped the government, for economic security, the government had to pay for them.
Therefore, to guard against early, this is also a kind of as.


Technology sector to lead the US stocks

Nasdaq Composite Index closed at 5110.05 on the 26th, a record high in the year.
Since June 27, the overall market since the rebound, the technology sector led the market, the S & P 500 Information Technology Index rose 12%, or among the top ten industry sector.
Market participants expect the second half of the performance of the technology sector is expected to stabilize rebound, with the market risk sentiment strong, the plate is expected to continue good performance.

technology sector to re-lead

Since March 2009 US stocks bull market since the start, the technology sector has been favored by investors.
Whether it is the overall performance over the past seven years, or in the first half of last year, US stocks frequently hit a record high in the process, the technology sector are the market leader in the rise.
However, in the first half of this year, investors worried about the slowdown in global economic growth intensified, the market risk aversion strong, once the market darling technology stocks uncharacteristically, the overall performance of flat.

However, since the end of June the US stock market rebound and refresh the new high process, the technology sector once again force, to re-lead the leader.
Statistics show that since the June 27 hit the low since the S & P 500 index rose 8.4%, mainly to measure the performance of the Nasdaq 100 index rose 11.2%, the Nasdaq Composite Index rose 11%.
industry sector, the S & P 500 information technology index to 11.62% increase in the top ten sector sector, followed by the financial index, or more than 10%.
Other cyclical plate also outstanding performance, raw materials, industrial index rose nearly 10%.

subdivision plate, the performance of the chip stocks is particularly prominent.
Since the end of June, the Philadelphia Semiconductor Index has rebounded by nearly 15% from the stock price of semiconductor listed companies, rising 33% since mid-February, and the current point has surpassed the high of June 1 last year.
Year high
Among the major stocks, Seagate Technology rose 55.5% in the past month, while Western data rose 27.4%, NVIDIA up 25% and Qualcomm up 20%.

some leading technology companies also continued last year’s strong performance.
Facebook shares rose 16% this year, Amazon shares rose 9%.

This week the main leading technology stocks will be released earnings.
In addition to Apple, Facebook will be released on Wednesday, Amazon, Google parent company Alphabet will be released on Thursday.
Analysts expect the overall earnings in the second quarter of the technology sector will decline 3.9% year on year, but the second half to next year will gradually improve, is expected to 2017 earnings growth will increase to nearly 10%, the overall income may decline in 2016 2.6% next year
An increase of 4.4%.
Analysts believe that the recent technological strength of the plate, mainly the United States announced better than expected economic data, to promote market risk sentiment warming, which makes the economy sensitive to the technology sector to gain momentum.

In addition, the valuation of the technology sector is relatively low, but also make it attractive.
The S & P 500 is trading at 20.4x 20x in 2016 and 18.5x in 2017, although it is 19.2x and 17x P / E compared to the S & P 500, but below the NPL, retail, and energy
Such as the level of price-earnings ratio plate.
For the high growth of the technology sector, such a significant level of valuation is low.

JP Morgan Chase US stock strategists believe that low volatility and sustainability of income industries such as consumer goods, telecommunications and utilities, as opposed to health care and technology and other value or growth plate has been “thoroughly” expensive.
In view of the uncertainty of the US election is digested and the Fed is expected to “very dove” and the US stock sector positions will be reversed, the necessary consumer goods and other defensive plate will face the risk.

Central Asset Managing Director and Fund Manager Yang Yande said in an interview with China Securities Journal, US stocks over the past 18 months kept high consolidation, which experienced such as the Federal Reserve interest rate uncertainty, the devaluation of the renminbi and the British & ldquo;
“Referendum and many other events, but the recent break through the previous high, it is a good sign.
The second half of the market is expected to be more healthy development, the funds will be more to some of the price-earnings ratio is not so high but faster than the defensive plate faster blue-chip enterprises, the market rally will cover the broader, rising opportunities have continued.
Zhang Yande also pointed out that although the Nasdaq Composite Index returned to the level of more than 5,000 points in 1999, but the current heavyweight Facebook, Alphabet, Microsoft and other valuation are more reasonable, the technology sector is not the risk of the bubble.
Now the technology sector has a lot of themes, but whether it is AR \ VR, cloud services or social media, the future will be strong Hengqiang situation, that is, the status of leading enterprises more and more consolidation, “moat” more and more


LINE in the first half turnaround

The instant messaging software service provider on the 27th issued the first public offering (IPO) after the first earnings.
Earnings reported by the advertising business to promote, LINE in the first half of this year to achieve net profit of 2.56 billion yen (about 24.5 million US dollars), reversing the same period last year net loss of 5.3 billion yen performance.
Last quarter revenue of 67.3 billion yen, an increase of 20%.

LINE’s revenue comes mainly from advertising, games, emoticons and electronic stickers.
Results show that the first half of this year, LINE advertising sales increased by 76%; including the game, including content, business revenue fell 5% year on year; including emoticons and electronic stickers, including communications business revenue grew 14.1%.
As of the end of June, LINE global monthly active users reached 220 million, an increase of 4.1%.
In Japan, China Taiwan, Thailand and Indonesia, the four major markets, LINE month active users amounted to 157 million, an increase of 20.8%.

LINE said the company is actively promoting new games, is expected in the third quarter of this year will continue to maintain profitability.

On the 14th and 15th of this month, LINE was listed in New York and Tokyo, Japan.
In the United States issued price of $ 32.84, as of July 26 closing price rose to $ 39.39.
In this IPO, LINE issued 22 million shares of American Depositary Receipt in New York, issued 1,300,000 new shares in Japan, and sold 525 million shares by exercising over-allotment, totaling more than $ 1 billion,
The largest technology industry IPO.


To grab the Asian crude oil customers Saudi Arabia given 10 months to the most ruthless discount efforts

Saudi Arabia has lowered the price of crude oil to the region as the Asian refinery is struggling to cope with a decline in profits and supply of excess dilemmas, with the largest decline in the price of Arabian light crude oil in 10 months.
Saudi Arabian oil company Saudi Arabian oil company (July 30), which will be September’s Arab light crude oil prices down $ 1.30 a barrel, the highest since November last year, the largest reduction, but also exceeded the
Previously the market was widely expected for $ 1.
The new price is $ 1.10 lower than the Asian benchmark Oman / Dubai crude.
In fact, Saudi Aramco will be sent to Asia, all the types of crude oil prices down the whole line.
The biggest discount is the Arabian super light oil, reaching $ 1.60 a barrel.
In contrast, light and ultra-light oil prices to the United States are only down 0.2 US dollars and 0.4 US dollars, medium and heavy oil prices unchanged.
In this regard, Bloomberg quoted New York’s Again Capital LLC partner John Kilduff commented that Saudi Aramco’s price cut is part of the price war for Asian customers, especially for Saudi rivals Iran.

Iran is not only in January after the ban on oil exports lifted the export of crude oil to Asia, Russia also encroach on Saudi Arabia’s share in the Asian market, and even Saudi Arabia’s OPEC “partners”.
Iraq in June for the first time more than Saudi Arabia, India’s largest supplier of crude oil, they grab the customer’s main means is heavy crude oil discount.
John Kilduff also said that, in addition, China’s refineries earlier this year, oil prices are still low at the occasion of the bulk purchase of more crude oil, they must be digested.

Since the end of last year the country in batches open refinery crude oil import qualification, the Chinese private refineries in one fell swoop become a strong rising power of the show.
Wall Street has mentioned that China’s imports of crude oil in April reached 32.58 million tons (about 796 million barrels / day), approaching a record high of 33.1 million tons in December last year, driven by a substantial increase in demand for new refineries.
Large-scale overseas oil poured into China, and even led to the port of Qingdao once the oil tank pick-and-place blockage.

Of course, this is also related to the high profit margins before the summer.
However, now from China to Singapore, and then to South Korea, Asian refining profits are generally declining, refinery operating rate has declined.
Long public information data show that China’s refinery operating rate is now less than 50%, the lowest level in six months.


US stocks science and technology leaders soared to rewrite wealth pattern

1117998871111219982387 Securities Times reporter Wu Jiaming

While Facebook celebrates himself as the fifth largest company in the United States by market capitalization, just after a day and giving the Amazon.
US stocks technology companies share the price of “you catch up with me” behind the company leader of the wealth surge, these technology industry billionaire is heading towards the top position of the global wealth charts.

Facebook’s growth momentum so fast, even the market analysts can not keep up.
In the better than expected second quarter earnings boost, Facebook’s market value last week, more than Berkshire Hathaway, according to market value for the United States the fifth largest company.
Subsequently, Amazon announced the second quarter results show that the company rose 31% revenue, net profit rose 835% to 857 million US dollars, the fifth consecutive quarter to achieve profitability, which is the third consecutive quarter of Amazon to refresh the history of the highest level of profits.
Affected by this, Amazon’s market capitalization on Friday rose to 358 billion US dollars, more than Facebook’s 355.9 billion US dollars, calculated by market value as the fifth largest company in the United States.
At present, Buffett’s Berkshire Hathaway’s market value ranking is further back to seventh.
US stock market value of the top four companies are Apple, Google parent company Alphabet, Microsoft and oil giant Exxon Mobil.

In addition to Facebook and Amazon, Google parent company Alphabet also announced better than expected second quarter results.
These eye-catching performance to stimulate the stock price rise, in turn, look at the founder of these companies & ldquo; personal “also followed the rise.
Bloomberg data show last week Facebook, Amazon and Google parent company Alphabet shares rose, so that the founder of the wealth of a total increase of $ 5.6 billion.
Among them, Alphabet co-founder Larry & middot; Page and Sergei & middot; Brin’s total personal net worth last week increased by $ 2.7 billion.

This year, Facebook founder Zuckerberg’s wealth grew by $ 7.9 billion, and he and Amazon founder Bezuo Si together, is the impact of the global wealth rankings position.
Has always been low-key Bezos recently appeared frequently in the public eye.
Peng Bo billionaire index shows that Bezos recently quietly beyond the “Warren” Warren Buffett, got the throne of the world’s third richest man.
As of last Thursday, Bezos net assets reached $ 65.5 billion, more than Buffett 32 million US dollars.
The two richest men in the top two are the world’s largest clothing retailers, the founder of the Spanish InditexSA Omanio & middot; Otago, its personal wealth of $ 73 billion; Microsoft founder Bill & middot; Gates still
As the world’s richest man, its personal wealth reached 89 billion US dollars.

technology industry billionaire wealth growth, is reshaping Peng Bo billionaire index front-end ranking.
At present, four of the top 10 of the index comes from the technology industry, while at the beginning of 2015 only two people are Bill & Middot; Gates and Oracle founder Ellison.

It is foreseeable that the wealth of these technology leaders may also grow at an alarming rate.
In May, US investment bank Sanford C. Bernstein analyst Carlos Kirjner set Amazon’s target price to $ 1,000.
According to the target price, Bezos’s personal wealth will increase to about $ 86 billion, slightly lower than Bill & Middot; Gates’s current wealth level.


US strong employment data to suppress crude oil prices

crude oil market last week, crude oil prices bottomed out, but the US strong employment data to oil prices under pressure.

In the first two trading days, the market for the excess oil panic continues to intensify, oil prices continued last week continued to fall trend, fell below $ 40 a barrel on Tuesday, but then back to the rally, August 4 international oil prices again
Up $ 42.
Subsequently, the US Labor Department announced that the United States in July the number of new non-farm employment of 25.5 million, far more than economists had expected the average of 185,000 people, the second consecutive month to achieve growth.
Strong US employment data once led the dollar rose, so that oil prices under pressure.

major investment banks that the recent decline in oil prices, the trend will be reversed.
Standard Chartered Bank believes that the recent decline in crude oil prices “lack of fundamental support” on the global crude oil supply surplus increasingly serious fears are overly rendering, such worries lack of data support; the latest single week data show that the United States four
Inventories of large petroleum products were 46.6 million barrels higher than the five-year average, the lowest level since mid-January and 24.7 million barrels lower than the March peak level, while the excess supply of crude oil was 24.7 million lower than the peak level in March
Citizen in a recent report, said the short push to lower oil prices to $ 40 is simply “crazy move” and some of the factors conducive to long bullion will emerge.. Pr.n.
With concerns about high global inventories, oil prices fell below the support level, but demand in some regions, including Nigeria, will continue, and $ 40 a barrel of crude oil prices may trigger demand.

Bank of America Merrill Lynch analysts also believe that the oil market is only a brief bear market.
NEW YORK (Dow Jones) – New York light crude oil futures fell $ 0.13 for the week ended Aug. 5 at $ 41.80 / barrel, down 0.3%.
Brent crude oil futures fell 0.02 US dollars, reported 44.27 US dollars / barrel, down less than 0.1%.
Bloomberg reported that analysts and traders turn to see more crude oil prices next week.
Among the 37 analysts surveyed, more than 18 people (49%), 11 people (30%), watching 8 (21%).

7121998871111219982387 gold market, gold futures closed down sharply on Friday, setting a two-and-a-half day since the largest single-day decline, because the US non-farm employment report in July than expected, which may give the Fed earlier interest rate hike
NEW YORK (Dow Jones) – Gold futures for December delivery fell $ 23 at $ 1344.40 an ounce, down 1.7%.
According to statistics, which hit the gold futures prices since May 24, the largest single-day decline.


The most expensive cemetery: one kilogram of ashes of $ 3 million

According to foreign media reports, last week, the private moon on the company Moon Express (Moon Express) to get the first private lunar month & ldquo; license & rdquo ;.
Today, they announced their own lunar service plan, which will be the ashes to the moon became the most eye-catching project.
If you want to die after the death of the moon, you can focus on the next Moon Express.
However, want to bury the bone in the moon for most people can only be considered a dream, because Moon Express founder and chairman Nawi said, with a kilogram of ashes on the moon will spend 3 million US dollars, which means that,
Ordinary people want to sleep on the moon, at least spend $ 5 million.
If you grow taller, I am afraid you have to spend 8 million dollars.
However, even if the price is so expensive, demand is still high.
Neville said: “There are already a lot of people in the line.
Of course, as the first private lunar company, Moon Express is not to engage in funeral services.
Next year, the company will perform the first lunar mission, when they will release a robot probe on the moon.
The detector is expected to travel 500 meters on the moon and return the HD video to Earth.
In the future, Moon Express will use its own detectors to dig out some of the rare mineral resources on Earth and return it to Earth on the moon.

“After getting the license, we can freely detect the Earth’s eighth continent & mdash; & mdash;
The future of Moon Express will be on the moon to explore new knowledge for the development and progress of the Earth to find new resources for the benefit of all mankind.
“Said Richard Richard, the company’s CEO.

In recent years, the development of the private aviation industry in full swing, Elon Mascus SpaceX and Jeff Bezos blue origin has become one of the best.


British debt down the economic downturn situation difficult to block

The central bank is expected to cut interest rates this year, the Bank of England plans to buy more than 1 billion pounds of government bonds, but the market shortages lead to the Bank of England did not meet the target, indicating that the latest economic stimulus measures ineffective, to the outside world more worried about the
The country’s economic downturn from the EU after the reorganization of the situation is difficult to stop.
This is the Bank of England since the beginning of 2009 to buy public bonds to revitalize the economy, the first time failed to find enough bond sellers to achieve the debt target, which led to the UK bond yields on the 9th have hit a record low.
The market for the Bank of England to provide 11.18 billion pounds over 15 years of British public bonds; and provide a large number of short-term bonds to the central bank to repurchase the previous day’s grand, the formation of a considerable contrast.
Although the target shortage of £ 52 million, this amount compared to the overall size of the purchase of debt only a small part, but the market worried that this means that the Bank of England to stimulate the economic process of buying money to challenge the process, will bring the stimulus effect is not
“Wall Street Journal” quoted Henderson Global Investment Company interest rate research department director Pantel’s view that failed to fully purchase debt to some extent, the Bank of England policy implementation problems, the current market part of the main body in a very cautious state
The Bank of England announced last week to cut interest rates and resume quantitative easing in response to the impact of the British referendum.
9 is the central bank announced the first time since the new stimulus measures to try to buy long-term bonds.
“It is not surprising that the supply itself is not so much,” said Simpson, a UK interest rate strategist at Societe Generale, said to Reuters.
However, due to the higher returns offered by longer-term bonds in the current environment, investors may be reluctant to sell such bonds, and the issuance of such bonds during the summer is also inadequate.
There are critics who question how much incentive monetary policy can provide for further incentives where interest rates are already at record lows.
In the back of the buyback, 20-year British debt yields hit a record low of 1.20%, 30-year British debt yields fell to 1.3621%, the two coupons fell within the days of more than 5 basis points.
5-year and 10-year UK debt yields also hit a record low.
Britain in the “retreat” after the referendum, the economy has shown a downward trend.
According to the British “Financial Times” reported that the British National Economic and Social Research Institute (Niesr) said that the British economy in July contraction, the research model shows that output fell 0.2% in June.
Policy makers, including the UK Treasury, also use the agency’s model.
Niesr estimates that in the three months to July, the UK economy grew 0.3%, slower than the 0.6% gain in the second quarter.
British National Bureau of Statistics recently released data show that in June the British imports of goods and services record, to promote the trade deficit rose to 7-month high.
The growth of oil, chemicals and aircraft imports led to UK imports of £ 48.9 billion in June, bringing the monthly trade deficit to £ 5.1 billion.
These data are mainly related to the economic performance before the British referendum.
In other words, the pound followed by a sharp decline has not yet affected.
In the second quarter, the trade deficit rose to £ 12.5 billion, more than 400 million pounds in the first quarter, doubling the £ 6.2bn over the same period last year.
With the downward pressure, the British authorities may further introduce loose stimulus in the future.
According to the British “The Times” reported on the 9th, the Bank of England Monetary Policy Committee members McCafferty said that if the economic downturn deteriorated, then the interest rate can be further reduced, closer to zero, and quantitative easing can be added.
McAdhen is one of the four external members of the Bank of England’s nine policy members who oppose the increase in the size of the government’s debt-seeking easing program from £ 375 billion at the end of 2012 to £ 435 billion.
He also said in the article that the pound fell in recent months, and the resulting rise in import prices, is expected to lead to CPI growth of more than 2% target at least until 2019 years.
If the UK economy is as bad as expected, most members of the Monetary Policy Committee are expected to cut interest rates again this year to the level of “slightly above zero”.