"One Republican Congressman “hit the right nerve” Friday night — and found himself facing the wrath of House Minority Leader Nancy Pelosi.
ABC News called it “an unusual breach of decorum.”
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Japan Focus of the Week: June wages disappoint; watch for BOJ’s economic assessmentSlowdown in June wages, special wages disappointJune total cash wages rose 0.4% yoy, decelerating slightly from May (+0.6%). Basic wages turned to a small growth, but overtime wages decelerated. Special wage, reflecting summer bonuses disappointed with only a small +0.3% increase.Real disposable income drops sharply again in June / large negative GDP growth unavoidable for Q2Based on the Household Survey, Q1 real spending rose 4.6% qoq on rush demand before the tax hike, but the Q2 pullback was higher at -9.4% qoq. One explanation was decline in real disposable income, which declined -8.0% yoy in June and -6% yoy on average for Q2. The difficult income environment is reflecting in consumer behavior.June production declines far steeper than expectedProduction decreased 3.3% mom in June (May: +0.7%), a far steeper decline than the market consensus (-1.2%) and the production outlook (-0.7%). Producer shipments were also down 1.9% mom in June, and this resulted in a sharp rise in inventories (of +1.9%).
The greater-than-expected weakness in the consumption snapback signals significant downside risk to our forecast of 4.6% decline for Q2 real GDP (sequential annualized).While we expect lower imports, higher inventories, and other factors to support GDP to some extent, we see negative real GDP growth of around -6.5% as likely, based on the data currently available.