Capital, Talent Outflows Threaten Japan

Japan may face difficulty attracting foreign capital as the March 11 twin disasters have increased the risk of an outflow of investments and talent, reports the Wall Street Journal.

 

"We are going to see the shift of business abroad," the Journal quotes Masaaki Kanno, chief economist at J.P. Morgan in Tokyo as saying. "The government should promote overall deregulation in the form of lower obstacles for potential entrants to the Japanese market and invite capital from all over the world."

 

Brian Mccappin, head of Citigroup global markets for Japan told the Journal that the disasters "will be a catalyst for more Japanese investments overseas."

 

According to the business newspaper, attracting talent has become a challenge for foreign firms in industries including investment banking, retail and the luxury-goods sector.

 

 

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