Today in Abenomics, we saw some yen strengthening after Japan’s economy minister Akira Amari made remarks interpreted as indicating the yen had weakened enough:
“People say the excessively strong yen has corrected quite a bit. If the yen continues to weaken steadily from here, negative effects on people’s lives will emerge,” Amari told a Sunday talk show.
All very exciting and the yen strengthened accordingly, allowing us the space to take a longer look at the progress Japan’s reflation experiment has made. Read more
The Japanese government wants to use the assets of Japan Post, the world’s largest bank with deposits of Y170,000bn ($1,870bn), to spur domestic regional development and expand into overseas lending. The assets are currently mainly held in US Treasuries and Japanese government bonds. But Shizuka Kamei, financial services minister, told the FT that the government would develop a new business model for Japan Post. As part of its plan, the government is set to freeze the listing of Japan Post Bank and Japan Post Insurance.
Japan’s new government is poised to halt the scheduled IPOs of Japan Post Bank, the world’s largest bank by deposits, and its sister insurance company. The privatisation of Japan Post under the Koizumi administration earlier this decade broke the institution into four separate units and envisioned their sale to investors as early as next year. But Shizuka Kamei, financial services minister in the new DPJ-led government, said on Sunday that the government would submit a bill this year “to freeze plans for selling shares in units of the postal group”.