I am shocked. I really am.
Here is an article from Ambrose Evans-Pritchard in the UK Telegraph where he actually has something nice to say about something!
Those dancing on the grave of Abenomics today may be just as premature.
Now I’m really confused
Says AEP (but read the whole article);
- Japan’s crash into its fourth recession since 2008 … is chiefly due to a one-off fiscal shock in April
- The contraction of Japanese GDP by 0.4pc in the third quarter – following a 1.8pc crash in the second quarter is … less dreadful than meets the eye
- Abe has shrugged off the tax debacle without much political damage. He is likely to call a snap election for December, win heartily, and suspend plans for a further rise in the sales tax to 10pc next October, ditching a policy he never liked anyway
- The Bank of Japan is learning – after a false start – how to pack a punch … The “Kuroda II” package unveiled last month adds a further $12bn or more of stimulus, heavily weighted to government bonds of 7-10 year maturities. It is an open secret in Tokyo that the BoJ will mop up bond holdings due for sale by the $1.2 trillion government pension fund (GPIF) as it shifts to equities under new portfolio rules
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AEP likes what Japan is doing … Abe has a new friend!
