Prime Minister Fumio Kishida says his government's new economic package will seek to navigate the economy through a cost-of-living crisis to achieve long-term growth as part of his plans to redistribute wealth in Japan with pay hikes and other similar measures.
Investors are finally seeing potential in European mining shares, as China's step-by-step economic stimulus is steadily laying the foundations for a recovery of the unloved sector. The STOXX Europe 600 mining index has fallen 15% this year, making it the worst performing sector in the region by some margin, with second-placed real estate down 4.5% and the top-performing retail index up 27%. The metals and mining sector is typically used as a proxy for equity investors in Europe to gain exposure to China, given it is the world's largest commodities consumer, and it has sunk along with China's growth expectations.
MESEBERG, Germany (Reuters) -Germany's government must be careful that its economic stimulus measures do not spur inflation, Chancellor Olaf Scholz said on Wednesday, shortly after his cabinet approved 32 billion euros ($35 billion) of corporate tax cuts to boost flagging growth. German consumer price inflation, harmonised to compare with other European Union countries, rose by an annual 6.4% in August, preliminary data showed on Wednesday, edging lower from 6.5% in July but more than the 6.3% forecast in a Reuters poll. "Measures to promote the economy (must be) so targeted and so precisely developed that they do not lead to a new surge in inflation, but that they only help to stimulate growth," Scholz said at a cabinet retreat in Meseberg.
As global oil demand increases and supply shrinks due to OPEC+ cuts, analysts anticipate a surge in oil prices, underpinned by the Chinese stimulus and the U.S. Federal Reserve s soft landing.
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