But confidence in the stock market cannot be restored until it is clear that it has found a natural level and is not depending on the tacit support of the government.The scale of the ageing problem is shown in the left-hand graph, which charts the rise in the proportion of the population over the age of 65. In contrast to the UK, which has a breathing space until about 2010, the proportion of over-65s rises relentlessly, year in, year out, for a generation Germany, also shown, as much the same problem. Both sides agree that Japan is in a bind; but they completely disagree on the appropriate tightness or otherwise of fiscal policy in this situation.The bind is well-described in a new paper by the London investment advisers Smithers & Co, long-term Japanese specialists. It points out that the core of the problem is the combination of an ageing population and an excess of debt.The former will restrict long-term growth while the latter will put a severe break on short-term growth. The US, for its part, has long been critical of the Japanese refusal to attack its long-standing current account surplus.But this disagreement over policy reveals a deep divide not just in policy prescription, but a conceptual divide over how the Japanese economy works. Later this week Japan will go through the motions of making some further fiscal stimulus. On Friday it is expected to announce an increase in the previously planned deficit for the 1998 fiscal year.
But while the headline deficit will rise, in fact it will leave the overall fiscal stance pretty much as before, much to the ire of most other governments. This clash over how Japan should dig itself out of what threatens this year to be another recession has become the most serious source of dissent within the Group of Seven. There have often in the past been tensions within the G7.For example, during the 1980s European governments were critical of the US refusal to attack its twin deficits, the current account deficit and the fiscal one. Bula held at 1p, putting a pounds 20m value on the company.In heavy trading Emerald Energy went to a 9.5p peak, up 1p. A statement is expected this week about its Colombian exploration.. HARDLY a day goes by without some new call for Japan to reflate its economy, calls which are politely listened to - and then effectively ignored.
They were placed at 1.125p a share with Capital International, a US fund manager, which now has 14.7 per cent. They have soared from around 10p on stories of a major contract and the arrival of stockbroker Colin Blackbourn with 3.1 per cent. The company said it "has nothing new to report".The shares have become the darling of small investors Turnover has been heavy. Volume was put at more than 15 million shares yesterday.Little Bula Resources, the Irish oil group which already has more than 1.6 billion shares in issue, created a few more - 90 million. Next year's forecast is now pounds 15m, up from pounds 12.6m.Tadpole Technology had another tantalising session, hitting 62p at one time The shares closed at 46.5p, up 12.5p.
