3 Sep 2013
Flash: Abe conveys message at G20 summit on economy – Deutsche Bank
FXstreet.com (Lisbon) - With the spotlight firmly on the United States throughout the week on accounts of critical data releases, the G20 has flown under the radar, which is slated to feature Japan’s Prime Minister Abe, notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
Key quotes
In terms of equities, the key outperformer in Asia is the Nikkei, which is up more than 2.5%. Japanese equities have been helped by comments from Prime Minister Abe will tell global leaders at the G20 summit in St Petersburg this week that the government will go ahead with a two-stage sales tax hike from next year.
“The sales tax increase forms an integral part of Abe’s fiscal reform strategy. If the government were to raise the sales tax as planned, it will consider compiling an extra budget and submit relevant bills to parliament early next year for fiscal spending to cushion any impact on the economy, finance minister Aso told a news conference.”
Key quotes
In terms of equities, the key outperformer in Asia is the Nikkei, which is up more than 2.5%. Japanese equities have been helped by comments from Prime Minister Abe will tell global leaders at the G20 summit in St Petersburg this week that the government will go ahead with a two-stage sales tax hike from next year.
“The sales tax increase forms an integral part of Abe’s fiscal reform strategy. If the government were to raise the sales tax as planned, it will consider compiling an extra budget and submit relevant bills to parliament early next year for fiscal spending to cushion any impact on the economy, finance minister Aso told a news conference.”