June, 2017

• 18 June

  Short-termism hasn’t hurt companies long term

  

  Akio Morita, the legendary founder of Japanese electronics giant Sony Corp., once declared that “America looks 10 minutes ahead; Japan looks 10 years.” In an influential 1991 book called “The Japan That Can Say No,” Morita and his co-author, conservative politician Shintaro Ishihara, alleged that the short-term thinking of U.S. companies would be their downfall. Constrained by shareholders more obsessed ...

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• 18 June

  Cryptocurrency boom is getting a little absurd

  

  There are now four times as many cryptocurrencies in circulation as fiat currencies. That’s amazing. And encouraging. According to the Swiss Association for Standardization, which maintains the International Standards Organization database, there are 177 national currencies currently in use. That list generously includes four precious-metals and four bond-market units (codes XBA to XBD, for the curious). The CoinMarketCap website lists ...

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• 18 June

  China’s insurers don’t know their own risks

  

  In most countries, insurers are among the most staid and conservative companies in financial markets. In China, they’re becoming some of the riskiest. On the surface, China’s insurers seem to be enjoying a golden age. Over the past two years, premium revenue has risen by 88 percent and total assets by 49 percent, while claims are up only 43 percent. ...

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• 18 June

  Bond traders still come out as winners after 4 fed rate hikes

  

  Bloomberg It’s been 18 months since the Federal Reserve’s first post-crisis increase in interest rates. Four hikes in, investors in the $14 trillion Treasuries market are laughing all the way to the bank. The 10-year yield ended last week at 2.15 percent, after touching the lowest levels of 2017 as weaker-than-forecast inflation data stoked speculation that the Fed was erring ...

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• 18 June

  S&P 500 ‘bulletproof’ another week

  

  Bloomberg Fears that a selloff in technology stocks would spur a deeper rift in equities were assuaged as the S&P 500 Index ended the week little changed, despite continued weakness in some of market’s biggest winners. The Nasdaq 100 fell 1.1 percent, bringing its two-week drop to 3.4 percent, the worst slide of that length since November. The culprit was ...

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• 18 June

  PBOC shrugs off Yellen, makes room to handle deleveraging

  

  Bloomberg Zhou Xiaochuan is breaking stride with Janet Yellen. The People’s Bank of China (PBOC) Governor refrained from following the Federal Reserve in raising borrowing costs, a switch from March when the central bank increased money-market costs hours after its US counterpart tightened. The shift suggests Zhou sees more autonomy to address domestic challenges, with the yuan holding stable and ...

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• 18 June

  SNB flags Credit Suisse, UBS capital progress

  

  Bloomberg UBS Group AG and Credit Suisse Group AG are “on track” to meet Switzerland’s tougher capital rules for the two systemically important banks after improving their capacity to absorb losses, Swiss National Bank (SNB) said. UBS and Credit Suisse already fully comply with going-concern requirements in terms of risk-weighted assets but still have to improve their loss-absorbing capacity as ...

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• 18 June

  ‘More UK jobs may stay on softer Brexit’

  Bloomberg HSBC Holdings Plc’s investment bank chief Samir Assaf said a hard Brexit is now unlikely after the UK election, and that could mean more jobs staying in London. A softer Brexit would be “very good news for us, because it will be less hassle and we would be able to do much more things from London,” Assaf said at ...

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• 18 June

  Danish central bank cautions industry to brace for ‘setbacks’

  Bloomberg Despite half a decade of negative interest rates, Denmark’s banks are making more money than ever before. But the central bank in Copenhagen now says the industry is at risk of missing several warning signs that may be pointing toward another crisis, especially should interest rates suddenly rise. “There is every reason to watch out for speed blindness,” the ...

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• 18 June

  Japan’s largest bank prepares dramatic staff cuts

  

  Bloomberg Japan’s biggest bank is set to undergo the most dramatic reduction in headcount since it was formed after the nation’s banking crisis shook the industry almost 20 years ago. Mitsubishi UFJ Financial Group Inc. is considering eliminating about 10,000 positions — about 7 percent of its workforce — over a decade as low interest rates and intensifying competition squeeze ...

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