Japanese Prime Minister Shinzo Abe will unveil the growth strategy today, with a bunch of ‘third arrow’ reforms … or outlines of reforms … or what he is thinking about reforming.
Sorry to be vague, but that’s what the package is going to be. … vague. Grrr … I’m being cynical …. there are reforms being implemented but its at a snail’s pace, and at least today we’ll get an idea of where the Japanese government wants to head.
The market isn’t expecting too much, in fact expectations are low:
- “… most policies will take years before contributing significantly to Japanese prosperity”
- “… the goals are ambitious, many of the specific proposals are modest, designed to chip around the edges of growth barriers, rather than smashing them quickly”
- ” …the plan’s breadth adds vulnerability. By drafting a package of 230 diverse, difficult reform proposals, rather than a more focused agenda, the government risks diluting its clout to the point where it ends up winning a lot of tiny victories, and no big ones”
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I don’t have a scheduled time for Abe’s speech.
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The Nikkei has had a good run this month so far. I expect a ‘sell the fact’ reaction.
