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Germany's strong wage growth is likely to keep inflation elevated, posing a challenge for the ECB’s 2% target. The Bundesbank reports a 4.2% increase in agreed earnings & high union demands of 7–19% over 12 months. #Germany #Inflation #ECB #SupremeCourt #earthquake #Reservation #WealthRedefine #RedefineWealth #mutulafunds #Investment #IndiaEconomy #PortfolioManagement #investmentopportunities #hiring #megahiring #portfoliostrategies #mnc #mnccompany #mnccompanies #mncjobs #mncjob #jobs #job #opening #company #Bloomberg

China's stimulus package and the unexpectedly strong U.S. payrolls report have ignited swift and dramatic market reactions. But do these headlines truly shift the narrative, or are we witnessing an overcorrection? 👉 https://lnkd.in/eheK726e Join TCW's Dave Vick, Lin Jing Leong, and Ruben Hovhannisyan as they delve into the data, question its reliability, and explore the potential long-term impact on the world’s two largest economies.

In a significant economic development, Japan's major corporations have agreed to a 5.28% wage increase for 2024, marking the largest rise in 33 years. This announcement by the nation's top union group suggests a potential shift in the Bank of Japan's monetary policy, which has maintained a stimulus program for over a decade. The unexpected wage surge aligns with the central bank's consideration to end its negative interest rate policy, in place since 2016. Economists believe substantial wage growth could stimulate consumer spending and foster sustained economic expansion. Last year, Japan narrowly avoided a recession, and policymakers are keen to see wages drive economic recovery. Rengo, the union group, had initially aimed for a base pay increase over 3%, a critical factor for long-term earnings such as bonuses and pensions. The government hopes these wage hikes will permeate through to smaller businesses, which make up the majority of Japan's enterprises and employ a significant portion of the workforce. However, these smaller firms often struggle to raise prices to cover increased costs. The labor market's tightness was evident in the robust negotiations, with Toyota Motor announcing its largest pay raise in a quarter-century. This trend may influence the central bank to reconsider its negative interest rate policy in the upcoming meeting. Japan's labor shortages, exacerbated by an aging population, have prompted Prime Minister Fumio Kishida to urge businesses to increase wages, aiming to reverse years of deflation and lagging wage growth compared to other advanced economies.#Cyprus, #Japan

Japan Outlook in H2 2024 Chief Strategist Hiroyuki Ueno and Senior Strategist Katsutoshi Inadome share SuMi TRUST's outlook for the Japanese economy in the second half of 2024. Find out SuMi TRUST’s outlook on: The Japanese Economy Japan’s Monetary Policy The Japanese Stock Market The FX Market Risk Factors Read more here: https://lnkd.in/dyqK5Hdw #Japan #economy #market #outlook

The end of an era in more ways than one. The end of the negative interest rates globally has significant meaning, in Japan, it signifies (hopefully) the start of the end of decades of stagnation. While the article quotes more recent government and BOJ activities to prop up companies as the "cozy era" the reality is that this has been going on for decades. From low interest rates to labor unions that agreed to hold down "shunto" wage increase demands for employment security, the number of "zombie companies" has continued to increase. Maybe now we can shift from three decades of what Richard Katz calls "destructive preservationism" to Shumpeter's creative destruction and make room for newer, more innovative firms. This time will be different.

Japan is worth another look from investors, thanks to structural shifts like wage negotiations and the effects of Abenomics coming through after nearly a decade. Japan is “extremely interesting” with “reasonable” valuation, says Tan Wee-Kiat, co-chief investment officer and head of discretionary portfolio management at Morgan Stanley Private Wealth Management Asia. “There are real positive fundamental differences between the Japan we know today versus Japan that we knew five to 10 years ago.” Abenomics’ “three arrows”, which includes monetary easing from the Bank of Japan, fiscal stimulus through government spending and structural reforms, made “very important and fundamental changes to the market”, says Tan. “We are only starting to see the benefits of that now.” Jean Chia, global chief investment officer at Bank of Singapore, Asia's Global Private Bank, emphasises these “structural shifts” that are underway in Japan. “We have been disappointed by the market before, for those of us who have been in the industry longer. However, what we are noticing are structural shifts — case in point, the wage negotiations that are underway today.” Toyota, Japan’s largest automaker, has offered workers its largest wage hike since 1999. Other major Japanese companies that have approved wage increases include Nissan, Nippon Steel, Honda, Mazda, Japan Airlines and Ajinomoto. Investors should be conscious about a “definite” shift in Japan, says Chia. “[This is] coupled with our view, at least, that the yen will appreciate versus the dollar... So, from a total return perspective, we think that long yen [and] long Japan equities make a lot of sense right now.” Read the full story on The Edge Singapore.

𝗝𝗮𝗽𝗮𝗻 𝗔𝗱𝘃𝗼𝗰𝗮𝘁𝗲𝘀 𝗦𝗵𝗶𝗳𝘁 𝗧𝗼𝘄𝗮𝗿𝗱𝘀 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗦𝗲𝗰𝘁𝗼𝗿-𝗗𝗿𝗶𝘃𝗲𝗻 𝗚𝗿𝗼𝘄𝘁𝗵 A Japanese government panel recommends transitioning from stimulus-driven economic strategies to fostering private sector-led growth, in response to ending eight years of negative interest rates. Amidst rising domestic prices, higher interest rates, and a 30-year peak in wage growth due to labor shortages, the panel calls for policies that support sustainable growth and fiscal stability. This shift aims to prepare Japan for challenges like its aging population, suggesting long-term economic policies focused on domestic demand and private investment. #finance #news #JapanEconomy #EconomicPolicy #GrowthStrategy Source: Reuters, https://lnkd.in/gGCti2Vx

Labour markets in the world's eight largest economies have tightened significantly since 2010. What's behind this trend, and what does it mean for the future of work? Get a detailed look at the UK's labour market in our new dashboard ➡  https://lnkd.in/gziYhZPu

All is well….. but is it ? 🌏 Is the World is in a Crisis Mode ? Case in place : US Inflation , Political gridlock grips France, Asia in trouble… Charting the Global Economy: 🇺🇸 June ‘24 CPI US inflation cooled to the slowest pace since 2021 on the back of a long-awaited slowdown in housing costs, sending the strongest signal that the Federal Reserve can soon cut interest rates. 🔥 Almost $1 trillion of debt linked to commercial real estate will mature this year in the US. This could give sleepless nights to bankers as borrowers may fail. Noteworthy, US Unemployment rate has now risen for three straight months. 🔥 Joblessness is a positive. 🇫🇷 France in Paralysis mode. Across the Atlantic, the left-wing parties that banded together to win the biggest number of seats in France’s snap election are struggling to unite to come up with a candidate for prime minister. 🔥France has been plunged into political paralysis since the election on Sunday ended with the National Assembly split among three main factions after voters thwarted the far right’s bid to take power. The political shock in France has forced bond investors to confront the reality that the nation’s fiscal deficit is an issue for here and now, not years down the road. The country has long benefited from investors dismissing the threat posed by its poor public finances given its core position within the euro area. That calm is now at risk. 🇬🇧 🔥 Britain’s minimum wage increases are threatening to feed through to inflation and unintended consequences for employee benefits, putting Keir Starmer’s ambition to boost wages on a collision course with business groups and the Bank of England. 🇨🇳 🔥 China’s banks in troubled waters on account of their real estate industry failing. 🇯🇵 ❤️ Japanese workers’ base salaries jumped the most since 1993, an encouraging sign that the underlying pay trend may start to support consumption and enable the Bank of Japan to raise interest rates again. 🇹🇼 ❤️ Taiwan - The boom in AI is driving a surge in Taiwanese exports, with the island’s companies shipping more than $42 billion worth of graphic processing units and related equipment over the past year, up from almost nothing in recent years. Those exports were worth $3.5 billion last month, up almost 422% from the same period a year ago. So the next time you hear all is well, stop and think again. 🔥