Shinzo Abe

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All about the footnotes

BBC Radio 5 live

The Wylfa Newydd nuclear power plant
Horizon Nuclear

Will Hitachi mothball its plan to build a nuclear power plant in Wales?

The signs don't look good.

Dr Edward Jones, economics lecturer at Bangor University, had said that he did not think that the Japanese giant would walk away - it has already invested £2bn in the Wylfa Newydd nuclear power plant.

But today he tells Wake Up to Money: "It certainly is a difficult situation. We would hope the project continues in some form or another at a later date, given the impact it would have on both the local economy and the country as a whole."

Why is this happening?

Patricia Schouker, an energy analyst and associate member of New College at Oxford University, cites Japan's Prime Minister Shinzo Abe who, when meeting the UK's Theresa May recently, said that the legal stability post-Brexit is something the country needs to pay attention to.

"So, in real estate we say 'location, location' but in energy, we say 'footnotes, footnotes'."

Japan to go ahead with sales tax rise

Japanese supermarket
Getty Images

Japan will go ahead with in increase in national sales tax, Prime Minister Shinzo Abe said on Monday.

"We have to face the problems caused by our ageing society and build a welfare system that is fiscally sound," he said.

Sales tax will rise to 10% from 8% this month and food has been exempted but there are concerns that the increase will dampen consumer spending and hurt economic growth.

The rise has been postponed twice following the last increase in 2014, to 8% from 5%.

Mr Abe said: "This tax hike is only 2 percentage points, but we have to use our experience from the previous tax hike and make every effort to ease the impact on the economy."