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

berlin deal: The most absurd things are possible, said Foreign Minister Sigmar Gabriel in a caution to travelers that highlighted alarm at what Berlin clearly sees as the growing unpredictability of President Tayyip Erdogan. ; Gabriel broke off his holiday to return to Berlin and deal with the crisis after Turkey arrested six human rights activists including German national Peter Steudtner on accusations of terrorism, the latest in a series of diplomatic rows, according to The Japan Times. Germany, Turkey's chief export partner, called the allegations absurd. Everyone can be affected. We need our policies towards Turkey to go in a new direction we can't continue as we have done, Gabriel told reporters in unusually direct language touching on sensitive commercial matters including corporate investment guarantees. Domestic and foreign critics accuse him of using a state of emergency as cover to root out opposition. Erdogan says a crackdown, in which 150,000 people have been sacked or suspended from the judiciary and journalism to academia and roughly 50,000 detained, was essential after a failed coup last July. (news.financializer.com). As reported in the news.

haruhiko kuroda: The central bank's purchases of exchange-traded funds are distorting the market, Japan Exchange Group Inc, according to The Japan Times. CEO Akira Kiyota said. Haruhiko Kuroda's policies have a surprise new critic the head of Japan's stock exchange. Kuroda's program of spending 6 trillion a year on the funds artificially depresses volatility, which keeps people from trading, said Kiyota, who was previously more supportive of the policy. ; It's not good in the long run, Kiyota said during an interview in Tokyo last week. While Kiyota's views are not unusual, what's strange is that he expressed them in public. If you keep buying 6 trillion a year, that means constant distortion. (news.financializer.com). As reported in the news.

season happinets: For Tokyo, Ando is listed as a rental transfer with a contract from July 14 until June 30, 2018, according to The Japan Times. Between the lines, it appears the demoted-to-the-B2 Happinets, now led by new Spanish sideline supervisor Josep Pep Claros, are employing cost-cutting tactics for the immediate future, while the Alvark continue to look for ways to spend cash and remain competitive at the same time. And with the move, he may experience a lot more winning in the upcoming campaign, too. ; The Alvark went 44-16 this past season; the Happinets had an 18-42 regular-season mark. Ando, who turned 25 on Saturday, averaged 10.6 points, 4.5 rebounds and 3.0 assists for Akita in the inaugural B. League campaign. I would like to devote full effort to every game to win, the Tokyo native said in a statement. It will be interesting to see how the talented backcourt youngster fits into new coach Luka Pavicevic's system. (news.financializer.com). As reported in the news.

court decision: Toshiba appealed the superior court decision. ; Reeling from massive losses linked to its now-bankrupt U.S. nuclear subsidiary, Toshiba is aiming to quickly sell the chip unit, Toshiba Memory Corp., to raise cash and avoid a stock market delisting, according to The Japan Times. Western Digital, which has jointly invested in Toshiba's flash memory operations in Yokkaichi, Mie Prefecture, says a sale of the unit without its consent would violate the joint venture contract. The decision by the California Court of Appeal in San Francisco came after the San Francisco County Superior Court ordered Toshiba last week to stop blocking Western Digital's access to chip development data, which the Japanese firm started in June. This particular ruling allows TMC to reaffirm its commitment to protecting its intellectual property and prevent Western Digital employees from accessing confidential information stored in its databases, an action Toshiba has already implemented, Toshiba said in a statement released Wednesday. The escalating legal dispute continues to complicate the sale of the unit. The U.S. appellate court said Western Digital has until Tuesday to file its opposition. (news.financializer.com). As reported in the news.

gdp growth: The data since suggests a somewhat stronger pace of recovery due to favorable real exports and business fixed investment, according to The Japan Times. Meanwhile, households' real consumption has not shown rising trends despite good employment conditions. GDP growth for January to March this year was 1 percent, slightly above the potential growth rate of around 0.8 percent. The underlying inflation the consumer price index excluding food and energy has remained in negative territory. First, the BOJ continues to insist that the timing of reaching about 2 percent is likely to be around fiscal year 2018 even though such a projection is rejected by almost all economists. Given this mixed performance, the issues surrounding the Bank of Japan's monetary easing framework have increasingly become complicated and uncertain. (news.financializer.com). As reported in the news.

market: On Tuesday, the key market gauge fell 118.95 points. ; The Topix index of all first-section issues finished up 1.39 points, or 0.09 percent, at 1,621.87, according to The Japan Times. The key market gauge lost 5 points the previous day. The 225-issue Nikkei average climbed 20.95 points, or 0.10 percent, to end at 20,020.86. Stocks opened weaker with investor sentiment battered by the dollar's fall below 112, brokers said. Small- and mid-cap issues attracted buying, pushing up the overall market, an official of a bank-affiliated securities firm said. But the key indexes rebounded quickly and fluctuated around the previous day's closing levels, backed by buying on dips for domestic demand-oriented stocks, brokers said. (news.financializer.com). As reported in the news.

trade deal: The first round of the economic dialogue took place in April in Tokyo, where the two countries agreed to start discussions about a bilateral framework for trade and investment rules, according to The Japan Times. As Trump has tried to pull the United States out of multilateral free trade agreements, his administration is set to seek deeper negotiations on a bilateral free trade deal with Japan. At the second round of the bilateral dialogue between Deputy Prime Minister Taro Aso and U.S. Vice President Mike Pence, Washington may urge Tokyo to take measures to reduce the U.S. trade deficit with Japan, the source said Tuesday. ; Japan is planning to have Aso, who also serves as finance minister, visit the U.S. capital in October and hold an informal meeting prior to the formal dialogue, the source added. During their meeting earlier this month on the sidelines of the Group of 20 summit in Hamburg, Germany, Trump apparently called on Prime Minister Shinzo Abe to implement steps to reduce the U.S. trade deficit with Japan. During the meeting, Abe told Trump that he is looking forward to the president's first visit to Japan possibly in November since he took office in January, according to the Foreign Ministry. (news.financializer.com). As reported in the news.

enshrining dictatorship: Maduro insists it is the only way to bring peace after months of anti-government unrest that has killed 100 people and further hurt a crippled economy, according to The Japan Times. Foreign Minister Samuel Moncada said the July 30 vote for the legislative super-body known as a Constituent Assembly would go ahead. President Donald Trump said on Monday he would take strong and swift economic actions if Maduro went ahead with the new body that would have power to rewrite Venezuela's constitution and supersede other institutions. ; Polls show a majority of Venezuelans oppose the assembly, which critics call tantamount to enshrining dictatorship in the South American OPEC nation. It is an act of political sovereignty by the Republic. Venezuelans are free and will unite against the insolent threat from a xenophobic and racist government and the United States' brutal interventionist efforts. Nothing and nobody can stop it, he told reporters. (news.financializer.com). As reported in the news.

estimate degree: But the growing transaction volume has led to an increase in speculative trading, and the exchange operators are taking longer to execute transactions as a result, according to The Japan Times. Some in the bitcoin industry are planning to set up a new system enabling faster transactions, while others are calling for the continued use of the current system. The move is aimed at protecting customer assets. ; The number of bitcoin users is rapidly increasing partly on the back of low commissions for overseas remittances. A virtual currency association to which the 13 operators belong said it is difficult to estimate the degree of confusion but that a serious problem cannot be ruled out. The operators are planning to indicate by Aug. 4 when trading will resume. (news.financializer.com). As reported in the news.

release friday: On Friday, the key market gauge gained 19.05 points, according to The Japan Times. The Tokyo Stock Exchange was closed Monday for a national holiday. ; The Topix, which covers all first-section issues, finished 5.00 points, or 0.31 percent, lower at 1,620.48 after climbing 6.37 points Friday. The Nikkei 225 fell 118.95 points, or 0.59 percent, to end at 19,999.91. Selling outpaced buying after the dollar fell below 113 due to receding expectations of interest rate hikes by the U.S. Federal Reserve following the release Friday of weaker than expected U.S. retail sales and consumer price index, both for June, brokers said. The Nikkei's fall below 20,000 triggered buying on dips, said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co.'s economic research department. Although the yen's ascent kept the Nikkei 225 below 20,000 for most of Tuesday, the market showed some resilience, supported by buying on dips, brokers said. (news.financializer.com). As reported in the news.

icbm test: The ICBM reportedly landed in Japan's exclusive economic zone in the Sea of Japan, where previous North Korean ballistic missile launches have also landed, according to The Japan Times. Despite condemning the ICBM test, South Korean President Moon Jae-in on Monday offered talks with North Korea, indicating for the first time since his inauguration in May that he wants to use dialogue to defuse the international standoff over the North's nuclear and missile programs. Government spokesman Norio Maruyama said North Korea reached a new level with its latest launch of an intercontinental ballistic missile as Americans celebrated Independence Day on July 4. ; The test marked a significant step toward the goal of North Korea's young leader Kim Jong Un to develop a missile with a nuclear warhead capable of reaching the United States. Maruyama said the Japanese government is aware of the announcement, but made clear that immediate talks aren't the approach it supports. Maruyama explained that raising pressure now is essential in order to be able to conduct a serious dialogue with North Korea in the future. This is not a time for dialogue, it's a time for pressure, he said. (news.financializer.com). As reported in the news.

startup: It has amassed more than 500 investors who fought to own a piece of the world's most-valuable startup, according to The Japan Times. The fact that some of the earliest backers now want to reduce their stakes suggests the scandals and other troubles this year have taken a toll. ; The deal could include an injection of new money into the ride-hailing startup, the people said. The talks represent a major turning point for the company. They asked not to be identified discussing private deliberations. Any private share sale like this would need to be approved by San Francisco-based Uber's board. It's unclear what valuation those shares would carry or how much may be sold. (news.financializer.com). As reported in the news.

brookings institution: Both sides see moderate progress on a wide-ranging 100-day economic action plan, first unveiled at Trump's Mar-a-Lago estate in April that covers such areas as financial services, investment, energy and trade a topic close to the U.S. president's heart, according to The Japan Times. Evans Revere, an analyst at Brookings Institution, said Both sides seem to share the view that the 100-day plan is largely on track. Speaking in Paris on Thursday, the American leader was full of praise for Xi, proclaiming him a friend for whom he has great respect, a great leader and a very talented man. ; The expressions of admiration have gone both ways a day earlier Beijing's Foreign Ministry spokesman Geng Shuang had hailed positive advances in China-U.S. economic cooperation based on a spirit of consensus between the two leaders. Jake Parker, vice president of the U.S.-China Business Council in Beijing, largely agreed Overall, the 100-day outcomes are positive first steps addressing lingering issues in the U.S.-China commercial relationship, he said, while adding that more needed to be done to address structural issues such as foreign investment restrictions. The U.S. appears bitterly disappointed over China's failure to exert pressure on North Korea in the wake of its first ever intercontinental ballistic missile test, while Beijing has been left fuming at American incursions into disputed territory in the South China Sea, arms sales to Taiwan and statements on human rights. But despite the effusive rhetoric, that progress has not been matched in other areas of the relationship with ever widening rifts on a host of foreign policy issues. (news.financializer.com). As reported in the news.

job creation: Expanding on the results of previous presidencies, the summit leaders the heads of 19 countries plus the European Union decided to take concrete action to advance the three aims of building resilience, improving sustainability and assuming responsibility, according to The Japan Times. They resolved to tackle common challenges to the global community, including terrorism, displacement, poverty, hunger and health threats, job creation, climate change, energy security and inequality as a basis for sustainable development and stability. ; The G-20, which accounts for 85 percent of the world economy and 80 percent of global trade, successfully controlled the damage from the 2008 financial crisis by macro-level economic policy coordination. The G-20 summit took place in Hamburg, Germany, from July 7 to 8 under the slogan of shaping an interconnected world. The coordinated actions by the G-20 countries from 2009 to 2012 helped inject liquidity into markets and recapitalize international financial institutions, as well as provide a formula for global economic recovery and future crisis avoidance. The G-20 was also given credit for moderating trade conflicts and averting currency wars. Its efforts during that period were also hailed as an exemplar of cooperation between developed and emerging economies. (news.financializer.com). As reported in the news.

security expenses: The government plans to decide on budget compilation guidelines later this month before the ministries start submitting their requests for fiscal 2018, which begins April 1, according to The Japan Times. Abe now views stepped-up investment in human resource development as the key to economic growth. Japan faces the difficult task of securing enough revenue to cover the rapidly aging nation's ballooning social security expenses and to finance projects to foster economic growth. ; At a meeting of the Council on Economic and Fiscal Policy on Friday, Abe said that while reviewing spending, the government hopes to compile a budget focused on human resource development. As the drafting of the budget will go into full swing toward year-end, Abe called for further discussions on how to achieve his policy goals, including how to make day care and preschool education free. Japan, whose fiscal health is the worst of the major economies, aims to achieve economic recovery and fiscal reconstruction at the same time. (news.financializer.com). As reported in the news.

fund: For that to happen, GPIF President Norihiro Takahashi has said ESG assets should reach around 10 percent of its Japanese equity holdings, Mizuno said, according to The Japan Times. GPIF announced last week that 3 percent of its domestic stock portfolio of 35 trillion is in three environmental, social and governance ESG indices. ; Just 3 percent doesn't have much effect on our performance, there's no point unless it makes a difference on our performance from a fund manager's perspective, Mizuno said in an interview in Tokyo on Tuesday. Hiromichi Mizuno, who helps manage 1.3 trillion in assets for the Government Pension Investment Fund GPIF as its chief investment officer, said the fund wants to increase allocation to the point where it impacts results. If you think about the holdings having an effect on our performance, 3 percent is just too small. GPIF's Japanese stock holdings returned almost 15 percent last fiscal year to outperform the benchmark by more than 2 percentage points. The monolith is balancing its desire to promote ESG awareness and disclosure with its fiduciary duty to keep returns from falling below the Topix. (news.financializer.com). As reported in the news.

wall street: On Thursday, the key market gauge rose 1.43 points. ; The Topix, including all first-section issues, closed up 6.37 points, or 0.39 percent, at 1,625.48, after losing 0.23 point the previous day, according to The Japan Times. Investors took heart from the continuing rally of New York stocks, brokers said. The Nikkei 225 average climbed 19.05 points, or 0.09 percent, to end at 20,118.86. But Tokyo stocks moved in a narrow range throughout Friday, by contrast to Wall Street, where the Dow Jones industrial average rewrote the record closing high for the second straight day Thursday. Market sentiment was not bad, but the market lacked vigor, Hiroaki Hiwada, strategist at Toyo Securities Co., said, adding that Friday's minor rise was supported by investors hunting for major issues. The market remained relatively quiet before a series of upcoming key events in Japan and abroad, brokers said. (news.financializer.com). As reported in the news.

fund managers: Persuading Japanese to move their savings out of bank accounts and government bonds and into riskier assets is vital for reinvigorating Japan's long-sluggish economy and financing the retirements of its rapidly aging population, government and financial experts say, according to The Japan Times. But that is less likely to happen as long as investors receive poor service and low returns from fund managers. The Financial Services Agency has accused the nation's toshin investment funds of charging high fees, delivering poor returns and pushing investors from one trendy product to the next to generate fees. ; It hopes that inviting internet writers to meetings with investors can help spread its message further than via traditional media and so influence the toshin fund industry to change. Fund distributors have gotten their asset-management subsidiaries to create products that help themselves make money, ignoring customer needs, wrote 44-year-old blogger Kenichi Minase, who joined a recent meeting of bloggers, investors and FSA officials. Minase is one of Japan's best-known bloggers among retail investors and his blog has been viewed 41 million times since January 2016. Bloggers go by pseudonyms in Japan and the FSA did not require them to give their real names at the meetings. (news.financializer.com). As reported in the news.

lobbyists feinstein: Chuck Grassley of Iowa said he and the committee's top Democrat, Dianne Feinstein of California, have agreed to try to bring Paul Manafort before the panel for questioning about the government's enforcement of a law requiring registration of foreign lobbyists, according to The Japan Times. Feinstein's office confirmed that they plan to question him. ; Manafort would unquestionably be asked about his participation in a Trump Tower meeting last summer with President Donald Trump's eldest son and son-in-law, where the purpose was to hear potentially damaging information about Hillary Clinton from a Russian lawyer. Sen. Manafort disclosed the meeting in a package of information he provided to the Senate and House intelligence committees, who have been investigating potential coordination between Russia and the Trump campaign, as is Robert Mueller, the former FBI director appointed by the Justice Department as the special counsel. A person close to Manafort said that he hasn't yet received a letter from the Senate Judiciary committee about a possible interview. Obviously it would be appropriate for anybody to get into anything that went on at that meeting, and he was at that meeting, Grassley told Iowa reporters. (news.financializer.com). As reported in the news.

selection process: It's Gary's if he wants it, and I think he wants it, Politico quoted one Republican close to the selection process as saying, according to The Japan Times. A few Senate Republicans may express reservations about Cohn, but he would probably receive widespread support, a senior congressional Republican aide said, according to Politico. Politico said sources in the White House, the Treasury Department and on Capitol Hill said that if Cohn decides he wants the job, he is likely to get it. In response to a query from Reuters, White House spokeswoman Natalie Strom said, Gary is focused on his responsibilities at the NEC. Cohn, a Democrat and former Goldman Sachs president, did not work on Trump's campaign and only got to know him after the November election. She has made no secret she puts a priority on growth in jobs and wages and a broad recovery in U.S. household wealth. Yellen took over from Ben Bernanke as Fed chair in February 2014 with the U.S. economic recovery from the 2008 financial crisis still on shaky ground. (news.financializer.com). As reported in the news.

afternoon trading: The euro was at 1.1390-1390, down from 1.1416-1417, and at 130.20-21, down from 130.34-35, according to The Japan Times. After moving around 114.10 in early trading, the dollar topped 114.20 by midmorning on buying from Japanese importers and the Nikkei 225's continued advance. At 5 p.m., the dollar stood at 114.31-31, up from 114.17-18 at the same time Monday. Although the greenback lost steam later in the morning as a wave of buying subsided, it rallied in the afternoon to pass the 114.40 line to a level unseen since March 15. But the dollar grew top-heavy in late afternoon trading as investors retreated to the sidelines before U.S. Federal Reserve Chairwoman Janet Yellen's congressional testimony, scheduled for Wednesday and Thursday. This was thanks to renewed purchases on the back of a rise in the U.S. interest rates in off-hours trading and the Nikkei's further ascent, traders said. (news.financializer.com). As reported in the news.

haven t: We've seen this movie before Minority Report, Steven Spielberg's sci-fi take on a future where pre-crime cops do their worst, according to The Japan Times. Yet Japan may be courting a dystopia of another kind by its pinning the future on a few sporting events three years from now. Japan, the prime minster hinted, might have to cancel the Tokyo Games if legislation empowering the police to arrest people for crimes they haven't yet committed didn't pass even keeping a straight face. As Abe's team details plans to revive growth and increase competitiveness, four numbers keep coming up 2020. When asked for Japan's strategy to compete in an increasingly Chinese world, Abe's team consistently serves up some variation of just wait until the Summer Games you'll see! The naivete at play in these views is evidenced by the official vision for Tokyo 2020 The Tokyo 1964 games completely transformed Japan. When officials explain how they plan to boost innovation and increase Japan's soft-power footprint, five rings keep coming up those of the International Olympic Committee. (news.financializer.com). As reported in the news.

mark karpeles: Appearing at the Tokyo District Court, Mark Karpeles, the 32-year-old French-born CEO of the now-bankrupt exchange, said huge losses of the digital currency by the business were the result of hacking, according to The Japan Times. He pleaded not guilty to both data manipulation and the embezzlement of a total of 341 million of customers' money between September and December of 2013. Gox, once the world's largest exchange for bitcoin digital currency, denied embezzling hundreds of millions of yen from its customers as his trial began Tuesday in Tokyo. I swear to God I am not guilty, Karpeles said in Japanese, reading out a prepared statement also in Japanese after listening to the charges against him through interpreters. Gox, he said, while claiming that what the prosecutors allege as data manipulation was part of his company's regular business operations and that the money he spent did not belong to his clients. I offer my sincere apology for causing inconvenience to many clients with the bankruptcy of Mt. (news.financializer.com). As reported in the news.

conditions: Readings below 50 mean more respondents reported conditions worsening than reporting improvement over the past three months, while readings above 50 indicate optimists outnumber pessimists, according to The Japan Times. The index for the direction of economic conditions in the coming months stood at 50.5, up 0.9 point. The diffusion index of sentiment concerning current economic conditions among so-called economy watchers, such as taxi drivers and restaurant employees, rose 1.4 points from May to 50.0, the Cabinet Office said, adding that the result was the highest since December. The government maintained its basic assessment for the second straight month, saying the economy continues to pick up. Midyear gift demand and sales of clothing and personal-use items are solid, a department store operator in western Japan said, as the weather has been good even after the rainy season began. The survey cited an auto dealer in southwestern Japan as saying they had better-than-expected sales thanks to new models. (news.financializer.com). As reported in the news.

bank: Six other deals were sealed with Japanese companies, ranging from marketing for agriculture and logistics to travel and wellness, the data showed, according to The Japan Times. In one of its two deals, Soft Bank invested in One97 Communications Ltd., which operates India's largest mobile payment and commerce platform under the Paytm brand. Telecommunications giant Soft Bank Group Corp. accounted for 1.40 billion, or 98.9 percent, of the first-half sum with two large deals in the telecom sector. The remaining 30 million came from Mistletoe Inc., GREE Ventures Inc., Rebright Partners Ltd. and Soft Bank, in partnership with other non-Japanese firms, in deals involving various Indian startups. The Indian startups involved include agricultural marketing platform Ninjacart, logistics service platform Lets Transport, digital community platform for women POPxo, real estate service provider Property Share Online Platform Ltd., adventure travel startup Deyor Adventures Ltd., wellness startup Healthians and Balance Hero Co. that provides an app enabling prepaid mobile phone users to check their remaining credit balance. Japanese investors like RE.A.PRA Ventures Ltd. and asset management firm Asuka Holdings Inc., along with their partners, also invested undisclosed sums, according to the Chennai-based research firm that tracks private equity and venture capital investments in the country. (news.financializer.com). As reported in the news.

millions: Frenchman Mark Karpeles once the high-flying head of the world's busiest bitcoin trading platform, who reportedly lived in an 11,000-a-month penthouse and spent money lavishly, including on prostitutes is facing embezzlement and data manipulation charges, according to The Japan Times. He is keeping calm as the trial gets underway, his lawyer Kiichi Iino said, adding that Karpeles, 32, plans to plead innocent. Gox will go on trial in Tokyo next week on charges stemming from the disappearance of hundreds of millions of dollars worth of the virtual currency from its digital vaults. Karpeles was first arrested in August 2015 and released on bail nearly a year later over allegations he fraudulently manipulated data and pocketed millions worth of bitcoins. Gox, which claimed it once hosted around 80 percent of global bitcoin trading, closed in 2014 after admitting that 850,000 coins worth around 480 million at the time had disappeared from its vaults. Mt. (news.financializer.com). As reported in the news.