financializer news A weblog highlighting financial topics making news in the international media.

Tokyo market: On Tuesday, it lost 402.01 points, according to The Japan Times. The Topix finished up 40.47 points, or 2.98 percent, at 1,400.70, after falling 32.40 points the previous day. The Nikkei surged 455.02 points, or 2.72 percent, to close at 17,163.92. The Tokyo market got off to a firmer start after the Dow Jones industrial average turned sharply higher on Tuesday thanks to solid crude oil futures prices in New York. The market accelerated its upswing by the middle of the morning session, briefly pushing up the Nikkei by more than 530 points. Export-oriented issues, such as automakers and electronics producers, attracted purchases as investor sentiment improved on the back of stronger-than-expected readings of the U.S. Conference Board consumer confidence index for January, brisk corporate earnings in the United States and the yen fall, brokers said. (news.financializer.com). As reported in the news.

Amari: Amari said last week he had done nothing illegal and is expected to hold a news conference on Jan. 28 to respond to the accusations in greater detail. "I want Amari to continue carrying out the important work that he has done, including work on TPP," Abe said in the Upper House of parliament. "Amari is investigating the accusations and I expect him to explain the situation fully." The media report about alleged bribes comes at a sensitive time, with policymakers grappling with a sell-off in Japanese stocks, a rising yen and questions of whether more monetary easing is needed, according to Asahi Shimbun. A spokesman also said the government is preparing to send Amari to a meeting next week in New Zealand on the Trans-Pacific Partnership free trade bloc, in another sign the government wants to keep Amari in the Cabinet. Amari, a core member of Abe economic policy team, is under fire for a media report that he and his aides had accepted money from a construction company in exchange for helping the firm receive compensation for disputes over land ownership and waste removal at a public works site. Amari has played a crucial role in crafting Abe stimulus policies, dubbed "Abenomics," and in negotiating for the TPP agreement. Amari has spearheaded the administration pro-growth policies and called for increased spending on items such as more childcare facilities. Some economists have expressed concern that Abe economic policy would lose focus without Amari leadership. (news.financializer.com). As reported in the news.

Tim Cook: The California technology colossus said it expects to see its first decline in iPhone sales in the current quarter, when it will be compared to three months of blockbuster sales in the same period last year."We do think that iPhone units will decline in the quarter," Apple chief executive Tim Cook said during an earnings call with analysts, according to Nine News Australia. But Apple, which yesterday posted record quarterly profit despite the iPhone faltering for the first time since it was launched in 2007, remains optimistic about the overall smartphone market. Apple raised the spectre of the end of a technological era after reporting yesterday the slowest growth sales ever of its market-leading, life-changing iPhone and warning it expects worse to come. Apple plans to continue investing in smartphones despite economic woes dragging on many countries and a strong US dollar eating into its revenue, according to Cook. Net income for the quarter ending December 26 was two percent higher than the same period a year earlier at $18.4 billion, while revenue of $75.9 billion set another record for the company, also edging up two percent. Apple CEO Tim Cook shows off the new IPhone6S and 6S Plus. "There are still a lot of people in the world who will buy smartphones and we ought to be able to win over our fair share of those," Cook said. (news.financializer.com). As reported in the news.

Didi: The company had previously announced it wanted to be present in 100 Chinese cities in 2016, according to Xinhua China. Should it succeed, China would overtake the United States as Uber largest market globally. Uber said late Tuesday that it will roll out its service to the central and southern provinces of Hubei, Hunan and Guangdong, giving it coverage of over 55 Chinese cities. Domestic rival Didi also announced on Tuesday an undisclosed amount of funding from China Merchants Bank and added that the duo would also work closely in areas such as mobile payment and auto finance. The tie-up with a domestic lender could mean that drivers will be able to purchase vehicles on credit on its online auto marketplace, which Didi will launch soon. Didi has been vocal about its intent to extend to auto services and e-commerce. (news.financializer.com). As reported in the news.

economic deterioration: Roberto Dumas, professor at the Brazilian business school Insper and a specialist on China, said that a growth rate below 7 pecent is not a sign of economic deterioration, but a reflection of adjustment measures by the Chinese government. "China is moving in the right way, lower growth but more consumption and with higher household income and better welfare," said Dumas. "Since the 2008 financial crisis, the Chinese government has realized the investment- and export-led growth of the past is unsustainable, according to Xinhua China. So it has turned to a sounder model based on improving people living standards." The Chinese government has adopted measures to strengthen the economy, such as raising wages and household income in order to boost consumption, and relaxing exchange rate controls to bolster confidence in its national currency. "This is the right way to proceed," Dumas said. China registered a growth rate of 6.9 percent last year, marking a 25-year low, amid a sluggish global economy, according to the country National Bureau of Statistics. For the next decade, China expects to see less investment and slower growth at a rate of 4 to 5 percent, as it transforms into a consumption-driven economy fueled by higher wages. In general, China slowdown should not be regarded as a crisis, according to Dumas, but a process to "rebalance its economy." China economy, the professor predicted, will experience a phase of slow growth, accompanied by a growing service sector, a slowdown in the growth of industrial production, and higher domestic consumption. Dumas also said China' s scrapping of its one-child policy is also an effective way to facilitate economic transformation, as it could help improve people quality of life by distributing the burden of supporting the elderly. "China' s determination to change its mode of economic development will contribute to the soft landing of its economy," he said. (news.financializer.com). As reported in the news.

John Kerry: Kerry acknowledged that "our differences will continue to test us" but stressed that the world benefits when the United States and China are able to work together, including on the Iran nuclear deal and climate change, according to Asahi Shimbun. On North Korea, Kerry said the United States wanted new U.N. Security Council action that would impose "significant new measures" to punish Pyongyang for its latest test earlier this month and boost pressure on it to return to disarmament talks. "There been a lot of talk about North Korea through these past years. After meeting for more than four hours in Beijing in what they both termed "constructive" and "candid" discussions, U.S. Secretary of State John Kerry and Chinese Foreign Minister Wang Yi nonetheless presented sharply opposing positions on the two issues at a news conference. Now we believe is the time for action that can bring North Korea back to the table," Kerry said. China is North Korea most important ally, chief trading partner and a key source of economic assistance. Wang said China agreed on the need for a new resolution, but suggested that Beijing would not support new sanctions. "Sanctions are not an end in themselves," he said. "The new resolution should not provoke new tension in the situation, still less destabilize the Korean Peninsula," Wang said. (news.financializer.com). As reported in the news.

Fed: The precious metal was put under pressure as investors left gold safe haven properties ahead of the January FOMC meeting, according to Xinhua China. Despite a recent rise in the price of gold due to global economic instability, analysts say the long-term trend for gold remains bearish as the Fed began the first of its interest rate hikes in December, despite expectations for a delay until 2016. The most active gold contract for February delivery fell 4.4 U.S. dollars, or 0.39 percent, to settle at 1,115.80 dollars per ounce. Some analysts believe that the Fed may increase its key interest rate at the next Federal Open Market Committee meeting in March. Until the December FOMC meeting there had not been an increase in the Fed interest rate since June 2006, before the beginning of the American financial crisis. An increase in the Fed interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest. (news.financializer.com). As reported in the news.

territorial issue: We are not thinking that the peace treaty is synonymous with the solution of the territorial issue, Lavrov said at a Jan. 26 news conference here, according to Asahi Shimbun. His remarks, totally unacceptable to Japan, mark a major backward step in efforts to resolve the territorial dispute. Sergey Lavrov said that Japan, as a defeated nation in World War II, should realize it has no authority to make claims to the Northern Territories that were seized by Soviet forces in 1945. Japan and Russia signed the Tokyo Declaration in 1993 in which they agreed that negotiations toward an early conclusion of a peace treaty through the solution of this issue should continue. However, Lavrov latest statement represents a more hard-line stance by Russia. After Vladimir Putin became Russia president in 2000, he also approved the Tokyo Declaration with the Irkutsk Statement that he signed with Prime Minister Yoshiro Mori in 2001. (news.financializer.com). As reported in the news.

market turmoil: But others saw the Fed refusing to rule out a move as early as March after paying lip service to increased global market turmoil and reiterating that it saw downside pressure on inflation as unlikely to last, according to Market Watch. Read the text of the Federal Reserve decision to leave interest rates unchanged. Inflation is expected to remain low in the near term, the Fed said in new, more cautious language, that some saw as a suggestion the central bank won’t be quick to raise interest rates again. The makers of monetary policy were not as dovish as the markets would have liked to see, although the committee did include that they are monitoring global economic and financial developments, said Steven Ricchiuto, chief economist at Mizuho Securities, in emailed comments. The result is an equity market that has little to be optimistic over, he said. However they also maintained the notion that the things keeping inflation from returning to their 2% target are transitory. (news.financializer.com). As reported in the news.

: In 2015, GDP growth was also 1.7 percent, up marginally from 1.6 percent in 2014, the report said, according to Deutsche Welle. Its main basis for optimism was the country healthy employment situation, with 43 million people in work in 2015 - a new record high, and the ninth year in a row that the total number of employed people increased. The report, entitled "Securing the future - using the digital transformation as an opportunity," projected 1.7 percent real GDP growth in 2016, down marginally from the previous forecast of 1.8 percent. Unemployment is expected to remain stable at 6.4 percent. "The German economy is fundamentally in good shape," the report said. "In the economy as a whole, production capacity utilization is at normal levels. Wages rose in 2015, and pay packets are expected to rise by a further 2.6 percent in 2016. The situation on the labor market remains positive." The main reason for the rosy picture was domestic spending, including increases in both private household spending and government spending. (news.financializer.com). As reported in the news.

Bank of Kyoto Ltd.: The household names differ from the typical stable shareholdings of Japanese lenders because Bank of Kyoto invested in them when they were startups and has supported them ever since, Doi, 59, said in a recent interview, according to The Japan Times. The holdings also generate attractive dividends, especially compared with the low returns from lending in Japan, he said. Bank of Kyoto Ltd. sees no need to sell stakes in customers such as Kyocera Corp., Nintendo Co. and Nidec Corp., the regional lender President Nobuhiro Doi said. Doi stance puts him at odds with the nation biggest banks, which pledged in November to sell holdings that they cannot justify for reasons other than pure investment. Lenders including Mitsubishi UFJ Financial Group Inc. may sell ¥5.6 trillion in equity stakes by March 2019, Bloomberg Intelligence Analyst Francis Chan estimates. Abe wants companies to reduce shares in each other to improve governance and limit their exposure to market swings like this year global rout. (news.financializer.com). As reported in the news.

Venezuela: A top income tax rate of 52%, higher than France, according to Market Watch. To judge by the range of policies on offer, you might think that we were discussing North Korea, or at least Venezuela. A lock-up that would make it all but impossible for companies to leave the country. Regrettably, however, it is the United Sates. There are plenty of theories about why the global markets are so jittery right now, from the collapsing price of oil, to the slowdown in the Chinese economy. With voting in the first of the state nominating contests in the 2016 presidential race due to start on Monday, the rest of the world is looking on with an increasing sense of dismay, and increasingly bewilderment. (news.financializer.com). As reported in the news.

behavioral finance: In response, Howard Marks, the respected co-chairman of Oaktree Capital Management, offers an excellent view of behavioral finance in a recent memo titled On the Couch. . To the question of whether the markets’ current volatility is setting up another deep plunge like investors suffered in 2008, Marks says no, but not without trepidation, and his reasoning is worth a closer look, according to Market Watch. For starters, Marks discounts the likelihood of a bust because, he writes, we haven’t had a boom . That true about the U.S. economy, but more difficult to believe about the U.S. stock market. So it not without reason that the global stock markets’ gyrations of the past few weeks should trigger a fear of another 2008-like financial crisis. The S&P 500 SPX, -1.09% gained 162%, including dividends, from 2009 through 2015. Moreover, this boom has been broad. Such a gain, which equals a 15% annualized return over a seven-year stretch, seems like it should be called a boom. (news.financializer.com). As reported in the news.

foreign investors: The retreat comes as overall buyer interest in U.K. property markets grew at its slowest pace in more than two years, according to Market Watch. Values of U.K. commercial property--such as offices, shops and warehouses--are broadly expected to keep rising due to robust demand for a limited number of assets, RICS said. Demand for U.K. commercial real estate from foreign investors slowed in the last three months of 2015 for a second straight quarter, according to the Royal Institute of Chartered Surveyors. In London, commercial real estate appeared "overpriced to some extent" in the fourth quarter to 81% of agents surveyed, up from 77% in the third quarter, RICS said. After the 2008 financial crisis, investors increasingly saw property as a haven from financial shocks, while returns looked better compared to other assets like bonds. Strong demand for commercial real estate has pushed up prices in cities around the world. (news.financializer.com). As reported in the news.

Town Hall: After stopping for speeches at Town Hall, and the unsuccessful burning of an Australian flag, the march followed the original route of the 1938 'Day of Mourning' protest to Australian Hall, according to Nine News Australia. It the first time since 1938 indigenous Australians have gathered at the Elizabeth St hall on January 26. Chanting "always was, always will be Aboriginal land", protesters clad in Indigenous colours marched from The Block in Redfern, where speeches and dances were performed and poems recited, to the CBD on Tuesday morning. Organiser Ken Canning, from the Indigenous Social Justice Association, said indigenous sovereignty has never been ceded. He said indigenous communities need to be provided with autonomy and self-governance, separate from the Australian parliament."We need full and total control of our own destiny," he said. January 26, he said, was a day of invasion to indigenous Australians."This is the day war was declared by the British on all Aboriginal nations, all tribes," Mr Canning told AAP."I don't mind them having Australia Day but they can have it on January 1."Because it is the day of what I call 'the killing times'."Mr Canning said January 26 was also a day in which Indigenous Australians celebrated their warrior ancestors. (news.financializer.com). As reported in the news.

Comm Sec: Key pointsNSW economy strongest, ahead of VICACT improves from sixth to equal third with NTGrowth from housing development at four-year high in ACTWA fastest growing, but slowing down with end of mining boom The Comm Sec State of the States report compared the performance of all the state and territory economies over the final quarter of 2015, according to Australian Broadcasting Corporation. While the two most populous states are strongest, Comm Sec chief economist Craig James said the ACT economy was gaining ground. "There is a fair gap between New South Wales and Victoria and the other states and territories," he observed. "The big improver this time around has been the ACT — it was sixth in the last survey, it now equal third this time around with the Northern Territory." Mr James said growth in the ACT, as in New South Wales and Victoria, has been underpinned by housing development. "If more homes are being built, freestanding homes and apartments, it provides additional employment opportunities, it provides opportunities for retail spending and will provide momentum for the economy," he added. Related Story: SA job market improvement 'source of hope' for economy Map: Australia The latest report comparing the economic performance of Australia states and territories shows New South Wales still has the strongest performing economy, pulling further ahead of Victoria. New home building in the ACT is at four-year highs. However, she acknowledged room for improvement in dealing with youth and regional unemployment. NSW Treasurer Gladys Berejiklian said the New South Wales jobs growth figures were particularly pleasing. "Half of all jobs created in Australia being created in New South Wales every month, and that something to be proud of," Ms Berejiklian said. (news.financializer.com). As reported in the news.

Dow Jones Industrial Average: The S&P 500 gained 26.55 points, or 1.41 percent, to 1,903.63, according to Xinhua China. The Nasdaq Composite Index added 49.18 points, or 1.09 percent, to 4,567.67. The Dow Jones Industrial Average jumped 282.01 points, or 1.78 percent, to 16,167.23. The Federal Open Market Committee began its monetary policy meeting on Tuesday and will release a statement on Wednesday afternoon. However, investors will look into the statement for further clues on the economic environment and the future path of tightening. Analysts predicted that the Fed won't take any rate action at this meeting amid oil weakness. (news.financializer.com). As reported in the news.

opposite directions: The precious metal was given support as the U.S. Dollar Index fell by 0.12 percent to 99.16 as of 1800 GMT. The index is a measure of the dollar against a basket of major currencies, according to Xinhua China. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors. The most active gold contract for February delivery rose 14.9 U.S. dollars, or 1.35 percent, to settle at 1,120.2 dollars per ounce. Gold was prevented from rising further as the U.S. Dow Jones Industrial Average went up by 1.83 percent as of 1800 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains. Analysts believe the market remains unsure of when the next rate hike, from a 0.50 rate to a 0.75 rate, will occur. The Federal Open Market Committee , the policy-setting arm of the U.S. Federal Reserve, began its two-day meeting Tuesday, giving further support to the precious metal, as traders tendered bets that the Fed would signal cautiousness on raising interest rates in the wake of global economic uncertainty. (news.financializer.com). As reported in the news.

national polls: Look at the situation in New Hampshire, where he leading the pack by double digits, according to MSNBC. And Trump is lapping the GOP field in national polls. If you don’t want to take our word for it, just look at the polling out of Iowa, where Trump has topped Ted Cruz in five out of the last six polls, including today new Quinnipiac survey. Even numbers-cruncher Nate Silver, who had been skeptical about Trump chances, now gives the real-estate mogul better than a 50% chance of winning Iowa. Now it important to remember: Not a single vote has been cast yet, and a political cycle that has thrown us surprise after surprise could have another in store for us. Everything coming up Trump, Silver tweeted. (news.financializer.com). As reported in the news.

investment portfolios: Pace Sturdevant, a retiree in Ottawa, says it been depressing, according to The Toronto Star. They’ve lost so much value that basically the only thing to do is sit tight and wait, he said of his portfolio of stocks. But for those closing in on retirement and those already there, the downturn may be even more frightening as the value in Canadian investment portfolios invested in stocks have taken a beating. Sturdevant, 67, is keeping a close watch for any dividend cuts by companies in his portfolio of mostly dividend-paying stocks. The S&P/TSX composite is down about 20 per cent from his highs of last year, putting it in bear market territory. It hasn’t happened so far, he said. (news.financializer.com). As reported in the news.

Australian markets: Australian markets were closed on Tuesday for the Australia Day public holiday, according to Nine News Australia. And the Australian share market looks set to open higher following positive leads from Wall Street and Europe, which gained despite an earlier six per cent plunge in China stocks. At 0630 AEDT on Wednesday, the local unit was trading at 70.13 US cents, down slightly from 70.17 cents on Monday. At 0645 AEDT on Wednesday, the share price futures index was up 38 points at 4,941. WASHINGTON - US home prices increased at a faster clip in November, the gains fuelled by solid hiring growth, historically low mortgage rates and a shortage of houses on the market. NEW YORK - US consumer confidence improved in January despite a stock market rout, and house prices accelerated in November, suggesting underlying strength in the economy despite a sharp growth slowdown in recent months. (news.financializer.com). As reported in the news.

foreign exchange: According to a Bloomberg Business report, the offshore yuan on Monday halted its drop "after China stepped up verbal defense of its currency to ward off speculators betting on depreciation." Sean Callow, a foreign exchange strategist at Westpac Banking Corp in Sydney, told Bloomberg that the commentary was a "very clear message to speculators." "There could be some further tweaking of limits on capital flows, but in the short term the main tools are likely to be steady fixings plus intervention," said Callow while predicting the next moves by the Chinese government, according to Xinhua China. During last week World Economic Forum in Davos, Switzerland, some economists spread pessimistic views about the Chinese and global economy, while some financial magnates such as George Soros claimed that they were betting against Asian currencies, triggering worries about intensified short selling on the Chinese yuan and the Hong Kong dollar. Citing the recent engagement between the Chinese monetary authority and some "radical speculators" over the yuan value, the Xinhua article, titled "Chinese economic transition testing global investors' wisdom, courage," warned that those betting on the "ultimate failure" of the Chinese economy and capital market could face huge losses and potential legal consequences. Simon Wang, finance director at the China-based Guoyuan Securities, told the Wall Street Journal that the Xinhua commentary indicated that "restoring market stability has escalated to a matter of national will." Ken Chueng, a strategist with the Mizuho Bank Ltd headquartered in Japan, said in an interview with Bloomberg that "China won't tolerate sharper yuan declines," which could cause capital outflows, trigger a currency war and hamper the internationalization process of the yuan. According to the finance editor of Business Insider, the Xinhua commentary is more like a promise than a threat. "China is not kidding about what it can do with traders," the editor wrote. "Yuan shorts, you've been warned. With the Chinese government firm in its stance to stabilize both the currency value and the domestic capital market, yuan shorters seem to be fighting a harsh battle with no hope of winning, a number of experts have noted. (news.financializer.com). As reported in the news.

: Lake forderte Regierungen und andere mögliche Geber auf, die benötigte Summe bereitzustellen, according to Deutsche Welle. Jedes neunte Kind lebt in einem Konfliktgebiet Der Hilfsbedarf habe sich in wenigen Jahren verdoppelt, hieß es bei UNICEF weiter. Insgesamt solle die Hilfe 76 Millionen Menschen - den Kindern sowie Eltern und/oder Betreuern - zugutekommen. Inzwischen lebe "jedes neunte Kind auf der Welt in einem Konfliktgebiet". Das Risiko für diese Kinder, vor ihrem fünften Geburtstag an vermeidbaren Krankheiten zu sterben, sei etwa doppelt so hoch wie bei Kindern außerhalb von Konfliktgebieten. Das Hilfswerk will für fünf Millionen syrische Jungen und Mädchen innerhalb und außerhalb ihrer Heimat - so etwa auch im Irak, Libanon, in Jordanien und der Türkei - eine Schulbildung finanzieren. UNICEF-Direktor Anthony Lake Die Hilfe für die Opfer des Bürgerkriegs in Syrien wird den Angaben nach 2016 die größte humanitäre UNICEF-Operation sein. (news.financializer.com). As reported in the news.

: On Monday, it climbed 152.38 points, according to The Japan Times. The Topix ended down 32.40 points, or 2.33 percent, at 1,360.23, after rising 18.44 points the previous day. The Nikkei lost 402.01 points, or 2.35 percent, to finish at 16,708.90. Both indexes lost ground for the first time in three market days. The market was also weighed by the yen rise against the dollar and a drop of Shanghai stocks. Tokyo stocks met with heavy selling from the outset of the day trading, after the U.S. Dow Jones industrial average shed over 200 points on Monday on the back of a renewed fall in crude oil prices. (news.financializer.com). As reported in the news.

Hans-Peter Bartels: Noch mehr Reduzierung gehe nicht, so das Fazit von Hans-Peter Bartels, according to Deutsche Welle. Bis zu 650 deutsche Soldaten nach Mali Die Bundeswehr schickt erstmals mehrere Hundert Soldaten in den unsicheren Norden Malis. Die Redaktion sieht Bundeswehr am Wendepunkt Der Wehrbeauftragte des Bundestages hat in seinem Jahresbericht 2015 die Defizite der Bundeswehr schonungslos benannt. Das beschloss das Bundeskabinett. Soldaten als Flüchtlingshelfer Seit Monaten helfen Tausende Soldaten bei der Aufnahme und Versorgung der Flüchtlinge in Deutschland. Auch die Ausbildungsmission für die Peschmerga im Nordirak wird ausgeweitet. (news.financializer.com). As reported in the news.

currencies: The ICE U.S. Dollar index DXY, -0.05% a measure of the dollar strength against a basket of six rival currencies, was down 0.3% to 99.0990, its decline could be primarily attributed to renewed strength in the British pound, which briefly traded at $1.4368, its highest level in more than a week, earlier in the session, according to Market Watch. More recently, the pound GBPUSD, -0.4320% traded $1.4360, compared with $1.4221 late Monday. But the currency traded higher against the yen as rising oil prices diminished investor demand for haven assets like the Japanese currency. Market strategists said the currency was rebounding after weakening against the dollar for several weeks. Investors attributed the moves to the unwinding of long-dollar positions as risk sentiment recovered and investors braced for a dovish statement from the Fed. The euro EURUSD, +0.0460% traded at $1.0860 late Tuesday in New York, compared with $1.0854 late Monday. (news.financializer.com). As reported in the news.