We often read that Abenomics continues to divide people as to whether it is working, and if this policy platform advocated strongly by Prime Minister Abe since his election in 2012 will ever achieve its objective of moving Japan’s economy forward. We believe that Abenomics is working, however we feel... Show More
John Hardy, head of FX strategy at Saxo Group, thinks that the Bank of Japan (BoJ) may initiate a 'reasonably sized stimulus measure' before implementing helicopter money. This could happen after the US election as the BoJ needs to feel comfortable before the next phase of quantitative easing can begin.... Show More
This week the Bank of Japan decided to continue with its QE program. “Governor Haruhiko Kuroda and his colleagues continue to put on a brave face and act as if everything is going according to plan; but it’s not”, says Max McKegg, MD of Technical Research. The BOJ’s outlook showed... Show More
Saxo Bank’s chief economist and CIO Steen Jakobsen maintains a critical view on Japan’s so-called ‘Three Arrows’ plan. He says when the programme was introduced by Japanese Prime Minister Shinzo Abe in late 2012, it was easy to see why the legend of the three arrows would fit with Japan’s... Show More
Most people think that a strong economy leads to strong earnings growth and rising share prices, and while that sounds logical, it is not always the case. Yesterday data revealed that Japan grew at +0.6% q/q in March, which was ahead of expectation. However, when you lift up the bonnet... Show More
Despite much fanfare it appears that the Japanese government is losing its battle to refloat its economy and lift inflation. The government may believe that Japan is 'back and on track', but global bond investors think differently, with government bonds declining and inflation linked bonds leveling out. Interestingly, the entire... Show More
The Bank of Japan has little choice but to proceed with QE, in its efforts to reignite growth and inflation, now that it has embarked on the extraordinary monetary policy route. While QE has had mixed results in achieving economic growth it has been much more successful in inflating asset... Show More
There are no one-way bets in global finance, but Japan's stock market comes close. The authorities are about to funnel large sums into Japanese stocks openly and deliberately under the next phase of Abenomics, both by regulatory fiat and by purchasing the Nikkei index directly with printed money. Prime minister... Show More
From Ambrose Evans-Pritchard, Telegraph UK: For now, at least, Mr Abe's broader economic gamble is working. The Bank of Japan's vow to purchase $75bn a month of Japanese bonds and double the monetary base by mid-2014 has been electrifying. Growth was 4.1pc in the first quarter and 3.8pc in the... Show More