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Jupiter’s Somerville says Japan is set for a redistribution of wealth

Jupiter Japan income manager Simon Somerville says the decisive victory of the Democratic Party of Japan in Sunday’s general election is likely to result in a redistribtuion of wealth in the country.

Somerville says that while the result was not in question, the 64 per cent DPJ majority was a surprise. He also says that the country’s economic malaise and the global recession may have cut voters patience short while the high turnout suggest that young people favoured change.

He says: “The DPJ campaigned to boost incomes and strengthen Japan’s social safety net. Its stated policies revolve around redistributing money away from Japan’s huge bureaucracy towards general population. Generous child allowances, the removal of tolls from motor ways and a hike in the minimum wage have all been promised.

“These policies should encourage consumer spending and particularly benefit specialist retailers, truckers and providers of health and education services. However, concern remains that cost cutting in the bureaucracy may not be sufficient to fund these policies and public debt may be further inflated, pushing long-term interest rates higher.”

Somerville says there will be five key winners in the new regime, namely smaller companies, households, the young, politicians and urban areas.

He says the landslide victory has not been reflected in the stock market, despite a sharp rise on Monday.

He says: “Until there is more clarification of the makeup of the new Cabinet and their immediate policy goals, scepticism is likely to remain over the ability of the DPJ to enact the changes they have promised. However, they have been given a tremendous boost with the scale of their victory. Together with the fact that they already control the Upper House, this should give them the ability to force through the much needed revitalisation policies that Japan and investors require.”


Scot Prov pays 93% of CI claims

Scottish Provident paid out 93 per cent of all critical illness claims made between January and June this year, up six per cent on the same period last year.

Body found in search for David Seaton

Police in Cornwall have recovered a man’s body from the beach near Kilkhampton, Bude which they suspect could be that of Rowanmoor Pensions managing director David Seaton.

Dear Chancellor…Whatever happened to simplification, Alistair?

An Inland Revenue press release in December 2002 outlined the aims of the Labour Government’s pension simplification proposals. It said the aims were “to increase individual choice and flexibility and reduce administrative burdens, thereby making it easier and more efficient to save in pensions. The new single, unified regime will comprise transparent, simple and consistent rules that help people make informed decisions about working and saving for retirement.” Three years on from A-Day, words like unified, simple and consistent no longer seem fitting.


Graphic content – May; UK economic data has finally turned for the worse

In June 2016, immediately before the Brexit referendum, a curious thing happened. Despite the colossal uncertainty facing the UK, economic data actually started to come in above consensus forecasts. Citi’s economic surprise index nudged into positive territory, which meant that UK economic data had on the whole outperformed consensus forecasts over the prior three months. […]


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