US hot money’s new crush: Canadian, Japanese banks 25 Jun 2012 It’s hard to blame US money market funds for seeking safer harbors than the turbulent euro zone. Yet Canadian and Japanese lenders - as well as the National Australia Bank - must remember not to become too enamored with the attention from their fair-weather friends.
Japan needs more than apologies on insider trades 22 Jun 2012 Handing a $6 bln privatization to Nomura’s rivals after the bank apologized for leaking earlier share sales seemed like a government rebuke. But Nomura probably lost fair and square. Either way, Tokyo needs to make leaks illegal and trying to profit on them much more painful.
Japan’s retiree raid augurs political paralysis 20 Jun 2012 The PM has cut a deal to double consumption tax and start paying off debt more than double GDP. It’s a good start if it passes. But raising taxes on Japan’s rising retiree class may be political suicide and further delay spending cuts needed to avoid a sovereign debt crisis.
Activist flushes out Nomura and investor weakness 4 Jun 2012 An anonymous shareholder has filed all 18 independent proposals for the Japanese firm’s annual meeting. Some are peculiar, like suggesting workers squat on the toilet. Others are more mainstream. If nothing else, the secret scribe exposes the supine nature of Japan’s investors.
Japan’s $3.6 bln Gavilon buy goes with the grain 29 May 2012 Marubeni’s swoop on U.S. agricultural specialist Gavilon can be put down to a strong yen and commodity traders’ quest for scale. As long as China’s appetite for commodities keeps growing, so will M&A among its suppliers.
Japan’s debt pits economists against investors 23 May 2012 Fitch’s Japanese downgrade makes sense in economist-world, where more sovereign debt is always bad. Investors live in another place, where prices rise because people have to buy something. The two universes mostly co-exist peacefully. That could change any time.
Asia’s bonds look shinier as Europe and China slump 16 May 2012 The region’s robust finances have made its sovereign debt a safe haven as bigger economies stall. An indiscriminate sell-off will affect everyone, but Indonesia, Japan and the Philippines all have qualities that should leave them less hard hit.
Nomura stabilises, but at a low base 27 Apr 2012 Earnings jumped in the last quarter, lifting the Japanese bank to a full-year profit. Healthier equity markets at home and better global trading both contributed, while past cost-cutting should help in the coming year. But Nomura’s weak returns mean it has much more to do.
Samsung moves on from Japan to nibble at Apple 27 Apr 2012 The Korean company learned by pulling apart Japanese electronics, then reverse-engineering the business model. Having taken the lessons, it has built a commanding position in TVs and smartphones. As Apple tackles emerging markets, Samsung is showing it is still hungry.
Don’t blame Japan for foreign CEO departures 19 Apr 2012 Yes, its insular culture may have alienated bosses at Nippon Sheet Glass, Olympus and Nomura. But merger pains, fraud and headstrong directors are problems everywhere. The more they go abroad, the more Japanese companies will have foreign executives - and not all will work out.
Japan’s IMF loan gives China a citizenship lesson 17 Apr 2012 The ailing nation is the first non-European to give to the fund’s euro bailout effort with a $60 bln commitment. That follows a 2008 pledge from the IMF’s No. 2 stakeholder. But China also has much vested in saving the euro and could learn from Japan’s unconditional largess.
Sony’s overhaul doesn’t go far enough 12 Apr 2012 The new CEO aims to reverse $6.4 bln in losses by rewiring the TV unit and pushing further into smartphones and medical devices. One-off charges now may flatter earnings later, but the tech company may need new equity to expand. Sony needs deeper cuts and more radical re-rigging.
Bank of Japan divisions point to stronger yen 3 Apr 2012 The bank talks about fighting deflation, but has done relatively little. Replacing two board members with inflation doves when the seats open on April 4 won’t end the impasse. As long as fears of higher borrowing costs stop the BoJ from printing money, the yen will defy gravity.
Taiwanese money can’t save Japan from Samsung 28 Mar 2012 Foxconn’s $1.6 bln investment into Sharp buys Japan’s electronics company time. But there’s a huge glut in flat-panel screens and the likes of Sharp, Panasonic, Sony and Toshiba may be fighting a losing battle against the Koreans. As Hitachi has shown, it may be best to withdraw.
Nikkei’s dip is chance to catch Japanese wave 23 Mar 2012 Valuations are weighed down by long-term fears, like Japan’s high debts and ageing population. But the short-term story looks brighter. Japanese companies may be due a boost from post-earthquake rebuilding, and a likely weakening of the yen. Now could be a good time to dip in.
Ethical economy: The lesson of Fukushima 7 Mar 2012 A year after the Japanese nuclear disaster, both opponents and proponents of atomic energy are saying, “We were right all along.” Their differing analyses and cost comparisons reflect a deep philosophical divide. These days, the nuclear debate ought to be able to get past that.
Japan quake anniversary shows lessons unlearned 7 Mar 2012 The economy bounced back after 2011’s disaster, but Tokyo squandered a chance to push through painful economic reform. Now growth is slowing. That leaves Japan in the same state it was in before the earthquake – only deeper in debt and one year closer to its moment of reckoning.
Japan’s yen yearning takes dismal corporate turn 24 Feb 2012 Toshiba and Sony are tapping $2.4 billion in loans from a government fund designed to promote M&A abroad and weaken the yen. But companies are spending the money on the kind of foreign forays Japanese firms use to avoid reform at home. Japan can’t afford such misadventures.
Olympus investors shouldn’t bleat about its banks 21 Feb 2012 Investors are upset that the company’s banks want to appoint a CEO to pursue a break-up. The snag is that Olympus’s banks are also longstanding shareholders, which gives them special rights. New investors who have bought in opportunistically should have done their research.
Carlyle makes a mint in $1 bln cash-handling sale 14 Feb 2012 The buyout firm may make a near-40 pct annual return on Talaris, a maker of money-counting kit. Carlyle nurtured a corporate castoff, and bet against the supposedly rapid trend to a “cashless” society. The big win also alleviates the same fund’s embarrassing Greek blow-up.