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

enthusiastic support: The third arrow of Abenomics — reforms to make the economy more productive — is barely a work in progress, but Abe got straight to work on the first two, fiscal expansion and monetary stimulus, with the enthusiastic support of a new governor at the Bank of Japan , Haruhiko Kuroda, according to Euro News. In the first year of the programme, the Nikkei index jumped nearly 60 percent, drawing in a net 15 trillion yen of foreign cash. Not any more. Enthusiasm for Kuroda bold stimulus, in particular, was strong, with each of his first two money-printing announcements prompting a 7 percent weekly surge. The market reaction is getting duller day by day. His decision last week to introduce negative interest rates was equally bold, and quite unexpected, but as Abe arrows have sailed wide of their target, investors have sat on their hands. (news.financializer.com). As reported in the news.

Gold futures: The metal also ended at its highest settlement since June 19, 2015, when gold finished at $1,201.90, according to Market Watch. Gold futures have now gained roughly 13% year to date. ‘Gold was like a beach ball that had been pushed too low in the water and is now bouncing higher with a vengeance.’ Mark O’Byrne, Gold Core Gold was like a beach ball that had been pushed too low in the water and is now bouncing higher with a vengeance, Mark O’Byrne, research director at Dublin-based Gold Core, told Market Watch. April gold GCJ6, -0.65% jumped $40.20, or 3.5%, to settle at $1,197.90 an ounce to register its best single-session point and percentage gain since December 2014. But prices have climbed by more than 12% higher in just 5 weeks so a correction is quite possible and may take place when gold reaches $1,200 per ounce. We believe we are and gold fundamentals and technicals look better and better, said O’Byrne. He says a correction is likely on tap, but the more important question is whether gold has bottomed and we are in a new bull market. (news.financializer.com). As reported in the news.

Michael James: They fell again on Monday, dragging down the Nasdaq Composite index 2.4 percent to its lowest in nearly 1-1/2 years, according to Euro News. I think we’re in an environment right now of shoot first, ask questions later. Shares of cloud services companies such as Splunk Inc and Salesforce.com Inc had also declined sharply on Friday. That the mentality of technology investors right now, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles. These stocks had high valuations before the selloff on Friday, driven by years of hype that spending from enterprise customers was moving to big-data analytics and cloud computing. Any disappointment is being taken out to the woodshed. (news.financializer.com). As reported in the news.

Honda Motor Co. Toyota Motor Corp.: Honda Motor Co. and Toyota Motor Corp. remain backers of the auto parts supplier, he said, according to The Japan Times. Takata is still generating cash flow and there no incentive for Honda or Toyota to push it into bankruptcy, Tsuchiya said. The company continues to generate cash from products including seat belts, child seats and steering wheels even as air bag recalls widen, according to Taketoshi Tsuchiya, a senior executive in Mizuho fixed-income group in Tokyo. From the technology perspective, the alternative of having to rely on foreign air bag suppliers is totally unacceptable for the carmakers and the Japanese government, he said. Speculation on Takata recall liability has blown its credit spreads to a record high in December in a market that offers near-zero bond yields. Scandals last year in Japan have created a handful of opportunities for distressed-debt traders as companies including Sharp Corp., Toshiba Corp. and Mitsui OSK Lines Ltd. generate losses. (news.financializer.com). As reported in the news.

: On Friday, the key market gauge slumped 225.40 points, according to The Japan Times. The Topix index of all first-section issues grew 11.44 points, or 0.84 percent, to close at 1,380.41, after falling 19.84 points the previous trading day. The 225-issue Nikkei average climbed 184.71 points, or 1.10 percent, to end at 17,004.30. Tokyo kicked off the week with hefty losses after the U.S. Dow Jones industrial average fell sharply Friday on rekindled concerns of an additional interest rate hike by the U.S. Federal Reserve. After initial selling ran its course, the Nikkei average cut its losses and entered positive territory on buybacks of beaten-down shares helped by the yen easing against the dollar, they said. Investor sentiment was also hurt by heightened geopolitical risks after North Korea launched a satellite widely viewed as a ballistic missile test Sunday morning, brokers said. (news.financializer.com). As reported in the news.

Bob Corker: The opinions expressed in this commentary are his, according to CNN. Following a visit to China, South Korea and Japan three years ago, I argued it was long past time for the United States to get serious about the North Korea threat and China continued support for the Kim Jong Un regime. Bob Corker, a Republican from Tennessee, is chairman of the Senate Foreign Relations Committee. Yet here we are in 2016, on the heels of a missile launch and North Korea fourth nuclear test -- a test that may well represent a significant technological advancement of North Korea nuclear program -- and there is no sense of urgency or substantive change in U.S. policy. The North Korea Sanctions and Policy Enhancement Act of 2016, which we expect to become law in the coming weeks, will provide the executive branch with a more robust set of policy tools to confront the threat posed by the rogue regime in Pyongyang. Bob Corker This week the U.S. Senate will join the U.S. House of Representatives in passing legislation that sends a strong bipartisan message: North Korea is a serious threat to U.S. national security and our current approach is a failure. (news.financializer.com). As reported in the news.

successful business: He is 24 years old, according to The Toronto Star. Liu is among a small but growing number of young adults in the Kitchener-Waterloo area who are redefining what it takes to create a successful business. The co-founder and CEO of Mapped In, a multimillion-dollar company that crafts touch-screen directories for shopping malls and retail stores, is a University of Waterloo dropout who oversees a staff of 26. They’ve abandoned their studies in order to launch startups in this cauldron of tech ingenuity. There even a lucrative program for these dropouts. It could be argued they epitomize the entrepreneurial spirit, skipping classes to get in the game instead, following in the footsteps of industry icons such as Steve Jobs and Mark Zuckerberg. (news.financializer.com). As reported in the news.

Facebook: And the Australian share market looks set to open lower after Wall Street closed at its lowest since last October, pulled down by falls in large-cap technology names like Alphabet, Facebook, Linked In and Netflix, according to Nine News Australia. At 0645 AEDT on Monday, the share price futures index was down 56 points at 4,867. At 0700 AEDT on Monday, the local unit was trading at 70.80 US cents, down from 71.82 cents on Friday. DUBAI - Iranian Oil Minister Bijan Zanganeh says Iran crude oil sales to Europe after the lifting of international sanctions on Tehran have already reached above 300,000 barrels, according to the ministry news agency. WASHINGTON - The US trade deficit widened in December as a strong dollar and weak global demand continued to weigh on exports. WASHINGTON - US employment gains slowed more than expected in January as the boost to hiring from unseasonably mild weather faded, but surging wages and an unemployment rate at an eight-year low suggested the labour market recovery remains firm. (news.financializer.com). As reported in the news.

Iranian officials: In the past, Iranian officials voiced interests for the use of national currencies, instead of U.S. dollars, in its transactions with its trade partners, berating the United States for exerting economic and financial pressures on the country over its nuclear program, according to Xinhua China. But Iran would prefer euro,"Karamati was quoted as saying. (news.financializer.com). As reported in the news.

growth Proposal: Key points:GST would cut personal income tax, Turnbull says He is not convinced it encourages economic growth Proposal has not passed 'first test' yet Ian Macdonald does not support increase Several state premiers have thrown their weight behind the proposal, arguing the revenue from the increase could help them meet budget shortfalls, according to Australian Broadcasting Corporation. But Mr Turnbull told the ABC Insiders program if the Government pushed ahead with the GST hike it would also cut personal income tax instead of handing the revenue to the states to plough into education and health. Related Story: Unease on Government backbench over potential GST increase Related Story: Coalition MPs fear electoral damage over potential GST hike Map: Australia Prime Minister Malcolm Turnbull says he is not yet convinced that increasing the goods and services tax is a good idea. He said at this stage he was not persuaded a GST increase would encourage economic growth. "It not a question of politics here. Particularly in the area of compensation." GST debate dead, buried and yet to be cremated It seems all but certain that sometime between now and the middle of March the Turnbull Government will officially rule out lifting the GST, ABC Chris Uhlmann writes. At this stage I remain to be convinced to be persuaded that a tax mix switch of that kind would actually give us the economic benefit that you'd want in order to do such a big thing," he said. "The objectives of this or any other tax change have got to be fairness, no increase in net taxes. "We don't want to increase the total tax take and, of course, it got to deliver a strong growth and jobs outcome otherwise it isn't worth the trouble and expense of making the change." The Prime Minister said the proposal had not yet passed the "first test" applied to all policies. "You have to first decide: is this policy going to give you the economic outcome you want Then you have to assess the practical politics," he said. "With the GST income tax swap proposal, it has not yet passed that first test and that what the analysis is being undertaken. "So, we have not made a decision on that yet, and it does pose a lot of complexity. (news.financializer.com). As reported in the news.

power generation: Mr Harris said biomass - the burning of forestry and agricultural waste for power generation - should be a central renewable energy strategy. "As part of Tasmania attention to renewable energy ... a biomass power station or power stations ... right front and centre in terms of being part of the renewable energy effort," he said, according to Australian Broadcasting Corporation. Damage to the Basslink cable and low dam levels have increased the urgency behind the Government effort to attract investors. Related Story: Tasmanian manufacturer agrees to use less power Map: TAS Tasmanian Resources Minister Paul Harriss is pushing investment in biomass energy generation, as low hydro dam levels combine with the Bass Strait power cable cut to put pressure on state industries. Mr Harriss said the Southwood sawmill in the Huon Valley was designed more than a decade ago to include a biomass plant, and the site was "investment ready". "I'm confident that there are opportunities out there and the rigour and robustness of the private sector to contribute to all of this," he said. Since the closure of the Triabunna woodchip mill, woodchips have been taken by freight to the north of the state to be exported. "Exporting our residues arising from legitimate forestry operations is a second best option, we are much better placed when we value add those residues on island here in Tasmania," he said. The State Government is seeking proposals for using forest residues from southern forests, through an expressions of interest process that ends on February 17. (news.financializer.com). As reported in the news.

sustainable economic growth: The ECB has undershot its 2-percent inflation target for three straight years and is unlikely to return to it to for years to come given low oil prices, lacklustre economic growth, weak lending and only modest wage rises in the euro zone, according to Euro News. Although monetary policy has done a lot for the euro zone economy, it can’t create sustainable economic growth, Bundesbank President Jens Weidmann and Bank of France Chief Francois Villeroy de Galhau wrote. In a guest article for the Sueddeutsche Zeitung entitled Europe at a crossroads , they said the European Central Bank was not in a position to create sustainable long-term growth for the 19-country single currency bloc. Instead the euro zone needs a decisive programme for structural reforms, an ambitious financing and investment union as well as better economic policy framework, Weidmann and Villeroy de Galhau said. The current asymmetry between national sovereignty and communal solidarity is posing a danger for the stability of our currency union, they wrote. The idea of such a ministry was floated in 2011 to tighten coordination of national policy after the economic crisis had forced the European Union to fund bailouts worth hundreds of billions of euros for Greece, Ireland and Portugal. (news.financializer.com). As reported in the news.

gun manufacturers: The president is among millions of Americans investing in gun companies — often unwittingly — as mutual funds have increased such holdings to record levels, according to a Reuters analysis of institutional investment in firearms companies, according to The Japan Times. Since Obama was elected in 2009, mutual funds have raised their stakes in the nation two largest gun manufacturers with publicly traded shares — Smith & Wesson Corp. and Sturm, Ruger & Co. — from $30 million to about $510 million. Although Obama stake is minuscule, worth no more than $30, it reflects a much larger surge of investment. That means such stocks are now common in retirement and college savings plans. Beyond mutual funds, such investments also are held in the portfolios of hedge funds and public pension plans, which are harder to track. The influx has helped to boost both companies’ shares by more than 750 percent during the Obama presidency; each now has a market value of about $1 billion. (news.financializer.com). As reported in the news.

: Just don’t expect growth to experience fatal fall so long as consumers keep their footing, according to Market Watch. Last week brought more evidence the economy has slipped into a slower pace of growth. The U.S. economy is undoubtedly on a more slippery slope in early 2016. The number of new jobs created in January, for example, tapered off to 151,000 from a blistering 278,000 monthly average in the fourth quarter. The U.S. unemployment rate fell below 5% for the first time since early 2008. Not all the news was negative, though. (news.financializer.com). As reported in the news.

iPhone: Apple hopes that with more leeway, applicable only to iPhone 5 and later models, more people will upgrade to new iPhones, according to The Japan Times. Apple Inc. has told investors that it may book its first revenue decline in 13 years when it reports quarterly earnings in April due in part to weakness in the global economy. Until now, Apple offered credit to iPhone owners only if the device had an intact screen and working buttons. But the smartphone market has matured as well after a yearslong streak of blistering hot demand. Tech blogs have speculated about an iPhone 7 to be released in the fall with dual cameras and wireless earbuds. Apple relies on the iPhone for two-thirds of its revenue. (news.financializer.com). As reported in the news.

Facebook: Charlie Catania signed up the first day he could, according to CNN. It was May 2014, and the solar-leasing giant, Solar City, had just come to town -- "town," in this case being Las Vegas, where the retired 71-year-old once worked as a Baccarat dealer. Follow him on Snapchat, Facebook and e-mail. Catania is a guy who knows a smart bet when he sees one, and putting solar panels on the roof of the home he bought in 1976 seemed to be just that. And safe -- the right thing for the environment and his wallet. Smart. (news.financializer.com). As reported in the news.

market demands: Their purpose is to rejuvenate the market hurt by concerns over smog and governmental firework restrictions, according to Xinhua China. Local residents are more inclined to buy the green products that produce less smoke, but the market demands are still not quite promising. And in Beijing, manufacturers are working to develop more environmentally friendly products for Spring Festival. For years, fireworks have been blamed for worsening the country smog problem. To win the market back, firework makers have tried to develop alternative products made with new chemicals that contain less heavy metals. The public concerns have pushed local governments to implement measures forbidding or limiting firework displays. (news.financializer.com). As reported in the news.

Margaret Weis: Filmscope Entertainment are now finalising the script and special effects for Star of the Guardians, about a female royal guardian who battles her ex-lover, a powerful and ruthless warlord, in the ultimate fight to control a galaxy, according to Australian Broadcasting Corporation. They will then move to seek international investors for a film or television series. Map: Perth 6000 A cult sci-fi book series will be adapted by a Western Australian film company after they crowdsourced more than $50,000 in funding. The four-part series was written by New York Times bestselling author Margaret Weis in the 1990s, and she had rejected several previous requests for the rights. Long-time fan and Filmscope Entertainment producer Deidre Kitcher negotiated the rights with the publisher and Weis over nine months in 2014. Weis has sold more than 35 million copies of her fantasy books and co-created the Dragonlance game world. (news.financializer.com). As reported in the news.

City: Full details are yet to be revealed but the matches City play will be in the International Champions Cup, a prestigious friendly tournament series which annually features some of the world elite clubs, according to Xinhua China. The announcement was made in a press release detailing a number of initiatives the club are undertaking to celebrate Chinese New Year and which further emphasises the club growing links with the Asian country. The news comes two months after a consortium of Chinese investors acquired a 13 per cent stake in the club holding company the City Football Group. (news.financializer.com). As reported in the news.

Japanese culture: Tatami are sometimes used as tables outside Japan, and that use is not bad to convey the attractiveness of Japan-made mat rushes, said Kagami, 44, according to Asahi Shimbun. I want to create products that embody the harmonious fusion of Western and Japanese cultures--such as the 'anpan' bean-jam bun--to promote tatami culture." Kagami is taking part in a project among Japanese craftsmen and others working to open a base in France to restore traditional crafts and promote Japanese culture in Europe. Kagami, whose shop is located in Sagae, Yamagata Prefecture, said there were 8,580 mat rush farmers in 1989, but the number has dropped to 550 today. Seiichi Kondo, 69, a former commissioner of the Cultural Affairs Agency, plans to open Takumi Village--a facility to repair traditional Japanese crafts owned by museums and elsewhere in Europe--in the Alsace region in northeastern France. Kondo recently established the administrative body of Takumi Village with the help of traditional craftsmen. Under the plan, the new facility will promote Japanese craftsmen techniques and craftworks. (news.financializer.com). As reported in the news.

Gladstone Hotel: In just five months, the pruned selection has become a franchise, with the flights landing at such champions of chic as the Gladstone Hotel, Northwood General Store, and the Dupont St. location of café Ezra Pound later this month, according to The Toronto Star. Credit Martha Sharpe, the 47-year-old Can Lit luminary whose previous roles include publisher at House of Anansi and editorial director of Simon & Schuster Canada. That Flying Books — pretty much all of it. Organized by flights, akin to a flight of wine, Flying Books has stocked just 85 titles in five months, each one inclusion justified on an accompanying handwritten Post-it. Some people like feeling like they found something, Mulherin told Sharpe. At Mulherin suggestion, leftovers are tucked spine-out on the sideshelf, upping today stock from 10 to 24. (news.financializer.com). As reported in the news.

financial backers: Super PACs can accept unlimited contributions but are required to disclose their financial backers, according to CNN. Find your presidential match with the 2016 Candidate Matchmaker The twist here is that Stand for Truth has accepted more than $1 million in donations from corporations or limited liability companies, whose funders are difficult to uncover, meaning the original source of the campaign cash is hidden. Stand for Truth, Inc., an emerging player in the orbit of often clashing constellation of pro-Cruz super PACs, recently pledged to air more than $4 million in television ads to back Cruz in Iowa and South Carolina. While corporations can make donations to super PACs, an LLC allows individual donors to steer cash through easy-to-register, self-owned organizations. "LLCs seem to be a new vehicle for laundering money into elections," said Paul Ryan, a campaign finance reformer worried about donors essentially using them as shell companies to transfer cash anonymously. "It really hard to find out about LLCs. No leadership beyond the treasurer who filed its federal elections forms, a former counsel to Mitch McConnell named Eric Lycan, has publicly identified itself. That one of the reasons they've become popular." Read More Stand for Truth has largely operated quietly, not responding to questions about new television advertisements from media and discarding with the in-the-news public profile maintained by many powerful groups in favor of a sparse website. (news.financializer.com). As reported in the news.

family planning policy: China has relaxed its family planning policy this year, allowing each family to have two children, according to Xinhua China. For young parents like Sun, raising another child is far more than food supply. The 33-year-old mother bought beads for her seven-year-old daughter and a LEGO set for her preschool son. According to Chinese family planning authorities, the two-child policy will add an estimated 3 million babies annually for a total of 17.5 to 21 million newborns each year in the next five years. Unlike their thrifty parents, young couples who were doted on as single children tend to spend free-handedly, especially for their beloved next generation. Most of the young parents were born after the late 1970s, when China one-child policy took effect. (news.financializer.com). As reported in the news.

Argentina: We’re very encouraged by the pace with which Argentina is finally resolving the outstanding disputes with all of its holdouts, said Shahriar Shahida, co-chief investment officer at New York-based Constellation Capital Management, which holds Argentine securities, according to Euro News. We’re hopeful this government will have a much more conciliatory relationship with all of its creditors, Shahida said. A financial markets pariah since defaulting on a record $100 billion in 2002, Argentina proposed on Friday a $6.5 billion payment to settle the legal battle and said two of the leading six holdouts in the case had already accepted the discounted terms. As Macri sought to woo multinational chief executives gathered at the World Economic Forum in Davos last month, the centre-right leader told Reuters he wanted a fair agreement with the bondholders early this year. They include billionaire Paul Singer Elliott Management and Aurelius Capital Management. Finance Minister Alfonso Prat-Gay said negotiations were continuing with creditors still pushing for an improved deal. (news.financializer.com). As reported in the news.

Sony Bank: The country top three commercial banks, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp. and Mizuho Bank, will lower time deposit rates on Monday, according to The Japan Times. Sony Bank has already reduced the interest rate on ordinary deposits to 0.001 percent. Commercial banks are lowering their deposit rates due to falling market interest rates, while the Finance Ministry has suspended the sale of government bonds targeting retail investors. An increasing number of asset management companies have halted the sale of money management funds due to difficulty securing investment returns amid falling government bond yields. On Friday, the benchmark 10-year government bond yield hit a record low of 0.020 percent. The ministry has canceled a plan that would have sold 10-year government bonds to retail investors in lots of ¥50,000 starting last Friday due to possible low demand. (news.financializer.com). As reported in the news.

technology shares: Wall Street ended lower, led by plunging technology shares after poor results from data company Tableau Software and networking platform Linked In, according to Euro News. The S&P 500 information technology sector fell 3.4 percent, while the Nasdaq Composite Index slumped to its lowest close since October 2014. Oil prices dipped, ending the week lower after two weeks of gains. While U.S. nonfarm payrolls increased by just 151,000 jobs last month, well below forecasts of 190,000, the unemployment rate fell to 4.9 percent, the lowest since February 2008, and a sharp rise in wages suggested the labor market recovery remained on track. Fed funds futures contracts showed traders boosted their view of the chances of a Fed rate hike in December to about 40 percent. Despite the weak headline figure, markets took the rest of the payrolls report hawkishly. (news.financializer.com). As reported in the news.