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

catalonia: European Commission President Jean-Claude Juncker has made it clear Brussels will only respect a vote for independence if it is held in line with the Spanish Constitution, according to The Japan Times. EU members will not recognize Catalonia as a state if it is created in violation of the law and particularly the Spanish Constitution, European law expert Jean-Claude Piris said. Brussels has stuck to its line that an independent Catalonia would automatically be out and have to reapply to join, but some experts say pragmatism may yet trump dogma. ; Would the EU recognize Catalonia Last weekend's referendum produced a 90 percent vote for secession, but because it was held in defiance of Spain's Constitutional Court rulings that it was unlawful, from the EU's point of view it amounts to a deeply flawed mandate. Prodi doctrine' The EU's treaties do not specifically state what happens if part of a member state secedes, but since 2004 the commission has stuck to the Prodi doctrine, named after former President Romano Prodi. Membership talks for Catalonia will likely be different from those currently underway for candidate countries such as the Balkan states and Turkey, which have to harmonize their legislation and foreign policy as well as bring human rights standards up to EU standards. This says that a region breaking away from a member state will automatically cease to be part of the EU on the day of its independence, and will have to follow the usual membership process to rejoin. (news.financializer.com). As reported in the news.

development: The opinions expressed in this commentary are his, according to CNN. Jeffrey previously served as special assistant in the city of New Orleans' post-Katrina Office of Recovery & Development. (news.financializer.com). As reported in the news.

currency counterfeiters: Currency counterfeiters were dispatched by haritsuke public execution by perforation with spears . The penalty for use of fraudulent scales or measures of volume was decapitation, with the head displayed on a gibbet for three days, according to The Japan Times. Forgery of an official seal on a document earned the offender confiscation of his property and banishment. The Osadamegaki Hyakkajo the criminal code enforced by the Tokugawa rulers prescribed an extensive list of severe punishments for those found guilty of fraud and trickery. Merchants caught dealing in fake goods were tattooed to mark them as criminals and banished. In the view of historian Haruo Okubo, the number of violations and punishments included in the laws, covered in the code's Article 67, suggests that criminal fraud must have been rampant in pre-modern times. And habitual con men lost their heads irrespective of the amount they swindled. ; These, however, were apparently not enough to discourage aspiring crooks. (news.financializer.com). As reported in the news.

budget resolution: On Thursday, the key market gauge climbed 1.90 points. ; The Topix, including all first-section issues, ended up 4.67 points, or 0.28 percent, at 1,687.16, after falling 2.07 points the previous day, according to The Japan Times. Stocks got off to a firm start, helped by the brisk performance of U.S. equities on Thursday after the U.S. House of Representatives passed a 2018 budget resolution, making a step forward for an overhaul of the country's tax code, brokers said. The Nikkei 225 average gained 62.15 points, or 0.30 percent, to close at 20,690.71, hitting the highest closing level since Aug. 11, 2015, for the third straight day. The U.S. stock market's three major indexes the Dow Jones industrial average, the S&P 500 index and the tech-heavy Nasdaq composite index all hit closing highs. Friday's firmness, after Thursday's stalemate, was led by the higher rates of gains in the U.S. stock indexes on Thursday than in preceding days and the weaker yen, although the overall Tokyo market condition has not changed, said Hideyuki Suzuki, head of the investment market research department at SBI Securities Co. Although lacking strength to gain further ground, Tokyo stocks stayed in positive territory throughout Friday, supported by the dollar's strengthening above 113 in the afternoon, brokers said. (news.financializer.com). As reported in the news.

currency crisis: Given the ongoing nuclear crisis with North Korea, a new bout of economic tumult is the last thing the country needs, according to The Japan Times. In July 1997, a currency crisis that struck Thailand quickly spread to neighboring economies. But now the country is confronting a new set of internal and external risks, which may foreshadow another major economic crisis or worse. South Korea was not hit right away and many believed that it would be spared. Companies and financial institutions went bankrupt, and millions of jobs were lost. By that November, however, the country faced a sudden withdrawal of foreign capital, which, together with financial institutions' inability to borrow from abroad, quickly depleted the country's international reserves. ; The following month, South Korea turned to the International Monetary Fund for assistance and launched painful structural reforms. (news.financializer.com). As reported in the news.

job availability: However, Suga's remark is at odds with a comment Abe made recently just before dissolving the Lower House for the Oct. 22 general election, according to The Japan Times. Abe said in a television program the government will increase the consumption tax unless something happens on the scale of the Lehman shock, referring to the global financial crisis following the collapse of U.S. investment bank Lehman Brothers Holdings Inc. in 2008. Chief Cabinet Secretary Yoshihide Suga said job availability stood at 0.83 and the U.S. dollar had been as low as 75 before Abe's Liberal Democratic Party won a landslide victory and Abe launched his economic policy, dubbed Abenomics, in December 2012. ; If we raise the consumption tax rate in such a severe economic condition, the Japanese economy will worsen further, Suga told a news conference. Suga made the remark after a new opposition party led by Tokyo Gov. The sales tax hike is expected to be one of the major issues during the election campaign as Abe's LDP is proposing to spend a large proportion of the extra revenue from a planned tax increase on social welfare initiatives for children and the childbearing-age population. Yuriko Koike pledged to freeze the scheduled 2 percentage-point sales tax hike as part of its campaign platform for the House of Representatives' election. (news.financializer.com). As reported in the news.

independence: But we are prepared, and in no case will it be stopped, she said, according to The Japan Times. Catalan President Carles Puigdemont said earlier he would ask the region's parliament to declare independence following the poll, which Spain's government and constitutional court say was illegal and in which only a minority of Catalans voted. Mireia Boya, a Catalan lawmaker from the pro-independence Popular Unity Candidacy CUP party, said on Twitter that a declaration of independence would follow a parliamentary session on Monday to evaluate the results of the Oct. 1 vote to break away. ; We know that there may be disbarments, arrests. This will probably finish once we get all the votes in from abroad at the end of the week and therefore we shall probably act over the weekend or early next week, he told the BBC in remarks published on Wednesday. He said the Madrid government's refusal to negotiate had left Catalonia no other way than to declare independence and he accused it of authoritarianism. In an interview with German newspaper Bild, Puigdemont said he already felt like a president of a free country where millions of people have made an important decision. (news.financializer.com). As reported in the news.

market gauge: On Wednesday, the key market gauge rose 12.59 points. ; But the Topix ended down 2.07 points, or 0.12 percent, at 1,682.49, after gaining 0.10 point the previous day, according to The Japan Times. Buying outpaced selling from the outset of Thursday's session, after an overnight rise of U.S. equities, which were backed by strong readings of key economic indicators for the United States. The Nikkei 225 climbed 1.90 points, or 0.01 percent, to close at 20,628.56, the highest closing level since Aug. 11, 2015. But Tokyo stocks later fluctuated between positive and negative territory, caught in a tug of war between buying encouraged by the brisk economic condition in the United States and profit-taking, brokers said. The market's stalemate seems to have come after futures-led trading ran its course, said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc. The Nikkei average managed to finish higher in thin trading, with its downside also supported by the yen's weakness against the dollar, market sources said. (news.financializer.com). As reported in the news.

web retailer: While Amazon has opened physical bookstores, bought Whole Foods and is testing a food market without cash registers at its Seattle headquarters, this is the first time the e-commerce giant will operate an actual bar, according to The Japan Times. It's part of a bigger push by Amazon to boost its physical presence to promote the array of merchandise sold on its website, and branch into new markets. ; Amazon Bar will offer a wide variety of drinks procured from across the globe, and offer exclusive products as well as samples of products not yet on store shelves, the company said in a statement Thursday. For 10 days, the web retailer is going to sell beer, wine, sake and cocktails in Tokyo's glitzy Ginza district to promote alcoholic products sold on its website in Japan. Instead of a menu, Amazon's 78-seat bar will feature an ordering system that will suggest drinks, and also hire sommeliers to dispense wine advice. The pop-up bar will be open for evenings beginning Oct. 20. Nikka whisky, Yebisu beer and other drinks will cost 500 to 1,500 4.43 to 13.30 and some food will be offered. (news.financializer.com). As reported in the news.

board: Soft Bank's interest is an incredible vote of confidence in Uber's business and long-term potential, and we look forward to finalizing the investment in the coming weeks, according to The Japan Times. If the investment goes ahead as proposed, Soft Bank would directly pump between 1 billion about 112 billion and 1.25 billion into Uber at the San Francisco-based startup's current valuation of 69 billion, according to a source familiar with the matter. The proposal adopted by Uber's board also promised to put an end to infighting between Kalanick supporters and investors who suspected the co-founder was plotting a wily return to the company's leadership. ; Today, after welcoming its new directors Ursula Burns and John Thain, the board voted unanimously to move forward with the proposed investment by Soft Bank and with governance changes that would strengthen its independence and ensure equality among all shareholders, Uber said in an emailed statement. As a secondary investment move, the Japanese company would put out an open offer to buy 14 percent to 17 percent of outstanding shares from large investors at a discounted price, the source said. Governance changes approved by the board hinge on the Soft Bank investment taking place. Major investors who are unhappy with the leading smartphone-summoned ride share startup, or who want to cash-in on early investments that have multiplied in value, could take Soft Bank up on the offer. (news.financializer.com). As reported in the news.

existence development: The U.N. Security Council has imposed the toughest sanctions ever on North Korea, according to The Japan Times. Ja Song Nam said Tuesday the U.S. push for countries to implement what he called illegal and unjustifiable U.N. sanctions on North Korea are part of America's frantic attempt to completely block our peaceful economy. ; The ambassador told the General Assembly committee dealing with economic and financial issues that the U.S. is clinging to unprecedented nuclear threats and blackmail, economic sanctions and blockade to deny our rights to existence and development, but they only result in our sharper vigilance and greater courage. (news.financializer.com). As reported in the news.

market gauge: On Tuesday, the key market gauge surged 213.29 points. ; The Topix ended up 0.10 points, or 0.01 percent, at 1,684.56, after gaining 10.84 points the previous day, according to The Japan Times. Stocks got off to a firm start after the brisk performance of U.S. equities on Tuesday, which was backed by strong new auto sales data for September, brokers said. The Nikkei 225 rose 12.59 points, or 0.06 percent, to close at 20,626.66, the highest closing level since Aug. 11, 2015. All three major U.S. stock indices the Dow Jones, the S&P 500 and the tech-heavy Nasdaq hit closing highs. The temporary drop reflected the yen's strengthening against the dollar, which prompted profit-taking after the Nikkei's recent advance, brokers said. But Tokyo stocks briefly slipped into negative territory in the afternoon session, before regaining steam toward the close. (news.financializer.com). As reported in the news.

u.s: On Monday, the key market gauge climbed 44.50 points. ; The Topix, which covers all first-section issues, ended 10.84 points, or 0.65 percent, higher at 1,684.46 after shedding 1.13 points the previous day, according to The Japan Times. Tokyo stocks were firmer after U.S. equities extended gains Monday, inspired in particular by the U.S. Institute for Supply Management's manufacturing activity index for September, which surged to a 13-year high of 60.8, brokers said. The Nikkei rose 213.29 points, or 1.05 percent, to close at 20,614.07, the highest closing level since Aug. 17, 2015. All three major U.S. stock indexes the Dow Jones industrial average, the S&P 500 index and the tech-heavy Nasdaq composite index hit closing highs. The ISM index contributed significantly to the rise in Tokyo stocks, while the firmness of Japan's real economy, shown in the Bank of Japan's tankan survey, was also a factor, said Hiroaki Hiwada, strategist at Toyo Securities Co. The Tokyo Stock Exchange gathered steam further after the dollar climbed above 113, brokers said. (news.financializer.com). As reported in the news.

makuhari messe: These are among the array of cutting-edge technologies on display as Japan's largest electronics trade show kicked off Tuesday, according to The Japan Times. This year's annual Combined Exhibition of Advanced Technologies CEATEC which will run through Friday at Makuhari Messe in the city of Chiba, is seen as a touchstone for the 17-year-old trade fair. ; Undergoing a major revamp last year, what had been a showcase for consumer electronics such as TVs and washing machines had reinvented itself as a business-to-business exhibition across sectors oriented toward the internet of things concept, in which everyday items are linked by network. A device passes an infrared scan over some food and supplies complete nutritional information about the fare. This year, CEATEC has attracted 667 companies and organizations, up 2.9 percent from the 648 exhibitors last year. Some of you may wonder if CEATEC Japan has lost its momentum. Among the 327 newcomers are toymaker Bandai Namco Holdings Inc., housing equipment maker Lixil Corp. and Sumitomo Mitsui Financial Group Inc. (news.financializer.com). As reported in the news.

near-zero rates: It's those 10 percent-plus rates across the Turkish bond curve among the highest in major emerging markets that are luring the Mr. and Mrs, according to The Japan Times. Watanabes to the country's assets. ; Starved for return by near-zero rates at home, individual investors have propelled a 27 percent jump in Japanese mutual funds' investments in Turkish lira-denominated bonds this year. But Japan's intrepid retail investors will forgive a lot when it comes to yield. At 50.8 billion through August, it's poised to be the biggest annual increase since 2012, according to data from Japan's Investment Trusts Association. There may be more upside than downside and their higher yield levels are definitely positive from the carry perspective, said Yokouchi, who recently went slightly overweight on Turkey's lira. Political risks are still there and the economy remains sluggish while inflation remains high but those negative factors have already been priced in the markets, said Takeshi Yokouchi, a senior fund manager at Daiwa SB Investments Ltd., which manages the equivalent of about 51 billion in assets. (news.financializer.com). As reported in the news.

fuel supplies: Trump fired back at Cruz on Twitter, accusing her of poor leadership. ; It is not clear if the two will meet on Tuesday, according to The Japan Times. She Cruz has been invited to participate in the events tomorrow, and we hope those conversations will happen and that we can all work together to move forward, White House spokeswoman Sarah Sanders told reporters on Monday. San Juan Mayor Carmen Yulin Cruz led the attack on the administration's response on Friday, criticizing an official's description of relief efforts as a good news story and urging Trump to act more decisively. Trump will spend significant time on the island on Tuesday, Sanders said. Early on Monday Puerto Rico's governor reported some progress in getting fuel supplies to the island's 3.4 million inhabitants as they faced a 13th day largely without power after Maria. He is due in Las Vegas on Wednesday to meet with people affected by Sunday's mass shooting. (news.financializer.com). As reported in the news.

policy stances: On Friday, the key market gauge lost 6.83 points. ; But the Topix, including all first-section issues, closed down 1.13 points, or 0.07 percent, at 1,673.62, after falling 1.42 points the previous trading day, according to The Japan Times. Stocks got off to a firm start and gained ground after the dollar strengthened on the back of the brisk Chicago purchasing managers index for September and media reports that U.S. President Donald Trump has met with potential Federal Reserve chair candidates who are viewed as having hawkish monetary policy stances, brokers said. The Nikkei 225 average rose 44.50 points, or 0.22 percent, to end at 20,400.78, its highest closing since Aug. 18, 2015. The Tokyo market was also backed by robust overseas stock markets on Friday, in which the Dow Jones industrial average rose for the third straight day and the tech-heavy Nasdaq composite index hit a closing high, brokers said. Domestic and overseas institutional investors were absent from Monday's trading, said an official of a bank-affiliated brokerage firm, explaining that trading was therefore thin. Individual investors showed appetites for small-cap issues in the Tokyo market, but large-cap issues remained downbeat, leading to the fall of the Topix, market sources said. (news.financializer.com). As reported in the news.

september reading: The latest survey handily beat market expectations for a reading of 18, according to The Japan Times. The report is the broadest indicator of how Japan Inc. is faring, marks the difference between the percentage of firms that are upbeat and those that see conditions as unfavorable. The report comes after a batch of broadly positive economic data on Friday, including better-than-expected factory output, that offered up some good news for Prime Minister Shinzo Abe as he faces a national election on Oct. 22. ; The Bank of Japan's tankan a closely watched quarterly survey of more than 10,000 companies showed a reading of 22 among major manufacturers in its latest report, the highest since its September 2007 reading, when the headline figure sat at 23. The mood among major manufacturers, which plan to boost their capital spending, has now risen for a fourth straight quarter. The upbeat survey underscores how the nation's economic prospects have been improving on the back of strong exports, with investments linked to the Tokyo 2020 Olympics also giving the economy a shot in the arm. The index for nonmanufacturers came in at 23, unchanged from the previous tankan, and sitting at its highest level since the final quarter of 2015. (news.financializer.com). As reported in the news.

tender offer: Asatsu-DK will likely be delisted from the Tokyo Stock Exchange following the completion of the acquisition procedures, according to The Japan Times. Asatsu-DK stock ended at 3,170 on the TSE's first section Monday. Bain Capital plans to purchase all outstanding Asatsu-DK shares at 3,660 apiece and all equity warrants of the firm in the tender offer, which was to start Tuesday and end Nov. 15. ; The total acquisition costs will reach up to 151.7 billion. The Japanese firm will end its capital and business alliance with London-based multinational advertising giant WPP PLC. By coming under the wing of Bain Capital, Asatsu-DK hopes to better tackle its management challenges. The company also plans to beef up its content business abroad, mainly in Southeast Asia. Asatsu-DK faces the need to promote ads using new technologies, such as virtual reality and big data, at a time when the advertising market in Japan has been saturated. (news.financializer.com). As reported in the news.

fuel: A day after Baghdad cut international air links with the region, Iran's state broadcaster said all transport companies and drivers have been ordered to stop carrying fuel products between Iran and Iraqi Kurdistan until further notice, according to The Japan Times. Diesel is one of Iran's key exports to the oil-rich region, mainly for power plants and vehicles, while the Kurds rely almost exclusively on crude and fuel oil exports to raise revenues. After the autonomous Kurdish region's controversial yes vote for independence, neighboring Iran announced joint border drills with Iraq and the fuel trade ban. ; In a conciliatory gesture towards the Kurds, however, Iraqi Prime Minister Haider al-Abadi on Sunday vowed to defend them against any attack. Iraqi Kurds overwhelmingly voted for independence in Monday's non-binding referendum, which has sent regional tensions soaring. A joint military exercise between Iran's armed forces and units from the Iraqi army will be held in the coming days along the shared border, Iranian armed forces spokesman Masoud Jazayeri told reporters in Tehran. Tehran, which strongly opposes independence for Iraq's Kurds, fearing it will provoke separatists among its own Kurdish minority, also announced a joint military exercise with Iraq in response to the referendum. (news.financializer.com). As reported in the news.

market researcher: That's one of our goals, Scott Ernst, the chief executive of Macromill, said in an interview with The Japan Times last month, according to The Japan Times. Founded in 2000, Macromill is known for providing quick and reasonable online research through its own automated system, as opposed to the extensive and detailed research services offered by its bigger rivals. But Macromill Inc., Japan's biggest online market researcher by market share, with 10 million consumer monitors around the world, is determined to change that notion. ; We will break the conception that Japanese companies can't become global. Tokyo-based Macromill went public in 2004, using the cash to expand domestically. Macromill, which relisted on the Tokyo Stock Exchange earlier this year, has grown its global presence thanks to steady business and bold mergers and acquistions. But growth took off after it was bought by a U.S. investment fund in 2014 that shifted its focus to the global market and took it private. (news.financializer.com). As reported in the news.

official prognostications: How so Conventional wisdom suggests demography is destiny, according to The Japan Times. On that basis, Japan's economic fortunes appear to be doomed According to the latest official demographic forecasts, every hour Japan's population is dropping by about 50 people. In fact, I predict Japan will emerge as the only advanced economy that achieves the ultimate goal sought by policymakers a new middle class will rise in Japan over the coming three to five years. As the baby boomer drag accelerates in coming decades, the official prognostications suggests that in about 300 years, fewer than 300 Japanese may be left. Economic growth is not determined by population as such, but by the employment opportunities created for the people by entrepreneurs and their companies. So how can we be bullish about Japan ; Simply put, demographics is little more than arithmetic and not economics. (news.financializer.com). As reported in the news.

scruffy town: The store had drawn desperate crowds of storm victims who had heard it took credit or debit cards and offered customers 20 cash back a lifeline in an increasingly cashless society, according to The Japan Times. Store employees allowed customers in, one by one, for rationed shopping trips of 15 minutes each. ; Then, at noon, the store closed after its generator croaked and before Jimenez could get inside to buy his grandmother's medicine. He ended up in Fajardo, a scruffy town of strip malls on Puerto Rico's northeastern tip, where a line of 400 waited outside a Walmart. Every day we say, What's the thing that we need the most today ' and then we wait in a line for that, said Jimenez, a 24-year-old medical student from Ponce, on the island's southern coast. For days now, residents have awoken each morning to decide which lifeline they should pursue gasoline at the few open stations, food and bottled water at the few grocery stores with fuel for generators, or scarce cash at the few operating banks or ATMs. By Saturday, 11 days after Hurricane Maria crippled this impoverished U.S. territory, residents scrambled for all the staples of modern society food, water, fuel, medicine, currency in a grinding survival struggle that has gripped Puerto Ricans across social classes. (news.financializer.com). As reported in the news.

market gauge: On Thursday, the key market gauge rose 96.06 points. ; The Topix, including all first-section issues, finished down 1.42 points, or 0.08 percent, at 1,674.75, after climbing 11.74 points the previous day, according to The Japan Times. Selling outpaced buying as the dollar weakened against the yen on profit-taking, after it rose above 113 Thursday on expectations for U.S. tax reforms including a corporate tax cut, brokers said. The benchmark Nikkei 225 average lost 6.83 points, or 0.03 percent, to close at 20,356.28. Some investors moved to lock in profits by selling stocks that had been upbeat recently. Before Nikkei component reshuffles, investors tend to carry out massive trading to fill the price gaps between outgoing and incoming issues, leading to a volatile market. The market also saw Nikkei average-linked selling ahead of Recruit and Japan Post Holdings replacing Hokuetsu Kishu Paper and Meidensha as component issues of the key price index on Monday. (news.financializer.com). As reported in the news.

percent: The Bundestag now counts six factions, compared with four in the previous electoral term, according to The Japan Times. Merkel's center-right Christian Democratic Union took 33 percent of the vote, its worst result since 1949, though still enough to give the CDU the most seats in parliament. Although Chancellor Angela Merkel will almost certainly gain a fourth term, her new government is likely to be considerably weaker than the three that preceded it. The center-left Social Democrats SPD Germany's second-largest political party, and a part of Merkel's last governing coalition also hit a postwar low, receiving just 20.5 percent of the vote. ; Meanwhile, the populist Alternative for Germany AfD won 12.6 percent, making this anti-euro, pro-Russia and staunchly xenophobic party the first far-right party to enter the Bundestag in almost 60 years. In this context, Germany is likely to be ruled by a so-called Jamaica coalition, named for the colors of the parties the CDU, the Greens and the Free Democrats FDP that would comprise it. And the SPD has thrown in the towel, vowing to spend the coming electoral term in opposition. (news.financializer.com). As reported in the news.

ruling party: That came after they sold more than 7 billion in cash equities this year through mid-September. ; Some of the buying preceded even local media suggestions that an election would be called, according to The Japan Times. But it came as Abe's Cabinet approval rating jumped on his response to North Korea firing missiles over the country. Foreigners bought a net 2.1 trillion 19 billion of Japanese stock futures between Sept. 11 and 22, according to data released by Osaka Exchange Inc. on Thursday and last week. Abe has previously called a snap election when his ratings were high, and Japanese stocks tend to climb in the run-up to such votes. That's why hedge funds bought like crazy. If the ruling party wins, Japanese shares will rise even more, said Norihiro Fujito, a senior strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo. (news.financializer.com). As reported in the news.