The U.S. needs to end itspolitical gridlock in order to avert the so-called fiscal cliff that is jeopardizing a “fragile”recovery in the global economy, Australian Treasurer Wayne Swan said.
“Without action by Congress, the consequences would be very grave,” Swan said in his e-mailed weekly note yesterday. “The world cannot afford to see a continuation of the gridlock that has bedeviled the U.S. political system in recent years.”
President Barack Obama , claiming a mandate from voters after his Nov. 6 re-election, faces opposition over his call foran immediate tax-cut extension for people earning less than$250,000 and insistence that top earners pay more.
The U.S. faces $1.2 trillion in mandated spending reductions and tax boosts over a decade starting Jan. 1 should Congress fail to agree to reduce theU.S. deficit, which totaled$1.09 trillion in fiscal 2012.
Obama has offered no public concessions to House Speaker John Boehner , who has cited public support for the re-elected House Republican majority for hisstance of backing no increases in tax rates. Obama and Boehner will meet at the White House Nov. 16, along with HouseDemocratic Leader Nancy Pelosi , Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell .
Swan, who held discussions with Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben S. Bernanke in Washington last week, called for the Democrats and the Republicans to work together to avoid the cliff.
“Congress must heed President Obama’s call to work together to find common ground and get the U.S. budget back on asustainable long-term track while also continuing to support jobsand economic growth,” Swan said.
The president wants to letGeorge W. Bush-era tax cuts lapse on income of individuals above$200,000 and of married couples above $250,000. That would push the top tax rate to 39.6 percent from 35 percent.
The Senate, controlled by Democrats, and the House, controlled by Republicans, have each passed one-year extensions of their own proposals. The policies preferred by Democrats would lead to about $58 billion in higher taxes on top earners in 2013.
Concern about the impact of a potential political stalemate over the fiscal cliff has already had an impact on global markets. On Nov. 10, the euro slid the most in four months versus the yen on concernthe U.S. budget showdown will push the world’s biggest economy into recession and Greece will struggle for more rescue funds.
The European Commissionon Nov. 7 forecast that the17- nation euro economy will expand 0.1 percent in2013, down from a May forecast of 1 percent. It cut the estimate for Germany, Europe’s largesteconomy, to 0.8 percent from 1.7 percent.
The Congressional BudgetOffice has said the U.S. economy would slow by as much as 0.5 percent next year if Congress fails to prevent measures to reduce the deficit from kicking in on Jan. 1.
While Australia , the world’s 12th-largest economy, has shown resilience to the global slowdown by expanding at an annual pace of about4 percent in the first half of the year, Swan said the lack of a political compromise over the fiscalcliff would threaten all economies.
“The impact could stretch far beyond the U.S., striking a severe blow to the fragile global recovery,” Swan said. “No one should underestimatethe urgency of averting this kind of dire scenario.”
To contact the reporter onthis story: Jason Scott in Perth at jscott14@bloomberg.net
To contact the editor responsible for this story: Paul Tighe at ptighe@bloomberg.net
Tuesday, 13 November 2012
Cyprus Central Bank urges bailout deal by December
Cyprus'Central Bank chief says "it's very important" to sign a bailout agreement with potential creditors by next month in order to calm jittery investors.
Panicos Demetriades says investment firm PIMCO and auditors Deloitte will come up with a preliminary figure toward the end of this month, or early December, on how much money the country's ailing banks will need to recover from their huge exposure to Greece.
Demetriades told private TV station Sigma Tuesday that this would help bridge a disagreement between Cypriot authorities and officials from the European Commission, the European Central Bank and the International Monetary Fund over the banks' actual needs.
Cyprus, which would become the fourth euro country to be bailed out, is thought to need between (EURO)11-17 billion ($14-21.6 billion).
Panicos Demetriades says investment firm PIMCO and auditors Deloitte will come up with a preliminary figure toward the end of this month, or early December, on how much money the country's ailing banks will need to recover from their huge exposure to Greece.
Demetriades told private TV station Sigma Tuesday that this would help bridge a disagreement between Cypriot authorities and officials from the European Commission, the European Central Bank and the International Monetary Fund over the banks' actual needs.
Cyprus, which would become the fourth euro country to be bailed out, is thought to need between (EURO)11-17 billion ($14-21.6 billion).
Fuel and Tuition Costs push Inflation in UK
Annual consumer price inflation jumped to 2.7 percent in October from 2.2percent the previous month,according to official figures released Tuesday - dampening prospects that the Bank of England will move to stimulate the economy in the short term, at least.
The data from the Office for National Statistics reflected increases in university tuition fees and in food prices but did not take into account some of the latest increases in energy bills, which look set to push the headline inflation figure up yet higher in coming months.
Inflation remains an Achillesheel of the British economy.
Unlike its neighbors inside the euro, Britain saw its currency fall significantly onworld markets after the financial crisis, only to import inflation as the exchange rate pushed up the prices of non-British goods.
Rising commodity prices and increases in the value-added tax, a sales tax, have also played their part in pushing up British inflation, which hit a peak of 5.2 percent in September.
The inflation data complicatethe picture for the Bank of England, which has cut interest rates to a record lowof 0.5 percent and spent £375 billion, or $593 billion,on purchases of financial assets to try to stimulate anemic growth. Last week the bank decided to keep rates and the asset-buying program, known as quantitative easing, on hold.
The rise in inflation is likely to strengthen the hand of members of the Bank of England's monetary policy committee who are resisting more stimulus, according to a note from Steven Bryce, European economics analyst at Credit Suisse.
The data from the Office for National Statistics reflected increases in university tuition fees and in food prices but did not take into account some of the latest increases in energy bills, which look set to push the headline inflation figure up yet higher in coming months.
Inflation remains an Achillesheel of the British economy.
Unlike its neighbors inside the euro, Britain saw its currency fall significantly onworld markets after the financial crisis, only to import inflation as the exchange rate pushed up the prices of non-British goods.
Rising commodity prices and increases in the value-added tax, a sales tax, have also played their part in pushing up British inflation, which hit a peak of 5.2 percent in September.
The inflation data complicatethe picture for the Bank of England, which has cut interest rates to a record lowof 0.5 percent and spent £375 billion, or $593 billion,on purchases of financial assets to try to stimulate anemic growth. Last week the bank decided to keep rates and the asset-buying program, known as quantitative easing, on hold.
The rise in inflation is likely to strengthen the hand of members of the Bank of England's monetary policy committee who are resisting more stimulus, according to a note from Steven Bryce, European economics analyst at Credit Suisse.
Canada's economic outlook getting brighter, OECD says
The outlook for the economyhas brightened somewhat for Canada and two countries critical to Canadian exporters, according to the Organization for Economic Co-operation and Development.
The Paris-based global economic organization said Monday that its composite leading indicator points to stabilizing growth in Canada,as well as in the United States and China — two economies that impact Canadian exports.
Index ticks higher
The OECD did not issue growth projections, but the new leading indicator reading for Canada shows a small rise of 0.02 percentagepoints in September, after going unchanged in August and dropping slightly in theprevious three months.
For the U.S., Canada's biggest export market by far,the index rose one-tenth of a point, while China's steep decline appears to have been arrested.
Canadian policy-makers have noted they were becoming more optimistic that the U.S. finally appears poised for a more sustained recovery and have been encouraged by the recent pickup in home prices and home construction south of the border.
The organization also said data from United Kingdom and Brazil point to a pickup in growth and that there were tentative signs of economic stabilization emerging in Italy.
Despite the bright spots, the overall finding of the OECD's index, which is designed to anticipate turning points in economic activity, is that economies in many major industrialized countries remains soft.
European slowdown
"The (leading indicators) for Japan, Germany, France and the euro area as a whole continue to point to weak growth," the report states, adding that is also true for India and Russia,
The Paris-based global economic organization said Monday that its composite leading indicator points to stabilizing growth in Canada,as well as in the United States and China — two economies that impact Canadian exports.
Index ticks higher
The OECD did not issue growth projections, but the new leading indicator reading for Canada shows a small rise of 0.02 percentagepoints in September, after going unchanged in August and dropping slightly in theprevious three months.
For the U.S., Canada's biggest export market by far,the index rose one-tenth of a point, while China's steep decline appears to have been arrested.
Canadian policy-makers have noted they were becoming more optimistic that the U.S. finally appears poised for a more sustained recovery and have been encouraged by the recent pickup in home prices and home construction south of the border.
The organization also said data from United Kingdom and Brazil point to a pickup in growth and that there were tentative signs of economic stabilization emerging in Italy.
Despite the bright spots, the overall finding of the OECD's index, which is designed to anticipate turning points in economic activity, is that economies in many major industrialized countries remains soft.
European slowdown
"The (leading indicators) for Japan, Germany, France and the euro area as a whole continue to point to weak growth," the report states, adding that is also true for India and Russia,
Flying high results Emirates' first-half profit up 104pc
DUBAI'S Emirates airline says it posted a 104 per cent surge in net profits in the first six months of thecurrent financial year thanks to rising passenger numbers.
"In the first half of the 2012-13 fiscal year, Emirates net profit is 1.7 billion dirhams ($A448 million), up 104 per cent from 836 milliondirhams," the carrier said in a statement.
The announcement came hours after an engine problem forced an Emirates A380 superjumbo to turn back to Sydney shortly after taking off.
The government-owned airline said it had carried 18.7 million passengers since April 1, up 15.4 per cent compared with the same period last year.
Its volume of cargo was up by more than 16 per cent, the airline said, pointing out that it was a"significant growth against the market trend".
Emirates posted revenues of 35.42 billion dirhams, up 17.3 per cent from the corresponding period last year.
The group as a whole, which includesDnata travel services, generated revenues amounting to 38.245 billion dirhams, with net profits hitting 2.1 billion dirhams.
"The Emirates Group half-year performanceis the result of hard work and our drive to stay on course and continue to grow despite the precarious marketplace," said chairman and chief executive Sheikh Ahmed bin Saeed al-Maktoum.
"We have continued to invest in the infrastructure of bothEmirates and Dnata and it continues to pay off."
Meanwhile, the pilot of the Dubai-bound Emirates plane carrying 380 passengers decided to turn back shortly after take-off on Sunday night due to an engine problem aspassengers reported abright orange flash and loud bang.
An Emirates spokesman told AFP the decision was a"precaution" and"there were no flamesor smoke".
Emirates is the largestsingle customer of Airbus' A380 and Boeing's 777 widebody aircraft.
Considered the world's fastest growing carrier, it hasa fleet of 183 aircraftserving 126 destinations in 74 countries.
"In the first half of the 2012-13 fiscal year, Emirates net profit is 1.7 billion dirhams ($A448 million), up 104 per cent from 836 milliondirhams," the carrier said in a statement.
The announcement came hours after an engine problem forced an Emirates A380 superjumbo to turn back to Sydney shortly after taking off.
The government-owned airline said it had carried 18.7 million passengers since April 1, up 15.4 per cent compared with the same period last year.
Its volume of cargo was up by more than 16 per cent, the airline said, pointing out that it was a"significant growth against the market trend".
Emirates posted revenues of 35.42 billion dirhams, up 17.3 per cent from the corresponding period last year.
The group as a whole, which includesDnata travel services, generated revenues amounting to 38.245 billion dirhams, with net profits hitting 2.1 billion dirhams.
"The Emirates Group half-year performanceis the result of hard work and our drive to stay on course and continue to grow despite the precarious marketplace," said chairman and chief executive Sheikh Ahmed bin Saeed al-Maktoum.
"We have continued to invest in the infrastructure of bothEmirates and Dnata and it continues to pay off."
Meanwhile, the pilot of the Dubai-bound Emirates plane carrying 380 passengers decided to turn back shortly after take-off on Sunday night due to an engine problem aspassengers reported abright orange flash and loud bang.
An Emirates spokesman told AFP the decision was a"precaution" and"there were no flamesor smoke".
Emirates is the largestsingle customer of Airbus' A380 and Boeing's 777 widebody aircraft.
Considered the world's fastest growing carrier, it hasa fleet of 183 aircraftserving 126 destinations in 74 countries.
Monday, 12 November 2012
US will overtake Saudi Arabia as the world's biggest oil producer
The US will overtake Saudi Arabia as the world's biggestoil producer "by around 2020", an International Energy Agency (IEA) report has said.
The IEA said the reason for this was the big growth and development in the US of extracting oil from shale rock.
This has enabled the US to gain significantly more extractable oil resources.
As a result, the IEA predicts the US will become "all but self-sufficient" in its energy needs by around 2035.
The US shale oil industry hasgrown significantly in recent years.
It extracts oil from the ground using a method called fracking - pumping down a mixture of sand, water and chemicals at high pressure.
The industry says the method is safe, but critics sayit could cause earthquakes and pollute water sources.
The IEA predicts that the US will be producing 11.1 million barrels per day by 2020, compared with 10.6 million from Saudi Arabia.
Currently the US imports about 20% of its total energyneeds.
The IEA also expects that theUS will overtake Russia as theword's biggest gas producerby 2015, again thanks to fracking, which can also be used to extract natural gas.
It warns that the big growth in US oil and gas production could have significant geopolitical implications, as it may make the US less concerned about the MiddleEast.
The IEA said the reason for this was the big growth and development in the US of extracting oil from shale rock.
This has enabled the US to gain significantly more extractable oil resources.
As a result, the IEA predicts the US will become "all but self-sufficient" in its energy needs by around 2035.
The US shale oil industry hasgrown significantly in recent years.
It extracts oil from the ground using a method called fracking - pumping down a mixture of sand, water and chemicals at high pressure.
The industry says the method is safe, but critics sayit could cause earthquakes and pollute water sources.
The IEA predicts that the US will be producing 11.1 million barrels per day by 2020, compared with 10.6 million from Saudi Arabia.
Currently the US imports about 20% of its total energyneeds.
The IEA also expects that theUS will overtake Russia as theword's biggest gas producerby 2015, again thanks to fracking, which can also be used to extract natural gas.
It warns that the big growth in US oil and gas production could have significant geopolitical implications, as it may make the US less concerned about the MiddleEast.
Morgan Stanley has sued a former employee
US financial firm Morgan Stanley has sued a former employee convicted for insider trading scheme in order to recover $33m, which it claims to have paid to the US Securities and Exchange Commission (SEC) to settle the civil case associated with the fraudulent activities.
The lender has filed a case with the Manhattan federal court, and sought recovery of the amount from the ex-FrontPoint Partners hedge fund manager Joseph"Chip" Skowron, reported Reuters.
Additionally, the bank sought for unspecified compensation and punitive damages.
In August 2008, Skowron acknowledged of being guilty for trading the stock ofHuman Genome Sciences after receiving non-public information from the biotech company's consultant.
The bank in the complaint claimed that it defended themanager based on the facts provided by the accused that he had not breached the regulation.
The US bank, which purchased FrontPoint in 2006, wanted to recover approximately $45m from the hedge fund manager, but in a March ruling, a judge said that it cannot recover the payment made to the SEC.
Instead, Skowron was ordered to pay $10.2m as compensation to the bank.
The lender has filed a case with the Manhattan federal court, and sought recovery of the amount from the ex-FrontPoint Partners hedge fund manager Joseph"Chip" Skowron, reported Reuters.
Additionally, the bank sought for unspecified compensation and punitive damages.
In August 2008, Skowron acknowledged of being guilty for trading the stock ofHuman Genome Sciences after receiving non-public information from the biotech company's consultant.
The bank in the complaint claimed that it defended themanager based on the facts provided by the accused that he had not breached the regulation.
The US bank, which purchased FrontPoint in 2006, wanted to recover approximately $45m from the hedge fund manager, but in a March ruling, a judge said that it cannot recover the payment made to the SEC.
Instead, Skowron was ordered to pay $10.2m as compensation to the bank.
Leucadia to Buy Jefferies in$3.6 Billion Deal
The Leucadia National Corporation said on Mondaythat it would buy the Jefferies Group in a deal valued at about $3.6 billion.
Shareholders of Jefferies will receive 0.81 of a Leucadia share for each of their shares, the announcement said. That represents a 24 percent premium to the closing price of Jefferies on Friday.
Leucadia, a conglomerate that has been likened to a"baby Berkshire Hathaway" because of the wide range of its holdings, already ownsabout 28.6 percent of Jefferies. After the deal closes, Jefferies shareholders will own 35.3 percent of the combined company.
The deal will give Jefferies adeep-pocketed owner as it continues to build out a full-service investment bank. The firm has sought toraise its profile in businesses like mergers advisory in partto provide a counterbalanceto its core business of trading stocks and bonds.
The firm's stock price has outperformed those of larger rivals like Goldman Sachs and Morgan Stanley over the last five years, though all three banks havestruggled since the onset of the financial crisis.
Jefferies survived questions about its holdings in European debt last year, quickly selling off government bonds in an effort to assuage market fears.
Richard B. Handler, chairman and chief executive of Jefferies, will become Leucadia's chief. Joseph S. Steinberg, Leucadia's president and co-founder, will become chairman of the combined company. Ian M. Cumming, Leucadia's other co-founderand its current chairman and chief executive, will retire but remain a director.
"Having known Joe and Ianfor over two decades, this transaction represents the realization of a personal dream for me," Mr. Handlersaid in a statement. "I am honored with the trust and confidence Ian and Joe are demonstrating by allowing us to carry on their life's work."
Shareholders of Jefferies will receive 0.81 of a Leucadia share for each of their shares, the announcement said. That represents a 24 percent premium to the closing price of Jefferies on Friday.
Leucadia, a conglomerate that has been likened to a"baby Berkshire Hathaway" because of the wide range of its holdings, already ownsabout 28.6 percent of Jefferies. After the deal closes, Jefferies shareholders will own 35.3 percent of the combined company.
The deal will give Jefferies adeep-pocketed owner as it continues to build out a full-service investment bank. The firm has sought toraise its profile in businesses like mergers advisory in partto provide a counterbalanceto its core business of trading stocks and bonds.
The firm's stock price has outperformed those of larger rivals like Goldman Sachs and Morgan Stanley over the last five years, though all three banks havestruggled since the onset of the financial crisis.
Jefferies survived questions about its holdings in European debt last year, quickly selling off government bonds in an effort to assuage market fears.
Richard B. Handler, chairman and chief executive of Jefferies, will become Leucadia's chief. Joseph S. Steinberg, Leucadia's president and co-founder, will become chairman of the combined company. Ian M. Cumming, Leucadia's other co-founderand its current chairman and chief executive, will retire but remain a director.
"Having known Joe and Ianfor over two decades, this transaction represents the realization of a personal dream for me," Mr. Handlersaid in a statement. "I am honored with the trust and confidence Ian and Joe are demonstrating by allowing us to carry on their life's work."
AIG keen to sell bank, expand in mortgages: CEO
HONG KONG (Reuters) - American International Group Inc is planning to sell its savings and loan business as soon as a federal panel labels the insurance giant"too big to fail," its chief executive said on Monday.
But even without a banking business, AIG is now lookingmore aggressively at making and purchasing mortgages asinvestment vehicles, Chief Executive Officer Bob Benmosche said in a telephone interview from Tokyo.
AIG, which received $182.5 billion in bailout money fromU.S. taxpayers at the height of the financial crisis four years ago, has been working to repay the government and regain its credibility ever since.
AIG is regulated by the Federal Reserve because it has a savings and loan business. But even without it,the insurer is likely to come under permanent Fed oversight anyway as a"systemically important financial institution ," or SIFI.Those designations have not been made yet, but AIG has said all along it is certain to receive one.
Benmosche said of the S&L,"we are planning to close it down. It's a business that doesn't makes sense to be in."
He said he would wait to sellthe unit so there would be no break in regulatory oversight. He declined to discuss how much the sale might fetch, but he said the business had less than $1 billion of assets.
Having the Fed oversee AIG's liquidity and capital structure is strategically important because it establishes credibility, said Benmosche , who was in Japan overseeing a rebranding effort.
Benmosche said he did not know when AIG would receive the SIFI label.
"We're exploring a sale, we're exploring turning it into a trust vehicle rather than a savings institution withdeposits. We're looking at a whole bunch of options," he said.
AIG has spoken to banks as potential purchasers and hired lawyers, Benmosche said.
MORTGAGE EXPANSION
Even as it looks to sell off thebank, though, one place AIGis bulking up is in mortgages . The company's mortgage insurer, UGC, has become unexpectedly strong in recent years as competitors have faltered due to crisis-era losses.
But Benmosche said AIG would like to go even deeper than just insuring home loans.
"We are also now looking at ways we could become direct investors in mortgages," he said. "We aregoing to do more of our owndirect lending, both commercially and residentially."
AIG's motivation is the same as for many insurers in this persistently low interest rate environment -- yield. With fixed income portfolios struggling, insurers are hungry for even a few extra basis points of relatively safe return.
Benmosche said "it makes a big deal" at the current low rates to get that little bit of extra yield by buying mortgages directly, which is why he said AIG is talking tobig banks about buying theirnon-agency mortgage debt.
DEBT REDUCTION
The CEO, credited with turning AIG around from a battered company in the midst of a fire sale of assets, has been active in the media,talking up AIG's prospects after a November 1 earnings report that some analysts found disappointing.
Shares are down nearly 10 percent since, with most of that drop coming after the company said it would ease up on buybacks in favor of using its capital to manage itsdebt load.
One way AIG might manage that debt is with the sale of ILFC , its aircraft leasing business. The company filed for an IPO of ILFC in the fall of 2011, but progress has been stymied by weak markets. Benmosche said Monday the sale would haveto wait until circumstances improved.
"The main thing is we feel we should try to get to a 51 percent sale such that we can deconsolidate the debt from AIG, so that's a target that we have, but we will have to see how it goes," he said. "We are looking for a major launch that gets us more than halfway there."
With the debt under control,and buybacks essentially completed, AIG has talked about the possibility of paying a dividend as soon asnext year.
"There's several things we could be doing and we are still exploring all of those possibilities," Benmosche said.
But even without a banking business, AIG is now lookingmore aggressively at making and purchasing mortgages asinvestment vehicles, Chief Executive Officer Bob Benmosche said in a telephone interview from Tokyo.
AIG, which received $182.5 billion in bailout money fromU.S. taxpayers at the height of the financial crisis four years ago, has been working to repay the government and regain its credibility ever since.
AIG is regulated by the Federal Reserve because it has a savings and loan business. But even without it,the insurer is likely to come under permanent Fed oversight anyway as a"systemically important financial institution ," or SIFI.Those designations have not been made yet, but AIG has said all along it is certain to receive one.
Benmosche said of the S&L,"we are planning to close it down. It's a business that doesn't makes sense to be in."
He said he would wait to sellthe unit so there would be no break in regulatory oversight. He declined to discuss how much the sale might fetch, but he said the business had less than $1 billion of assets.
Having the Fed oversee AIG's liquidity and capital structure is strategically important because it establishes credibility, said Benmosche , who was in Japan overseeing a rebranding effort.
Benmosche said he did not know when AIG would receive the SIFI label.
"We're exploring a sale, we're exploring turning it into a trust vehicle rather than a savings institution withdeposits. We're looking at a whole bunch of options," he said.
AIG has spoken to banks as potential purchasers and hired lawyers, Benmosche said.
MORTGAGE EXPANSION
Even as it looks to sell off thebank, though, one place AIGis bulking up is in mortgages . The company's mortgage insurer, UGC, has become unexpectedly strong in recent years as competitors have faltered due to crisis-era losses.
But Benmosche said AIG would like to go even deeper than just insuring home loans.
"We are also now looking at ways we could become direct investors in mortgages," he said. "We aregoing to do more of our owndirect lending, both commercially and residentially."
AIG's motivation is the same as for many insurers in this persistently low interest rate environment -- yield. With fixed income portfolios struggling, insurers are hungry for even a few extra basis points of relatively safe return.
Benmosche said "it makes a big deal" at the current low rates to get that little bit of extra yield by buying mortgages directly, which is why he said AIG is talking tobig banks about buying theirnon-agency mortgage debt.
DEBT REDUCTION
The CEO, credited with turning AIG around from a battered company in the midst of a fire sale of assets, has been active in the media,talking up AIG's prospects after a November 1 earnings report that some analysts found disappointing.
Shares are down nearly 10 percent since, with most of that drop coming after the company said it would ease up on buybacks in favor of using its capital to manage itsdebt load.
One way AIG might manage that debt is with the sale of ILFC , its aircraft leasing business. The company filed for an IPO of ILFC in the fall of 2011, but progress has been stymied by weak markets. Benmosche said Monday the sale would haveto wait until circumstances improved.
"The main thing is we feel we should try to get to a 51 percent sale such that we can deconsolidate the debt from AIG, so that's a target that we have, but we will have to see how it goes," he said. "We are looking for a major launch that gets us more than halfway there."
With the debt under control,and buybacks essentially completed, AIG has talked about the possibility of paying a dividend as soon asnext year.
"There's several things we could be doing and we are still exploring all of those possibilities," Benmosche said.
Japan may already be in recession - economics minister
TOKYO (Reuters) - Japan may already have fallen into recession, the country's economics minister, Seiji Maehara, said on Monday.
"I cannot deny the possibility that Japan has fallen into a recession phase," Maehara told reporters, adding that a final assessment on the state of the economy would be made when more data became available.
He also said he expected theBank of Japan to pursue powerful easing, and that the government and central bank would work together to beat deflation and encourage economic recovery.
Japan's economy shrank 0.9 percent in the three months to September, marking the first contraction in three quarters, adding to signs thatslowing global growth and tensions with China are nudging the world's third-largest economy into recession.
The fall in GDP, which matched a median market forecast, translated into an annualised 3.5 percent fall, government data showed onMonday
"I cannot deny the possibility that Japan has fallen into a recession phase," Maehara told reporters, adding that a final assessment on the state of the economy would be made when more data became available.
He also said he expected theBank of Japan to pursue powerful easing, and that the government and central bank would work together to beat deflation and encourage economic recovery.
Japan's economy shrank 0.9 percent in the three months to September, marking the first contraction in three quarters, adding to signs thatslowing global growth and tensions with China are nudging the world's third-largest economy into recession.
The fall in GDP, which matched a median market forecast, translated into an annualised 3.5 percent fall, government data showed onMonday
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