The Financial Times (April 7)
A “cup of sake could save the nation.” The Financial Times disagrees with Tokyo Governor Shintaro Ishihara’s efforts to discourage traditional hanami cherry blossom viewing parties out of respect for those still suffering from disaster. The Governor’s entreaties could make a bad situation worse, as restraint worsens a reeling economy. “Mr Ishihara risks deepening the post-disaster slump by simultaneously seeking to stop Tokyo residents from celebrating the arrival of cherry blossoms with their traditional hanami flower-viewing parties.”
Reuters (April 6)Reuters (April 6)
Amid a dearth of disclosure, overseas and domestic investors are finding it difficult to assess investments in Japan. In response to the quake, the TSE is allowing firms an extra three months to announce earnings. “Underscoring the uncertainty, some 460 firms listed on the Tokyo Stock Exchange have yet to tell the bourse when they plan to announce earnings for the year ended on March 31, more than 5 times the average.” Moreover, fewer firms are expected to provide “a forecast for the year ahead, depriving investors of a key guide on which they would normally rely to make trading decisions.”
A “cup of sake could save the nation.” The Financial Times disagrees with Tokyo Governor Shintaro Ishihara’s efforts to discourage traditional hanami cherry blossom viewing parties out of respect for those still suffering from disaster. The Governor’s entreaties could make a bad situation worse, as restraint worsens a reeling economy. “Mr Ishihara risks deepening the post-disaster slump by simultaneously seeking to stop Tokyo residents from celebrating the arrival of cherry blossoms with their traditional hanami flower-viewing parties.”
Tags: Earnings, Forecast, Japan Investors, Quake, TSE
The Economist (April 4)
“Japan gets all the bad luck.” On the verge of recovery from Lehman shock, the triple whammy earthquake, tsunami and nuclear crisis has again placed all in doubt. Responses to the Tankan survey illustrate the blow. Pre- and post-quake responses show a marked drop, with optimism turning to pessimism. Rotating power outages and the jishuku sense of restraint are inflicting further damage on the economy. The Economist urges that this is the “time, then, for the government to get out in front of its own people, and tell them to spend.”“Japan gets all the bad luck.” On the verge of recovery from Lehman shock, the triple whammy earthquake, tsunami and nuclear crisis has again placed all in doubt. Responses to the Tankan survey illustrate the blow. Pre- and post-quake responses show a marked drop, with optimism turning to pessimism. Rotating power outages and the jishuku sense of restraint are inflicting further damage on the economy. The Economist urges that this is the “time, then, for the government to get out in front of its own people, and tell them to spend.”
Financial Times (April 3 & March 29)
A debate between former Fed Chairman Alan Greenspan and Representative Barney Frank is taking place in newsprint. In a March 29 editorial, Greenspan writes that the global financial system is too complex and “unredeemably opaque” for regulators to succeed. As a result, Dodd-Frank would “create the largest regulatory-induced market distortion since America’s ill-fated imposition of wage and price controls in 1971.”
On April 3, the joint sponsor of the Dodd-Frank Act replied “Alan Greenspan suggests we should not even have tried.” Frank believes we have the tools, ability and responsibility to overcome the complexity. “Policymakers must ensure that whatever its size, the financial sector is operating transparently under clear rules that protect taxpayers and promote the stability and growth of the broader economy.”A debate between former Fed Chairman Alan Greenspan and Representative Barney Frank is taking place in newsprint. In a March 29 editorial, Greenspan writes that the global financial system is too complex and “unredeemably opaque” for regulators to succeed. As a result, Dodd-Frank would “create the largest regulatory-induced market distortion since America’s ill-fated imposition of wage and price controls in 1971.”
On April 3, the joint sponsor of the Dodd-Frank Act replied “Alan Greenspan suggests we should not even have tried.” Frank believes we have the tools, ability and responsibility to overcome the complexity. “Policymakers must ensure that whatever its size, the financial sector is operating transparently under clear rules that protect taxpayers and promote the stability and growth of the broader economy.”
Tags: Dodd-Frank, Financial regulation, Frank, Greenspan, Transparency
New York Times (April 3)
Adding 216,000 jobs in March, the U.S. economy “marked the 13th straight month of private-sector job gains,” but “growth is still weak.” Gains are tiny compared to what needs to be achieved. And as federal and state governments rush to curtail spending, there is increased chanced that the economy will again head southward. “Government spending, job-creation programs and regulations to ensure that there isn’t another crash would help the economy and lead to more jobs.”
Tags: Economy, Job growth, Spending, U.S.
Bloomberg (April 1)
Many concerns over radiation are overblown. In Tokyo, the highest radiation reading of 0.109 microsieverts per hour was taken yesterday in the Shinjuku district. This compares favorably with 0.14 microsieverts in Hong Kong’s Kowloon district. In fact, “many countries have naturally occurring radiation levels that exceed Tokyo’s.” Current radiation in Tokyo is “barely above levels in London and New York.”
Many concerns over radiation are overblown. In Tokyo, the highest radiation reading of 0.109 microsieverts per hour was taken yesterday in the Shinjuku district. This compares favorably with 0.14 microsieverts in Hong Kong’s Kowloon district. In fact, “many countries have naturally occurring radiation levels that exceed Tokyo’s.” Current radiation in Tokyo is “barely above levels in London and New York.”
Economist (March 31)
A “big step forward” is how Germany’s chancellor Angela Merkel characterized the March 24-25 euro-zone summit. The Economist thinks otherwise. ”Something between a fudge and a failure would be more accurate.” Europe’s leaders must face up to the fact that Greece, Ireland and Portugal are bust and their debts need to be restructured. Delaying the inevitable only makes things worse.
A “big step forward” is how Germany’s chancellor Angela Merkel characterized the March 24-25 euro-zone summit The Economist thinks otherwise. ”Something between a fudge and a failure would be more accurate.” Europe’s leaders must face up to the fact that Greece, Ireland and Portugal are bust and their debts need to be restructured. Delaying the inevitable only makes things worse.
Tags: Debt criss, Europe, Greece, Ireland, Portugal, Restructuring
