94% plunge shows ‘Abenomics’ is losing global investors | The Japan Times

This is a top-trending article, published in the Japan Times. It’s well worth a read.Check it out!

via 94% plunge shows ‘Abenomics’ is losing global investors | The Japan Times.

It seems that ‘Abenomics’ has lost its magic. Abe has been shy of deploying his own third arrow, namely structural change. There are important parallels here for the Eurozone. In discussions with Southern Europe, including France and Italy, Germany can cite Japan‘s example – again there is no substitute for structural change. Structural change must include opening up Japan’s service sector and public sector to global competition. For the Eurozone, the priorities are labor market reform, creating greater competition for jobs.

For me, there is another aspect of  ‘Abenomics’ which is often missed. Abe has placated his right-wing cronies with his foreign policy decisions – especially, he’s often ignored the sensitivities of China. Abe has created ‘political risk’ which can make foreign investors wary of investing in Japan. ‘Political risk’ is also a factor in the Eurozone – for example, the imminent national election in Greece.


Japan cannot rely on India to counter China – People’s Daily Online

English: Logo of the People's Daily 中文: 人民日报题字

English: Logo of the People’s Daily 中文: 人民日报题字 (Photo credit: Wikipedia)

This short article published in today’s People’s Daily in China is well worth a read. Check it out!

via Japan cannot rely on India to counter China – People’s Daily Online.

Here is an introduction to the People’s Daily from Wikipedia:

The paper is an official newspaper of the government of China, published worldwide with a circulation of 3 to 4 million. In addition to its main Chinese-language edition, it has editions in English, Japanese, French, Spanish, Russian, Arabic, Tibetan, Kazakh, Uyghur, Zhuang, Mongolian, Korean and other minority languages in China. Similar to Pravdas relationship with the Soviet Union, the newspaper provides direct information on the policies and viewpoints of the government. It claims itself to be elected by UNESCO as “one of the 10 most authoritative and most influential newspapers of the world”.

There are a few thoughts here.

Firstly, it is interesting to reflect on the reach of the People’s Daily and the number of languages. Personally, I scan it three of four times a week and find it of high quality. I question how many Western publishers can compare? Once upon a time, the BBC had an excellent international reputation but I fear that, these days, it is tarnished. Similarly, media in the US seems dominated by the TV networks and they are not really outward focused.

Secondly, the article highlights the shift in geopolitics in Asia. Japan, India and China are testing the limits of power and influence.

For me, the article once again brings into question President Obama’s flawed foreign policy, which has reduced US influence and triggered geo-political uncertainty, and of course, probably contributed to the rise in international terrorism.