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EU inflation data will be released today and is expected to remain below the European Central Bank’s target. Carsten Brzeski, Chief Economist, Eurozone and Global Head of Macro at ING said: “There had been speculation as to whether the current crisis would be deflationary or inflationary. T”oday’s German inflation data suggest that for the time being the deflationary threat is clearly more pressing than any inflationary one.”
The weak inflation reading could lead to action from the ECB to release more money into the market, which would be similar to one promised by the US Federal Reserve last week.
“We see the move in Fed policy as confirming an important shift that could also put pressure on other central banks — such as the European Central Bank — to tolerate higher levels of inflation,” Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note.
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6.15am update: Japan’s next leader to find pandemic ruining job market gains made by ‘Abenomics’
Japan’s unemployment rate crept up to 2.9 percent in July and job availability fell to a more than six-year low, data showed on Tuesday. Nearly 2 two million people lost their jobs in July, about 410,000 more than in the same month last year, with the number of job losses rising for six straight months through July.
Among the hardest hit have been non-permanent workers, who make up nearly 40% of Japan’s workforce and are concentrated in industries like hotels, restaurants and entertainment.
The number of temporary workers fell by 1.31 million in July from a year ago, the biggest drop in more than 6-1/2 years.
“We’re seeing more non-permanent workers lose their jobs, especially in industries vulnerable to the pandemic,” said Shinya Kodera, an economist at Mizuho Research Institute.
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