MARKET UPDATE

Japan Inc hikes pay by more than 2%, not enough for a big economic boost

Japan’s top firms have offered pay rises of more than 2% at annual wage talks that wrapped up on Monday, marking an uptick from the previous year but still falling short of Prime Minister Fumio Kishida’s request for a bigger increase to spur growth.

Instead, Japanese workers now look set for another lean year. Wages, which have barely budged relative to the cost of living since the 1990s, remain one of the most pressing problems for the world’s third-largest economy, forcing households to save rather than spend.

 

Fed Decision, Chinese Verbal Intervention, Retail Sales

The Federal Reserve is set to raise interest rates for the first time in over three years – but how many more hikes will the central bank guide for this year? Retail sales data for February are due. China’s government and central bank promise support to the economy and to financial markets, triggering the biggest one-day rally in Chinese stocks in years. U.S. stocks are set to build on Tuesday’s gains as oil remains under pressure, relieving some of the fears about stagflation. And the Russian Federation is expected to miss payments on its international debt for the first time.  Here’s what you need to know in financial markets on Wednesday, 16th March.

 

U.S., Britain trade talks to start next week in Baltimore

The United States and the United Kingdom will kick off trade talks next week, the U.S. Office of the Trade Representative (USTR) and the British government said on Wednesday.

Securing a trade deal with the United States was one of the main goals of the campaign that led Britain out of the European Union, although critics said any deal would take years and never fully compensate for leaving the EU’s single market. 

 

Japan PM Kishida signals new spending to soften fuel cost blow

Japan’s Prime Minister Fumio Kishida signalled a fresh stimulus package on Wednesday, saying the government is ready to take further steps to cushion the economic blow from rising energy costs driven by the Ukraine crisis.

While a weak yen is playing some part in driving up import costs in Japan, global commodity inflation is largely to blame for pushing up energy and food bills, Kishida said.

 

Asian bonds receive foreign inflows in Feb despite soaring geopolitical concerns

Emerging Asian bonds excluding China continued to see foreign inflows for a 21st straight month in February, but analysts are turning pessimistic about the outlook due to concerns over higher U.S. interest rates, soaring inflation and growing global fallout from the war in Ukraine.

 

 

 

 

 

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