As expected, Abenomics will continue in Japan for a further four years as Prime Minister Abe’s Liberal Democratic Party won a ⅔ majority in the House of Representatives in Japan. This came as no surprise as there weren’t really any viable alternatives and voting numbers were hugely disappointing with the turnout being around 35%.
So, what does it all mean? Well, first of all there is the stability factor. Abe will now have four years to push through his reforms which include printing money to weaken the Yen which is good for exporters, government spending is expected to help spur growth, and reforms in healthcare, energy and agriculture are also expected to continue. As Japan has slipped back into recession, this is good news.
In the Eurozone talk is, as always, about Quantitative Easing as other measures don’t seem to have quite worked. I will try not to mention this again in 2014 as it will probably be even more prevalent in 2015!
In the UK, we’re looking ahead to jobless claims and BoE minutes this week which will be inspected to see if there may be any surprises in store.
Today, it’s a quiet day with minor data out of the US, such as Industrial Production taking centre stage.