Bloomberg: Abenomics has chance to reshape Japan

Different view between Abe and Japan MOF? Probably the views are from different perspectives i.e. political vs economic  

Japan MOF warns on yen rises, says ready to intervene if needed
07 Apr 2016 10:34
[TOKYO] A senior Japanese official on Thursday condemned the yen's rapid rise to a 17-month high versus the dollar, calling the ascent "one-sided", and threatening to intervene against it.
...
REUTERS

Source: Business Times Breaking News

What is Mr. Market thinking on Yen??

Yen continues climb despite efforts to talk it down
08 Apr 2016 06:16
[NEW YORK] The yen continued its march higher Thursday despite efforts to slow the trend and worries of an impact on Japanese exporters.

The yen pushed to as high as 107.68 per dollar before settling back to 108.31, for a 1.3 per cent gain for the day. It was the highest level for the Japanese currency in more than 17 months.

Against the euro the yen climbed about 1.6 per cent to 123.17, just shy of the three-year high set in March.
...
AFP

Source: Business Times Breaking News

(08-04-2016, 11:13 AM)CityFarmer Wrote: What is Mr. Market thinking on Yen??

Yen continues climb despite efforts to talk it down
08 Apr 2016 06:16
[NEW YORK] The yen continued its march higher Thursday despite efforts to slow the trend and worries of an impact on Japanese exporters.

The yen pushed to as high as 107.68 per dollar before settling back to 108.31, for a 1.3 per cent gain for the day. It was the highest level for the Japanese currency in more than 17 months.

Against the euro the yen climbed about 1.6 per cent to 123.17, just shy of the three-year high set in March.
...
AFP

Source: Business Times Breaking News

Thats what they call the "widow maker" trade for Japan gov bonds. maybe now its expanding to YEN as well lol. Short yen and you will die...

Guess this is a good example of markets stay irrational longer than the forex trader can stay solvent.

I too am confused as with their QE measures , negative rates and high debt and lacklusture economy that their YEN still so strong. Perhaps it a side effect of all the easy money from Europe/USA/Asian central banks finding safe haven in the YEN trade. After all there is a limit to how much USD and Swiss Dollar one can hold before needing to diversify or hedge.

The other explanation is the mega funds are buying YEN and pushing it up artifically, like a price fixing thingie. Then later when its very very high they will start shorting it together. 

Look at the pound today, its so low liao, and just on the "possibilty" of a Brexit which is to me at least, very unlikely to happen.

Uniqlo is a good unofficial indicator for consumer pricing...

Clothing giant Uniqlo: again the face of Japan's deflating economy
08 Apr 2016 11:30
[TOKYO] When Japan's cheap-and-cheerful clothing brand Uniqlo raised its prices in 2014, it was an endorsement of Prime Minister Shinzo Abe's efforts to stimulate a lacklustre economy: with confidence high, even purveyors of affordable jumpers became price setters.

But as Mr Abe's expansionary policies struggle to rekindle growth, Uniqlo has reversed those rises, lowering prices last year and stepping up discounts again in the first two months of this year.

The brand's owner, Fast Retailing Co Ltd, now illustrates a bleaker picture of a corporate sector squeezed by sticky overhead costs, cooling consumer enthusiasm and lower prices.

"Things aren't looking good - they're rather bad," Tadashi Yanai, the group's charismatic CEO told reporters after the retailer reported quarterly earnings on Thursday.
...
REUTERS

Source: Business Times Breaking News

Very smart guy unless he starts talking his head off...

Loeb Prevails in Latest Crusade to Reform Corporate Japan (1)
2016-04-08 01:22:59.306 GMT


By Craig Trudell, Monami Yui and Shigeru Sato
(Bloomberg) -- The idea of an octogenarian CEO in
questionable health ousting a potential successor to make way
for his own son would be met by hackles, maybe even outright
laughter, by many corporate governance experts and shareholder
activists in the U.S. and Europe.
Yet that’s what Dan Loeb accused Seven & i Holdings Co.
Chief Executive Officer Toshifumi Suzuki of having in mind for
Japan’s biggest retailer, which operates the Seven-Eleven,
Denny’s and Ito-Yokado retail brands. Suzuki, 83, might have
succeeded were it not for a shaming campaign by Loeb, the
billionaire activist investor and founder of hedge fund Third
Point LLC.
On Thursday, the Seven & i board rejected a plan to remove
Seven-Eleven Japan President Ryuichi Isaka, the executive Loeb
praised as “instrumental to the success” of the profitable
convenience stores unit in a sharply critical letter to the
company’s board sent March 27.
In addition, he raised concerns for Suzuki’s “chronic
health problems” and claimed the CEO planned to name an interim
president of the core convenience store unit -- to be followed
later by the promotion of his son, Yasuhiro Suzuki. “If these
rumors are true,” Loeb wrote, “they raise serious questions
about Mr. Toshifumi Suzuki’s competence and judgment and whether
he should be making any decisions about the company.”

50-Year Career

The board’s rejection -- reached after directors came one
vote short of removing Isaka -- was a stunning victory for Loeb
and prompted Toshifumi Suzuki’s resignation hours later. During
a bizarre afternoon press conference, the CEO who’d spent more
than 50 years at Seven & i and its affiliates appeared with
allies to tell his side of the story.
“Some executives around me asked me why I’m retiring,”
Suzuki said. “After all, it is my lack of virtue and I’m deeply
ashamed of myself.”

http://www.bloomberg.com/news/articles/2...rate-japan

Quote:The other explanation is the mega funds are buying YEN and pushing it up artifically, like a price fixing thingie. Then later when its very very high they will start shorting it together.

I thought the Jap govt is shorting their own yen because no one is doing it..haha.
I think they will be very happy if someone is able to push down the yen.

The Japan stock market, is primary supported by foreign investors. The pullout will definitely pull the index lower. The domestic investors are still hoarding their cash, instead of investing...

A definitely good timing to pullout now, with the current exchange rate...

BlackRock joins US$46 bil Japan pullout

(Apr 11): For global equity investors and Shinzo Abe, it’s splitsville.

Starting in the first days of 2016, foreign traders have been pulling out of Tokyo’s stock market for 13 straight weeks, the longest stretch since 1998. Overseas traders dumped US$46 billion ($62 billion) of shares as economic reports deteriorated, stimulus from the Bank of Japan backfired and the yen’s surge pressured exporters. The benchmark Topix index is down 17% in 2016, the world’s steepest declines behind Italy.

Losing the faith of foreigners would be a blow to the Japanese prime minister -- they’re the most active traders in a market Abe has held up as a litmus on his growth strategies. “Japan is back," and “Buy my Abenomics!” he proclaimed during a visit to the New York Stock Exchange in September 2013, when shares were marching to an eight-year high. Now about half of those gains are gone and BlackRock Inc., the world’s largest money manager, is among firms ending bullish calls on Japan equities.
...
http://www.theedgemarkets.com/sg/article...an-pullout

(11-04-2016, 10:19 AM)CityFarmer Wrote: The Japan stock market, is primary supported by foreign investors. The pullout will definitely pull the index lower. The domestic investors are still hoarding their cash, instead of investing...

A definitely good timing to pullout now, with the current exchange rate...

BlackRock joins US$46 bil Japan pullout

(Apr 11): For global equity investors and Shinzo Abe, it’s splitsville.

Starting in the first days of 2016, foreign traders have been pulling out of Tokyo’s stock market for 13 straight weeks, the longest stretch since 1998. Overseas traders dumped US$46 billion ($62 billion) of shares as economic reports deteriorated, stimulus from the Bank of Japan backfired and the yen’s surge pressured exporters. The benchmark Topix index is down 17% in 2016, the world’s steepest declines behind Italy.

Losing the faith of foreigners would be a blow to the Japanese prime minister -- they’re the most active traders in a market Abe has held up as a litmus on his growth strategies. “Japan is back," and “Buy my Abenomics!” he proclaimed during a visit to the New York Stock Exchange in September 2013, when shares were marching to an eight-year high. Now about half of those gains are gone and BlackRock Inc., the world’s largest money manager, is among firms ending bullish calls on Japan equities.
...
http://www.theedgemarkets.com/sg/article...an-pullout

Yeah i read this too. They are probably reinvesting their gains into the YEN bull run as well, pushing it up even higher, benefiting their exit. 

I see it as the tide is going out. Since peaking in July last year Topix has been trending down almost 20% now its a correction. Almost 1 year liao since China shocked the world with their stock crash and currency devaluation. All those with big trade with China ->Taiwan/Japan/Korea all earnings downhill so no surprise, stock market usually track company earnings...

Zero rated debt from BOJ is coming. Is a boom time for M&A from Japan coming?  

BOJ officials said to eye possible negative rate on loan programme

TOKYO (April 22): Having adopted a negative interest rate on some excess reserves to penalise financial institutions for leaving money idle, the Bank of Japan may consider helping them lend by offering a negative rate on some loans, according to people familiar with talks at the BOJ.

Such a discussion could happen in conjunction with any decision to make a deeper cut to the current negative rate on reserves, said the people, who asked not to be named as the matter is private.

The BOJ's Stimulating Bank Lending Facility, which now offers loans at zero per cent interest, would be the most likely vehicle for this option, they said.

The officials said that adding this to the central bank's arsenal could have a positive impact on the economy, but would also raise questions about giving subsidies to commercial lenders.

Financial institutions, who already feel penalised by the existing negative rate, could face demands from borrowers to cut their lending margins further, said the people.
...
http://www.theedgemarkets.com/sg/article...-programme

The view of BOK, on negative interest rate, which is applicable to Japan...

Negative interest rates to have limited impact on economic growth: BOK paper
27 Apr 2016 11:16
[SEOUL] Negative interest rates adopted by a number of central banks in Europe and in Japan are expected to have only a limited impact in shoring up economic growth, a research paper from South Korea's central bank said on Wednesday.

Several factors could lead to negative policy rates failing to achieve their goals, the Bank of Korea (BOK) report said, including half-hearted declines in bank deposit rates as commercial banks try to keep their customer base intact.

Negative rates cannot fully influence the economies implementing them if they are still trapped in structural low growth and low inflation, it said.
...
REUTERS

Source: Business Times Breaking News