Posts Tagged ‘ abenomics ’

The magic words to make Nikkei BOOM !

This did make me laugh !

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BOJ Leaves Policy Unchanged

Bank of Japan maintained its unprecedented monetary easing. Signs of strength in the economy and price gains point to progress in its effort to end 15 years of deflation! The end is is near ? Or is it ?

The BOJ will expand the monetary base at an annual pace of 60 trillion yen ($602 billion) to 70 trillion yen, it said in a statement in Tokyo today. That’s nearly the same as the GDP of Turkey !

-Consumer prices climbed the most in five years in July

BOJ Governor Haruhiko Kuroda indicated after last month’s policy board meeting that a delay in raising the sales tax could undermine confidence in Japan’s fiscal sustainability and lead to higher government bond yields.
The central bank committed in April to double the monetary base through purchases of government bonds and other financial assets, aiming to generate 2 percent inflation within about two years.

Now lets see if we win the Olympics .

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PM Abe looks to win 60% of seats : Nikkei and Yen will have ride tomorrow !

Japanese Prime Minister Shinzo Abe has won a majority in the upper house, exit polls suggest , as polls closed at 8pm on Sunday .

His Liberal Democratic Party and its junior partner New Komeito were set to get at least 71 of the 121 seats .
Not sure if this is correct but this is what’s on tV NHK projected.

This would be a huge boost for Abe and his “Abenomics ” would give him control of both houses of parliament for the first time in six years! I said begging the year Abe was placing his Generals in place to declare war on deflation , this is the last piece .

Watch the market tomorrow I see 3% up and yen weaker

It’s going to be a fantastic week

Lets lock and load .

Tony Evans

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Japan goes to the polls – What will this mean for the Japan / Yen ?

Today is a day when history could
be made in Japan , when the PM will have the means and also the popularity to do the necessary changes to the country .
As someone who has been in Japan for over 8 years this is very exciting as this could in my opinion see the the country go through another boom economically wise .

Public opinion polls indicate that Prime Minister Shinzo Abe’s ruling bloc will win. public option polls show a 60% approval rating for the PM , the highest in any industrialised nation . A victory would give Mr. Abe’s Liberal Democratic Party and the junior partner New Komeito control of both houses of parliament.At stake are 121 seats, half of the upper house seats.

Control of both chambers will remove political obstacles to Abe’s agenda or as the commonly known as ” Abenomics policy ” a sort of Thatcherisim in Japan .

Supporters see that this will give him him free reign to force unpopular changes on Japan’s long under-performing economy.
A key point is to reform of the labour market to make it easier for firms to hire and fire workers, participation in a huge free trade pact and a rise in consumption tax, which economists say will help to slow the pace of growth in the already sky-high national debt.

This is his 3 arrow of Abenomics policy to make Japan grow once again.
We already seen the Bank of Japan flood the market with cheap money , today’s win for the PM could see the value of the Yen weakening even further .

Lets see how this goes , All I can say its not boring.

Tony Evans
Tokyo , 21st July 2013
Tokyo American Club

Bloomberg Coverage

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Central Bank says Japan is ‘recovering’

The Bank of Japan issued a more upbeat assessment of the Japanese economy on Thursday, saying for the first time in more than two years that conditions were recovering.

TBOJ stuck with a pledge to expand the monetary base by 60 to 70 trillion yen ($709 billion) per year, as the economy is starting to recover moderately.

On this news the yen strengthened vs the USD to 98.76 .

What’s key for Abenomics is Prime minster is to win the July 21 election , this would end the split parliament , this would enable Abe to push through changes to increase the competitive of Japan economy .Lets see!

Abenomics has had such a great effect on changing the mood in Japan , that’s a huge success but isn’t enough to make Japan grow .

Bank of Japan – Economy is indeed recovering
For the first time in more than two years, the Bank of Japan issued an optimistic statement about the state of the economy, saying that conditions were recovering.

In a self-praising move, the BoJ said that the aggressive monetary easing measures it implemented in April are working to stimulate the economy and reverse consumer-price deflation.

Following a two-day policy meeting, the bank said in a statement that, “Japan’s economy is starting to recover moderately”.

This therefore signals that the central bank is unlikely to take additional steps soon.

The announcement marks the first time since early 2011 that the bank formally described the economy as being on an expansionary path. In fact, the bank’s official view has steadily brightened over the past six months.

Under Governor Kuroda, who took over last March, the BoJ has been pumping an unprecedented amount of money into the economy through increased purchases of government bonds. The board said on Thursday that it would stick with its goal of expanding Japan’s monetary base at a rate of Y60tn to Y70tn a year.

Following the announcement, the yield on the 10-year Japanese government bond has traded in a tight range between 0.79 and 0.96% for nearly two months now.


Tony Evans

Profits And Growth – Is Japan On The Right Track With Abenomics – iExpats

Just saw this article on Abenomics and how’s it’s helping the country move forward .

Good read

Tony Evans

Japan

Profits And Growth – Is Japan On The Right Track With Abenomics – See more at: http://www.iexpats.com/profits-and-growth-is-japan-on-the-right-track-with-abenomics/#sthash.SSomEQG5.dpuf

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Japan exports improve most since 2010 over 10%

We seeing Abenomics arrow 1 & 2 having a huge effect on the exports.
That’s one full quarter of improving result , showing that the market is going right way .

Lets hope this continues .the big test will be the up and coming election , if Abe wins then we can see some proper structural changes , if he gets 2/3 majority we can see some constitutional changes !

The third arrow missed the target the first time hope his next aim is better

Japan exports improve most since 2010.

It has been three years since Japan enjoyed this level of exportation. In May, shipments shot up 10.1% from the previous year, marking the third consecutive month of improvement.

Shipment exports picked up in key markets such as the US, rising 16.3% from a year earlier, whilst shipments to China increased 8.3%.

A weaker Yen boosted exporters’ business in May, as it made Japanese goods cheaper overseas, thus increasing profits in an industry that Japan largely depends on.

Such positive date therefore boosts Prime Minister Shinzo Abe’s plan to revive the economy.

Morgan Stanley Analyst Shuji Tonouchi explained that the breakdown shows that export volumes are still a little weak, but demand from the United States is ‘doing well’. Overall, he added, “We can certainly say that exports are headed in the right direction”.

On the other hand, imports also rose by 10% in May from a year ago and therefore, the trade balance came to a deficit of 993.9bn yen. This marks the 11th straight month that Japan has posted a deficit, as energy import costs continue to be high after nuclear plants were shut down.

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Interviewed for BBC on what Wales can lean from Japan & Abenomics( Welsh & English translated )

BBC Article – ‘Mynd allan i werthu, nid i ofyn’
BBC Article – Going out to sell, not to ask'( translated by Google)

Translated English Article first .
Welsh Article after

Going out to sell, not to ask ( translated by Google)

Wales needs to do more to develop indigenous businesses, along with the encouragement of foreign investment, according to one Welshman who works as a financial expert in Japan.

Tony Evans, originally from Penrhyndeudreath, settled in Tokyo for eight years.

As the Welsh Government trade mission began in Japan, says Mr Evans said: “Companies in Japan with a lot of cash on their balance sheets, so they look for investments but they want something it’ll do brass, it does’ they do not invest just to invest. ”

“They’ve invested a lot in Britain a lot already … in manufacturing, cars … they look at nuclear energy …

“Over 400 years of relations between Britain and Japan this year (the East India Company traveled to Japan in 1613), that is a terrible one big thing, and they put a lot of emphasis on the relationship they’re know that is safe. ”

Optimism
Continue reading the main story
“Start Quote
It wants to go out and say what the Government can offer to Japan and go out and sell – not going out to ask, but going out to sell ”
Tony Evans
Financial Specialist in Japan
There has been very significant economic growth during “economic miracle” Japan in the 60s, 70s and 80au’r twentieth century. Japan economy average growth slowed in the nineties, but continued to grow at the beginning of the new millennium before falling into recession three times since 2008 – the last time in 2011 after the earthquake and tsunami .

But Tony Evans is optimistic about the economic future of his adopted country, mainly because of the attitude of the Prime Minister, Shinzo Abe:

“The prime minister, has said that doing something about it – Japan has been in recession for twenty years, and people are fed up.

“The Abe wants the country to grow more, want to make an investment, wants to change the way things are happening here and now he has put Kuroda at the Bank of Japan and he is exactly the same …

“One thing a lot of people does not know, it was Kuroda, governor of the Bank of Japan, at Oxford university and therefore has a western attitude towards policies, and that is a good thing in Japan – Japanese face with western policies. ”

Lessons from Japan
So if Japan would benefit from some aspects of western why Wales can learn from Japan?

According to Tony Evans, would be more apprenticeships boost for the Welsh economy. It is a system that is highly successful in Japan said. It is also necessary to change attitudes of students and graduates:

“There has been too much emphasis on getting people to go from universities within the Civil Service, to go into a job not to create jobs, the emphasis on going to university to get a degree in something, not a lot of apprenticeships, tase more skills so then the economy (Welsh) raises its own … ”

It offers the following advice to Edwina Hart at the beginning of her visit to Japan: “We need to go talk to companies at home here already.’s British Chamber of Commerce here, St. David’s Society here.

“There’s a lot of connections here, and wants to go out and say what the Government can offer to Japan and go out and sell – not going out to ask, but go out and sell.”

‘Growing existing sector’
While he supported any effort to attract new investments from Japan to Wales, living away from home has given another perspective to Mr Evans at what Wales should concentrate in order to grow its economy in the future.

“Having investments from outside is one thing, but we also need to work more with businesses, and universities, for more entrepreneurship.”

He also argued in favor of focusing on specific sectors – technology is an obvious one says, but also “natural resources, new energy, green energy, ma ‘That’s one thing.’s Still a load of coal, things that they’d be can do.

“A lot of good land in Wales to grow, to raising livestock. The world is growing, and people want to eat – Wales could do better in the food sector. Growing sector is already there and making of ‘ n more.

“As the middle class expands, there are 2 billion people want to get into the middle class, as they come in, so they will change their attitude towards food. Not enough food to go round the world, Wales place with good land, with the skills to move forward. ”

Ideas that the Welsh Government chew on them? It may already be thinking along similar lines – Abergavenny Fine Foods is a food company, Teddington Engineered Solutions and supplying equipment for the power industry is part of the trade mission.

Alongside them on the trip, companies Clogau Gold, ISCA UK that produce chemicals, which IQE produces semiconductors (SEMICONDUCTORS), Reid Lifting is lifting equipment development, design and Weaving Mill company Tregwynt, and clinical research company Simbec Research.

Mynd allan i werthu, nid i ofyn’

10 Mehefin 2013 Diweddarwyd 07:06
‘Mynd allan i werthu, nid i ofyn’

“Mae angen mwy o bwyslais ar dechnoleg a defnyddio technoleg”
Parhau gyda’r brif stori
Straeon Perthnasol

Angen i Gymru fod yn amlwg ar fap y byd Watch
Yr economi yng Nghymru
Adran hybu busnes o dan y lach
Mae angen i Gymru wneud mwy i ddatblygu busnesau cynhenid, ochr yn ochr ag annog buddsoddiad o dramor, yn ôl un Cymro sy’n gweithio fel arbenigwr ariannol yn Japan.

Mae Tony Evans, sy’n wreiddiol o Benrhyndeudraeth, wedi ymgartrefu yn Tokyo ers wyth mlynedd.

Wrth i daith fasnach Llywodraeth Cymru gychwyn yn Japan, dywed Mr Evans: “Mae cwmnïau yn Japan hefo llwyth o arian ar eu balance sheets, felly maen nhw’n edrych am fuddsoddiadau ond maen nhw eisiau rhywbeth neith neud pres, wna’ nhw ddim buddsoddi jyst er mwyn buddsoddi.”

“Maen nhw wedi buddsoddi lot ym Mhrydain lot yn barod… yn manufacturing, ceir… maen nhw’n edrych ar ynni niwclear…

“Mae dros 400 o flynyddoedd o berthynas rhwng Prydain a Japan flwyddyn yma (teithiodd yr East India Company i Japan yn 1613), mae hynna’n un peth mawr ofnadwy, ac maen nhw’n rhoi lot o bwyslais ar berthynas ma nhw’n gwybod sydd yn saff.”

Optimistiaeth
Parhau gyda’r brif stori

Start Quote

Mae eisio mynd allan a dweud beth y mae Cymru yn gallu ei gynnig i Japan a mynd allan a gwerthu – nid mynd allan i ofyn, ond mynd allan i werthu”

Tony Evans
Arbenigwr ariannol yn Japan
Bu twf economaidd sylweddol iawn yn ystod “gwyrth economaidd” Japan yn 60au, 70au ac 80au’r ugeinfed ganrif. Arafodd twf cyfartalog economi Japan yn y nawdegau, ond parhaodd i dyfu ar ddechrau’r mileniwm newydd cyn syrthio i ddirwasgiad deirgwaith ers 2008 – y tro diwethaf yn 2011 wedi’r daeargryn a tsunami.

Ond mae Tony Evans yn optimistaidd ynghylch dyfodol economaidd ei wlad fabwysiedig, yn bennaf oherwydd agwedd y Prif Weinidog, Shinzo Abe:

“Mae’r prif weinidog, wedi dweud bod rhaid neud rhywbeth amdano fo – mae Japan wedi bod mewn dirwasgiad ers ugain mlynedd, ac mae pobl wedi cael llond bol.

“Mae Abe eisiau cael y wlad i dyfu fwy, eisiau neud buddsoddi, eisiau newid y ffordd mae pethau’n digwydd yma a nawr mae e wedi rhoi Kuroda yn y Bank of Japan ac mae e’n union yr un peth…

“Un peth dydy lot o bobl ddim yn gwybod, roedd Kuroda, llywodraethwr Bank of Japan, yn Rhydychen yn y brifysgol ac felly mae ganddo agwedd orllewinol tuag at bolisïau, ac mae hynna’n beth da yn Japan – polisïau gorllewinol gydag wyneb Japaneaidd.”

Gwersi o Japan
Felly os ydy Japan yn elwa o rai agweddau gorllewinol, beth all Cymru ei ddysgu o Japan?

Yn ôl Tony Evans, byddai cael mwy o brentisiaethau yn hwb i economi Cymru. Mae’n system sy’n hynod lwyddiannus yn Japan meddai. Mae hefyd angen newid agweddau myfyrwyr a graddedigion:

“Mae gormod o bwyslais wedi bod ar gael pobl o’r prifysgolion i fynd fewn i’r civil service, i fynd fewn i job nid i greu jobs, pwyslais ar fynd i brifysgol i gael gradd mewn rhywbeth, dim lot o apprenticeships, tase mwy o sgiliau fel yna byddai’r economi (Gymreig) yn codi ei hun…”

Mae’n cynnig y cyngor canlynol i Edwina Hart ar ddechrau ei hymweliad â Japan: “Mae angen mynd i siarad hefo cwmnïau o gartre’ sydd yma yn barod. Mae Chamber of Commerce Prydeinig yma, mae Cymdeithas Dewi Sant yma.

“Mae yna lot o gysylltiadau yn fan hyn, ac mae eisio mynd allan a dweud beth y mae Cymru yn gallu ei gynnig i Japan a mynd allan a gwerthu – nid mynd allan i ofyn, ond mynd allan i werthu.”

‘Tyfu sector sydd yno’n barod’
Tra ei fod yn cefnogi unrhyw ymgais i ddenu buddsoddiadau newydd o Japan i Gymru, mae byw oddi cartref wedi rhoi persbectif arall i Mr Evans ar yr hyn y dylai Cymru ganolbwyntio arno er mwyn tyfu ei heconomi yn y dyfodol.

“Mae cael buddsoddiadau o’r tu allan yn un peth, ond hefyd mae angen gweithio mwy hefo busnesau, a phrifysgolion, i gael mwy o entrepreneurship.”

Roedd hefyd yn dadlau o blaid canolbwyntio ar sectorau penodol – mae technoleg yn un amlwg meddai, ond hefyd “natural resources, egni newydd, egni gwyrdd, ma’ hynna’n un peth. Mae dal llwyth o lo, pethau y basen nhw’n medru neud.

“Ma’ lot o dir da yng Nghymru i dyfu, i fagu anifeiliaid. Mae’r byd yn tyfu, ac mae pobl eisio bwyta – gallai Cymru neud yn well yn y sector fwyd. Tyfu sector sydd yno’n barod a gwneud o’n fwy.

“Wrth i’r dosbarth canol ehangu, mae 2 biliwn o bobl eisiau dod mewn i’r middle class, wrth iddyn nhw ddod fewn, neith eu hagwedd at fwyd newid. Does dim digon o fwyd i fynd rownd y byd, mae Cymru yn lle hefo tir da, hefo’r sgiliau i fwrw ymlaen.”

Syniadau y dylai Llywodraeth Cymru gnoi cil arnyn nhw? Efallai ei bod eisoes yn meddwl ar hyd llinellau tebyg – mae cwmni bwyd Abergavenny Fine Foods, a Teddington Engineered Solutions sy’n cyflenwi cyfarpar ar gyfer y diwydiant ynni yn rhan o’r daith fasnach.

Ochr yn ochr â nhw ar y daith, mae cwmniau Aur Clogau, ISCA UK sy’n cynhyrchu cemegau, IQE sy’n cynhyrchu lled-ddargludyddion (semiconductors), Reid Lifting sy’n datblygu cyfarpar codi, cwmni dylunio a gwehyddu Melin Tregwynt, a chwmni ymchwil clinigol Simbec Research.

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Abenomics helped to boost by revised data , BOOMING

Japan's hopes for recovery boosted by revised data.

Japan has revised its growth numbers between January and March, adding to hope of recovery for the world’s third-largest economy.

The Japanese economy grew 1% in the first three months of the year, an increase from the primary estimates of 0.9%.

The cabinet office said that this would indicate a yearly growth of 4.1%.

The revision also had an encouraging effect on investors – the Nikkei 225 index jumped over 3% in early trade.

Martin Schulz of the Fujitsu Research Institute told the BBC that the policy measures introduced by Prime Minister Shinzo Abe and the Japanese central bank to drag the economy out of stagnation, spur growth and strengthen the yen – which had fallen by nearly 25% against the US dollar last November – were finally starting to be felt.

These measures included doubling the national money supply and keeping long-term interest rates low in order to boost domestic demand and generate higher consumer prices.

In light of the revised data, which indicated an increase in domestic demand, analysts have said that the Japanese policymakers appear to have had the right idea.

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$600billion slump in Nikkei sees Monday up 3.38%

What a cracking start to the week , Nikkei is signaling that Japanese shares may arrest a three-week, $600 billion slump!

A slight policy change in Japanese pension funds is a big factor , as they will increase equity holdings . The pension funds holds multi TRILLIONS. And is looking to swap from bonds into equity .

Lets see how the weeks turns out ,I am long equity short yen and have increased my position this morning .

Lets lock and load

Tony Evans

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