On Friday, Japan’s Finance Minister Taro Aso heavily criticized the country’s companies for sitting on tons of cash. He told that the Japanese authorities should take steps to encourage them to step up spending on business investment and wages.
Internal reserves, including cash, at Japanese companies have soared by 101 trillion yen for the last four years to about 400 trillion yen, while a great number of companies are reluctant to boost business expenditures.
The minister emphasized that the situation is very serious, and the government is considering ways for that funds to be spent on wages and capital spending.
However, he told it would be quite difficult to have internal reserves taxed. It’s because it might generate so-called "double taxation" on businesses, paying the corporate tax.
Japanese policymakers expect a sustained economic recovery to stimulate wages and also household spending, although many financial experts expect inflation to be still distant from the major bank's 2% objective.
In June, American retail sales tacked on solidly because households spurred purchases of cars as well as an array of other products, thus strengthening hopes for robust economic surge in the second quarter…
In May, the euro zone's surplus for products traded with other nations of the world edged down due to the fact that exports slumped and imports rallied, just a month before American duties on EU aluminum and steel came into effect, as official data…
In June, American import prices came up with their most impressive tumble for more than two years…
In February, Japan's exports probably ascended at the fastest pace for two years due to a softer yen as well as improving global demand, as a Reuters survey showed on Friday…
On Monday, stocks in Asia declined with markets in Japan unavailable for a holiday and traders watching oilfield-related stocks after a bankruptcy filing by Singapore's Ezra Holdings…
On Friday, the evergreen buck added against the Japanese yen and euro, drifting away from recent minimums, though revenues were capped as traders focused on a showdown between Donald Trump and members of his own party as for a fresh healthcare bill…
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