When you asbolutely, positively need to get stocks higher, unleash a spurious Nikkei headline (at 220am local time)… “Japan to Double Planned Spending in Stimulus Package: Nikkei” and sure enough USDJPY spikes back above 106.00… but S&P futures algos are ignoring it for now…
Goldman earlier said that 3 trillion was too small…
On the fiscal side, Prime Minister Abe has promised a “bold” package, and numbers as high as 20 trillion yen (4% of GDP) have made the rounds in the media. But the funds will be spread over more than one year, and the reports have suggested that the headline numbers may be padded by large loan or guarantee programs, with perhaps 3 trillion yen of direct fiscal outlays–which could disappoint market participants, based on our impressions from recent client meetings. A larger fiscal impulse would be needed to have a major impact on growth and market expectations.
And so minutes later, Japan responds…
Net fiscal spending will be 6t yen, double initial 3t yen plan, the newspaper reports..
But it’s not enough to juice stocks…
Probably Putin’s fault!
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