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Japan stimulus measures should focus on economic growth, says head of ruling party tax panel

Japan stimulus measures should focus on economic growth, says head of ruling party tax panel

By Yoshifumi Takemoto

TOKYO, Oct 14 (Reuters)Japan must compile another extra budget to have enough funding to boost economic growth and paying for disaster preparations, a ruling party lawmaker said on Wednesday.

Akira Amari, the head of the Liberal Democratic Party’s tax panel, said any new stimulus measures should shift focus to boosting economic growth from providing support for current conditions.

Amari, speaking during a group interview with media, also said large businesses heavily reliant on foreign tourism could expect to start facing capital shortages next year.

His remarks came after local media reported on Tuesday that Prime Minister Yoshihide Suga plans to order his government to compile extra stimulus measures as early as November, a move that would highlight the government’s resolve to return growth to levels last seen before the COVID-19 crisis.

Japan has already rolled out a combined $2.2 trillion in two stimulus packages in response to the health crisis, including cash payments to households and small business loans to help them withstand the blow to demand.

(Reporting by Yoshifumi Takemoto; Writing by Daniel Leussink; Editing by Clarence Fernandez and Gerry Doyle)

((daniel.leussink@thomsonreuters.com; Twitter: @danielleussink; +81-3-4563-2747;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Japan’s Suga to Order New Economic Stimulus as Early as November, Nikkei Says | Investing News

Japan’s Suga to Order New Economic Stimulus as Early as November, Nikkei Says | Investing News

TOKYO (Reuters) – Japanese Prime Minister Yoshihide Suga will order his government to compile extra economic stimulus measures as early as November, the Nikkei newspaper reported on Tuesday.

The move would signal the government’s readiness to deploy more support to cushion Japan’s economy from the significant disruption to consumers and businesses by the COVID-19 pandemic.

The measures could focus on supporting tourism and the restaurant industry from declining consumption, the Nikkei said.

There was no change to the government’s willingness to roll out economic measures if conditions required it, the top government spokesman said when asked about potential stimulus.

“As for financial matters, there is 7.8 trillion yen in coronavirus reserve funds remaining. We’ll utilise that balance first,” Chief Cabinet Secretary Katsunobu Kato told reporters at a news conference.

The government may also consider extending a “Go To Travel” initiative to subsidise domestic tourism as part of the stimulus, the Nikkei reported, without saying how it got the information.

Japan has already rolled out $2.2 trillion in fiscal stimulus in response to the health crisis, including cash payouts to households and small business loans that were partly funded via two supplementary budgets.

The government could decide in late December on a draft of a third extra budget to fund the expected measures, when it draws up plans for next fiscal year’s budget, the Nikkei said.

The world’s third-largest economy has started to recover from the impact the coronavirus has had on demand at home and abroad, including the hit to global trade that hurt Japan’s exports of cars and other manufactured products.

The government last Wednesday said economic activity likely stopped contracting in August.

(Reporting by Daniel Leussink; Editing by Chang-Ran Kim, Christopher Cushing and Tom Hogue)

Copyright 2020 Thomson Reuters.

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Mitch McConnell announces vote on narrow stimulus measure as deal remains elusive

Mitch McConnell announces vote on narrow stimulus measure as deal remains elusive

President Trump, meanwhile, on Tuesday urged Congress to vote on a much more substantive package than what McConnell prepared to offer.

“STIMULUS! Go big or go home!!!” Trump wrote on Twitter.

McConnell’s decision comes after many Senate Republicans rejected the White House’s $1.8 trillion stimulus proposal as too large and contrary to longstanding conservative policy. With an agreement with Democrats proving elusive, Trump’s top aides again pivoted over the weekend to embrace the kind of more modest proposal McConnell will take up next week.

“Our first order of business will be voting again on targeted relief for American workers, including new funding for the PPP,” McConnell said in a statement. “The American people need Democrats to stop blocking bipartisan funding and let us replenish the PPP before more Americans lose their jobs needlessly.”

Pelosi reiterated her objections to the White House proposal on Tuesday, telling House Democrats in a letter that it falls “significantly short of what this pandemic and deep recession demand.”

White House officials have pointed to significant concessions in negotiations on providing funding for childcare, rural broadband, and funding for state and local governments, among other measures, but Pelosi panned the administration’s latest offer as “one step forward, two steps back” in part because it excluded House Democrats’ national testing and tracing strategy.

The White House’s messaging on economic relief plans has become muddied in recent days. Treasury Secretary Steven Mnuchin and chief of staff Mark Meadows have recently said Congress should at least approve a smaller-scale deal, similar to what McConnell appears to now be pursuing. But Trump has consistently called for a giant package, saying last week that he wanted more new spending than even the $2.2 trillion package that Democrats had sought so far.

Still, a Senate vote on a targeted relief package could

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Dollar lower as investors now believe US economic stimulus will be reached after Nov. 3 election

Dollar lower as investors now believe US economic stimulus will be reached after Nov. 3 election

TOKYO – The dollar flirted with three-week lows on Tuesday as investors stuck to hopes that there will be large U.S. fiscal stimulus after the Nov. 3 election to shore up a pandemic-hit economy, supporting riskier currencies.

The dollar index stood at 93.036, just above Friday’s near-three-week low of 92.997. The euro traded at $1.1841, having gained 0.60% on Monday.

“It seems there is a strong optimism that eventually there will be stimulus. It is hard to argue against fiscal expansion given the coronavirus epidemic is almost like a natural disaster,” said Makoto Noji, chief currency and foreign bond strategist at SMBC Nikko Securities.

DOLLAR’S RECENT DIRECTION POINTS TO BIDEN WIN

While markets are getting sceptical about the chances of having a bipartisan package before the election, a widening lead by Democratic presidential candidate Joe Biden over President Donald Trump is leading investors to expect big stimulus after the election.

A Biden victory is also seen as negative for the dollar partly because his pledge to hike corporate tax would reduce returns from investments in the United States.

The dollar flirted with three-week lows on Tuesday as investors stuck to hopes that there will be large U.S. fiscal stimulus after the Nov. 3 election to shore up a pandemic-hit economy, supporting riskier currencies. (iStock)

Thus the dollar also weakened against currencies that are deemed “safer” – those that tend to have small or inverse relations with risk sentiment – such as the yen and the Swiss franc.

The yen strengthened to 105.34 per dollar while the Swiss franc traded at 0.9102 to the dollar, near its highest in three weeks.

Sterling traded above the key $1.30 level as hopes for a Brexit deal offset concerns about pressure

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Market Might Finally Be Ready To Throw A Hissy Fit For Stimulus

Market Might Finally Be Ready To Throw A Hissy Fit For Stimulus

I like to focus on individual stock ideas, finding the most revolutionary companies on the planet when their valuations are compelling. Frankly, though, the results have long spoken for themselves as our 10-100+ baggers have continued to pile up.

Perhaps, our quietest 20-bagger ever is SolarEdge (NASDAQ:SEDG), which has been a volatile stock along since it was bought at $14 per share four years ago, but clearly, the volatility over the short-term time frames has been meaningless to its long-term move to $300+ per share. I am still long SolarEdge, although, in the hedge fund, I’m looking to hedge it with some puts/shorts on some other solar stocks that have been on fire lately but are not as Revolutionary as SEDG. Maybe some puts 0-15% out of the money and dated out to November or something along those lines. As always, when we hedge, we are not looking to make big money on the hedges, and if they lose money while SEDG continues to make us even more money, then that’s okay. I’m not doing these hedges in my personal account, but I try to communicate my hedge fund trades to you also, as you know.

But just because I focus so much on individual stocks and trends, that doesn’t mean we don’t want to look at the broader market setups too, and you’ve seen me over the years and in the last few months make a few adjustments to my positioning as a result of that analysis. Including when I turned pretty much bearish in February and got even more bearish after MC’ing a CFA Austin panel where nobody was worried about The Coronavirus Crisis. Or when I got excited about the valuations and started loading up on stocks and covering mostly all of my short hedges in

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