To the deflationary spiral however now because theres a strong trend of Wage Increases, Finance Minister Shunichi Suzuki says its over. Joining me now is seijiro takeshita, whos a professor at the university of shizuoka. Thank you for being with us today. Talk to us first of all, this is a pretty unique set of circumstances that japan has pretty unique set of circumstances thatjapan has been pretty unique set of circumstances that japan has been through for the past generation. It is todays Declaration Calls for celebration . Yes, i would think so. Concerning the fact that for two decades, we havent seen any wage rise. Where the only country to do that. There are a lot of recurring profits, bits nine redeeming to their employees. This is, in that sense, a remarkable change. In most of the estimates, there were around 4 , but now its been reported to be around 5. 2, exceeding expectations. fist been reported to be around 5. 2, exceeding expectations. Been reported to be around 5. 2, ex
Taxes. The obr is likely to lower the estimate of how much room he has, and that is probably an over estimate anyway. So he has very little space. He could opt for different things. It looks like hes going to concentrate more on their household than all businesses, therefore two major taxes, one is income tax, other is National Insurance contribution. Income tax is our broader tax and it would cost him more money whereas National Insurance contribution focuses on people at work and would cost him a little bit less. Having a bit less money to play with, like that give as a clearer sense of the conservative priorities here because we know there might be an election coming . It is actually who that money goes to, where they want to target votes . That who that money goes to, where they want to target votes . Want to target votes . That is a very aood want to target votes . That is a very good question want to target votes . That is a very good question because want to target votes . That
It looks like hes going to concentrate more on the households rather than on businesses. And therefore, there are two major taxes that he could hope for, one is income tax and the other one is National Insurance contribution. Income tax is a broader tax and it would cost him more money, whereas National Insurance contribution focuses on people at work and will cost him a little bit less. Yeah, i mean having a bit less money to play with, i suppose, do you think perhaps that might give us a clearer sense of the conservative priorities here . Obviously, we know there might be an election coming. Its actually who that money goes to, where to target votes, maybe. That is a very good question because it does look like they are going to target consumers or households rather than businesses. Whereas if you look at what the priorities are in terms of raising growth potential, you do want to improve and get Business Investment growing faster. So that is really a very big question as to where th
trouble in the valley? financial stocks slump as investors move to withdraw their deposits from silicon valley bank, a key lender to start ups. and the uk grows more healthily than expected injanuary but the government warns there s still a long way to go to restore stability. welcome to world business report, i m tadhg enright. we start in the us with a story causing some worries on financial markets. silicon valley bank has been trying to reassure its clients their money is safe after a 60 per cent collapse in its share price since wednesday. svb has been a key lender to many tech start ups the likes of airbnb and linkedin but questions have been raised about its financial health after it launched a huge share sale to raise money. joao da silva has the details. svb dropped massively overnight as the bank revealed it lost $1.8 billion and the folio of securities valued at around $21 billion. as a result of those losses, the bank was forced to rage cash by a huge share sa