Japan to boost stimulus to $1.1 trillion as virus threatens deeper recession

first_imgTopics : Japan is boosting its new economic stimulus package to expand cash payouts to its citizen as the coronavirus fallout threatens to push the world’s third-largest economy deeper into recession.Prime Minister Shinzo Abe unveiled the new stimulus less than two weeks after his cabinet approved an earlier plan to spend 108.2 trillion yen ($1 trillion), which had detailed payouts of 300,000 yen to households with sharp drops in incomes hit by the outbreak.Abe has caved into pressure from within his own ruling bloc to boost the help with a payment of 100,000 yen for every citizen instead of 300,000 yen for limited households, analysts say, even as the new amount triples the cost to 12 trillion yen from what the government had originally planned. Expansion of the scheme may support private consumption that accounts for more than half of the economy, some analysts said, while others believe most of the payout would end up in savings rather than spending to shore up the economy.”Recipients of the payouts include the rich and the people whose incomes are not suffering, so savings will also rise,” said Ryutaro Kono, chef economist at BNP Paribas Securities. “Even considering more people will suffer an economic pain this time than during the 2009 financial crisis, the proportion of the payouts that will be spent is estimated at about 40%. As such, it would push up GDP only by 0.3 percentage points.”The upsized package will total 117.1 trillion yen ($1.086 trillion), with fiscal measures making up less than half of it, a draft reviewed by Reuters showed. Some 25.7 trillion yen will be funded by an extra budget for the fiscal year from April 1, compared with an initial extra budget worth 16.8 trillion yen.Monetary, fiscal policy mixcenter_img While the government boosts fiscal stimulus, the Bank of Japan has also joined other central banks to roll out stimulus to stave off the risk of global recession.The BOJ eased monetary policy last month by pledging to boost risky asset purchases and create a new loan scheme to pump more money into firms hit by slumping sales. The central bank will discuss further steps to ease corporate funding strains at this month’s rate review as the impact hits profits.The government now plans to issue extra bonds worth 25.6914 trillion yen to fund the supplementary budget, the draft showed.Of the extra bond issuance, some 23.3624 trillion yen will be deficit-covering bonds and the reminder will be used to finance infrastructure spending, bringing the amount of market issuance to the upper range of 152 trillion-153 trillion yen.The extra borrowing will add to the industrial world’s heaviest public debt burden, which is more than twice the size of Japan’s $5 trillion economy.It is rare for the government to compile an extra budget at the start of a new fiscal year, and it is even rarer to revise a budget draft that has been approved by the cabinet after coordinating closely with the ruling coalition.Last week, the prime minister, who has been criticized by some over his handling of the pandemic, apologized for confusion over a plan to start distributing coronavirus relief payments next month.Abe’s cabinet is expected to endorse the stimulus spending plan as early as Monday.More than 200 people have died from the virus in Japan, which has reported over 11,000 infections, of which more than a quarter are in Tokyo.last_img read more

‘Fresh thinking in pensions’ leads to new worldwide analytics tool

first_imgFord Motor Company is now in a position to compare the value of the pension provision across its more than 120 schemes in 36 countries after working with investment consultant Redington to develop a new analytics and scoring system.According to Redington, a key aim for the multinational company was to use the tool to provide a consistent analysis of the “retirement readiness” of its employees.It said a new digital platform had been developed that provides visualisation of how assets and costs are distributed across countries and schemes, with millions of data points collated for each pension scheme.In addition, a pension scoring system has been created that awards a score out of 100 to each of Ford’s pension schemes based on up to seven underlying factors, including investment performance, costs and charges, contribution rates and retirement outcomes. Ford has been added to Redington’s ADA fintech platform – named after Ada Lovelace, born in 1815 and described by some as one of the earliest computer programmers – as part of the launch of the new tool.“This project was a great example of thinking differently in pensions”Oliver Payne, EMEA pensions manager at FordOliver Payne, EMEA pensions manager at Ford, said: “This project was a great example of thinking differently in pensions.“The ADA system means we can move away from our traditional approach of collating and analysing pensions data on an individual project basis. We now have consistent, reliable data available for each project which means we can now be more proactive in the way we look at the costs and value of pension plans around the world.”Adam Jones, chief technology officer at Redington, said: “We are hugely excited to continue our work with Oliver and the team to explore how we can further develop the tool, and ensure Ford remains on the front foot when it comes to pensions analytics.”last_img read more

WR Stefon Diggs embracing fresh start with Buffalo

first_img SUBSCRIBE TO US WATCH US LIVE LIVE TV Associated Press Television News COMMENT First Published: 6th August, 2020 06:31 ISTcenter_img Stefon Diggs has a new beginning with the Buffalo Bills. And he isn’t dwelling on his departure from the Minnesota Vikings.Speaking with Buffalo reporters for the first time since his blockbuster trade in March, Diggs repeatedly expressed excitement over his new surroundings while also downplaying his role in leaving Minnesota.“As far as my past with Minnesota, I never actually said anything,” Diggs said. “But, granted, this new situation, I can say I’m excited. There’s no right or wrong or problems to be fixed or something to replace with my old situation. I have a lot of respect for the Minnesota Vikings.”Last season with the Vikings, Diggs was fined more than $200,000 for unexcused absences from practices in October. He was also known for cryptic tweets that may or may not have offered insight into his situation with the team. Prior to being traded to Buffalo, Diggs tweeted “it’s time for a new beginning” — and hours later he was a member of the Bills for four draft picks.In Buffalo, he’s expected to be the unquestioned No. 1 receiver on a team hoping to win the AFC East following Tom Brady’s exit from the division.“I never really was too vocal about it. ‘It’s time for a new beginning’ was enough said,” Diggs said. “I’m super excited with my new situation. I feel like this is also a great organization built on a lot of hard-working guys, a lot of guys that really grind to get to where they’re at.”I trust the people that are in place. I’m just happy to be a part of it at this point. I’m not trying to reinvent the wheel or anything like that, I’m just trying to be as helpful as I can, be a puzzle piece, try to mesh as well as I can to help this team win.”Diggs has been a game-breaker throughout his career and the Bills are hoping he’s the finishing piece who can put them over the top. Diggs finished last season with a career-high 1,130 yards receiving and he was fourth in the league with an average of 17.9 yards per reception. He’s considered one of the best route runners in the NFL and is set to form a solid receiving trio alongside John Brown and Cole Beasley.Priority No. 1 for Diggs with his new team is to work on establishing chemistry with quarterback Josh Allen. The two met up for unofficial workouts in Florida earlier this summer, but have plenty of work to make up with the lack of a traditional offseason.“I’m super excited,” Diggs said. “He’s going into Year 3. As a quarterback, as a guy, big arm, big quarterback, a lot of heart, he runs around, he’s mobile, can extend the play. He does a lot of things extremely well. More so focused on how I can help him, anything I can do to help him. Always be in his ear, having communication with him, if he needs something from me … I’m just there to be his supporting cast on whatever he needs and play receiver.”So far, so good according to teammate and standout cornerback Tre’Davious White.“Obviously he’s a Grade A talent,” White said. “To have a transcendent talent like that to add with the other guys that we have … on paper, it looks great. Those guys are going to have to continue to work each and every day. Just on paper, we look sexy (on offense), we look good.”After expressing some concerns one month ago about playing football this year — and hours after White said that he was unsure about his own plans for this season — Diggs said that he will be playing amid coronavirus concerns.“Seeing that the deadline is tomorrow, I’m pretty much bought in on playing football,” Diggs said. “I’ve been here buying into the process as far as getting to know my teammates, getting to know my coaches, kind of starting to get the ball rolling. I put in a lot of time in the offseason training and (working on) my craft … I made some arrangements where I’m going to be playing football this year.”NOTES: The Bills activated CB Ike Brown and S Siran Neal off the reserve/COVID-19 list. To make room on the roster, Buffalo released RB Antonio Williams and DE Jonathan Woodard.Image credits: AP Written By Last Updated: 6th August, 2020 06:31 IST WR Stefon Diggs Embracing Fresh Start With Buffalo Stefon Diggs has a new beginning with the Buffalo Bills. And he isn’t dwelling on his departure from the Minnesota Vikings FOLLOW USlast_img read more