25 Jun 2014
Abe reforming Japan’s economy - BAML
FXStreet (Guatemala) - Team Bank of America Merrill Lynch explained Abe’s intentions of the overall plan.
Key Quotes:
"Prime Minister Shinzo Abe's cabinet approved the final version of the new growth strategy ("the Japan Revitalization Strategy") on 24 June - thus, his new third arrow is in place. As widely expected, the final version has come in line with the draft version published earlier this month, judging from media reports and Abe's press conference."
"On the key corporate tax issue, the government aims to cut the tax rate to the 20% range within several years, starting in FY15. Abe did not comment on the Government Pension Investment Fund (GPIF) reform, but it is expected that the GPIF investment panel will announce the new model allocation as early as this summer."
"Elsewhere, the plan aims to revitalize Japan's growth and potential growth through supply capacity expansion, enhance corporate profitability, conduct deregulation measures, and encourage investment in Japan As in 2013, the extraordinary diet session in the fall (Sep) and the ordinary diet session next year (Jan) will discuss detailed legislations."
Key Quotes:
"Prime Minister Shinzo Abe's cabinet approved the final version of the new growth strategy ("the Japan Revitalization Strategy") on 24 June - thus, his new third arrow is in place. As widely expected, the final version has come in line with the draft version published earlier this month, judging from media reports and Abe's press conference."
"On the key corporate tax issue, the government aims to cut the tax rate to the 20% range within several years, starting in FY15. Abe did not comment on the Government Pension Investment Fund (GPIF) reform, but it is expected that the GPIF investment panel will announce the new model allocation as early as this summer."
"Elsewhere, the plan aims to revitalize Japan's growth and potential growth through supply capacity expansion, enhance corporate profitability, conduct deregulation measures, and encourage investment in Japan As in 2013, the extraordinary diet session in the fall (Sep) and the ordinary diet session next year (Jan) will discuss detailed legislations."