Weekly Investment Focus

▪ Japan’s Gross Domestic Product (GDP) hides domestic demand weaknesses
▪ To avoid a recession, Shinzo Abe would do better to postpone a VAT increase once again
▪ Public institutions are buying a lot of Japanese stocks, but this is not enough to generate an outperformance
▪ On a risk-off mode, the yen could appreciate to 105, before rising to over 115 with the VAT increase
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