Advanced economies across the world grew by 0.6 per cent in the third quarter on a particularly strong showing of 1.5 per cent in Japan, the OECD says. This is broadly in line with recent data from other leading economic bodies, pointing to weak overall growth except in some still robust emerging economies.
The Bank of Japan kept monetary policy on hold and gave a brighter assessment of the economy on Tuesday, encouraged by a rebound in factory output and increasing signs that the recovery from the devastating March earthquake is broadening. But the central bank warned that emerging nations faced a tough balancing act between curbing inflation and sustaining economic growth.
Masayoshi Son, the CEO of Softbank, Inc. - Japan's exclusive carrier of Apple products - has taken the company in an unexpected direction this week. Softbank invested $62.5 million into Gilt Groupe, Inc., the online luxury retailer whose flash sale business model has brought it plenty of visibility and venture capital interest (although no profits yet). Softbank's investment earned it a 50% stake in Gilt Groupe Japan, the retailer's only international subsidiary.
Japan's economy suffered a big blow in the triple earthquake, tsunami and nuclear disaster, but the country should have no problem financing reconstruction, the central bank chief said. Bank of Japan Governor Masaaki Shirakawa conceded problems in the economic supply chain, power generation, tourism and other important sectors. But he said the financial system could cope.
