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

investor demand: Tokyo Electric Power Co, according to The Japan Times. Holdings Inc. issued its first 10-year notes since before the Fukushima nuclear crisis. Olympus Corp., the medical equipment maker that came under fire six years ago for a cover-up of losses, this month sold its first bond to the public since 1996, to strong investor demand. Debt of Japan Airlines Co., which emerged from bankruptcy in 2011, now outperforms bonds of domestic rival ANA Holdings Inc. ; It's not just higher yields that are attracting investors, according to Mizuho Securities Co. chief credit strategist Hidetoshi Ohashi. But some investors such as Jun Fukashiro at Sumitomo Mitsui Asset Management say that generally speaking bond buyers may be underestimating risks in their hunt for yield. Olympus, for example, owns competitive technologies, while JAL has cut unprofitable businesses, and Tepco has government support, he said. (news.financializer.com). As reported in the news.

japanese firm: There have been no public proposals like this so far, but Kalanick has privately expressed interest in helping the company in some capacity, said the people, who asked not to be identified because private negotiations are ongoing, according to The Japan Times. Kalanick still retains some power over Uber through his control of three board seats, though two of those remain unfilled. The decision removes a major obstacle from the Japanese firm's planned multi-billion-dollar investment in the ride-sharing company. ; Venture capital firm Benchmark, which led Kalanick's ouster in June, has sought a guarantee in writing from Soft Bank that it would reject reappointing Kalanick as chief executive officer and block his appointment as chairman of the board or head of one of its subcommittees, said the people. The Soft Bank-led investment in Uber could be the largest private stock sale in history or it may collapse amid continued infighting. Soft Bank and investment firms General Atlantic and Dragoneer Investment Group are still in active talks with Uber. One prospective investor in the deal, Chinese ride-hailing company Didi Chuxing, has walked away, according to people familiar with the matter. (news.financializer.com). As reported in the news.

three-pronged assault: The government's success at monetary easing, fiscal loosening and deregulation would, by now, be removing bureaucratic headwinds, encouraging a startup wave and prodding executives to fatten paychecks. ; In September 2013, Abe captivated the investment world's imagination with his talk of big bangs and shock therapy at the New York Stock Exchange, according to The Japan Times. Buy my Abenomics! he urged traders, and they sure did. If the prime minister's three-pronged assault on deflation were working, Japan wouldn't need the 2 trillion package his Liberal Democratic Party is cobbling together. That year alone, the Nikkei 225 average surged 57 percent. His pledge to single-mindedly take action to reform Japan's economic structure from the foundation up stuck New Yorkers as odd. When Abe returned to the world's most famous trading floor recently, his message fell flat. (news.financializer.com). As reported in the news.

wall street: On Wednesday, the key market gauge lost 63.14 points. ; The Topix finished up 11.74 points, or 0.71 percent, at 1,676.17, after losing 8.31 points the previous day, according to The Japan Times. Stocks got off to a firm start as investors took heart from the dollar's overnight firming to top 113 and an upturn on Wall Street on Wednesday, brokers said. The Nikkei 225 rose 96.06 points, or 0.47 percent, to close at 20,363.11. But the Tokyo market's topside became heavy after the spurt at the outset amid growing uncertainty over the outcome of the upcoming House of Representative election, they said. Market participants were unable to step up purchases amid ambiguity over the political situation since popular Tokyo Gov. The Lower House election was set for Oct. 22 after an important Diet session was dissolved shortly past noon on the same day it was convened. (news.financializer.com). As reported in the news.

gregory robic: But you could say he was destined for the life from the start, according to The Japan Times. I decided to stay for the rest of my life in Japan only three days after my arrival in 1999 Sunshine recalls, describing his fascination with the country, its people and culture. One might never guess that the 47-year-old Canadian from Toronto is poised to introduce Americans to Japanese culture by performing the craft at an off-Broadway theater in New York City in mid-November, as the first non-Japanese rakugo storyteller in post-war Japan. ; Sunshine himself, whose real name is Gregory Robic, never imagined he would live the life he leads now, devoted to mastering a 400-year-old art form in the East while taking on the challenge to convey it to the West, and raising the necessary funds for the production through mainly Japanese investors. Rakugo, in its essence, incorporates everything he learned through the study of ancient Greek comedies something he discovered during his rakugo apprenticeship, he explained at a presentation for around 50 potential investors and sponsors in Tokyo in early September. Sunshine first encountered rakugo in a small tatami room on the second floor of a yakitori restaurant in his neighborhood near Yokohama Station, where he used to dine out eight times a week. He initially planned a six-month visit to appreciate Japan's traditional theater arts noh and kabuki after reading text from a scholar about a commonality that exists in traditional Japanese art forms with the old European dramas of more than 2,000 years ago. (news.financializer.com). As reported in the news.

korean hackers: Police said the North Korean hackers, pretending to be security authorities, sent emails containing malware between July and August this year, according to Yonhap, according to The Japan Times. The emails were sent from the same IP address linked to previous North Korean hacking attempts against Seoul, police were quoted as saying. They reached the conclusion after investigating cyberattacks on dozens of email accounts of employees at four local bitcoin exchanges, Yonhap news agency said. ; North Korea is heavily sanctioned by the United Nations for its nuclear and missile programs and speculation has been mounting that the cash-strapped regime is turning to digital currency to obtain funds. The test emails sent before the actual attack were traced back to the North, the report said. Police could not be reached for comment. No computers were compromised and no digital currency was stolen in any of the cases, the report said. (news.financializer.com). As reported in the news.

market gauge: On Tuesday, the key market gauge lost 67.39 points. ; The Topix index of all first-section issues finished down 8.31 points, or 0.50 percent, at 1,664.43, after losing 0.08 point the previous day, according to The Japan Times. Stocks of companies that close their first-half accounts at the end of this month went ex-dividend on Wednesday. The 225-issue Nikkei fell 63.14 points, or 0.31 percent, to close at 20,267.05. They came under selling from the outset of the day's trading, market sources said. Most of the sectors on the TSE first section were weaker. The ex-dividend impact on the Nikkei average was estimated at about 130 points, the sources said. (news.financializer.com). As reported in the news.

performance infrastructure: Switzerland topped the list overall for the ninth straight year, according to The Japan Times. The United States rose by one spot to No. 2, overtaking No. 3 Singapore. The nation saw its ranking drop for the second consecutive year. ; Although Japan's infrastructure, including railways, was highly rated, the country retreated overall as Hong Kong jumped to No. 6 from No. 9. Japan also showed strong performance infrastructure, rising one spot to No. 4 in the category. Hong Kong topped the list in infrastructure, including its airport, and was also highly rated for its tax system being advantageous for businesses. The country also improved in technological readiness, climbing to No. 15 from No. 19, as well as in its macroeconomic environment, which jumped to No. 93 from No. 104. (news.financializer.com). As reported in the news.

string bio: Calysta Inc. in California and String Bio in the Indian city of Bangalore are among biotechnology firms that have separately discovered ways to turn methane into protein. ; Bacteria found in soil are fed a liquid containing the emitted gas, sparking a fermentation process similar to making beer, according to The Japan Times. Instead of alcohol, protein is released into the water, which is then dried into a brown powder. That's what some scientists are hoping for. The product is already being used in animal feed, the first step toward readying it for human consumption. String Bio, a startup which won 200,000 in Indian government grants, and Calysta, backed by investors including Japan's Mitsui & Co. and Cargill Inc., hope methane-made protein will become a sustainable food of the future. The companies are betting their products will help alleviate the strain of a growing global population on agricultural land and oceans while natural gas prices trade near the lowest level in almost two decades. (news.financializer.com). As reported in the news.

infrastructure spending: However, the real causes can be traced to reduced domestic investments and increasing transfer of capital offshore by both state-run and private-sector big companies, as well as to a decline in spending by the government, according to The Japan Times. The situation threatens to derail the intent of President Xi Jinping's regime to keep the economy afloat through infrastructure spending by the government and capital investment by the corporate sector, thereby ensuring his bid to gain absolute power at the party convention. An official explanation goes that adjustments are being made to eliminate bubbles in the real estate sector and to reduce corporate debt. The risk of China's economy plummeting toward the end of the year should not be discounted. ; The way Xi's leadership has managed the economy may be likened to a car-driving technique known as heel-and-toe shifting, which involves operating the throttle and brake pedals simultaneously with the right foot while facilitating normal activation of the clutch with the left foot. Beijing has coined the phrase new normal to propagate the arrival of an age of medium growth of the Chinese economy. Xi and his men have stepped on the brake pedal in their attempt to reduce excess production capacity as part of supply-side reform, but when the economy threatens to slow down sharply, they hit the accelerator by boosting infrastructure building and real estate investments. (news.financializer.com). As reported in the news.

japanese banks: Our strategy isn't to become a book runner or lead arranger on every Canadian deal we'll pick our spots but we want to be meaningful to customers, according to The Japan Times. MUFG's Canadian strategy mirrors that in the U.S., where the firm has been remaking its investment-banking unit to look more like bigger Wall Street rivals. It's a significant shift for a Japanese bank that's kept a low profile in the country for decades. ; It's a natural extension of our business as a relationship bank, Craig Gardner, head of Canadian corporate banking, said in an interview at the firm's Toronto office. The lender is among Japanese banks including Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. looking overseas for revenue and growth opportunities as negative interest rates have crimped domestic markets. MUFG has since landed some high-profile deals, including co-leading acquisition financing for Alimentation Couche-Tard Inc. and Canadian Natural Resources Ltd., and acting as joint book runner on Fortis Inc.'s 2 billion bond sale. The Tokyo-based financial firm, which has been in Canada for 63 years, accelerated its push into capital markets after receiving a domestic securities license last year. (news.financializer.com). As reported in the news.

japanese government: On Friday, the key market gauge retreated 51.03 points. ; The Topix, including all first-section issues, was up 8.21 points, or 0.49 percent, at 1,672.82, finishing at the highest level since Aug. 17, 2015, according to The Japan Times. It lost 4.13 points on Friday. The benchmark Nikkei 225 average climbed 101.13 points, or 0.50 percent, to end at 20,397.58, its highest closing since Aug. 18, 2015. Stocks rose sharply in early trading reflecting the yen's fall versus the dollar and expectations for the compilation of an economic stimulus package by the Japanese government, market sources said, adding that concerns over North Korea are slightly receding for now. But the market's momentum waned somewhat in the afternoon amid profit-taking and a lack of fresh buying incentives, brokers said. Both the Nikkei and the Topix stayed in positive territory throughout Monday's session. (news.financializer.com). As reported in the news.

shares: The huge sale comes as after an initial public offering in 2015 that began a long-delayed privatization of the state-owned behemoth, according to The Japan Times. Two years ago the government raised about 1.43 trillion in the IPO, which included shares in Japan Post's banking and insurance units. An expected 914 million Japan Post shares will be sold at 1,322 apiece, the government said in a regulatory filing, with the offering set to raise as much as 1.3 trillion 11.6 billion if domestic and foreign investors snap up an extra allotment of stock. ; Shares of Japan Post which has about 24,000 branches nationwide closed at 1,349 on Monday, down 1.03 percent. It was the country's biggest privatization since Nippon Telephone & Telegraph's 1987 listing. There are hopes that starting to privatize what is effectively the world's biggest bank by deposits could improve investor sentiment and spur efforts to free up the nation's highly regulated economy. The bulk of the proceeds from the Japan Post sale were earmarked for reconstruction after the 2011 quake-tsunami disaster. (news.financializer.com). As reported in the news.

trading execution: The product attempts to predict how stock prices in Japan will change over an hour and find the best time to trade, they said. ; Global banks are seeking to improve the quality of their trading execution and equity research before the European Union's revision of the Markets in Financial Instruments Directive, or MiFID II, comes into force in January, according to The Japan Times. Under the new rules, brokerages will be required to separate research fees from trading commissions to ensure investors pay fair prices for the services, a move that may spur competition. Japan's third-biggest lender will begin offering an algorithm-based AI trading service to some large institutional clients in Japan and elsewhere in Asia, the people said, asking not to be identified because the plan is private. Mizuho's brokerage unit will initially target 500 stocks on Japan's benchmark Topix, and may increase coverage to 1,000 companies including firms listed on the Tokyo Stock Exchange Mothers market, according to the people. The AI platform uses about 5,000 data points, including order-book information, historical prices and news sentiment for the targeted companies, as well as exchange rates and commodity price changes, to find anomalies and patterns relating to a stock's movements, the people said. It plans to roll out the service to all of Mizuho's trading execution clients, which number in the hundreds, by the end of the year, the people said. (news.financializer.com). As reported in the news.

credit bubble: Today, the eurozone is in the same situation as those hikers, according to The Japan Times. It has become increasingly clear that establishing the euro was the wrong path to take. They want to get to a castle on a hill in the distance, but the path they are on seems to be leading in a different direction, and their leader's only advice is to hurry up. The single currency caused an inflationary credit bubble in Southern Europe. These measures have sustained the wrong relative prices that resulted from the bubble, and papered over the underlying problem. ; Meanwhile, the Schengen Agreement, which eliminated most border checks between European Union member states, has facilitated the ability of immigrants from the poorer parts of Asia and Africa to flock to Northern European welfare states in recent years. When the bubble burst, the region's competitiveness was destroyed, and Northern Europe was called on to provide huge loan guarantees, public credit and transfers. (news.financializer.com). As reported in the news.

customer assets: If necessary, the agency will carry out on-site inspections. ; Virtual currencies have led to the creation of innovative services thanks to their low settlement and remittance costs, while they have been used in crimes such as fraud and money laundering, according to The Japan Times. We pursue both market fostering and regulation enforcement, an FSA executive said. The FSA will monitor whether the exchanges for bitcoin and other digital currencies have appropriate internal systems, including ones to protect customer assets. We aim for sound market development. Pundits say there are more than 20 such exchanges in Japan. Virtual currencies can be bought and sold on exchanges run by private companies. (news.financializer.com). As reported in the news.

material technology: There would definitely be a chance to negotiate. ; Hasuike, one of five Japanese nationals Pyongyang allowed to return to Japan in October 2002 after negotiations led by then-Prime Minister Junichiro Koizumi, spent more than two decades living in North Korea, according to The Japan Times. Then a 20-year-old student, he along with his girlfriend, whom he later married in North Korea, were kidnapped from a beach in Niigata Prefecture on July 31, 1978, by agents working for the North. Under a monitoring system, Japan should provide material and technology, not cash financial assistance that won't further North Korea's missile development, in exchange for the abductees' return, Hasuike, 59, said in a speech in Kusatsu, Shiga Prefecture. The Japanese government still has 17 people on its official list of abductees. The abductees' families, however, have reached their limits mentally and in terms of age, Hasuike warned, urging the government to resolve the issue soon. On Japan's current tensions with the North, Hasuike said the time for dialogue will surely come in the not-so-distant future because the isolated nation will be in a deadlock after its Pacific hydrogen bomb threat. (news.financializer.com). As reported in the news.

tube star: Last month, Hikaru, a Japanese You Tube star so famous he can go by a single stage name, listed himself on Valu, a platform for people to raise money, often for personal projects or businesses, by essentially selling shares in themselves. ; Unlike many crowdsourcing sites, which are platforms for people or businesses to raise money online from large groups of individuals, the exchange also allows the trading of those who list their Valus on the exchange, according to The Japan Times. That means that prices can rise and fall. That may not be so great for investors though. And rise and fall Hikaru did. But then, just a week after going public, Hikaru and two friends, who go by the stage names Ikkun and Raphael, cashed out, according to officials from the exchange. Soon after listing, Hikaru, whose You Tube channel boasts 2.6 million subscribers, soared on the market as his fans dived in. (news.financializer.com). As reported in the news.

lehman brothers: Experts shared their insights in a session titled Can Japan be a Role Model for Global Economic Prosperity and Stability Hiromichi Mizuno, chief investment officer at Government Pension Investment Fund, said the country can show leadership in the field of investment via education on responsible investment, according to The Japan Times. The concept gained traction after the global financial crisis, triggered in 2008 by the fall of Lehman Brothers which exemplified the long-term failure of a capitalism driven by the single-minded pursuit of short-term corporate profits. But at the same time, Japan lags behind other countries in incorporating technological innovations, such as artificial intelligence, into everyday life and financial technology to improve efficiency, they said. ; We want to talk about Japan as a role model not Japan following, not Japan copying but Japan actually and constructively led by the young generation, said Jesper Koll, who heads Wisdom Tree Japan KK, a Tokyo-based exchange-traded fund sponsor, in the opening session of the annual G1 Global Conference organized at Globis University on Sunday. In July, GPIF, the world's largest pension investment fund, started a 1 trillion program called ESG investment, which targets businesses that value three elements environment, social and governance. It's all about sustainability, long-term, inclusiveness and multistakeholder model, Mizuno said. With the pension fund behemoth focusing on these concepts, the GPIF sends a message to other investors that they should seek out socially responsible assets, experts say. (news.financializer.com). As reported in the news.

market committee: On Thursday, the key market gauge rose 37.02 points. ; The Topix, including all first-section issues, ended down 4.13 points, or 0.25 percent, at 1,664.61, after gaining 0.82 point the previous day, according to The Japan Times. The Tokyo market got off to a firmer start, backed by hopes for further gains in stock prices, brokers said. The Nikkei 225 average fell 51.03 points, or 0.25 percent, to close at 20,296.45. Stocks gradually gave up gains, however, due to the dollar's fallback below 112 yen and selling to lock in profits from the recent advance, leading the key market gauges to slip into negative territory, brokers said. Tokyo stocks took a breather, with investors finding no major buying incentives after the FOMC Federal Open Market Committee meeting of the U.S. Federal Reserve, Ota also said. The market was battered by profit-taking by individual investors ahead of the weekend, Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said. (news.financializer.com). As reported in the news.

services agency: In his eyes, that's getting in the way of one of the key missions of Abenomics to encourage Japanese people to move more of their 8.4 trillion in cash and bank deposits into the stock market. ; In an attempt to address this, Mori is starting a new tax-free investment program for individuals who want to put a small amount of cash into equities and bonds each month for their retirement, according to The Japan Times. Only cheap funds suited to long-term investment are eligible, which ruled out 99 percent of those available as of March. Nobuchika Mori, the head of the Financial Services Agency, has publicly criticized the country's money managers for what he sees as failing to offer products that suit their customers. For one of the few money managers whose funds meet the strict criteria, the program will be a game-changer. This one is at the megaton level. It'll be a powerful bomb, said Haruhiro Nakano, president of Saison Asset Management Co., a provider of low-cost mutual funds in Tokyo and advocate of long-term investing. (news.financializer.com). As reported in the news.

unit: The chip unit deal is subject to regulatory screenings in major markets, and a lengthy process may prevent the Japanese conglomerate from raising necessary funds in time, according to The Japan Times. Also looming ahead are challenges from a legal battle with Toshiba's longtime U.S. partner, whose bid for the unit has been rejected. ; Further concern about Toshiba's future is its perceived lack of leadership an impression made by the months-long bidding process for the chip unit, characterized by indecision and confusion, which came following a series of scandals, analysts said. But the embattled tech giant faces big hurdles ahead as it tries to fix its finances and remain a listed company. On Wednesday, Toshiba said it will sell Toshiba Memory Corp. to a Japan-U.S.-South Korean consortium for 2 trillion 17.8 billion after failing three times to meet a target date to announce a deal. But he also warned of lingering uncertainty, saying that Toshiba's chances of ending its financial crisis is still not 100 percent. Toshiba has taken a major step forward, said Hideki Yasuda, a senior analyst at the Ace Research Institute. (news.financializer.com). As reported in the news.

bond yields: The Fed announced on Wednesday that it will let a small portion of its 4.5 trillion balance sheet mature without being replaced, starting in October with reductions of 10 billion a month and gradually rising over the next year to 50 billion a month. ; The central bank left its key short-term rate unchanged but hinted at one more hike this year most likely in December, according to The Japan Times. The Fed policymakers' updated economic forecasts show that three more rate increases are expected in 2018. The move reflects a strengthened economy and could mean higher rates on mortgages and other loans over time. The Fed's policymaking committee approved its action on a 9-0 vote after ending its latest meeting. Bond yields rose, reflecting expectations of higher rates. Stocks turned lower after the announcement before finishing mixed. (news.financializer.com). As reported in the news.

policy board: Haruhiko Kuroda and his Policy Board left its target interest rates and asset-purchasing program unchanged, a decision expected by all 45 economists surveyed by Bloomberg, according to The Japan Times. The vote was 8-1, with Goushi Kataoka objecting. ; Kataoka argued that there was little chance of reaching the BOJ's inflation target by the projected time frame of around fiscal 2019, according to the central bank's policy statement. Still, BOJ Gov. He said the effects of the current yield curve program weren't strong enough, though inflation was likely to continue rising for the time being due to oil prices and foreign-exchange rates. In November 2016, he argued that the BOJ should have expanded its easing, just two months after the implementation of the yield curve control program. The BOJ statement didn't mention any policy suggestions from Kataoka, an economist who advocates expansionary fiscal and monetary policies. (news.financializer.com). As reported in the news.

topix index: On Wednesday, the key market gauge rose 11.08 points. ; The Topix index of all first-section issues ended up 0.82 point, or 0.05 percent, at 1,668.74, also the highest close since Aug. 18, 2015, according to The Japan Times. It gained 0.04 point the previous day. The 225-issue Nikkei average advanced 37.02 points, or 0.18 percent, to close at 20,347.48, its best finish since Aug. 18, 2015. Both indexes extended their winning streaks to a fourth session. The dollar's firmness came after the Fed decided at its two-day Federal Open Market Committee meeting through Wednesday to shrink its asset purchases starting next month and maintain its forecast for another interest rate hike by the end of the year, brokers said. Stocks attracted hefty purchases in the morning session, with investor sentiment lifted by the dollar's first rise above 112 in almost two months. (news.financializer.com). As reported in the news.

investment trusts: By asset type, equities rose 22.5 percent to 191 trillion and investment trusts increased 15.6 percent to 100 trillion. ; Cash and deposits, which accounted for 51.6 percent of household assets, rose 2.6 percent to a record 945 trillion, according to The Japan Times. The data also showed that the BOJ's holdings of Japanese government bonds rose above 40 percent of the total for the first time, climbing 9.9 percent from a year earlier to 437 trillion. The growth was boosted by the increasing value of stocks and other assets amid a moderate global economic expansion. The central bank buys vast amounts of the debt as part of its aggressive monetary easing measures aimed at lifting the economy and spurring inflation toward 2 percent. Yields move inversely to debt prices. Meanwhile, the outstanding balance of government bonds fell 2.1 percent to 1.085 quadrillion, down for the first time in roughly eight years as debt yields rose from their lows a year earlier. (news.financializer.com). As reported in the news.