Japan government urges companies to spend cash pile on wages and capex

Japan government urges companies to spend cash pile on wages and capex

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.



Asian shares tumble with Japan markets shut

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…

Greenback surges as yields soar

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…

Deposit with your local payment systems


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera