Japanese manufacturers are growing increasingly gloomy on the country’s economic outlook, according to a survey released ahead of a parliamentary election to be held on 16 December.
The Bank of Japan’s (BoJ) quarterly Tankan index for the three months to December fell to a reading of -12 from -3 in the previous quarter, a result that was much worse than expected. A reading below zero indicates that pessimistic views outnumber optimists.
The report largely blamed tensions with China from the dispute over the Senkaku Islands, which have impacted on exports to one of Japan’s biggest markets, for the deterioration in sentiment. The survey raises the likelihood of further monetary easing by the central bank at its policy meeting next week.
The BoJ survey, based on a survey of 10,654 companies over the past month with a 99% response rate, showed manufacturers anticipate sentiment will remain negative in coming months, with the index forecast at -10. The outlook among car manufacturers, whose sales in China were hit by a spate of violent anti-Japanese protests, fell sharply to -9 from +19. The outlook among smaller manufacturers was significantly more pessimistic than for larger ones, at -18.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.