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Japan has launched a $45bn stimulus package, putting the country at the forefront of a global shift away from austerity. Prime minister Shinzo Abe is hoping the ¥4.6tn ($45bn) stimulus will boost the Japanese economy.
Mr Abe proclaimed a total package of ¥28.1tn, which he called an “investment in the future”, although the actual new government spending is ¥6.2tn, of which ¥4.6tn — 0.9 per cent of gross domestic product — will fall in the current fiscal year.
News of the stimulus came as Haruhiko Kuroda, the head of Japan’s central bank, said fiscal and monetary policy would complement each other following a rare meeting with finance minister Taro Aso.
Government bond yields rose sharply in Tokyo, with the 10-year yield close to positive territory for the first time since March. (FT, NAR)
In the news
Republican bigwigs turn on Trump Senator John McCain and the largest US war veterans group have condemned Donald Trump for comments about the family of a slain Muslim-American soldier, as new polling shows Mr Trump slipping behind White House rival Hillary Clinton. (FT) Keep up with the 2016 race by signing up for our daily US politics email here.
US bombs Isis stronghold The Pentagon confirmed it had launched a bombing campaign against Isis militants in Libya, with “precision air strikes” on the jihadi stronghold of Sirte. Officials in Washington say they are supporting an offensive on the city by Libyan forces. However, the push comes amid concerns that the country’s government of national unity (GNA) is dysfunctional and fails to adequately represent the country’s regions. (FT, Al-Monitor)
Zika surge in Miami The US Centers for Disease Control and Prevention have issued their first domestic travel warning, urging pregnant women to stay away from a Miami neighbourhood that has seen a spike in cases of the Zika virus. Fourteen people have contracted Zika from local mosquitoes in the neighbourhood of Wynwood, calling into question mosquito control measures that have been implemented in the city. (NYT)
SolarCity accepts $2.6bn Tesla bid Elon Musk brushed aside criticisms of corporate over-reach and conflicts of interest as he revealed the stock purchase of the solar company where he is chairman — by the car company where he is chief executive. (FT)
Pokémon fever cools in Japan More than a week after Pokémon Go was released in Japan, the initial fervour over the augmented reality smartphone game is showing signs of abating. Now game industry analysts are trying to decide whether the game will prove a flash in the pan or an enduring hit. (NAR)
It's a big day for
Internet hackers The annual Black Hat USA security conference opens in Las Vegas. The event brings together hackers and engineers to reveal worrying security lapses on the internet. (Eweek)
AIG is set to record its lowest second-quarter profit since its taxpayer bailout in 2008, putting further pressure on chief executive Peter Hancock after he defied calls from activist investors to break up the US insurer. (FT)
Food for thought
Perpetual QE: Unhappily ever after Satyajit Das on why the combination of quantitative easing and the prospect of fresh fiscal stimulus won't generate a recovery. (FT)
Baking in the Middle East Soaring temperatures are killing more people than conflict in the region, where climate change has intensified summer extremes. The UN estimates that 230,000 people are killed by the heat each year in the fertile crescent and Arabian Peninsula. Scientists say daytime highs could rise by 7C by the end of the century. (Economist)
Cancer in the crosshairs After a long, intense pursuit, researchers are close to bringing to market a daring new treatment: cell therapy that turbocharges the immune system to fight cancer. (NYT)
Insurers: Forced to dig deep Insurers globally are having to come to terms with the idea of “lower for longer” interest rates, making deep changes to business models that had been unaltered for decades. (FT)
Jihadis in the limelight As mourners gather at the funeral of Jacques Hamel, the French priest murdered by jihadi teenagers last week, French philosopher Bernard-Henri Lévy defends the policy of not publishing the names of militants, arguing that it starves them of the oxygen of publicity that they crave. (RTE, Guardian)
Video of the day
Lex on Uber/Didi deal Uber has agreed to sell its Chinese operations to rival Didi Chuxing, with investors in Uber China receiving a 20 per cent stake in Didi. What does this mean for both companies and the wider car-hailing market? Lex’s Christopher Thompson and Lucy Colback discuss. (FT)
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