2022 was rough: inflation, energy crisis, and plenty of other controversial situations…
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.
The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
Happy Monday, dear traders! Hope you had a great weekend and you’re ready for the last trading week in 2022! Later this week we’ll announce some exciting news for you, but now let’s look through some interesting news! Today’s events: USA, UK, Hong…
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.