Archive for the ‘ Japan ’ Category

Japanese Economy Gives Investors A Yen For Risk

A great article on iExpats on the JPY and how Abenomics is changing Japanese mentally and the world attitude to risk in Japan .

A very good read.

Japanese Economy Gives Investors A Yen For Risk
By Lisa Smith March 22, 2013

A number of different factors have joined together to encourage investors to ditch safe assets and head for riskier investments.

Many professional investors are heading towards Japanese equities because of the country’s weak yen which helps boost exports and increasing confidence among Japanese companies.

Others are ditching Australian bonds and reducing their gold holdings.
The downward slide of the UK pound is also making British equities more attractive, particularly in those firms which trade in dollars or export in volume.
To underline this move, one major player, Baring Multi Asset Fund, has increased its equity exposure in Japan from zero at the end of last year to a current standing of 4% – and they are looking to invest more.

Flagging economy

Fund manager Andrew Cole said that the Japanese government’s manipulating of the yen was helping to boost the flagging economy and, as a result, the recovery in Japanese equities was sustainable.

He added: “The measures taken by the Bank of Japan appear to be more credible than anything we have seen in the past and, as such, we believe Japanese equities are set to provide good opportunities for investors.”

Mr Cole says gold exposure has been reduced and will need an unorthodox fiscal intervention in the US for the price to keep rising.

The fund is also slashing the proportion of assets which are hedged in Sterling from 79% last autumn to 68% in the first quarter of this year.

They are also selling Australian bonds as government debt in safe havens comes under pressure and investors move to riskier profiles against what is seen as an expensive asset class.

The outlook of Barings is underlined by a Credit Suisse report which highlights two reasons as to why investors are adopting a riskier stance for their investments.

Stops and starts

The first, they say, is that economic growth in the US will pick up this year and lead the global recovery and, secondly, that the world’s central banks will raise interest rates this year as they leave their stimulus measures behind them.

However, they warn that the markets will fluctuate dependent on economic data being published but that the swings will be pauses rather than peaks and troughs and that the markets will continue their upturn.

Economists at Credit Suisse are predicting an up-coming slowdown in the world economy but this will not be followed by a sharp decline in growth and that the market’s mood of optimism could be undermined leading to short term falls.

The firm also points to the Japanese economy enjoying a strong rebound this year with better growth figures for both China and Europe.

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deVere Group Tony Evans supports Executive Fight Night in Tokyo

Press Release on deVere Group Tony Evans supports Executive Fight Night in Tokyo

deVere Group Tony Evans supports Executive Fight Night in Tokyo

deVere Group Area Manager Tony Evans is sponsoring the up-coming Tokyo edition of Executive Fight Night, the worldwide popular sell-out charity boxing event.

The Executive Fight Night is a global success story where executives from all walks of life sign-up for intensive boxing and fitness training with the aim of taking part in the black-tie boxing event at which they fight in front of hundreds of guests cheering them on.

On the inaugural Fight Night, sixteen courageous Tokyo-based executives will fight against each other in a safe, professional, Vegas-style black-tie boxing event.

The up-coming edition of the Executive Fight Night, where deVere Group Area Manager Tony Evans will be Gold Sponsor, will take place at the Grand Hyatt Hotel in Tokyo and guests will enjoy a 4-course sit-down dinner.

Ginja Ninja GK sees the event as a great opportunity to fight for a good cause, with all the money raised from the charity auction and raffle going to an exceptional cause. In 2013, the charity of choice will be Refugees International Japan, a non profit organisation dedicated to raising funds to assist refugees who have been displaced as a result of war and conflict.

deVere Group Area Manager Tony Evans commented, “It is a privilege to be named Gold Sponsor of the popular Executive Fight Night. I am sure it will be a fun night for deVere clients attending exclusively. In addition, we hope to raise as much money as possible for such a noble cause.”

Ginja Ninjas Co Founder Eddie Nixon stated, “We are extremely excited and proud to have the deVere Group on board as a premium partner for Executive Fight Night, Tokyo’s hottest premium event amongst both local and international executives. This support from Tony Evans and the deVere Group here in Japan will undoubtedly add to the quality of the night and be a key boost to help us achieve our fundraising goals for this year’s charity of choice, Refugees International Japan”.

Refugees International President & CEO Jane Best added, “Refugees International Japan is the chosen charity for EFN II with all proceeds from the exciting ‘Bid for Hope’ live ‘telethon’ style auction and raffle going to support RIJ priority projects in Syria, Burma and Uganda. RIJ and EFN II are aiming to raise 8million yen to help change the lives of thousands of refugees by providing essential health, education and resettlement kits that will ultimately enable families to rebuild their lives and return home”.

-End-

http://refugeesinternational.org/

http://ginjaninjas.com/

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Kuroda Bank of Japan Governor – Japanese but with a Oxford mindset ?

Prime Minster Abe has now got everything in place for Abenomics to take effect ,

What a lot of people don’t know is that Haruhiko-Kuroda is a Oxford graduate and as such has a very different mind set to his predecessors , Shirakawa’s studies at the University of Chicago in Milton Friedman’s advocacy of low inflation and disciplined central banks in the context of well-run budget policy.

Kuroda said in parliament last week that he is well acquainted with U.S. Federal Reserve Chairman Ben S. Bernanke, European Central Bank President Mario Draghi and departing Bank of England Governor Mervyn King, very different to his predecessor as he is keen to get Japan back on the international stage.

So much has been placed on his shoulders , personally I think he is up to the task , I can see a economic revival here .

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Kuroda Bank of Japan Governor – Japanese but with a Oxford mindset ?

Prime Minster Abe has now got everything in place for Abenomics to take effect ,

What a lot of people don’t know is that Haruhiko-Kuroda is a Oxford graduate and as such has a very different mind set to his predecessors , Shirakawa’s studies at the University of Chicago in Milton Friedman’s advocacy of low inflation and disciplined central banks in the context of well-run budget policy.

Kuroda said in parliament last week that he is well acquainted with U.S. Federal Reserve Chairman Ben S. Bernanke, European Central Bank President Mario Draghi and departing Bank of England Governor Mervyn King, very different to his predecessor as he is keen to get Japan back on the international stage.

So much has been placed on his shoulders , personally I think he is up to the task , I can see a economic revival here .

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UK Firm Pensions: Is the End Nigh? « BCCJ Acumen – The Magazine of the British Chamber of Commerce in Japan

My article on UK pension and the risks facing them , And how individuals can protect themselves .

Clink on the below link to have a look .

UK Firm Pensions: Is the End Nigh? « BCCJ Acumen – The Magazine of the British Chamber of Commerce in Japan.

“Abenomics ” the winners & loosers

for every action there is always an equal and opposite reaction

Newton said that in 1687 and I can say that that is true today of the effect of “Abenomics” .Don’t get me wrong it’s exactly what Japan needs to kick start its economy but this will effect Japan’s biggest and also faster growing demography the “retired or silver saver as they known here ”

To understand this you need to understand inflation & deflation :
•inflation – increase in prices ( money has less purchasing power”
•deflation -prices fall ( money has more purchasing power )

So in a deflation environment which Japan has been for in the last 20 years “cash was king ” elderly saw their income power increase every year , with Abenomics this would end and this purchasing power would fall . The retired in Japan have assets in excess of $7 trillion ( that’s nearly as much as the GDP of UK ,Germany & half of France !)

The winners will be the stock market , forex and in the Japan Economy .The losers will the retires and people on fixed income ,

Personally I hope Abenomics will succeed Japan needs it, but it all comes down the “silver savers” will they allow it?

No one is bigger than the market forces , but the silver savers is quiet a force,

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Bank of Japan ready to declare war on deflation ???

Is the Bank of Japan ready to declare war on deflation ? I believe so , Kuroda said last week he would take aggressive action to stop deflation and to increase the growth of the economy .
I personally believe he will look at around $1billion a DAY ! At the moment the BOJ has plans for $1billion every 2 days starting next year ,
His comments last week gave us the impression he wants action now rather than later !

“It would be natural for the BOJ to buy longer-dated government bonds in huge amounts,” Kuroda said in a confirmation hearing in parliament .

I personally see no real change until the up and coming election has been won by Prime Minister Abe . Reason for this is that Japan have been sheltered from high energy price , commodity and food price and residents in JAPAN haven’t seen their bills increase as most other G8 countries .Weaker Yen means higher prices for consumer ( voters ) and that means no votes !

Kuroda has still not been confirmed as the new Bank of Japan governor but the markets have already taken this as a given , Nikkei goes up 2+/-% in a day.
A 1% increase means the Nikkei adds around $23billion !!!

I see Abe drawing up a battle plan for war , at the moment he is just appointing his “generals” , summer time I can see the full war!

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