"Kinh te^' dda~ phu.c ho^`i" Japan Releases Stimulus Sushi 寿司Package

On Dec 5, 7:46 pm, Duong Trung <duongtrung...@xxxxxxxxx> wrote:
..> Tui kho^ng nghi~ Recession is over but has some signs of positive
This Statistics is Ok ho+n la` du+.a va`0 unemployment rate

http://finance.yahoo.com/banking-budgeting/article/108305/are-things-...

DTD


Tu*` nay to*'i 2012 ca.p dda^'t a(n ro^`i cho*` Ta^.n the^' :)
It's a possible fact :))))))))))))

FWD: http://www.bloomberg.com/apps/news?pid=20601101&sid=aKEgYWoMAWIc

Japan Releases Stimulus Package as Recovery Weakens (Update3) Share
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By Keiko Ujikane and Toru Fujioka

Dec. 8 (Bloomberg) -- The Japanese government unveiled a 7.2 trillion
yen ($81 billion) economic stimulus package amid signs the recovery
and Prime Minister Yukio Hatoyama’s popularity are waning.

Hatoyama’s first stimulus plan includes 3.5 trillion yen to help
regions, 600 billion yen for employment and 800 billion yen on
environmental initiatives, the Cabinet said today in a statement in
Tokyo. The measures had been delayed because of haggling within the
coalition government.

The package came a week after the Bank of Japan released a 10 trillion
yen credit program in response to government calls for it to counter
deflation and a surging yen. Analysts said today’s measures may
provide at least a temporary boost for the world’s second-largest
economy, which emerged from its worst postwar recession in the second
quarter.

“I give it 50 points out of 100,” said Masaaki Kanno, chief economist
in Tokyo at JPMorgan Securities Japan Co. and a former central bank
official. The package “will be effective in easing strains on an
economy struggling with deflation and a lack of demand, but it won’t
boost growth potential in the medium to long term.”

The yen has weakened since climbing to a 14-year high of 84.83 against
the dollar on Nov. 27. The Japanese currency traded at 88.83 at 2:20
p.m. in Tokyo from 88.99 before the announcement. The Nikkei 225 Stock
Average fell 0.5 percent, heading for its first decline in more than a
week.

Deflation Risk

“Risk factors include a deterioration in employment conditions,
sluggish demand because of deflationary pressure, a rise in long-term
interest rates and movements in the currency markets,” the statement
said. Abrupt foreign- exchange moves may have a “considerable adverse
impact on the economic recovery.”

Japanese policy makers are adding stimulus measures just their
counterparts around the world consider withdrawing them. Deputy Prime
Minister Naoto Kan said today that the central bank’s Dec. 1 credit
easing had a “considerable impact” on weakening the yen.

Japan has compiled four stimulus plans since September 2008 totaling
more than 29 trillion yen ($326 billion). That compares with the
U.S.’s $787 billion and China’s $586 billion.

Kamei’s Call

The People’s New Party, a junior coalition member headed by Financial
Services Minister Shizuka Kamei, blocked the stimulus last week,
calling for a larger package to defeat deflation. Coalition parties
agreed to boost the size of the measures by 100 billion yen to
accommodate the request.

Today’s package includes 3 trillion yen in tax grants to local
governments to make up for a revenue shortfall. The government will
pay for the tax breaks by selling deficit- covering bonds.

Some 1.2 trillion yen will be used to expand emergency credit for
small and midsized businesses, provide safety-net loans and reduce
interest rates on lending.

The package extends a program initiated by the previous administration
giving consumers incentives to purchase eco- friendly cars and home
appliances. It also introduced incentives to install energy-saving
equipment in homes.

The employment measures will make it easier for companies to obtain
subsidies to keep workers when cutting production.

Willing to Act

“The scale of the stimulus package itself isn’t that impressive, but
it shows that the Japanese government is willing to take action,
relieving recent worries that it will just sit there,” said Takeshi
Osawa, a senior fund manager in Tokyo at Norinchukin Zenkyoren Asset
Management Co.

About 2.7 trillion yen of the package will be paid for with funds
frozen from the previous administration’s extra budget. The government
wants to avoid selling new bonds “as much as possible,” the statement
said.

Japan has the world’s largest public debt, with liabilities that are
approaching twice the size of the economy.

Finance Minister Hirohisa Fujii said bond sales for the current fiscal
year will exceed tax revenue for the first time in 63 years. The
government will sell 53.5 trillion yen in bonds, more than the 44
trillion yen budgeted in April, he said. Tax revenue will slump to
36.9 trillion yen, less than the 46 trillion yen projected.

Sliding Popularity

The premier’s sliding popularity may hurt his party’s momentum ahead
of upper house elections in July 2010. His approval rating fell below
60 percent for the first time, declining to 59 percent from last
month’s 63 percent, the Yomiuri newspaper reported yesterday.

Japan’s exports fell at the slowest pace in a year in October as
worldwide government spending spurred demand for the nation’s
products, a Finance Ministry report showed today. That helped the
trade surplus expand 42.7 percent from a year earlier to 1.4 trillion
yen. Corporate bankruptcies fell 11.4 percent in November to their
lowest level in almost two years, Tokyo Shoko Research Ltd. said.

Other recent figures show the expansion may be weakening. Industrial
production advanced at the slowest pace in eight months in October,
wages slid for a 17th month, and consumer prices fell a near-record
2.2 percent.

Gross domestic product rose at an annual 2.8 percent rate in the three
months ended Sept. 30, according to the median estimate of 17
economists surveyed by Bloomberg News ahead of revised figures due
tomorrow. That would be slower than the 4.8 percent the Cabinet Office
initially reported, reflecting figures last week that showed companies
cut capital spending at a record pace in the period.



Last Updated: December 8, 2009 00:21 EST
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