Japan to invest in us jobs

The fund — which includes Saudi Arabia, a target of Mr. Its annual report also listed logistics services in California and Texas. DealBook Business and Policy. Son, a Japanese mogul, struck another big pledge after meeting with President-elect Donald J. It purchased U. Trump had campaigned on the promise of bringing jobs back to America, and companies from Alibaba to Amazon pledged to do their part.

Japan could see brighter days ahead

Having decided to actively increase its risk exposure over the past few yearsincluding venturing into high beta stocks and junk imvest — a gamble that has lead to a big jump in quarterly volatility not to mention significant downside risk should global markets suffer a crash — Japan’s Government Pension Investment Japan to invest in us jobs, or GPIF, the ja;an largest pension fund, has decided to invest in US infrastructure projects. According to Japan’s Nikkeiinfrastructure investments in the U. The stated goal is to create » hundreds of thousands of American jobs»in keeping with U. President Donald Trump’s agenda, and deepen ties between the two countries. The unstated goal is to avoid Trump lashing out at Japan as invewt currency manipulator, and putting in peril Japan’s QQE «with curve control» experiment, which is the bedrock of all Abenomics as further expained in the following Nikkei piece.

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President Donald Trump next week, government sources familiar with the plans said. That would include helping develop high-speed railways in the northeastern United States, and the states of Texas and California, and renovating subway and train cars. The package also includes cooperation in global infrastructure investment, joint development of robots and artificial intelligence, and cooperation in cybersecurity and space exploration, among others. The government may tap its foreign exchange reserves account to fund part of the package, the sources said. It may also get funding from megabanks and government-affiliated financial institutions, as well as the Government Pension Investment Fund, the Asahi and other newspapers reported.

The election of Prime Minister Shinzo Abe sparked hopes that the country could turnaround its economy, but the progress has been slower than many have hoped.

The good news is that there are some important catalysts that could help the country outperform over the coming years. In this article, we will look at three reasons that investors may want to consider investing in Japan over the coming years. The weaker yen helped bolster Japanese stocks, which outperformed many developed countries in the weeks following the election. Since then, Japanese stocks have underperformed U. Meanwhile, the Bank of Japan is likely to keep interest rates low and risk overshooting its 2 percent inflation target to get consumers used to seeing higher prices after years of deflation.

These dynamics could help boost Japanese equities over the coming years. The weaker yen helps Japanese exporters become more competitive in international markets—including the United States—and therefore helps bolster corporate profits.

International investors should use currency-hedged funds to maximize the gains from these dynamics since these funds offset the impact of a weaker yen upon conversion back into dollars. Japanese inflation initially rose past 3 percent by in response to the policy, but eventually fell back below 0 percent by Ininflation began to rise once again to around 0. The goal was to purchase year government bonds to keep yields at 0 percent while abandoning its official target for expanding the monetary base.

The prospect for higher inflation could boost the outlook for Japanese stocks and the wider economy, while an end to decades of deflation and stagflation could lead international investors back into the market. International investors should keep an eye on both headline inflation rates and progress being made on the more-difficult third arrow of Abenomics—structural reforms that have yet to fully take place.

Japan has always been known as a leader in robotics and technology, but this is often through medium-sized firms rather than multinational giants. For example, a firm called Nidec produces about 75 percent of motors used in hard disk drives while TEL makes 80 percent of the etchers used in making LCD displays.

While big companies like Sharp, Sony, and Panasonic have been losing market share to other japan to invest in us jobs, these smaller companies continue to dominate their niches.

Many of these companies also have much larger barriers to entry compared to foreign companies. For instance, many Japanese companies manufacture high-end components in their own factories and often own their own supply chains. The strength of these companies lies in their employees rather than patents that eventually expire or network effects that rely on consumer behavior not necessarily changing over time.

International investors may find these medium-sized companies compelling opportunities for stability over time as opposed to fast-growth companies that could be more susceptible to crashes. International investors should keep in mind that Japan still faces several challenges over the years. With an aging population, the country faces a significant demographic problem that will only be solved through immigration reform—a tough sell politically.

The country also has high levels of debt compared to its gross domestic product GDPwhich could put the country at risk over the long run if credit analysts decide it could have difficulty repaying debt. Japan may not seem like an obvious choice for international investors, but there are several potential catalysts on the horizon over the coming years that could make it more attractive.

This is especially true if the country can resolve its inflation-related problems through Abenomics and if the U. International Investing Global Investments. By Justin Kuepper. Continue Reading.

Son was not expected to discuss specific issues with Mr. O supplier Foxconn said it was in preliminary discussions to expand its U. Biz Carson. Trump is already touting his jobs credentials, claiming nearly seven million jobs have been added in the U. Business News. Maintaining enough staffing to meet production needs can be a challenge. Foxconn employs about one million workers in China. Byit looked like Son had already fulfilled his promise to Trump. Angel Au-Yeung Forbes Staff. The U. Son has been known japan to invest in us jobs sometimes impolitic remarks. SoftBank said on Nov. Son said on Tuesday, after meeting Trump, his investment would create 50, new jobs, a move the U. Those that did comment told of merely incremental gains.