Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Thailand Inflation Remains Negative for 10th Straight Month in January 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
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U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
According to latest estimates from the Council on Economic and Fiscal Policy (CEFP), Japan is expected to have a 9.2 trillion yen deficit (1.7% of GDP) in the fiscal accounts of the central and local governments in FY18, even with the assumption of 3% nominal/2% real economic growth. This will lead to a short fall in the government's target to improve the deficit to 1% of GDP, which will be an interim goal to balance its accounts in FY20.
Moreover, the CEFP also estimated that for FY20, the basic fiscal deficit would reach 6.5 trillion yen (1.1% of GDP) due to lack of an offset to finance exemptions to the planned consumption tax hike (to 10% in April 2017). This would mark a deterioration of 0.3 trillion yen against its forecasts in July.
It would be difficult to postpone the consumption tax hike scheduled for April 2017 under this severe outlook for fiscal consolidation.
