This global economic ‘canary in the coal mine’ hasn’t looked this sick since the Great Recession

South Korea’s exports dropped by a huge 10.9% in dollar terms between May 2014 and May 2015, the biggest annual decline since the depths of the Great Recession in August 2009.

South Korean exports are a huge deal, and several economists view this figure as a global economic “canary in a coal mine.” Continue reading

Veteran fears ‘beginning of the end’ for Japan as bond market buckles

Yields on 10-year Japanese bonds (JGBs) have doubled in a month and spiked dramatically to 1pc on Thursday, triggering a 7.3pc crash in the Nikkei stock index. It was the biggest one-day fall since the tsunami two years ago, comparable with wild moves seen at the height of the Asian crisis in 1998.

Richard Koo from Nomura, an expert on Japan’s Lost Decade, said the sell-off in recent days has shown that the BoJ may not be able to hold down yields “no matter how many bonds it buys”. This could lead to a “loss of faith in the Japanese government” and the “beginning of the end” for its economy, if handled badly. Continue reading