Confidence among managers of small Japanese businesses is close to the highest since 2007 even as stocks tumble, highlighting a “disconnect” that supports the nation’s economic recovery, according to Capital Economics Ltd.
Harvard University Professor Martin Feldstein, who predicted in 1998 that the euro would prove an “economic liability,” said the single currency will survive for now, even as he bets Greece quits within a year.
Dexia SA may be left with the lender’s worst assets under plans that would allow the French and Belgian governments to avoid injecting more capital into the bank, two people with knowledge of the talks said.
Japanese stocks fell as the yen strengthened after the Bank of Japan doubled its inflation target while waiting until next year to start open-ended asset purchases like the ones already adopted by the Federal Reserve.
Japan’s move to weaken the yen for the third time this year must be followed up with additional measures to help industries reeling from the strong currency, companies including Toshiba Corp. and Nippon Yusen K.K. said.