Economy

Political situation in Japan
The giant debt is believed to grow: “Forced to compromise”

The more fiscally austere Japanese government coalition is losing its majority in the upper house to an opposition that has promised tax cuts and increased welfare. This is what several experts tell Reuters in connection with Sunday’s election.

– The government will be forced to compromise to get its policies through, which means that the budget is likely to continue to grow, says Yu Uchiyama, a professor of political science at the University of Tokyo.

Incumbent Prime Minister Shigeru Ishiba’s LDP has tried to calm a troubled bond market that doubts the country’s ability to handle the world’s largest government debt, writes Bloomberg.

Several experts believe that voters’ frustration over rising prices has benefited the opposition, whose desire to open the state’s wallet seems to have resonated with broad groups of voters. 

Professor: Auto giants’ banking plans a threat to the economy

Auto giants’ attempts to become banks are dangerous for the economy. This is what a professor tells the Washington Post.

“It has the clear potential to change our banking system in a way that would be very harmful to consumers and pose a serious threat to our economy,” Arthur Wilmarth, a law professor at George Washington University, told the newspaper.

Such a development would amplify the already existing risks in the financial system, especially since some banks are considered too big to fail, according to the newspaper. Wilmarth continues:

“If federal licensing authorities approve the automakers’ applications, how could they deny similar requests from technology giants like Apple, Google, Amazon or Facebook?

Several companies have applied for a US banking license. Among them are Stellantis and General Motors.

Crypto Market
Chief Analyst: Bitcoin Could Reach $140,000 This Year

Bitcoin has surged this year and is now the seventh-largest asset class. That has made the currency too big for institutions to ignore, and several experts tell CNBC that the currency will continue to rise.

Gerry O’Shea, global head of research at the index fund Hashdex, points out that bitcoin has stuck above $100,000.

– I think it is a very clear sign of interest from both private investors and institutions in this asset.

Bitcoin is up 30 percent for the year and has recently been trading around $120,000. O’Shea believes it could reach $140,000 before the end of the year.

The flood of reports
Ryanair lifted by higher ticket prices – doubles profits

Ryanair’s net profit increased by just over 127 percent in the first quarter compared to the same period last year, thus beating expectations. This is shown in the Irish low-cost company’s report on Monday morning.

The profit was mainly driven by higher ticket prices. Sales during the quarter rose 20 percent to €4.34 billion, which was also more than analysts expected.

Ryanair reiterates its forecast that passenger numbers in the 2026 financial year will increase by three percent to 206 million, due to limited and delayed deliveries from Boeing.