While investors’ attentions are naturally focused on the meltdown in global financial markets, there are several other noteworthy developments taking place around the world that could add to the sense of global risks. The following are in no particular order: Tensions are once again rising on the Korean Peninsula. North Korea is conducting military exercises,… [Read more]

Japanese Prime Minister Naoto Kan has described Friday’s devastating earthquake and its aftermath as the country’s worst disaster since World War II. Indeed, it is quite possible that the latest quake will surpass the Great Hanshin Earthquake of January 1995 in terms of lives lost and damages incurred. Japan is better placed than many other… [Read more]

Although Colonel Muammar Qadhafi’s position looks increasingly untenable, it’s quite possible that he will not be the next leader to leave office. That misfortune may well befall Japanese Prime Minister Naoto Kan. Admittedly, Kan hasn’t sent fighter jets to bomb Osaka – although Japan’s second-largest urban area is controlled by the opposition. However, Kan’s popularity… [Read more]

Japan’s Finance Ministry finally capitulated on September 15, announcing intervention in the currency market for the first time in six years in a bid to temper yen strength. The quick-fire announcement followed the victory of incumbent Prime Minister Naoto Kan a day earlier in the ruling Democratic Party of Japan leadership contest. Clearly, then, the… [Read more]

As I write this, Japan is once again in a funk. The yen has come ever so close to its post-WW2 high of JPY79.70/US$ seen in 1995, the Nikkei has touched 16-month lows, and now, the governing Democratic Party of Japan (DPJ) has become embroiled in an internal power struggle between Prime Minister Naoto Kan… [Read more]

Japan’s new prime minister, Naoto Kan, has been given a poisoned chalice to say the least. Although GDP is growing again, the magnitude of the country’s economic challenges is gargantuan: A fiscal deficit of around 10% of GDP A public debt burden of 200% of GDP An ageing and shrinking population Weak private consumption Consumer… [Read more]