JAPAN-Nikkei-Time to go back up? Message Board

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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up?

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To: borb who wrote (864)	4/4/1998 9:23:00 AM
From: chirodoc	Read Replies (1) of 3902

the fact that you want to give up on the nikkei is bullish--when sentiment is at its worst we may have hit bottom. if there are tax cuts and more deregulation, this could be the time to buy--but not until we see more cuts and dereg--read this from barrons..... Big Bang Japanese finance opens the door Last Wednesday Japan took a step from the past into the present and began the deregulation of its financial-services industry. The first steps are deregulation of fixed commissions in securities and reduced control of capital-investment flows to and from foreign markets. It's a Big Bang, like the ones set off by the United States in the 'Seventies and Great Britain in the 'Eighties, and nearly $10 trillion of privately held investment capital is up for grabs. Japanese families will be hit with sales pitches, urging them to take their savings out of banks and postal accounts paying as little as 0.5% a year. Competitive alternatives are likely to be as numerous as the minds of American, British and Asian financial firms can imagine, but it's certain the mythical Mr. and Mrs. Watanabe will learn to say "mutual fund." Signs of the times: Nikko Securities said its bonuses will be sized according to production rather than seniority. Sumitomo Marine & Fire Insurance Co., which faces its own big bang in July with the end of fixed casualty-insurance rates, said it will eliminate family allowances for senior executives and pay them performance bonuses. Perhaps more significantly, the idea is spilling beyond the industries directly affected by the Big Bang. Fujitsu announced that it would reward workers for performance, becoming the first major manufacturing corporation in Japan to give up on a strict seniority system for pay and promotion. The Big Bang probably means well-deserved trouble for many banks and other institutions; it certainly means trouble for those who lived on seniority and status instead of performance. But that's the kind of trouble that was good for Wall Street in the 'Seventies, and we believe it will be good for Japan in the 'Nineties. ------------------------------------------------------------------------ Thomas G. Donlan receives E-mail at tg.donlan@news.barrons.com

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