Japan Should Focus on Inflation, Wages: McFarland

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March 10 (Bloomberg) –- Coutts & Co. Global Chief Economist Mark McFarland discusses the U.S. jobs report and Japan’s economy with Mia Saini on Bloomberg Television’s “First Up.” (Source: Bloomberg)

Welcome back.

Let's wrap up the data released over the weekend.

We can preview the week ahead with my next guest, mark mcfarland.

He joins us live in our studio.

We have to start with the job figures.

The u.s. adding more employees to the workforce.

Are we recovering from the slum?

The weather was probably a temporary factor in the low job numbers of late 2013. generally, private sector growth has been quite good.

It should have been expected that we get a better number.

How sustainable is this figure in the quarters ahead?

They're looking between 180,000 a month and $200,000 a month -- 200,000 a month.

Bringing it back here, the bank of japan doing the opposite of what the u.s. is doing in terms of their policy.

Revised gdp in the current account is not good to change the tune.

We think probably it will happen after the consumption tax rises on the first of april.

The bank of japan will wait to see what happens with retail spending after the first of april.

Really, these numbers should be quite encouraging.

We're seeing quite strong consumer concern.

Therte is a mixed picture for japan.

The bank of japan is probably for pairing for the worst-case scenario that can happen after the sales tax increase.

That is the major problem.

No one knows what is going to happen.

The impetus is to keep everything moving in to talk about stimulus measures of necessary.

If you were to prioritize what they should be focused on -- focusing on, what would you say?

Inflation, wage growth, people spending in shops.

It can also be applied to china's economy as well.

Exactly.

It is a traditional policy paradigm we have to grow it quickly without generating inflation or make sure it does not slow down too much.

It is the and a situation that the pobc is in.

They cannot speed things up too much because it creates information.

-- inflation.

We have some disappointing expert data out of china.

How do you interpret this considering it is so close to chinese new year?

Everywhere he january and february we talk about the lunar new year in the affected has on the numbers.

It is probably going to be march before we see the full impact of what is happening in terms of trade flows.

If you look at the numbers out to japan and taiwan, singapore, the export sectors are doing quite well.

You should start to see a turnaround in the numbers in may and june.

Quite is that why we saw the depreciation in the yuan possibly.

There are more structural elements.

The pboc wants to widen it for the room in the -- reminibi.

They have been wanting to do that for the longest time.

February 20 is when they started putting that into place.

They have been talking about it for a long time.

The currency was rising too quickly.

That was the issue.

You had a moving beyond.

It became a one-way bet.

You need a to a rescue to make sure people do not get too excited and start hitting -- taking too much risk.

It is only 3%. let's talk about the indonesian rupiah.

The rate decision later on this week.

What are you thinking?

Generally, the market is looking for new change.

The inflation numbers are probably going to come out and show there's no need to change rates.

The indonesian central bank has picked up where they should have been probably six months ago but the rate policy.

We are probably at the top of the cycle now.

They have done a good job.

What is the one asian economy that you have on your watch that could surprise us?

South korea is one way of looking at.

People have been quite optimistic.

A lot of the pmi data is a little more worrying than we thought it would be.

The other one is india.

The election is coming out.

This text has been automatically generated. It may not be 100% accurate.

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