Toyota has approved the largest pay increase for factory workers in 25 years.

Toyota Motor has agreed to provide factory workers with the largest pay rise in 25 years. This move follows other major Japanese companies, such as Panasonic, Nippon Steel, and Nissan, in meeting union demands for higher wages. The pay increases are expected to support the central bank's policy changes next week, including the potential ending of its negative interest rate policy. Toyota, the world's largest carmaker, has approved a monthly pay rise of 28,440 yen (US$193) and record-high bonus payments, without specifying the percentage increase. The wage negotiations between management and labour have attracted significant attention this year as they are an important indicator of the collaborative relationship in Japan. The Japanese government sees a strong momentum for wage increases, as stated by the chief cabinet secretary, Yoshimasa Hayashi.

https://internasional.kontan.co.id/news/toyota-setujui-kenaikan-gaji-terbesar-dalam-25-tahun-terbesar-bagi-pekerja-pabrik

Global Dividend Payout Reaches Record

Global corporate dividends reached a new record high of US$1.66 trillion in 2023, with the banking sector accounting for half of the growth. This is up from US$1.57 trillion in 2022. According to the Janus Henderson Global Dividend Index, 86% of companies worldwide increased or maintained their dividend payments. It is expected that dividend payments could set a new record of US$1.72 trillion this year. Although bank dividends are expected to slow down, the mining sector could drive growth due to strong energy prices. Additionally, defensive sectors such as healthcare, food, and basic consumer goods are predicted to experience steady growth. Bank margins have been boosted by high interest rates, resulting in a 15% increase in bank dividends to shareholders in 2023. However, the mining sector's dividends experienced a decline. It is worth noting that Microsoft was the world's largest dividend payer in 2023, followed by Apple and Exxon Mobil.

https://internasional.kontan.co.id/news/pembayaran-dividen-global-capai-rekor

The Central Bank plans to reduce interest rates in the middle of the year.

Developed country central banks have begun adjusting interest rates this year. The European Central Bank (ECB) has announced plans to cut interest rates in the spring. French central bank governor Francois Villeroy Galhau has expressed confidence in achieving the inflation target. Additionally, the ECB's governor, Christine Lagarde, has suggested a rate cut at the central bank's June meeting. Similarly, the US central bank is now expected to cut its benchmark interest rate in June 2024 instead of May, as initially anticipated. However, high inflation rates and a still-fragile labour market may present obstacles to an early rate cut in the US. Notably, the inflation rate for February 2024 in the US exceeded market expectations, driven by increased petrol and forging prices.

https://internasional.kontan.co.id/news/bank-sentral-bakal-pangkas-bunga-di-tengah-tahun-ini