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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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The I.M.F. sees early signs of a global economic recovery.

The I.M.F. sees early signs of a global economic recovery.

The International Monetary Fund said on Tuesday that the world economy is beginning its ascent from the worst downturn since the Great Depression but that the deep recession caused by the coronavirus pandemic will leave scars on labor markets for years to come.

In its latest World Economic Outlook report, the I.M.F. projected that the global economy would contract 4.4 percent in 2020. The forecast was a slight improvement from its midyear projection, as the easing of lockdowns and robust fiscal and monetary policy support have helped output recover more quickly than previously expected. But the global economy is not yet out of the woods.

“This crisis is, however, far from over,” Gita Gopinath, the I.M.F.’s chief economist, wrote in a memo accompanying the report. “The ascent out of this calamity is likely to be long, uneven, and highly uncertain.”

Ms. Gopinath urged countries not to withdraw policy support prematurely and warned that the crisis is intensifying inequality. Labor markets remain well below their prepandemic levels, and women, the young and low-income workers have been hit the hardest. National debt levels are swelling as tax bases shrink.

The recession is hammering both advanced and emerging economies. The United States economy is expected to contract 4.3 percent this year, and the eurozone economy is projected to shrink 8.3 percent, led by sharp contractions in Spain and Italy.

The lone exception this year is China, where the virus was first detected. China’s economy is projected to expand 1.9 percent in 2020, as its aggressive measures to contain the virus have allowed economic activity to resume more quickly.

The I.M.F. expects the global economy to expand 5.2 percent next year and then slow to a rate of 3.5 percent over the next several years. Compared with the group’s prepandemic projections, the world will

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2 cheap UK shares I’d buy today to get rich and retire early

2 cheap UK shares I’d buy today to get rich and retire early



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The stock market crash has prompted some investors to avoid buying cheap UK shares. That’s understandable. They face challenging operating conditions at the present time in many cases. And that could lead to disappointing share price performances over the coming months.

However, long-term investors who can build a diverse portfolio of stocks could benefit from buying undervalued British shares after the recent market downturn. In time, they may produce sound recoveries that improve your financial prospects.

With that in mind, here are two FTSE 100 stocks that appear to be undervalued. They could be worth buying today, and may even boost your retirement prospects.

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A buying opportunity among cheap UK shares

Glencore (LSE: GLEN) could offer good value for money relative to other cheap UK shares. The FTSE 100 mining business has experienced a tough period due to coronavirus. But its assets have largely been able to remain operational throughout the year.

In fact, its marketing division produced a record half-yearly profit that strengthened the company’s overall performance. It could remain a key differentiator for Glencore versus sector peers, since it offers counter-cyclical earnings potential.

Looking ahead, the company is forecast to return to positive earnings growth next year after a challenging 2020. This should aid it in seeking to reduce debt to more manageable levels. Meanwhile, its forward price-to-earnings (P/E) ratio of 12.5 suggests that investors may have factored in further disruption for the wider sector.

Clearly, a weak economic outlook is likely to cause investor sentiment towards commodity businesses to remain subdued in the short run. However, Glencore’s share price could offer recovery potential over the long run as part of a diverse portfolio of cheap UK shares.

A long-term recovery opportunity

Whitbread (LSE: WTB) is another FTSE 100 stock

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