The Japanese government has approved emergency stimulus spending of about ¥10.3 trillion – equivalent to around US$116bn – as part of prime minister Shinzo Abe’s initiative to boost Japan’s flat economic growth.
“We will put an end to this shrinking, and aim to build a stronger economy where earnings and incomes can grow,” Abe said in a news conference. “For that, the government must first take the initiative to create demand, and boost the entire economy.”
The funding will be focused on public works and disaster mitigation projects, subsidies for companies that invest in new technology and aid packages for small business. Abe said that the stimulus package, one of the largest spending plans in Japan’s history, aims to raise the country’s real economic growth by two percentage points and to create 600,000 new jobs.
Abe, who returned to power last month, also called on the Bank of Japan (BoJ) to emulate the US Federal Reserve by including jobs growth in its mandate, He also urged Japan’s central bank to intensify its commitment to beating deflation, which has been a feature of Japan’s economy for almost two decades, by pumping more money into the economy and encouraging Japanese businesses to invest and consumers to spend.
Reports suggest that the pressure from Abe will persuade the BoJ to double its inflation target to 2% at its 21-22 January rate review meeting and review a possible easing of monetary policy by increasing government debt and asset purchases.
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.