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Emmanuel Ferreira Benedicte Gravrand, Opalesque Geneva for New Managers:

As Japan is about to launch Abenomics’ third arrow reforms, an emerging long/short equity hedge fund manager comments.

In a televised address to the nation on Tuesday, Prime Minister Shinzo Abe disclosed a new set of economic policies intended to kick-start growth in Japan. Mr. Abe had already implemented monetary and fiscal stimulus to raise economic growth 18 months ago, the so-called first two "arrows" of his Abenomics agenda. According to the New York Times, the most highly anticipated third arrow — changes intended to bring a healthy dose of competition and innovation to the economy — has largely underwhelmed. The final details of his plan to lower corporate tax rates are not finalized and under threat, and compromises had to be made on the labor market deregulation proposals. However, there is a strong set of proposal in place for the overhaul of corporate governance and a code is being prepared, says the paper. Abe also wants a reduction in cross-shareholdings, which is common among Japanese corporations.

Critics described the latest measures as resembling a dart more than an arrow with few of the more than 230 proposals likely to take effect, or have the desired impact, given resistance to c......................

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