Market-Roiling Kishida to Elaborate on Japan's ‘New Capitalism'

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

(Bloomberg) — After roiling financial markets with comments on capital gains taxes and share buybacks, Japanese Prime Minister Fumio Kishida is back in parliament from Monday — and investors will be watching closely to see if he does it again.

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

Most Read from Bloomberg

    Kishida is set to address a session that starts at 2 p.m. Monday and give more details of his New Capitalism policy framework, which is aimed at achieving a virtuous economic cycle through better distribution of the fruits of growth. That seems to contrast with the market focus of his former boss, Shinzo Abe, who as premier in 2013 urged an audience at the New York Stock Exchange to “buy my Abenomics.”

    Global Tech News Daily

    The premier, who took office in October, has found that his ideas at times can be quickly interpreted as market-unfriendly, causing declines in equity prices. At one point in the fall, the hash-tag “Kishida Shock” trended on Twitter, when his comments were linked to market gyrations.

    ‘Kishida Shock’ Hits Japan Markets Wary of Redistribution Plan

    Global Tech News Daily

    “He says straight out what he’s thinking, and that is sometimes out of tune with market perceptions, or is taken negatively,” Junichi Makino, chief economist at SMBC Nikko Securities in Tokyo, said of Kishida. The premier’s comments are a risk “in the sense that we can’t predict what he’ll say,” he said.

    Amid a market mood darkened by expectations for rate increases in the U.S., “we’re in a situation where negative comments have an impact, so we have to pay attention,” Makino added.

    Abe last month urged Kishida not to deviate from his own economic policies, nor to give markets the impression of a socialist slant, the Asahi newspaper reported.

    Kishida’s policy platform in the September race to lead the ruling Liberal Democratic Party included a proposal to increase the tax on financial capital gains. In an Oct. 4 news conference after his victory, he referred to it as “an option.”

    The Nikkei 225 Stock Average fell for eight straight days from late September, the longest losing streak since 2009. While Kishida has since said the tax policy won’t be implemented immediately, he still hasn’t ruled it out.

    Japan’s Kishida Vows Tight Borders, Faster Boosters for Elderly

    In a Dec. 14 budget committee session, Kishida referred to the possibility he’d lay out guidelines to regulate corporate share buybacks, prompting the blue-chip Nikkei 225 Stock Average to briefly dip 1.2% following the comments. A pledge made by Kishida on Jan. 4 to bolster startups in Japan over the next five years failed to persuade investors, as the Tokyo Stock Exchange Mothers Index for startups slid.

    For the moment, voters in general don’t seem concerned about Kishida’s effect on the stock market. A poll conducted by the Yomiuri newspaper Jan. 14-16 found support up to 66%, its highest since he took office, in line with other recent surveys from Jiji Press and national broadcaster NHK.

    Kishida’s Monday speech will be followed by days of parliamentary questioning on his plans, and then weeks of grilling in the budget committee. With an upper house election six months away, the economy and financial markets are likely to be a focus for opposition party lawmakers. Some of them are inclined to back his ideas on stocks.

    “My sense is that politicians have given the players too much power to set the rules of the game,” said Takayuki Ochiai of the main opposition Constitutional Democratic Party, the lawmaker who quizzed Kishida about share buybacks in the budget committee last month. “That’s been going on for 20 years. If investors propose a change, it’s usually adopted.”

    Ochiai, himself a former banker, said the CDP is likely to support a “stakeholder capitalism” approach, including priorities Kishida has already laid out, such as raising pay.

    Hideo Kumano, chief economist at Dai-Ichi Life Research Institute, said Kishida’s plans on pay and bolstering startups seemed like tweaks to what had gone before, rather than new policies, concluding: “He probably doesn’t keep the stock market in mind much.”

    (Updates with latest opinion poll.)

    Most Read from Bloomberg Businessweek

      ©2022 Bloomberg L.P.

      News Related

      OTHER NEWS

      Man duct taped to his seat after fight on Frontier Airlines is sentenced to prison

      The incident was captured in cellphone videos that went viral, bringing attention to the risks faced by flight attendants during the pandemic. Read more »

      Dallas Cowboys owner Jerry Jones reportedly involved in car crash

      One person was briefly hospitalized as a precautionary measure after the car collision in Dallas, police said. Read more »

      Some religions support abortion rights. Their leaders are speaking up.

      "We support abortion justice not despite our religious values but because of them." Read more »

      Roe v. Wade live updates: Protests rage on over leaked abortion ruling

      “This is about a lot more than abortion," President Joe Biden said Wednesday. “What are the next things that are going to be attacked? Read more »

      Woman accused of 1996 fatal stabbing in California arrested in Texas

      Jade Benning was taken into custody near her Austin home in connection with the January 1996 death of her boyfriend in Santa Ana, officials said. Read more »

      Buildings damaged in possible tornado outside Oklahoma City

      The Seminole County undersheriff said he did not know of any injuries. Read more »

      British Virgin Islands premier gets $500,000 bond in drug case

      Federal court Judge Alicia Otazo-Reyes rejected prosecutors’ argument that Andrew Fahie may flee the U.S. and possibly engage in criminal activity if he is freed. Read more »

      Kidd Creole sentenced to 16 years for fatal stabbing in New York City

      The Grandmaster Flash and the Furious Five rapper fatally stabbed a man after the two exchanged words. Kidd Creole argued self-defense. Read more »

      ‘It's already having an impact': LGBTQ people fear abortion rights reversal

      Some LGBTQ people fear the reversal of abortion rights protections would have far-reaching impacts — both on their health and other rights such as marriage equality. Read more »

      Abortion clinics are bracing for protests, harassment and violence if Roe falls

      “News like this, political losses like this, can embolden people who want to harass or terrorize abortion providers,” an abortion-rights advocate said. Read more »

      Wife of judge who dismissed Strauss lawsuits had $313K flag contract with OSU

      Lawyers for the victims of former OSU doctor Richard Strauss say Judge Michael H. Watson should have recused himself from the cases. Read more »

      Covid's toll in the U.S. reaches a once unfathomable number: 1 million deaths

      "It's an exponential number of other people that are walking around with a small hole in their heart," one widow said. Read more »

      Alabama officer accused of helping inmate escape no longer employed by sheriff's office

      Vicky White, 56, is wanted on a charge of permitting or facilitating the escape of inmate Casey White on Friday. Read more »

      'Very dangerous fire weather' as New Mexico braces for more wildfire conditions

      The Hermits Peak and Calf Canyon fire was 20 percent contained as of Wednesday morning, while the Cooks Peak fire was 89 percent contained, fire authorities reported. Read more »

      Hiker's body found at base of California waterfall after 80-foot fall, officials say

      Robert Carey Jr., 33, of Calimesa, was hiking at the San Bernardino National Forest when he fell, according to the San Bernardino County Sheriff's Department. Read more »

      Trevor Reed family urges White House to bring Brittany Griner, Paul Whelan home from Russia 

      The family of Reed, the former U.S. Marine who was held in Russian jail for nearly three years, spoke at a rally in front of the White House on Wednesday. Read more »

      Judge overseeing Derek Chauvin civil rights case accepts plea deal

      The judge said Wednesday he will sentence the former Minneapolis police officer to 20 to 25 years in prison. Read more »

      U.S. takes unprecedented steps to replenish Colorado River's Lake Powell

      If Lake Powell, the second largest U.S. reservoir, were to drop another 32 feet, the 1,320-megawatt plant would be unable to generate electricity for millions of people. Read more »

      Trans youths who socially transition are unlikely to 'detransition' later, study finds

      An overwhelming majority of youths who socially transitioned still identified as transgender five years later, according to the study. Read more »

      Body of one of three children last seen entering the Mississippi River has been found

      Kevin Poole Jr., 15, was located about two miles from where he and two girls, ages 8 and 14, were last seen. Read more »

      Map: Abortion restriction bills pending in 40 states this year

      More than 500 pieces of legislation taking aim at abortion access have been considered so far in 2022. Read more »

      Missing 7-year-old girl's safety and well-being 'were not prioritized,' report finds

      Harmony Montgomery has not been seen since 2019. New Hampshire police were made aware of her disappearance late last year. Read more »

      Dallas toddler mauled by coyote on front porch, hospitalized

      The attack came less than a week after a coyote attacked a 2-year-old girl on Southern California’s Huntington Beach. The coyote was later shot dead. Read more »

      Mechanical failure behind deadly Navy helicopter crash, military says

      The helicopter fell into the sea and sank about 70 miles off San Diego. One crewmember was rescued and five were declared dead after a search. Read more »

      Roe v. Wade live updates: Reactions to Supreme Court leaked abortion ruling

      President Joe Biden has said “a woman’s right to choose is fundamental” and that his administration “will be ready when any ruling is issued.” Read more »

      Missouri man executed after death sentence is overturned three times

      Carman Deck was the fifth person to be executed in the United States this year. Read more »

      Three suspects charged with murder in California gun fight that left 6 dead

      Smiley Martin, Dandrae Martin and Mtula Payton have each been charged with three counts of murder in the shooting last month that also wounded 12. Read more »

      ‘Speak up, don't be ashamed': Activists who fought for Roe urge younger generation to keep fighting

      “This is worse than going backward, it’s a trampling of established fundamental rights,” said a lawyer who worked on women’s rights issues through legal and grassroots movements before Roe. Read more »

      He's protested abortions outside Mississippi's sole clinic for years. Now he might retire.

      “I’ll probably get to fish,” said David Lane, an anti-abortion rights activist who demonstrates regularly outside the Jackson clinic at the center of the Supreme Court case. Read more »

      Norman Mineta, pioneering Asian American who served in 2 presidential Cabinets, dies at 90

      Mineta served under both Democratic President Bill Clinton and Republican George W. Bush. Read more »

      Latino abortion rights advocates warn of ‘dark times' if Roe v. Wade is reversed

      The impact of the Supreme Court decision would "fall hardest on those who already struggle to access health care, including abortion," says a national abortion rights leader. Read more »

      Daughter of 'Jane Roe' fears overturning decision 'could take us back 50 years' 

      Melissa Mills, eldest daughter of Norma McCorvey, said whether to have an abortion "shouldn’t be anybody else’s choice but that woman who needs to make that decision." Read more »

      Anti-abortion activist climbs San Francisco skyscraper, arrested on trespassing charges

      Maison Des Champs, 22, was detained by police on top of Salesforce Tower, America's 12th tallest building, and booked for alleged trespassing and resisting arrest. Read more »

      Relationships between corrections officers and inmates are 'a very common story'

      The Lauderdale County Sheriff’s Office confirmed there was a “special relationship” between corrections officer Vicky White and suspect Casey White, who disappeared together last week. Read more »

      What the latest omicron subvariants mean for reinfection risk

      In the U.S., the BA.2.12.1 subvariant is gaining a foothold, while South Africa is seeing a surge in cases from two other subvariants, BA.4 and BA.5. Read more »

      Decomposed body found in barrel on shore of shrinking Lake Mead

      Investigators believe the victim was killed between the 1970s and 1980s based on the clothes and shoes found on the body, police said. Read more »

      Leader of the Mississippi abortion clinic at the center of the SCOTUS case may move to New Mexico if Roe is overturned

      Shannon Brewer, director of the Jackson Women’s Health Organization, told NBC News she is considering opening a clinic in New Mexico if the Supreme Court allows Mississippi to further restrict abortion. Read more »

      Fox breaks into bird habitat and kills 25 flamingos at Smithsonian National Zoo

      There were 74 flamingos in the Washington, D.C., zoo's flock prior to the attack, authorities said. Read more »

      State seeks death penalty for Lori Vallow, charged with killing her children

      The Idaho woman last month pleaded not guilty to the murder charges against her. Read more »

      Man working on Ferris wheel falls to death at Jersey Shore amusement park, officials say

      Robert Sanger, 62, a subcontractor working on a lift at Gillian’s Wonderland Pier, "suffered a fatal injury Monday morning," the amusement park’s president said. Read more »