asterisk2a + yen   37

Bank of Japan shocks markets by adopting negative interest rates | World news | The Guardian
BOJ shock decision to adopt negative interest rates, in an attempt to protect the flagging economy from market volatility and fears over the global economy. In a 5-4 vote, the bank’s board imposed a 0.1% fee on deposits left with the Bank of Japan (BoJ) – in effect a negative interest rate. The move, which follows the similarly aggressive precedent set by the ECB in June 2014, is designed to encourage commercial banks to use excess reserves they keep with the central bank to lend to businesses. //&! The Disturbing Reasons Why The Bank Of Japan Stunned Everyone With Negative Rates - bit.ly/1UvpOyO - encouraging capex, supporting existing bubbles ie equity and bonds (joining draghi). Citing examples of Sweden and Switzerland with NIRP. And ECB of combining QE and NIRP. Combating China exporting deflation. And keep the pace of JGB purchases, keeping the bubble floating. [A] "last-ditch measure"[.] [I]t may be time to panic. - 2016/2017 //&! Currency War - bit.ly/1QwOGox
ECB  BOJ  ZIRP  NIRP  QE  debt  monetisation  debt  monetization  monetary  policy  monetary  transmission  mechanism  monetary  theory  unconventional  monetary  policy  monetary  stimulus  monetary  system  deposit  levy  MarioDraghi  Abenomics  economic  history  deleveraging  debtoverhang  balance  sheet  recession  GFC  recovery  Yen  Euro  credit  bubble  liquidity  trap  distortion  asset  bubble  asset  allocation  equity  bubble  speculative  bubbles  bond  bubble  property  bubble  debt  bubble  New  Normal  financial  repression  faultlines  global  economy  structural  imbalance  global  imbalances  demographic  bubble  ageing  population  Japan  UK  secular  stagnation  western  world  inflation  expectation  inflation  targeting  nominal  GDP  targeting  deflation  Sweden  Switzerland  China  Yuan  JGB  2016  USA  Europe  sovereign  debt  crisis  austerity  business  confidence  consumer  confidence  Super  Cycle  recession  currency-war  currency  debasement  currency  war 
january 2016 by asterisk2a
Japan's IPO of the Century - Bloomberg View
The privatization couldn't have come at a more opportune moment. Even Nobel laureate Paul Krugman, an early Abenomics cheerleader, said this week that he's "really, really worried" about Tokyo’s chances of ending a two-decade slump. The hope is that the listing, which will be targeted at individual Japanese, will encourage households to invest more of their savings. Perhaps more important, it could enliven the country's stagnant banking sector. Japan is among the developed world's most overbanked nations, with more than 100 sleepy regional players (84 of which are publicly traded) servicing 126 million people. Thanks to the Bank of Japan's zero-interest-rate policies, profit margins are shrinking even faster than the population.
Abenomics  Japan  economic  history  2015  neoliberalism  neoliberal  TPP  Privatisation  liberal  economic  reform  economic  refugee  corporate  governance  culture  society  demographic  bubble  competitive  competition  competitiveness  zombie  banks  zombie  corporations  deflation  Yen  BOJ  fiscal  policy  monetary  policy  monetary  stimulus  White  Elephants  asset  allocation  R&D  STEM  industrial  policy  China  monetary  transmission  mechanism  liquidity  trap  excess  reserves  M3 
september 2015 by asterisk2a
Why did Japan stop growing? Professor Takeo Hoshi at ANU - YouTube
Blyth argued its culture/society & structural. TPP trade deal might help productivity growth & opening Japan further 2 global trade. & encourage immigration reform. Regulatory reform; stop protection of zombies (gov guarantees, contracts, subsidies), corporate governance. Oversight. Transparency. Also Start-up rate (bottom-up disruption) needs reform (reduce red tape, create start-up/business hubs) // &! What is Abenomics? - youtu.be/_UafzhHzmwE //&! Noriko Hama & Yukio Noguchi "Abenomics and What comes After" - youtu.be/a29FTJXYev0 'unable to share affluence' - income redistribution << marginal propensity to consume, 16% left out of society (poverty), lack of empathy & compassion. BOJ is single lender 2 gov. Career Politicians! Companies have no need 2 borrow/cant force banks 2 lend. //&! min52 Problem of rising long-term interest rates solved w BOJ debt monetisation = inflation (probable near future scenario). &! youtu.be/ArnLHTE0e1g &! youtu.be/wYtJ7Fyn9NA &! youtu.be/AbKeTeb-I_M
Japan  economic  history  lost  decade  lost  generation  ageing  population  demographic  bubble  culture  society  fiscal  stimulus  zombie  banks  zombie  corporations  banking  crisis  Exportweltmeister  Germany  subsidies  subsidizing  distortion  asset  bubble  Abenomics  monetary  policy  monetary  stimulus  fiscal  policy  white  elephants  Richard  Koo  productivity  corporate  culture  corporate  governance  deflationary  deflation  crowding  out  Debt  Super  Cycle  BOJ  Yen  public  investment  productive  investment  stagnation  secular  stagnation  currency-war  currency  debasement  currency  war  ZIRP  QE  NIRP  liquidity  trap  monetary  transmission  mechanism  disinflation  inflation  expectation  inflation  targeting  Makers  Career  Politicians  savings  rate  savings  glut  policy  error  marginal  propensity  to  consume  poverty  trap  squeezed  middle  class  Sozialer  Abstieg  working  poor  precarious  work  inequality  Gini  coefficient  industrial  policy  wage  stagnation  wage  growth  income  growth  disposable  income  income  distribution  low  income  neoliberalism  neoliberal  part-time  Zero  Hour  Contract  Contractor  underemployed  microeconomic  policy  macroeconomic  policy  JGB  bond  bubble  monetisation  monetization  structural  imbalance  faultlines  Impediments  excess  reserves 
september 2015 by asterisk2a
Steen Jakobsen: Get Ready For The Biggest Margin Call In History - YouTube
ideology/Career Politicians/Complacency/Cushy/non-ambitious/AIIB/comfortable //&! bit.ly/1cU2RVS March 2015, SELL & come back in 6 months - bloom.bg/1NTykGB //&! bit.ly/1NJvXai &! bit.ly/1VsYTEJ Outrageous predictions for 2015 were: China devalues yuan 20% [joining others in global struggle to import inflation] &! Corporate high yield market spreads double (higher refinancing cost, which zombie corporations do actually have no pants on as tide goes out) "High yield is a derivative of equity markets. If you believe equities are overvalued, so too is high yield," &! UK house prices crash (foreign hot money, speculative + shortage + Summer 2015 Crash + BOE Taper in 2015/16 = back to reality!) &! Russia defaults again // &! Fed Taper is a "margin call," [need 2 normalize despite its mandate/fundamentals not warranting a hike!] [...] a seven-year bull run 4 equities might be coming to an end [...] the rise (not value) of RMB/Yuan as it becomes free floating out of need] - cnb.cx/1MMyLSC
Abenomics  Yen  Yuan  RMB  devaluation  currency-war  fiat  currency  currency  debasement  currency  war  deflationary  deflation  credit  bubble  PBOC  China  credit  cycle  business  cycle  financial  cycle  financial  crisis  leverage  margin  trading  underinvestment  productive  investment  business  investment  public  investment  personal  investment  infrastructure  investment  rebalancing  structural  imbalance  Impediments  infrastructure  Career  Politicians  short-term  Fortune  500  shareholder  value  profit  maximisation  Wall  Street  ROI  STEM  Research  R&D  business  confidence  consumer  confidence  New  Normal  hunt  for  yield  output  gap  productivity  Software  Is  Eating  The  World  Robotics  3D  printing  Steen  Jakobsen  financial  incentive  secular  stagnation  Manufacturing  Industrial  Revolution  2.0  policy  AIIB  Asia  European  Union  share  buyback  2015  equity  bubble  speculative  bubbles  bond  bubble  property  bubble  asset  bubble  asset  allocation  distortion  demographic  bubble  ageing  population  western  developed  liquidity  trap  UK  USA  Europe  BOE  Fed  BOJ  ECB  bank  bailout  toobigtofail  too  big  to  jail  too  big  to  bail  banking  crisis  sovereign  debt  crisis  austerity  ideology  dogma  economic  history  trickle-down  economics  neoliberalism  neoliberal 
august 2015 by asterisk2a
China economy: Weakened foundations by FT Big Read
Facing an economic slowdown with its old tools to stimulate growth losing their power, Beijing finally turned to a weapon it had avoided using for more than two decades. Jamil Anderlini investigates why China’s leaders resorted to devaluation of the renminbi, and the risk of a currency war // hot money also flowed outside into London and NY property market! in search for yield and diversified portfolio by the newly minted paper rich Chinese 1% - 10%. // Slow down hammered already commodity market and energy prices. And now fear of a real hurtful economic slowdown of China - western world panicked. Selling off world wide. and taking money out of neighbouring countries of China and other emerging and developing countries. // PBOC is willing to risk currency war, ie with Japan!?
China  QE  reflate  reflation  GFC  recovery  economic  history  2015  correction  distortion  asset  bubble  equity  bubble  property  bubble  speculative  bubbles  speculative  speculation  hunt  for  yield  asset  allocation  fiscal  stimulus  monetary  policy  fiscal  policy  bubble  bubbles  hot-money  infrastructure  investment  public  investment  devaluation  Yuan  RMB  PBOC  global  trade  global  economy  deflationary  deflation  western  world  globalization  globalisation  global  imbalances  secular  stagnation  developed  world  currency-war  currency  debasement  currency  war  ZIRP  NIRP  Japan  Abenomics  Yen 
august 2015 by asterisk2a
The Renminbi Rumba | FT Markets - YouTube
ppl surprised because western market was complacent. should have seen it on the horizon that it was a matter of time! // further competitive QE from Japan (new round of Abenomics post Q2'15 -0.4% results and Chinas three round of devaluations) will infuriate Asian neighbours. // commentary - bv.ms/1I0ucNL - tl;dr - its a correction (with some overshoot in less liquid market and emerging market (currencies)), market participants won't go yet on sidelines. &! bv.ms/1NqY7GS - At the very least, we have been long overdue for a simple 10 percent correction. And while the economic data has been on the mixed side, we don’t see the usual indicators of recession, at least in the U.S.
Yuan  RMB  China  devaluation  2015  Dollar  Taper  Fed  BOE  PBOC  monetary  policy  IMF  SDR  liberal  economic  reform  Asia  emerging  market  Developing  World  Frontier  Markets  Abenomics  QE  currency  war  currency  debasement  fiat  currency  Yen  economic  history 
august 2015 by asterisk2a
Global economy woes spark share falls - BBC News
Fed released minutes from its meeting on 28-29 July, showing that one policymaker was ready to vote for an interest rate rise at the meeting. Overall, the Fed thought conditions for a US rate rise "were approaching", but the economy was not ready yet. Other policymakers remained concerned that inflation would remain weak because of the strong dollar and falling commodity prices, which act as a double depressant on imports. The Fed's key interest rate has been kept near zero since December 2008. There has been speculation that the Fed will raise rates at its meeting in September, and last month Fed chair Janet Yellen said she thought a rate rise this year was likely. Following the release of the Fed's minutes, US stocks rallied briefly but then fell back, while the dollar weakened on the currency markets. The Dow Jones index ended Wednesday trading down 0.9%. [...] The committee also cited China as a potential problem, [...] [econ growth has 2 be sufficiently strong, incl labour mrkt]
China  Yuan  RMB  inflation  expectation  inflation  targeting  disinflation  inflation  wage  inflation  dis-inflation  deflationary  deflation  Fed  PBOC  currency  debasement  devaluation  currency  war  currency-war  Dollar  Japan  Yen  BOJ  Abenomics  economic  history  Taper  2015  recovery  labour  market  participation  rate  unemployment  structural  unemployment  long-term  unemployment  productivity  output  gap  distortion  ZIRP  NIRP  QE  secular  stagnation  UK  USA  Europe  BIS  Oil  price  OPEC  energy  price  New  Normal  FOMC  commodity  prices  global  trade  global  economy  headwinds 
august 2015 by asterisk2a
Japan Exports Its Way to Irrelevance - Bloomberg View
[ Politicians as always will react with reactionary unimaginative policy, competing for the same pie. instead of enabling, supporting new pies to be created. ] But Abe needs to recognize, as China already has, that this is only the latest sign of a broader reality: Asia's old export model of economic growth no longer works. [...] All the stimulus BOJ Governor Haruhiko Kuroda can muster won't change the worsening trajectory of the region's most-populous nation. That's why Abe needs to take a page from Beijing and focus more on creating new industries at home. [ the base of home grown new market/category/vertical also includes sound middle class to buy those products. demand at home. social safety net (security). and less inequality. progressive taxation. fight tax evasion/avoidance, monopoles, monopsonies, bribery, corruption. and politicians making policy for lobby. ]
Germany  Exportweltmeister  Japan  China  India  Latin  America  competitive  competition  competitiveness  flat  world  borderless  globalization  globalisation  differentiate  differentiation  Abenomics  economic  history  IMF  OECD  global  economy  global  trade  Future  of  Work  Universal  Basic  Income  tax  free  Mobile  Creatives  Mobile  Creative  3D  printing  Software  Is  Eating  The  Robotics  automation  ownership  cost  of  ownership  Millennials  consumerist  consumerism  Frontier  Markets  Developing  western  world  UK  USA  Europe  secular  stagnation  developed  world  current  account  deficit  lohndumping  Lohnzurückhaltung  liberal  economic  reform  neoliberalism  neoliberal  Career  Politicians  No  Representation  technological  progress  biotechnologie  biotechnology  on-demand  convenience  marketplace  efficiencies  commodity  business  commoditization  deflationary  deflation  21stcentury  Industrial  Revolution  2.0  policy  error  policy  folly  inequality  Gini  coefficient  social  mobility  mobility  squeezed  middle  class  complexity  Supply  and  Demand  Demand  and  Supply  unknown  unkown  unintended  consequences  asset  bubble  asset  allocation  hunt  for  yield  currency  currency  policy  policy  w 
august 2015 by asterisk2a
Japan's economy shrinks by 0.4% in a blow for 'Abenomics' growth plan | World news | The Guardian
the country’s main Nikkei stock market index was up strongly by 0.6% as investors expected the government to unleash more monetary stimulus. “Should growth remain sluggish for another quarter and inflation expectations start to fall, the odds of additional monetary easing would increase substantially,” analysts at DBS said in a commentary. Private consumption, which accounts for about 60% of Japan’s GDP, fell 0.8%, as exports dropped 4.4%. “The sharp plunge from the previous quarter’s surprise growth was partly due to disappointing demand for Japanese products in the US, Chinese and other resource-exporting markets,” SMBC Nikko Securities said in a commentary. “Sluggish wage growth and bad weather drove down consumption at home,” it added. // no demand led recovery. debt fuelled recovery! little is fixed thus nothing (kogs) fits and runs by itself as one would expect. // [...] convincing people to splash out on consumer goods has been a struggle
equity  bubble  BOJ  Abenomics  China  2015  western  world  developed  world  Taper  QE  NIRP  ZIRP  economic  history  global  economy  global  trade  Europe  UK  USA  fiscal  policy  monetary  policy  Yen  Richard  Koo  Oil  price  OPEC  energy  price  Supply  and  Demand  Demand  and  Supply  structural  imbalance  Impediments  faultlines  GFC  trickle-down  economics  tax  evasion  tax  avoidance  capitalism  crony  capitalism  Wall  Street  bank  bailout  bailout  microeconomic  policy  microeconomics  behavioral  finance  deleveraging  debt  servitude  balance  sheet  recession  debtoverhang  Psychology  sociology  savings  rate  uncertainty  insecurity 
august 2015 by asterisk2a
China's currency devaluation could spark 'tidal wave of deflation' | Business | The Guardian
[3rd day in a row Yuan/RMB is devalued by PBOC (13/08/15)] “We’re all going to feel it: we’ll feel it through commodities; we’ll feel it through manufactured goods exports, not just from China but from everywhere that has to compete with it; and we’ll feel it through wages.” [...] China could be willing to let the yuan depreciate by as much as 25% over the next five years – “stone by stone, step by step” – in an attempt to restore the export-led growth that was such a winning formula [...] China [may be] trying to protect itself against the period of financial instability [following Taper by western central banks Fed/BOE] [or counter $ recent rise 21% & peg against $] [or fight home grown recession with kitchen sink] // &! bloom.bg/1gC8FFe &! bloom.bg/1WkMfZZ &! bloom.bg/1hy7O9l &! bloom.bg/1NpE4FI &! bv.ms/1IKB3fX // what is the new normal 4 growth in this global economy, competitive = keeping prices low = inflation & low interest rate pressure.
yuan  RMB  PBOC  China  devaluation  deflationary  deflation  UK  USA  Europe  Exportweltmeister  competition  competitive  competitiveness  Lohnzurückhaltung  lohndumping  secular  stagnation  western  world  globalisation  globalization  commodities  commodity  business  commoditization  Germany  Asia  Latin  America  borderless  flat  world  wage  growth  wage  stagnation  inflation  expectation  inflation  targeting  wage  pressure  productivity  output  gap  recovery  GFC  economic  history  New  Normal  hunt  for  yield  Great  Moderation  fiscal  policy  monetary  policy  QE  ZIRP  NIRP  Taper  unintended  consequences  unknown  unkown  complexity  Industrial  Revolution  2.0  IMF  SDR  currency  war  disinflation  inflation  wage  inflation  Japan  Australia  Oil  price  energy  price  Developing  Frontier  Markets  Forex  USD  British  Pound  Euro  Yen  BOJ  BOE  Fed  ECB  Bank  of  Canada  asset  bubble  macroprudential  policy  asset  allocation  productive  investment  underinvestment  business  investment  2015 
august 2015 by asterisk2a
China devalues yuan currency to three-year low - BBC News
bbc.in/1WfUOFp // The weakening of the currency will also put the US Fed on the spot. In effect China is exporting deflation to the US - and so some will argue that the Fed should find an elegant way to back away from its recent signalling that September will see the first rise in interest rates since the Crash of 2008. Or to put it another way, in terms of US manufacturers and exporters, Beijing has done the monetary tightening that arguably the US economy needs. // &! tcrn.ch/1Tnj89s Apple shares reaction -5%, higher import costs. // &! bbc.in/1TrsssP - rattles the markets. // &! bit.ly/1JdPM8F - Der starke Verlust des Yuan deutete darauf hin, dass China einen Währungskrieg mit dem Westen provoziert. Doch tatsächlich spiegelt der niedrige Kurs die Schwäche der chinesischen Wirtschaft. // &! 3rd day, 3 devaluation move - bit.ly/1Ns1kmu &! Western central banks advised to resist [taper] & 2 prepare 2 ward off deflationary slump in face of cheaper Chinese exports - bit.ly/1DLIEy3
China  economic  growth  2015  yuan  currency  war  devaluation  PBOC  Taper  USA  UK  deflationary  deflation  RMB  Japan  Europe  Germany  disinflation  inflation  expectation  dis-inflation  inflation  inflation  targeting  western  world  BOE  Fed  ECB  BOJ  Brazil  Australia  commodities  IMF  SDR  Forex  Yen  USD  Euro  British  Pound  recovery  faultlines  global  trade  global  economy  globalisation  globalization  global  imbalances  savings  glut  hunt  for  yield  asset  bubble  asset  allocation  ZIRP  NIRP  QE  distortion  unintended  consequences  unknown  unkown  monetary  policy  Oil  price  energy  price 
august 2015 by asterisk2a
Richard Koo: "Out of the Balance Sheet Recession and into QE 'Trap'" - YouTube
Released new book end of 2014. // Banks unable to lend money 2 unwilling (eligible) customers. Money remains on the private banks (&Central Banks in form of bonds) balance sheets/books & mostly allocated towards parking it overnight @Central Banks deposit facility (thus ECB put up a deposit levy, late into the game) or liquid fairly un(der)productive investment classes like gov bonds. // Companies (& people ie 4 education/housing) borrowing & investing (into the future, that is uncertain, unknown, deflationary)!? // 19:30 Even Abenomics is not working. Bc trauma towards Debt! behavioural economics: experience of debt servitude on less income, additional uncertainty & distrust! // Lowering corporate tax rate (like George Osborne) does not help. // Persistent low inflation expectations. // Taper extremely difficult: 2.5trn excess in long bonds. Unknown territory. Possibly future higher interest rates than fnd economic growth does warrant - adding to output gap & new normal.
2015  UK  USA  liquidity  trap  QE  ZIRP  NIRP  balance  sheet  recession  deleveraging  debtoverhang  Japan  Fed  BOE  BOJ  GFC  recovery  austerity  economic  history  economic  model  academia  deflationary  monetary  transmission  mechanism  M3  LTRO  TLTRO  lost  decade  lost  generation  fiscal  policy  monetary  policy  Career  Politicians  bond  bubble  equity  bubble  property  bubble  negative  real  interest  rate  deposit  levy  economic  growth  trickle-down  economics  secular  stagnation  headwinds  Great  Depression  PIIGSFB  PIGS  macroeconomic  policy  microeconomic  policy  economic  damage  behavioral  economics  zombie  banks  Abenomics  squeezed  middle  class  wage  growth  wage  stagnation  cash  flow  cash  flow  management  trust  distrust  long-term  view  long-term  thinking  sovereign  debt  crisis  debt  servitude  household  debt  debt  monetisation  debt  monetization  Super  Cycle  student  loan  debt  private  debt  consumer  debt  student  debt  George  Osborne  David  Cameron  competitiveness  competitive  industrial  policy  budget2015  business  investment  infrastructure  investment  demographic  bubble  uncertainty  Sozialer  Abstieg  disposable  income  discretionary  spending  Yen  JGB  Taper  greatrecession  USD  dogma  ideology  public  investment  short-term  thinking  short-term  view  productivity  output  gap  underinvestment  productive  investment  book  rate  private  savi 
july 2015 by asterisk2a
Yen breakout - YouTube
The yen has broken out of its Y118-120 to the dollar rut and is expected possibly to fall to Y123. The FT’s Leo Lewis explains to Roger Blitz what has triggered this, its impact on the country’s stock market and where this sits with Abenomics. // adding to yen short position. //
Yen  Japan  Abenomics  debt  monetisation  debt  monetization  devaluation  currency  war 
may 2015 by asterisk2a
Wall Street Journal article: BOJ Chief Struggles With Dilemma of Untested Policy | ForexLive
“There is the dichotomy of what the BOJ’s trying to do, which is spark inflation, which is bad for bonds, and then what they’re actually doing, which is buying bonds,” http://online.wsj.com/article/SB10001424127887323975004578501012808721012.html
JGB  2013  monetary  policy  BOJ  economic  history  political  folly  political  error  policy  error  Japan  policy  folly  Yen 
may 2013 by asterisk2a
UBS On Japan - Are You 'Abe'liever? | Zero Hedge
[MONETARY POLICY CAN SOLVE STRUCTURAL PROBLEMS & CULTURE/SOCIETY] .... So we sum it all up like this. There are definitely signs that Japan’s economy are improving cyclically. However, structurally demographics remain a major headwind to raising aggregate demand. We feel many investors have not yet considered what slower growth for Asia will mean for Japan in the medium term. This will make it more difficult to raise aggregate demand above supply since capacity is sticky and Japan already has excess capacity.
JGB  2013  BOJ  economic  history  Abenomics  Japan  Yen 
may 2013 by asterisk2a
Quote Of The Day | Zero Hedge
ECB'S WEIDMANN WISHES JAPAN `GOOD LUCK IN THEIR EXPERIMENTS'
ZIRP  QE  JGB  NIRP  Jens  Weidmann  2013  monetary  policy  BOJ  Japan  Yen 
may 2013 by asterisk2a
OtterWood Observations on Japan, May 2013 - YouTube
As the BoJ prepares to thrill us with even moar in its latest policy meeting (or not as we discussed earlier) and with Amari et al. now jawboning JPY to some extent to control the out-of-control chaos in JGBs, it is perhaps worth taking 20 minutes to comprehend just what all this extreme policy action means. The following brief presentation covers it all in a Kyle-Bass-ian facts-and-fallacies manner, Christine Hughes sums it all up perfectly, for Japan, "The Math Is Stacked Against Japan - It's Not 'If', It's When." >> "The Math Is Stacked Against Japan - It's Not 'If', It's When" >> - 5 year time horizon - + http://www.businessinsider.com/kyle-bass-warns-against-japanese-stocks-2013-4 + http://www.creditwritedowns.com/2013/04/kyle-bass-gets-it-wrong-on-japanese-bonds.html "The bond vigilante stuff is a myth."
currency  debasement  monetary  policy  bond  bubble  currency  war  bond  vigilante  GFC  reflation  unintended  consequences  New  Normal  Yen  BOJ  currency-war  Gold  Abenomics  lostdecade  debtoverhang  QE  JGB  NIRP  financial  repression  economic  history  Debt  Super  Cycle  Carry  Trade  monetisation  bubble  sovereign  crisis  hunt  for  yield  ZIRP  inflation  monetization  Japan 
may 2013 by asterisk2a
Are Japanese Banks On The Verge Of Insolvency? | Zero Hedge
The inability of the BoJ to 'control' Japanese interest rates (JGB rates spiking unprecedentedly day after day) has put the banking system in a lot of trouble. As we explained recently the banks appeared to initially 'hedge' their huge JGB positions but now appear to recognize that first out wins and are reducing exposure overall (YTD -3.7% according to local data). [...] According to BOJ estimates, a 100 basis point (parallel) rise in market yields would lead to mark-to-market (MTM) losses of 20 percent of Tier-1 capital for regional banks (not taking into account net unrealized gains on securities), against 10 percent for the major banks. [...] >> He who sells first wins... <<
QE  JGB  NIRP  2013  lostgeneration  economic  history  inflation  targeting  reflation  Yen  ZIRP  banking  crisis  BOJ  bank  crisis  inflation  Abenomics  Richardkoo  lostdecade  Japan 
may 2013 by asterisk2a
Japanese bond market jitters are a warning sign for USD/JPY bulls | ForexLive
Here are some explanations for the move: The market believes the BOJ will spur inflation The Nikkei rally has proven irresistible to institutional investors JGB investors are switching to Treasuries, or European bonds The falling yen is scaring away reserve managers Better economic growth is spurring a move to risk assets In addition, the WSJ talks about potential problems with the BOJ buying more than 70% of new issues. That means less supply for market participants, a situation that is exacerbated when investors get skittish and decide to sit on the sidelines. When someone does move, the shift is amplified.
JGB  Yen 
may 2013 by asterisk2a
JGB Futures Halted (Again) For Biggest 2-Day Plunge Since Lehman; 5Y Yields Hit 13 Month Highs | Zero Hedge
Another night; another Japanese government bond futures halt. The last 2 days have seen JGB prices plunge at the fastest rate since the post-Lehman debacles in Sept/Oct 2008 smashing back to 13 month highs. 5Y yields are surging even more - trading above 34bps now (up from 9.9bps on March 5th). These are simply astronomical moves in the context of JGB history and strongly suggest Abe & Kuroda are anything but in control of the quadrillion Yen domestic bond market as they jawbone inflation expectations into the psychology of the people. Of course, the Nikkei is surging (now up 9% in the last 5 days alone) amid JPY breaking above 102 (but for now it has rallied back to 101.80).
ZIRP  QE  JGB  NIRP  BOJ  economic  history  inflation  reflation  unintended  consequences  Abenomics  Yen 
may 2013 by asterisk2a
Japanese Government Bonds Halted Limit Down; Yields Spike To 10 Week High; Worst Day In 5 Years | Zero Hedge
It appears things are getting a little out of control around the world. .... [...] http://www.zerohedge.com/news/2013-05-10/overnight-yen-tumble-sends-asia-scrambling-retaliate >> " Sure enough, midway through the evening session, Sri Lanka cut its reverse repo and repurchase rate to 9% and 7% respectively, promptly followed by Vietnam cutting its own refinancing rate from 8% to 7%, then moving to Thailand where the finance chief Kittiratt called for a rate cut exceeding 25 bps, and more jawboning from South Korea suggesting even more rate cuts from the export-driven country are set to come as it loses trade competitiveness to Japan. Asian financial crisis 2.0 any minute now? "
currency  debasement  QE  JGB  monetary  policy  currency  war  Politics  lostgeneration  economic  history  inflation  targeting  reflation  devaluation  Yen  ZIRP  BOJ  competitiveness  inflation  Asia  centralbanks  Japan  lostdecade 
may 2013 by asterisk2a
Santelli: Yen and High Frequency Trading Linked?
mini-Flashcrash because of AP-hacked-Twitter-account false "White House bomb, President injured" tweet. ( http://www.guardian.co.uk/business/2013/apr/23/ap-tweet-hack-wall-street-freefall / http://www.guardian.co.uk/commentisfree/2013/apr/23/ap-twitter-hack-hoax-digital-media ) Yen Crosses are linked to equity risk moves. Especially AUD and NZD/JPY correlate with equity. ... Borrow Yen cheaply - buy higher yielding assets with that money.
algos  WallStreet  HFT  algorithms  Carry  Trade  Yen  flashcrash 
april 2013 by asterisk2a
Mr Soros Trumps Mrs Watanabe | Zero Hedge
>> the world is selling their Yen holdings and or bet against the Yen. >> the last few months have seen not Mrs Watanabe (euphemistically selling her JPY to find better returns elsewhere) but the likes of Mr. Soros and Mr. Bass who see the endgame disorderly collapse of a currency (or perhaps it is the rest of the G7 central bankers unwinding JPY-based reserves to 'help' their fellow central planner out). The bulk of JPY selling pressure has come during non-Tokyo trading hours, as the Japanese, until last week at least, appear much more timid about Abenomics' chances of success. + >> http://www.zerohedge.com/news/2013-04-08/yen-surges-japans-deputy-pm-says-excessive-yen-gain-corrected
currency  debasement  QE  JGB  currency  war  G7  debt  monetisation  G8  Yen  ZIRP  BOJ  currency-war  G20  Abenomics  centralbanks  debt  monetization 
april 2013 by asterisk2a
Overnight Levitation Returns As The Elephant In The Room Is Ignored | Zero Hedge
That, of course, is that the JPY 1 quadrillion bond market had to be halted for the second day in a row as the Japanese capital markets are fast becoming a very big and sad joke. The resulting flight to safety from Japanese investors, who sense that their own bond market is on the verge of breaking down completely, has managed to send French and Belgian bonds to record lows, the Spanish 2 Year to sub 2%, the German 6 month bill negative in the primary market, the US 10/30 year constantly bid and so on. The immediate result is that the bond-equity disconnect continues to diverge until one day we may get negative 10 Year rates coupled with an all time high stock market. Gotta love the fake New Normal market, in which the Japanese penny stock market was up another 2.8% to well over 13,000 even as the Shanghai Composite plumbs ever redder territory for 2013 on fears the birdflu contagion will hurt the already struggling economy even more.
JGB  2013  BOJ  new-normal  Japan  New  Normal  Yen 
april 2013 by asterisk2a
Japan accelerating auto production offshoring | ForexLive
The strong yen has rendered Japan’s auto industry uncompetitive and manufacturers are now accelerating the move offshore. Auto shipments shrank to 4.4 million last year from 6.5 million in 2007, according to the WSJ:

The era of wait-and-see is over. Japanese manufacturers realize they need to move quickly or risk losing competitiveness

Trade deficits in Japan will be a staple over the next 10 years and the yen will face long term pressure.

http://online.wsj.com/article/SB10001424052702304458604577488502770201384.html?mod=wsj_nview_latest
foreignexchange  foreign  forex  Yen  Japan 
june 2012 by asterisk2a
BofA's Fujii Says Yen to Stay Strong for Next Few Months - YouTube
Tomoko Fujii, senior foreign-exchange strategist at Bank of America Merrill Lynch in Tokyo, talks about the outlook for the Japanese yen.
JGB  Japan  Yen  2011  BOJ  downgrade 
august 2011 by asterisk2a
TV Pricing Bloodbath Threatens Already Razor-Thin Retailer Margins, Will Send Japanese FX Interventions Into Overdrive | zero hedge
“Combining these with a possible appreciation of the won, we expect the overall fourth-quarter business conditions to be difficult.”

“The Christmas season makes or breaks you and this year you’ve got unemployment and deflation,” said Yamada of kabu.com Securities.
JPY  yen  japan  export  2010  currency  currencies  rare-earths 
october 2010 by asterisk2a
G-20 Clash Over Recovery Risks ’Sub-Potential’ Growth (Update1) - Bloomberg.com
At a meeting of Group of 20 finance chiefs in Busan, South Korea, June 4-5, Treasury Secretary Timothy F. Geithner said the world cannot again bank on the cash-strapped U.S. consumer to drive growth and urged other nations to stimulate their own demand. European Central Bank President Jean-Claude Trichet said fiscal tightening in “old industrialized economies” would aid the expansion by shoring up investor confidence.

Each strategy carries threats for the global rebound that the G-20 said faces “significant challenges.” Continued stimulus risks bondholder revolt over rising debt burdens, while spending cutbacks could worsen unemployment. Relying on exports leaves the world prone to trade wars and competitive currency devaluations as countries seek to give their companies an edge.

Each strategy carries threats for the global rebound that the G-20 said faces “significant challenges.” Continued stimulus risks bondholder revolt over rising debt burdens, while spending cutbacks coul
G20  june  fiscal  monetary  policy  greatrecession  tobin-tax  banking  recession  2010  recovery  demand  growth  Europe  timgeithner  germany  USA  PIIGS  austerity  capital  liquidity  basel2  export  exports  currency  currencies  euro  yen  dollar  yuan  protectionism  economics 
june 2010 by asterisk2a

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