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Japan PM Abe warns of Lehman-magnitude crisis - Nikkei
May 26, 2016 / 7:41 AM / 2 years ago

Japan PM Abe warns of Lehman-magnitude crisis - Nikkei

TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe warned his Group of Seven counterparts of a crisis on the scale of Lehman Brothers, Nikkei reported, offering a potential justification to again delay an increase in the national sales tax.

Participants of the G7 summit meetings (from front in clockwise) Japanese Prime Minister Shinzo Abe, French President Francois Hollande, Britain's Prime Minister David Cameron, Canadian Prime Minister Justin Trudeau, European Commission President Jean-Claude Juncker, European Council President Donald Tusk, Italy's Prime Minister Matteo Renzi, German Chancellor Angela Merkel and U.S. President Barack Obama attend session 1 working lunch meeting at the Shima Kanko Hotel in Shima, Mie Prefecture, Japan May 26, 2016. Ministry of Foreign Affairs of Japan/Handout via Reuters

Abe presented data at a Thursday session of the G7 summit he is hosting, showing that commodities prices have fallen 55 percent suince 2014, the same margin they fell during the global financial crisis, the newspaper said, interpreting this as “warning of the re-emergence of a Lehman-scale crisis”.

Abe has pledged to raise Japan’s sales tax to 10 percent from 8 percent in April next year as planned, unless there is a financial crisis on the scale of the Lehman collapse or a major natural disaster.

Reporting by Chris Gallagher and William Mallard; Editing by Nick Macfie

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