Financial Times (February 19)
“The best news on Japan’s economy is coming from the jobs market, where there are signs of labour shortages, and organic pressure for higher wages.” The real test of “whether Abenomics is working” will come from the annual “shunto” labour talks. “If wage growth is not higher than last year it will be a worrying sign.”
Bloomberg (December 14)
Under the leadership of Masahiko Kuroda, the Bank of Japan’s “policies have indeed been bold — bolder than anything Abe himself has been willing to attempt. But the BOJ’s policies are allowing the government to sidestep its responsibility. That must stop if Abenomics is to come off life support. On Friday, Kuroda should begin nudging Abe to do something with his popular mandate for change. Anything.”
Tags: Abe, Abenomics, BOJ, Bold, Change, Government, Kuroda, Mandate, Responsibility, Sidestep
Reuters (November 18)
“Japan’s attempts, through Abenomics, to beat back against the tide of demographics may be proving futile.” Though the country may be able to keep printing money, Japan “can’t print people.” Cheap funding won’t stimulate corporate investment unless companies “see both a strong outlook for profits and for market growth,” something that remains unlikely amidst an aging, shrinking population.
Tags: Abenomics, Aging, Corporate investment, Demographic, Funding, Japan, Market growth, Outlook, Population, Profits
Financial Times (August 31)
“The story of Abenomics is far from over–but the typical Japanese household could be forgiven for thinking that all the Bank of Japan had achieved, in pushing down the currency and importing inflation, was another hit to household living standards. Japanese real wages have been falling for most of this year.”
Tags: Abenomics, BOJ, Currency, Household, Inflation, Japan, Living standards, Real wages
The Economist (August 9)
Abenomics may be working at the top, but it’s not trickling down to “folk who do not own bundles of shares or a flat in Tokyo’s trendy Daikanyama neighbourhood…. The mantra of Mr Abe and his advisers has been that a virtuous circle would come about whereby wages would rise and lift consumer spending, which in turn would boost investment by companies. Bingo: Japan would emerge from deflation. That is not happening and it is a conundrum.”
Tags: Abe, Abenomics, Advisers, Consumer spending, Daikanyama, Deflation, Investment, Japan, Shares, Tokyo, Trickle down, Wages
Institutional Investor (April 7)
In 2013, asset managers “poured a record of $43.7 billion into Japanese equities….and the massive net inflows helped propel the Nikkei 225 index up nearly 57 percent—it’s largest gain in more than 40 years.” As concerns mount about the sustainability of Abenomics, however, “many of those investors have been reversing course.” Nevertheless, some top analysts, such as Mizuho’s Yohei Osade and Nomura’s Jun Konoumi, believe the concerns are overblown and that any consumption tax related slow down will be temporary.
Tags: Abenomics, Analysts, Asset managers, Consumption tax, Equities, Inflows, Investors, Japan, Jun Konoumi, Mizuho, Nikkei, Nomura, Yohei Osade
Financial Times (March 27)
Abenomics “has been judged a qualified success but there are concerns the effort will peter out.” The upcoming consumption tax increase ranks high among these and an even more fundamental concern, that higher inflation would make the government’s debt burden unsustainable, remains untested. If the latter holds true, however, “it is precisely when Abenomics reaches its stated aim that it will begin to unravel.”
Tags: Abenomics, Concerns, Consumption tax, Government, Inflation, Success, Unsustainable
Wall Street Journal (February 4, 2014)
The Nikkei’s fall puts added pressure on Shinzo Abe’s efforts to revive Japan. The correction may prove temporary, but it is surely a sign of underlying weakness in Abenomics, which should be fortified. “Policy makers shouldn’t govern by the wishes of stock markets, but in this case Mr. Abe could take a hint. If 2013 was the year when he hyped Japan’s economic prospects, 2014 will need to be the year when he starts doing something about it.”
Tags: 2014, Abe, Abenomics, Correction, Economic prospects, Hype, Japan, Nikkei, Policy makers, Stock markets, Temporary, Weakness
Financial Times (December 10, 2013)
“South Korea was one of the only winners in the summer’s emerging market sell-off, sparked by fears about the outlook for US monetary policy.” In search of a safe haven, foreign buyers poured into South Korea, but now they are pouring out in favor of more promising markets. “Caught between Japan’s fresh Abenomics-fuelled rally and reform-gripped China, South Korea looks in need of a new narrative.”South Korea, Emerging markets, Sell-off, Outlook, U.S., Monetary policy, Safe haven, Foreign buyers, Abenomics, Rally, Reform, China, South Korea
Tags: Abenomics, China, Emerging markets, Foreign buyers, Monetary policy, Outlook, Rally, Reform, Safe haven, Sell-off, South Korea, U.S.
Wall Street Journal (November 14, 2013)
“Abenomics is at risk of stalling out unless workers start seeing fatter paychecks. So far, it doesn’t look good.”“Abenomics is at risk of stalling out unless workers start seeing fatter paychecks. So far, it doesn’t look good.”
