The big US tax cut adds almost $15 billion to bottom lines
Nikkei reports total revenues fo fiscal 2018 will like top the previous record of 561 trillion JPY (5.15 trillion of today’s USD)? That is thanks to the global economy being perky but also in
a small way due to the US tax cuts. Especially the big carmakers , electric machinery companies and the likes of Softbank are seeing big jumps in profits..
That should leave the Japanese outlook pretty bright for the near future. The wage talks could be expected to be good in Spring and tax reliefs for the companies hiking wages by more than 3% may come into the picture as well, maybe a tad more repatriation to pay for wage hikes if the corporates play ball. Abe/Kuroda’s hopes for a higher inflation could get a boost from this. In theory that should be JPY negative by inverse correlation with the stock markets but we’ve seen already a sporadic breaks of this correlation in the past months as Japan’s economic data outperformed. My 2 bucks are for this to continue, keeping my forecast for a higher JPY from Spring.
- #Canada #Employment report preview. - November 5, 2021
- Rotation, ROTATION! - November 24, 2020
- $CNH living on hopium? Big week for the Yuan this. - January 13, 2020