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

abe: Firms listed in Japan held 506.4 trillion in cash as of their latest filings, the highest level on record, according to data compiled by Bloomberg, according to The Japan Times. It's more than tripled since March 2013, months after Prime Minister Shinzo Abe returned to power vowing to stamp out cash-hoarding. ; While companies see the money as a buffer against hard times, it has long riled investors, who say executives should invest it for growth or return it to shareholders. For some it's a testament to their strength, but to many it's a wasted opportunity. In one of his most lauded policies, Abe has overhauled corporate governance structures, seeking to make firms use capital more productively rather than letting it fester in bank accounts. Companies are providing larger returns to shareholders since Abe's government instituted new rules for investors and executives starting in 2014. It's not that the prime minister's efforts haven't borne fruit. (news.financializer.com). As reported in the news.

investor psyches: Read September is the worst month for stocks and it's even gloomier after a downbeat August Shalett said trade tensions between the U.S. and China, an inversion in the closely watched yield-curve between the 10-year Treasury TMUBMUSD10Y, 2.53% and both the 3-month bill TMUBMUSD03M, -0.01% and 2-year note TMUBMUSD02Y, 3.07%, where the longer-term yield falls below its shorter-term counterparts, has heightened anxieties on Wall Street about the health of the economy, according to Market Watch. On top of that, geopolitical worries from Britain's problem-filled exit from the European Union, a brewing political and currency crisis in Argentina, protests in Hong Kong and skirmishes in Iran are also weighing on investor psyches. The Baker, Bloom & Davis Economic Policy Uncertainty Index tracking hundreds of articles referencing the economy or uncertainty, among other terms, to gauge monthly monetary-policy uncertainty showed policy uncertainty hitting a three-year high see attached chart . With recession signals already flashing, this kind of uncertainty could be dangerous as it inhibits consumption and capital spending, wrote Morgan Stanley Wealth Management's chief investment officer, Lisa Shalett, in a Tuesday note. That concatenation of worries has helped to drive investors into the perceived safety of bonds and has delivered a fillip to gold prices GCZ19, -0.62%, which topped 1,555 an ounce on Tuesday, while the Dow Jones Industrial Average DJIA, 0.91%, the S&P 500 index SPX, 1.08% and the Nasdaq Composite Index COMP, 1.30% lumbered lower on Tuesday but were still within a reasonable distance from their all-time highs, despite the whipsaw action of late. Bonds are too expensive for long-term investors to hedge short-term stock weakness and international stocks are too cheap to abandon as they have priced the bad news. What's an investor to do Shalett says sit tight for next few weeks because global debt and U.S. stocks are too pricey. (news.financializer.com). As reported in the news.

gr ie: Other major cryptocurrencies also experienced a price boost, including ethereum, ripple and bitcoin cash, according to The Independent. A 6 per cent rise against the US dollar amounted to nearly 10 per cent of gains against the pound after turmoil surrounding Brexit sent the UK currency into free-fall. Bitcoin rose above 10,000 overnight, taking it back above the milestone it fell below after a mini flash crash at the end of August. Market analysts have previously predicted that bitcoin will reach record highs if the UK leaves the European Union without a deal. You can form your own view. ISOCountry Groups euro at be cy ee fi fr de gr ie it lv lt lu mc mt nl pt sk si sm es va uk gb us us variants 1 33.4, 2 33.3, 3 33.3 We'll tell you what's true. (news.financializer.com). As reported in the news.

debt sustainability: Abe's remarks were a clear swipe at China, according to Global Times China. In addition, participating countries adopted the Japan-drafted Yokohama Declaration which includes Abe's Free and Open Indo-Pacific initiative. Speaking to reporters at the end of the conference, Japanese Prime Minister Shinzo Abe warned African leaders about debt sustainability, and emphasized that in providing assistance to Africa, we have to take note of the debt burden of the recipient country and take care that the debt burden does not become excessive. This reflects Japan's intention to not only vie for influence with China on the African continent but also alienate those countries from China in terms of security and pull them over to its side. Since 2016, the event has been held every three years. The TICAD was initiated by Japan in 1993 and was initially held every five years. (news.financializer.com). As reported in the news.

dow jones: Absent such an explanation, it's too risky to bet that future Septembers will be like past ones, according to Market Watch. To be sure, September's historical status as the worst U.S. stock market month is certainly secure. I offer that advice because I know of no plausible explanation for why September should be bad for the stock market. Not only is its average return the worst of any since the Dow Jones Industrial Average DJIA, 0.91% was created in the late 1800s minus 1.0%, versus an average gain of 0.8% for all other months its poor performance has been quite consistent. To their credit, most financial advisers and other investment professionals recognize that a statistical pattern, even one as strong as September's, is an insufficient reason to bet on it. In all decades but one over the last century, September's performance rank was in the bottom half of the distribution. (news.financializer.com). As reported in the news.

manufacturing economy: Figures below 50 indicate the manufacturing economy is generally shrinking, according to The Japan Times. The group's gauge of new orders dropped to a more than seven-year low, while the production index hit the lowest since late 2015. ; The data add to concern a broader U.S. recession is coming and may complicate the re-election chances of President Donald Trump, whose pledges to revive manufacturing have been a signature issue. The Institute for Supply Management's purchasing managers index fell to 49.1 in August, weaker than all forecasts in a Bloomberg survey of economists, data released Tuesday showed. At the same time, Trump's escalating tariffs on imports from China have been a major reason behind factory weakness that threatens to spread to consumer spending, which accounts for about two-thirds of the world's largest economy. The 10-year Treasury yield and the dollar fell. In the U.S. stock market, the ISM numbers torpedoed a morning rebound and left the S&P 500 poised for its worst loss in seven sessions, down as much as 1.2 percent to erase almost half of last week's rally. (news.financializer.com). As reported in the news.

athenian assembly: In reality, our un-democratic constitutional bulwarks temper the vagaries of the majority, according to MSNBC. Had every Athenian citizen been a Socrates, James Madison quipped, every Athenian assembly would still have been a mob. This is, no doubt, disorientating for voters who grew up believing they live in a democracy. The left will mock you for making this obvious observation. MSNBC's Chris Hayes, for instance, recently took some heat from conservatives for claiming that the weirdest thing about the electoral college is the fact that if it wasn't specifically in the Constitution for the presidency, it would be unconstitutional. Yet many progressives don't seem to understand the distinction between united states and a united state. (news.financializer.com). As reported in the news.

body coal: In a major speech in July, BHP's chief executive, Andrew Mackenzie, declared that global warming was indisputable, said drastic action was needed and committed the company to ramping up efforts to reduce greenhouse gas emissions, according to The Guardian. But the company has been criticised for continuing to fund groups including the Minerals Council and affiliated body Coal21, which is planning a multimillion-dollar advertising campaign that aims to invoke national pride in coal. A shareholder resolution filed with BHP calling for the suspension is backed by Grok Ventures, the private investment company of software billionaire Mike Cannon-Brookes and his wife, Annie, and superannuation and pension funds from Australia, Britain, Denmark and the Netherlands. BHP faces fresh calls to quit Minerals Council ahead of pro-coal ad blitz Read more The shareholder resolution was filed by activist group the Australasian Centre for Corporate Responsibility. The centre for corporate responsibility said BHP-funded groups had been undeniably successful in promoting fossil fuels and obstructing climate policy in Australia. In a statement in support of the resolution, Cannon-Brookes said Until BHP stops funding for coal lobbyists, we're extremely sceptical of their environmental or green credentials. (news.financializer.com). As reported in the news.

cards right: It's easy to fly international for cheap and if you play your cards right you can do it in style, founder of Flighthacks.au, Immanuel Debeer, told 9News, according to Nine News Australia. The website helps savvy travellers find the best frequent flyer deals. To improve your experience update it here News National How to cash in your Qantas frequent flyer points before the system overhaul By Michael Genovese Reporter9 38pm Sep 3, 2019Facebook Tweet Mail The impact of a frequent flyer overhaul is about to be felt by Qantas customers, so aviation experts are sharing their tips on how and when travellers can cash in. The site advises Qantas rewards members wanting to fly first or business class to book next year's holiday now. In June, Qantas CEO Alan Joyce described the overhaul as the biggest change to the rewards program since it began in 1987. A number of changes to the frequent flyer points program will be implemented on September 18. (news.financializer.com). As reported in the news.

wong: Ernest Wong on Tuesday was asked if the truth was too awful for him to admit when questioned over the transfer to the Friends of Chinese Community bank account, according to Nine News Australia. Mr Wong didn't accept Labor lawyer Arthur Moses SC's suggestion that he breached electoral funding laws by not disclosing the money as coming from a state election fundraiser. To improve your experience update it here News National Ex-NSW Labor MP denies concocting story By AAP6 43pm Sep 3, 2019Facebook Tweet MailA former NSW Labor MP and solicitor has told an anti-corruption inquiry he didn't know he could be breaking the law when he diverted money from a Labor fundraiser to a bank account to which he was a signatory. Is that because you won't admit that you broke the law Mr Moses asked during an Independent Commission Against Corruption hearing. The former Labor MP told ICAC the 12,200 which was diverted would go to other events and expenses which weren't funded by head office. Mr Wong replied Not that I have any knowledge that I'm breaking the law as such. (news.financializer.com). As reported in the news.

market gauge: On Monday, the key market gauge fell 84.18 points. ; The Topix index of all issues listed on the exchange's first section went up 5.58 points, or 0.37 percent, to 1,510.79, after sagging 6.65 points the previous day, according to The Japan Times. The small gains reflected a slight weakening in the yen against the dollar and came as Chinese stocks resisted a further drop into negative territory, brokers said. The 225-issue Nikkei average rose 4.97 points, or 0.02 percent, to end at 20,625.16 on the Tokyo Stock Exchange. Investors were paying close attention to how the U.S. stock market will move after the Labor Day holiday on Monday, they said. Market players wanted to see how the U.S. market will react to the latest news on the U.S.-China trade dispute after the three-day holiday, said Yutaka Miura, senior technical analyst at Mizuho Securities Co. Concerns about U.S.-China trade tensions were fueled by a news report that Washington and Beijing are struggling to set a date for a meeting planned in September, brokers said. (news.financializer.com). As reported in the news.

population growth: But most stay away, according to Global Times China. They are missing out. Throw in the networking appeal of almost 4,000 people in town for the annual World Water Week confab, including government officials and executives from big companies like Diageo, Apple and Nestl and it's hard to imagine Wall Street types not flooding the event. The world is facing a 40 percent shortfall in clean, fresh supplies by 2030, according to the United Nations, with India being one example of a country where a huge population and rapid development are on a collision course with scarce water resources. But climate change is making floods and droughts worse, and changing snow and rainfall patterns. Plenty of factors are behind that, including population growth. (news.financializer.com). As reported in the news.

recession risks: Of course, the tariffs themselves add a damaging tax on international commerce as recession risks mount, according to Market Watch. Meanwhile, uncertainty around future trade rules has contributed to a decline in capital investment in the U.S. and China as firms re-think supply chains and addressable markets. But the real danger lurks elsewhere. These would be manageable if they were restricted to the 660 billion in bilateral goods traded between the U.S. and China. Last week, the world's next-most threatening trade war between Japan and South Korea escalated to new heights amid renewed tensions intertwined in their complex wartime history. The unpredictability, however, is spreading fast. (news.financializer.com). As reported in the news.

saudi state: The culture secretary, Nicky Morgan, has until Friday to decide whether or not to appeal against a court ruling that the UK government missed a deadline to intervene in the deal, according to The Independent. The revelation that Lebedev had a personal relationship with Prince Mohammed raises further questions about the connections between the two men. Lebedev's news outlets are being investigated due to public interest concerns over a mysterious Saudi investment made through a web of offshore bank accounts, with the UK government suggesting that the Independent and Evening Standard are now part-owned by the Saudi state. Multiple sources told the Guardian that the young Saudi prince had taken time out of his brief state visit to London in March 2018 when he was hosted by the then prime minister, Theresa May, and the Queen to spend time with the Russian oligarch's son, who is thought to have hosted the dinner at his house in the grounds of Hampton Court Palace. At that time Virgin was discussing an investment with the Saudi national investment fund PIF in Virgin Galactic, which was later called off by Richard. Leading business and media figures were also in attendance at the event, including the Virgin co-founder Richard Branson, whose spokesperson confirmed his attendance, saying Richard went to dinner as he was invited by Lebedev, who he knows well. (news.financializer.com). As reported in the news.

still-unrivaled position: Property investment seems to have lost its luster in the world's second-largest economy, where real estate has long been considered one of the best investment options, according to Global Times China. This has stirred up concerns over whether the housing market, one of the pillar sectors of the economy, will languish to an extent that will put economic growth at risk. Behind the confident hopefulness is the still-unrivaled position of homes in Chinese families' asset portfolios, the nation's push for more balanced regional development, and a switch to an internet-centric mindset among property developers and realtors that would inject more rationality into property transactions. The simmering trade woes that weigh on the economy have apparently fanned such concerns. In a sign of a cooling property market, many listed developers have lately disclosed thinner profit margins for the first half of the year. A CNBC article published in August 2018 even said that the property market - not the trade war - might be China's biggest risk over the next 12 months, citing Larry Hu, head of Greater China economics at Macquarie Group. (news.financializer.com). As reported in the news.

share price: M&S's demotion reflects a share price at nearly a 20-year low as a long-running sales slump at the retailer's clothing arm is compounded by the high street crisis affecting rivals including Debenhams and House of Fraser, according to The Guardian. The FTSE 100, which was established in 1984, contains the UK's biggest listed companies by market value, with membership considered a mark of business prestige. Relegation to the FTSE 250 comes as the company is closing 120 stores as part of an overhaul designed to shore up profits. The index is reshuffled four times a year according to share price movements, allowing a handful of companies to move up and down. Thomas Spencer, a former cashier from the wholesale company Dewhirst, joined him in 1894 to create Marks & Spencer.1901By 1900 Marks & Spencer had expanded to include 36 penny bazaar outlets, including 12 high street stores with the rest being market stalls.1926M&S became a public company and started selling lingerie. Q&A Marks & Spencer timeline Show Hide 1884Michael Marks, a Russian-born Polish refugee, set up a penny bazaar at Leeds Kirkgate Market. (news.financializer.com). As reported in the news.

prince mohammed: The culture secretary, Nicky Morgan, has until Friday to decide whether or not to appeal against a court ruling that the UK government missed a deadline to intervene in the deal, according to The Guardian. The revelation that Lebedev had a personal relationship with Prince Mohammed raises further questions about the connections between the two men. Lebedev's news outlets are being investigated due to public interest concerns over a mysterious Saudi investment made through a web of offshore bank accounts, with the UK government suggesting that the Independent and Evening Standard are now part-owned by the Saudi state. Multiple sources told the Guardian that the young Saudi prince had taken time out of his brief state visit to London in March 2018 when he was hosted by the then prime minister, Theresa May, and the Queen to spend time with the Russian oligarch's son, who is thought to have hosted the dinner at his house in the grounds of Hampton Court Palace. At that time Virgin was discussing an investment with the Saudi national investment fund PIF in Virgin Galactic, which was later called off by Richard. Leading business and media figures were also in attendance at the event, including the Virgin co-founder Richard Branson, whose spokesperson confirmed his attendance, saying Richard went to dinner as he was invited by Lebedev, who he knows well. (news.financializer.com). As reported in the news.

scamwatch: A new report by the Telecommunications Industry Ombudsman says so-called remote access scams have become the fifth most common scam reported to its Scamwatch service, and have cost Australian consumers more than 2.8 million so far this year, according to Nine News Australia. Computer and internet trouble could make you a target of scammers Nine Typically, remote access scams involve a scammer calling an individual and trying to scare them into providing personal and bank details and convincing them to grant access to their computer in an attempt to fix a reported issue. To improve your experience update it are increasingly impersonating support staff to get your personal details By Raffaella Ciccarelli3 55pm Sep 3, who pose as internet service provider workers trying to fix customer's problems are the latest threat from online scammers, Australia's fraud watchdog has warned. These scams often come after a real technical issue has been flagged by an individual, the report found. This led to the belief in some instances that the scammer works for the company. Some consumers were said to have called their telecommunication provider's technical support line with a real problem, only to have a scammer later contact them. (news.financializer.com). As reported in the news.

trade.us marketsread: World Economyread more Dow futures jump more than 250 points after confirmation of...U.S. stock index futures rallied Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade.US Marketsread more Boris Johnson 'has lost control,' experts say, so election could... Boris Johnson has not had the best week with parliament defeating his Brexit plans, according to Xinhua China. An election could be a lifeline for him, experts say. Market Insiderread more China and US agree to meet in October for trade negotiations China's top trade negotiator Liu He spoke with USTR Robert Lighthizer and Treasury Secretary Steven Mnuchin Thursday, the Commerce Ministry said. Europe Politicsread more Slack plunges after posting first earnings report since going... Slack's revenue got impacted in its first earnings report as a public company by service issues that caused the company to offer credits to customers. Weather & Natural Disastersread more Go with large-cap stocks over small caps, these traders say Even though small-cap stocks have been underperforming these traders suggest sticking with what's been leading the market. Technologyread more Dorian, back to a Category 3 hurricane, creeps up US coast Hurricane Dorian, back to a Category 3 storm, began raking the Southeast U.S. seaboard early Thursday. (news.financializer.com). As reported in the news.

wealth fund: The huge sovereign wealth fund is central to Bin Salman's Vision 2030 to diversify Saudi Arabia's economy, according to CNN. The leadership change is the latest in a string of developments to prepare Aramco to go public in what could be the world's biggest IPO. Aramco attracted huge interest with its debut international bond sale in April. Energy minister Khalid-Al Falih was succeeded as chairman of the state-owned oil company by Yasir Al Rumayyan, head of Saudi Arabia's Public Investment Fund, Aramco said in a statement Tuesday. It commissioned an independent audit of the kingdom's oil reserves and has started publishing earnings. Al-Falih had never been enthusiastic about an IPO for Aramco, a senior Organization of the Petroleum Exporting Countries OPEC source told CNN Business. Leadership changes at Aramco were a necessary step towards the IPO, said Olivier Jakob, managing director at consultant Petromatrix. (news.financializer.com). As reported in the news.

bri countries: An analysis of the possible carbon footprint of infrastructure development in BRI countries said there was a significant risk of the initiative alone producing enough greenhouse gas emissions to derail the Paris climate goals, according to The Japan Times. The 2015 accord enjoins nations to cap temperature rises to well below 2 degrees Celsius 3.6 Farenheit above preindustrial levels. The massive network of ports, railways, roads and industrial parks spanning Asia, Africa, the Middle East and Europe will see trillions invested in new infrastructure across 126 countries. ; While China is putting up a significant part of the cash, the project will also see other national and private-sector investment, and opponents warn of its devastating environmental impact. The Tsinghua Center for Finance and Development said that the 126 BRI countries excluding China currently account for 28 percent of man-made emissions. It found that countries such as Russia, Iran, Saudi Arabia and Indonesia would need to lower carbon emissions 68 percent by 2050 compared to current trajectories in order to keep the world on course to 2 C of warming. It modeled the effects of different approaches to the development of mega-ports, pipelines, train lines and highways in 17 BRI countries. (news.financializer.com). As reported in the news.

interest: Interest rates in the U.S. TMUBMUSD10Y, 1.49% have been declining for over 20 years, and short-term rates have been hovering close to zero over the last decade, according to Market Watch. Negative interest rates in Japan and Europe and mounting expectations of rate cuts by the Federal Reserve have expanded the pool of bonds with negative yields to more than 16 trillion, or around 27% of the global bond market. Low interest rates are going to make it harder for these and other pension plans to rely on investment returns alone to meet their obligations to retirees. Initially, low interest rates are good for asset prices. In addition to stronger economic growth coming out of the 2008 financial crisis, this is one of the factors leading to strong performance of equities SPX, -0.69% over the past decade. Simplistically, this is because investors seeking similar returns as before are now forced to take capital that they would have otherwise invested in safe government bonds and deploy it into riskier assets equities, high yield bonds, etc. thereby driving up prices of these assets. (news.financializer.com). As reported in the news.

europe: This is important for Germany under the shadow of the US-launched trade war against China, according to Global Times China. A steady relationship between Beijing and Berlin is also very important for China and Europe - two major economies in the Eastern and Western worlds - to deal with the upheaval of the world. Analysts believe a prime objective of the trip is to ensure that German-Chinese trade relations remain on track. China is the European Union's second-largest trading partner behind the US, and the EU is China's biggest trading partner. With Europe economy slowing down, what should they do Considering the risk that the reckless Trump administration may also launch a trade war against Europe, the answer that Europeans want may lie in cooperating with China. As the US trade war against China escalates, the international order will be facing greater uncertainties. (news.financializer.com). As reported in the news.

future projects: Dubai's real estate sector is a bellwether for its economy, according to The Japan Times. It not only caters to the emirate's residents, but also attracts wealthy investors from around the world seeking a safe place to put their money. Sheikh Mohammed bin Rashid Al Maktoum ordered the creation of a committee to study the needs of the real estate market, evaluate all future projects and control the pace of projects, a statement by Dubai's Media Office said. ; The move comes amid a slowdown in Dubai's economy and a slump in real estate prices. Property values, however, have been steadily dipping. Developers, however, continue to build at breakneck speed, and have completed around 21,000 residential units in the first half of the year, according to Property Finder. A report by UAE-based Property Finder found that Dubai apartment and villa sale prices for the first half of 2019 were down around 12 percent compared to two years ago. (news.financializer.com). As reported in the news.

huang xiangmo: The commission is investigating whether Huang Xiangmo, a Chinese billionaire and property developer, funnelled 100,000 in cash to NSW Labor in breach of state laws barring property developer donations, according to The Independent. Icac has been particularly focused on a Chinese Friends of Labor fundraising dinner held shortly before the 2015 state election, and previous evidence claimed a series of straw donors, or fake donors, may have been used to mask the origins of Huang's money. Wong was again repeatedly accused of lying and making all this up as you go along as he continued his evidence to the Independent Commission Against Corruption on Monday. It is alleged that Wong helped procure false donation records following the 2015 dinner. That included a meeting in his parliament office with Steve Tong, one of the alleged straw donors, who was angry that his name had been falsely used on records purporting to show a 5,000 donation to Labor. The commission heard Wong had met with two key witnesses after the anti-corruption investigation began in January last year. (news.financializer.com). As reported in the news.

ishikawa prefecture: To build in Hakusan, it may take only 2 to 2 . The cost at Hakusan would be half or less, Lee said in a recent interview in Tokyo, according to The Japan Times. We don't have three or four years to wait for JDI's OLED to reach the market. Winston Lee, CEO of Suwa Investment Holdings LLC, said making the OLED panels at JDI's Hakusan plant in Ishikawa Prefecture will allow the product to hit the market within 2 years. ; To build a full OLED production plant in China will take three to four years before the product comes off the line. Our major customer cannot wait that long, Lee said. Japan Display agreed earlier this month to receive a capital injection of up to 80 billion 752 million from Suwa Investment, a consortium of China's Harvest Tech Investment Management Co. and Hong Kong's Oasis Management Co. The market changes rapidly, the Chinese OLED manufacturers will eventually catch up. (news.financializer.com). As reported in the news.