The Japanese government has announced a massive stimulus package worth 12.7 trillion yen ($113 billion) to tackle the rising inflation and support the economic recovery from the pandemic. The package, which was approved by the cabinet on Friday, includes measures such as cash handouts, tax breaks, subsidies, and infrastructure spending.
The stimulus package is aimed at boosting consumer spending, creating jobs, and enhancing competitiveness in key sectors such as green energy and digitalization. The government expects the package to raise the gross domestic product (GDP) by 1.6% in fiscal 2022 and 0.8% in fiscal 2023.
The stimulus package comes as Japan faces a surge in inflation, which hit a 13-year high of 3.1% in October. The inflation spike was mainly driven by higher energy and food prices, as well as supply chain disruptions caused by the global chip shortage and the COVID-19 outbreak in Asia.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
The government hopes that the stimulus package will ease the pressure on households and businesses and prevent a deflationary spiral. The government also plans to introduce a supplementary budget of about 5 trillion yen ($44 billion) to finance part of the package.
The stimulus package is the first major economic policy of Prime Minister Fumio Kishida, who took office in October. Kishida has pledged to pursue a “new capitalism” that balances growth and redistribution, and to tackle the long-term challenges of Japan’s aging population, low birthrate, and public debt.
Kishida has also vowed to strengthen Japan’s alliance with the United States and its cooperation with other democracies in the Indo-Pacific region, amid rising tensions with China over Taiwan and other issues.
The Central Bank of Nigeria (CBN) has announced that the old naira notes will continue to be accepted as legal tender beyond December 31, 2023. This is contrary to some reports that claimed that the old notes would be phased out by the end of this year.
The CBN clarified that the introduction of the new polymer notes in 2019 was meant to enhance the durability and security of the naira, not to replace the old notes. The CBN also stated that the old and new notes will coexist until the old notes are gradually withdrawn from circulation.
The CBN urged the public to disregard any misinformation or rumors about the status of the old naira notes and to report any cases of refusal to accept them as legal tender to the nearest CBN branch or office. The CBN also assured the public that it is committed to ensuring the stability and integrity of the naira as the national currency.
MicroStrategy bought 155 more Bitcoin?for $5.3 million.
MicroStrategy, the business intelligence software company, has announced that it has purchased an additional 155 Bitcoin for $5.3 million in cash. This brings its total holdings of the Bitcoin holdings, worth about $7.6 billion at current prices. As of the end of October, the Tysons, Virginia-headquartered firm co-founded by Michael Saylor was the owner of 158,400 bitcoins acquired at a total cost of $4.69 billion.
The company said that it acquired the Bitcoin at an average price of $34,063 per coin, including fees and expenses. The purchase was made in accordance with its treasury reserve policy, which aims to maximize long-term value for its shareholders.
MicroStrategy has been one of the most vocal and aggressive proponents of Bitcoin as a store of value and a hedge against inflation. The company started buying Bitcoin in August 2020, when it had a market capitalization of about $1.3 billion. Since then, it has raised more than $2 billion through debt offerings and equity sales to fund its Bitcoin purchases.
The company’s CEO, Michael Saylor, has also become a prominent evangelist for Bitcoin, frequently tweeting and speaking about its benefits and potential. He has argued that Bitcoin is a superior asset class than cash, gold, or stocks, and that it is the future of money and technology.
MicroStrategy’s Bitcoin strategy has attracted both praise and criticism from investors and analysts. Some have applauded the company for its bold and visionary move, while others have questioned its risk management and valuation. The company’s stock price has been highly correlated with Bitcoin’s price movements, making it more volatile than its peers.
Despite the challenges and uncertainties, MicroStrategy seems determined to continue buying and holding Bitcoin for the long term. The company said that it remains committed to its digital asset strategy and that it may acquire more Bitcoin as part of its overall corporate strategy.