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Aug 5, 2024
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that is fine as long as the yen is going down because you're making money on the yen and your assetsng money on the yen, you start losing money on the yen, you may be forced to return the yen you may be forced to return the yen you have borrowed, stop borrowing those jane and then sell the petitions in london with that yen borrowing. the virtuous circle of cheap yen, low interest rates, liquidity, has become a vicious circle of more expensive yen and the money having to go back into japan. thank you so much. thank you for all that analysis. all eyes will be on the opening bell in the us injust a couple of hours. let's get back to our breaking news from bangladesh, where after weeks of protests and violent clashes, in which hundreds of people have been killed. bangladesh's prime minister has resigned and reportedly left the country. the army chief has just announced it will form an interim government. a little earlier, thousands of anti—government protesters stormed the official residence of the prime minister. television pictures showed protesters inside the building and then looting
that is fine as long as the yen is going down because you're making money on the yen and your assetsng money on the yen, you start losing money on the yen, you may be forced to return the yen you may be forced to return the yen you have borrowed, stop borrowing those jane and then sell the petitions in london with that yen borrowing. the virtuous circle of cheap yen, low interest rates, liquidity, has become a vicious circle of more expensive yen and the money having to go back into japan....
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Aug 6, 2024
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trading about 18 yen against the us dollar.'s sell—off just a fluke, we'lljust have to wait and see? let's get a grip on what's going on with the chief market analyst at scope markets, joshua mahony. josh, we were talking about a record dip now a bounce back. why do you think the shock was so short lived? it might not be so short live we might see another bounce back tomorrow. we do tend to see things ebbs and flows anything markets and today we may be overshot a little bit towards the downside in terms of dollar yen and in times of the nikkei 225 and both of them are moving towards the up side, but you? is it has the recovery in the japanese yen ended and is the be all and end all of it? i don't think so we have had year on year weakness for the japanese yen and we have seen significant downside for the us dollar against the japanese yen and that could drive further weakness forjapanese stock market and that starts to lead to contagion across the globe. but starts to lead to contagion across the lobe. �* ,., starts to lead to
trading about 18 yen against the us dollar.'s sell—off just a fluke, we'lljust have to wait and see? let's get a grip on what's going on with the chief market analyst at scope markets, joshua mahony. josh, we were talking about a record dip now a bounce back. why do you think the shock was so short lived? it might not be so short live we might see another bounce back tomorrow. we do tend to see things ebbs and flows anything markets and today we may be overshot a little bit towards the...
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Aug 26, 2024
08/24
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andrew: the yen carry trade. well, first, let me tell you what the markets think of the yen carry trade, and apparently august 5, monday, the unwinding, where back in 1987. i'm old enough to remember that clearly. the markets fell even below what happened in 1987. three or four days later, we started going back to normal. the yen continues in a sense to be more expensive as if interest rates will be coming down and apparently that was that so if you are asking me what i think of the yen carry trade, i will quote you mahatma gandhi when he was questioned what he thought of western civilization and he said it would be a very good idea. paul: all right, andrew freris, ceo of ecognosis advisory. more views from andrew in just a moment. stay with us. this is bloomberg. ♪ the promise of this nation should extend to all from new york to new mexico, from alaska to alabama. but right now, people like you are losing their freedoms. some in power are suppressing voting rights. banning our kids books from libraries and attac
andrew: the yen carry trade. well, first, let me tell you what the markets think of the yen carry trade, and apparently august 5, monday, the unwinding, where back in 1987. i'm old enough to remember that clearly. the markets fell even below what happened in 1987. three or four days later, we started going back to normal. the yen continues in a sense to be more expensive as if interest rates will be coming down and apparently that was that so if you are asking me what i think of the yen carry...
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Aug 7, 2024
08/24
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dollar-yen was pronounced reaction.nd now hearing from others saying the yen carry trade is out of the danger zone. mliv strategists are saying boj is in a holding pattern. dollar-yen might be the fed. tom: a holding pattern and remarks from the deputy governor. avril with a deep dive. stocks are storming higher after a strong signal. deputy governors saying boj will not raise rates when markets are unstable. let's bring in executive editor paul dobson. sizable moves across the markets , stepping into the fray the deputy governor. paul: you've got the fed boj stepping on the rates. in response to the turmoil in the market, rbc says it is the whole government worried about the turmoil and we heard from prime minister kishida trying to calm people down and we have been hearing that rhetoric. significant that the boj sounded so hawkish and in scaling back expectations. this is massively important. they had long deflation and they have finally managed to kindle some pricing. they want to normalize policy. they do not want i
dollar-yen was pronounced reaction.nd now hearing from others saying the yen carry trade is out of the danger zone. mliv strategists are saying boj is in a holding pattern. dollar-yen might be the fed. tom: a holding pattern and remarks from the deputy governor. avril with a deep dive. stocks are storming higher after a strong signal. deputy governors saying boj will not raise rates when markets are unstable. let's bring in executive editor paul dobson. sizable moves across the markets ,...
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Aug 16, 2024
08/24
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all eyes are on the yen. scarlet: small caps are a beneficiary among other asset classes of the borrowing of sheep yen. i thought crypto was higher for the week, it is not. abigail: this is one area we do not have risk on. oil had been lower. i would say there is enough mixed signals. it is easy to think all of that is behind us. scarlet: one reason a lot of people think the worst is behind us -- abigail: interesting point. scarlet: even though it is the unwinding. people are going back to it because it still works at the moment. abigail: the question is, will it continue to? looking at a chart of the yen, the futures or if you look at the nikkei, there is no stability. it suggests sellers are on pause. why is the yen strengthening? 1, uncertainty, geopolitics, when the nikkei sold off 12%, the worst day since 1987 two mondays ago, the banks underperformed. some people say there is bad collateral at the banks and they are lending out the yen on bad collateral and it will not be pretty. scarlet: jerome powell
all eyes are on the yen. scarlet: small caps are a beneficiary among other asset classes of the borrowing of sheep yen. i thought crypto was higher for the week, it is not. abigail: this is one area we do not have risk on. oil had been lower. i would say there is enough mixed signals. it is easy to think all of that is behind us. scarlet: one reason a lot of people think the worst is behind us -- abigail: interesting point. scarlet: even though it is the unwinding. people are going back to it...
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Aug 2, 2024
08/24
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that reversal for the japanese yen all of a sudden sees these companies are benefiting from a weak yenly the products will become less competitive as the yen strengthens. this does point towards the possibility of weakness for exporters in particular. we have seen text doc suffering, but really it is the manufacturers that have suffered the most of the course of the past week and that points towards if you are trading or investing in japanese stocks towards if you are trading or investing injapanese stocks in particular, certainly a desire to stick more with the domestic side of things rather than the companies that have been benefiting and relying heavily on those cheaper exports of the back of weak yen. how much volatility should we expect? probably a fair amount at the last week is anything to go by. today we have the us jobs week is anything to go by. today we have the usjobs report week is anything to go by. today we have the us jobs report coming week is anything to go by. today we have the usjobs report coming out. certainly in the past it means bad news is good news because it
that reversal for the japanese yen all of a sudden sees these companies are benefiting from a weak yenly the products will become less competitive as the yen strengthens. this does point towards the possibility of weakness for exporters in particular. we have seen text doc suffering, but really it is the manufacturers that have suffered the most of the course of the past week and that points towards if you are trading or investing in japanese stocks towards if you are trading or investing...
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Aug 16, 2024
08/24
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the yen carry trade is back. it is the take. selling the yen to buy positions in the nasdaq.s seeing strength in the session today but since august 5 it is down by about 5%. softness in the yen coming through again. dovish comments from the bank of japan officials which is part of the factor. the yen short positions building. the correlation with the nasdaq has been there. when you saw the selloff in the nasdaq use all the strength in the yen and that correlation is back right now. selling the yen, buying the nasdaq and the tech stocks and we will see of that continues. the boj governor next week will give testimony to the parliament in japan so that becomes consequential. later today we speak to the chief executive of five guys in the u.k. and europe on the fast food chains appetite for expansion. perfect friday content. this is bloerg. ♪
the yen carry trade is back. it is the take. selling the yen to buy positions in the nasdaq.s seeing strength in the session today but since august 5 it is down by about 5%. softness in the yen coming through again. dovish comments from the bank of japan officials which is part of the factor. the yen short positions building. the correlation with the nasdaq has been there. when you saw the selloff in the nasdaq use all the strength in the yen and that correlation is back right now. selling the...
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Aug 8, 2024
08/24
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many traders used yen and cad yen, aussie yen, euro yen as a risk for appetite. of those navigators you want to watch. >> and a good proxy, about sklutely. the next leg of this. thanks. >>> view from the c suite. talking about the latest executive survey including whether or not they see u.s. recession on the horizon. "power lunch" is back after this. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. [♪♪] your skin is ever-changing, take care of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond. when people come, they say they've tried lots of diets, nothing's worked formulations of 7 moisturizers and 3 vitamins. or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's
many traders used yen and cad yen, aussie yen, euro yen as a risk for appetite. of those navigators you want to watch. >> and a good proxy, about sklutely. the next leg of this. thanks. >>> view from the c suite. talking about the latest executive survey including whether or not they see u.s. recession on the horizon. "power lunch" is back after this. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you...
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Aug 7, 2024
08/24
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they borrow the yen, sold the yen and bought something else. foreigners are unwinding too.ne way to see this would be in the currency futures which has unwound. that is the short position. speculators have covered almost $7 billion of shoring yen positions in the last three weeks. tomorrow the ministry of finance releases from japan the latest weekly portfolio flow data through the week of august 2. watching that closely. how much of that is japanese repatriated money and foreigners covering their shorts? scarlet: that is a nuanced way to look at it beyond this is the carry trade being unwound. having said that, jp morgan said we are about halfway through this unwind of the global carry trade using the yen, borrowing the yen to buy high-yielding assets will elsewhere -- assets elsewhere. what specific carry trade's have the ability to carry markets the most? could you generalize or is that not possible? marc: it is hard to know the whole size of it be partly beca -- probably because there a lot of hedging going on. two parts of the equations. the funding currencies. you hav
they borrow the yen, sold the yen and bought something else. foreigners are unwinding too.ne way to see this would be in the currency futures which has unwound. that is the short position. speculators have covered almost $7 billion of shoring yen positions in the last three weeks. tomorrow the ministry of finance releases from japan the latest weekly portfolio flow data through the week of august 2. watching that closely. how much of that is japanese repatriated money and foreigners covering...
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Aug 5, 2024
08/24
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i want to look at dollar-yen.e are seeing the yen moving higher and getting stronger against the u.s. dollar. at the moment, at 142. some traders, however, questioning whether it will move to 140 or even lower in terms of the outlook for the yen. i want to take you to the bond market, too. at this stage, we are seeing a bit of a mixed picture so far. looking at italy, the yield is tracking slightly higher at this stage. if you look at the other yields in europe, they are moving lower. i would like to look at the benchmark yield on the ten-year german bund at this stage moving lower at 2.14%. we haven't heardfrom the ecb recently. however, some of these moves we are witnessing this morning are also related to what is happening stateside. to briefly not in terms of what to expect today, we are going to hear from two fed officials, including chicago president who will speak to our colleagues stateside. mary daly will give a speech as well. we will see what comments they have as we track what happens in the u.s. bond
i want to look at dollar-yen.e are seeing the yen moving higher and getting stronger against the u.s. dollar. at the moment, at 142. some traders, however, questioning whether it will move to 140 or even lower in terms of the outlook for the yen. i want to take you to the bond market, too. at this stage, we are seeing a bit of a mixed picture so far. looking at italy, the yield is tracking slightly higher at this stage. if you look at the other yields in europe, they are moving lower. i would...
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Aug 5, 2024
08/24
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caused mostly by the yen. i think that's the interlinkage.more to go here, but it may need another catalyst, say data catalyst or boj catalyst, before we see more of that. >> what would that catalyst be from your standpoint? a u.s. data point, or a boj catalyst? >> i think it's more the bank of japan in this case, because, they actually got intervention. we were trading 161 on the yen and there was a lot of fluter in the market, a lot of speculation, when they will come in and do something about that. now they've got their intervention, and so, the bank of japan surprising with that hike last wednesday, i think was obviously a trigger for people covering shorts, and you can tell from asset manager data that was clearly happening. on the other hand, it is also about the bank of japan now having to hike rates, because inflation continues to be high. so, i think the next bank of japan meeting will be the key meeting, not too far off from jackson hole, you know, what that could be, i think, if they signal that they're going to be on hold, and it
caused mostly by the yen. i think that's the interlinkage.more to go here, but it may need another catalyst, say data catalyst or boj catalyst, before we see more of that. >> what would that catalyst be from your standpoint? a u.s. data point, or a boj catalyst? >> i think it's more the bank of japan in this case, because, they actually got intervention. we were trading 161 on the yen and there was a lot of fluter in the market, a lot of speculation, when they will come in and do...
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Aug 6, 2024
08/24
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the yen weaker this morning. 145 on dollar-yen.m, and collected. >> we have now confirmed the labor market is slowing. it is extremely important we not let it slow so much it tips itself into a downturn. we will make policy adjustments as the economy delivers the data so we know what is required. if we reacted on one data point we almost always be wrong. jonathan: fed officials acknowledging softness in the labor market by following well short of endorsing emergency policy changes. neil dutta writing "the time for debate is over. the fed needs to recalibrate policy now. our calls the fed delivers a 50 basis point cut in september with another 50 basis points spread across the two meeting. going more in september makes up for not going in july." neil dutta joins us. i said the fed has been cool, calm, and collected, some watching might say complacent. a note following payrolls is important. you said they stepped on a nail, not a bed of nails company went on to say this is easy to fix. why is this so easy to fix? neil dutta: thanks f
the yen weaker this morning. 145 on dollar-yen.m, and collected. >> we have now confirmed the labor market is slowing. it is extremely important we not let it slow so much it tips itself into a downturn. we will make policy adjustments as the economy delivers the data so we know what is required. if we reacted on one data point we almost always be wrong. jonathan: fed officials acknowledging softness in the labor market by following well short of endorsing emergency policy changes. neil...
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Aug 13, 2024
08/24
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finally, if you look at it, the yen -- the yen has been weakening. if you had to weaken the carry trade or that this trade, the renminbi as part of the one we have outlined before. i do think those are some of the reasons there is interest rate reform. there is an easing cycle bias in the system. and because of that, over times it will reflect into a slightly weaker currency. if you look at spot effects, we haven't treated it. so i think again we haven't actually seen the dollar cny break materially above the 730 mark so far. avril: what about the philippine peso for carry opportunities as part of your country and cause? jason: we are constructive. you it is probably something owners own list per se. you see this before equity in the bond holdings towards the bond prospect. my the philippine peso and why this currency. i think because under what we described. if you think about what has happened over the past week, people have lost on the short yen versus longer term or other carry trades within the rest of the region. if we had to re-base and say, i
finally, if you look at it, the yen -- the yen has been weakening. if you had to weaken the carry trade or that this trade, the renminbi as part of the one we have outlined before. i do think those are some of the reasons there is interest rate reform. there is an easing cycle bias in the system. and because of that, over times it will reflect into a slightly weaker currency. if you look at spot effects, we haven't treated it. so i think again we haven't actually seen the dollar cny break...
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Aug 5, 2024
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the dollar is weaker come of the yen is much stronger. dollar-yen 1.4242.ohamed: i'm hearing the markets claim two things, growth scare, policy mistake. that's what i'm hearing. the market now fully understands that the fed may be late and cutting. in the past, i kept saying there's no reason for the u.s. to fall into recession. i think people underestimated the lack of effective higher interest rates, and these are heading. . in a much bigger way now. jonathan: in a much bigger way. economic slowdown spreading worldwide after the july jobs report spread worries the fed went too high, too long. inflation continues to abate, and hiring increases modestly. the jobs market reminding us what normal looks like. mila richardson joining us now. good morning. are we confusing monetization was something more nefarious? nela: yes, and to answer that question, i want to take you back to july 2019. the u.s. created 90,000 jobs. let's fast-forward to the present. 114,000 jobs some employment growing at 1.6%. this is normal. and the risk of over exaggerating where we are
the dollar is weaker come of the yen is much stronger. dollar-yen 1.4242.ohamed: i'm hearing the markets claim two things, growth scare, policy mistake. that's what i'm hearing. the market now fully understands that the fed may be late and cutting. in the past, i kept saying there's no reason for the u.s. to fall into recession. i think people underestimated the lack of effective higher interest rates, and these are heading. . in a much bigger way now. jonathan: in a much bigger way. economic...
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Aug 8, 2024
08/24
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it is a lot cheaper to borrow in yen and invest elsewhere. higher frequency aspect of people speculatively borrowing in yen and putting that money elsewhere which is the area still at risk. it is hard to get quantify indication of that. if i had to pick a number, 75% or so. in other words, there could be more coming out. a good deal has come out of that short duration speculative money. >> tim moe from goldman sachs. great to have you back. back to me, tim. have a great day. >> take care. >>> switching gears a bit. we stick with japan and a developing story. tsunami warning issued after a magnitude 7.1 earthquake detected off the coast. tsunami warnings have been issued across the region. we will update you on the story. a powerful earthquake hit japan. 7.1 magnitude. we will continue to follow the story. >>> ahead on coming up, ivy leagues on alert with jd vance speaking up if the rubcaeplins win the white house. we're back with that story. stay with us. (grandpa) i'm the richest guy in the world. (man 1) i have time to give. (man 2) i have
it is a lot cheaper to borrow in yen and invest elsewhere. higher frequency aspect of people speculatively borrowing in yen and putting that money elsewhere which is the area still at risk. it is hard to get quantify indication of that. if i had to pick a number, 75% or so. in other words, there could be more coming out. a good deal has come out of that short duration speculative money. >> tim moe from goldman sachs. great to have you back. back to me, tim. have a great day. >> take...
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Aug 9, 2024
08/24
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yes, we have a different handle now for dollar-yen and the yen could stabilize. should have talked to the boj. they could've had this talking to. they thought it was squarely in their hands. i know it is a while away. does that mean we get to september 20 the boj has a decision that we shouldn't be worried if they hike rates? dirk: historically, dollar-yen depends more on u.s. rates because of more volatile. if you think it serve a by the difference between japanese and u.s. rates, -- if you get the hikes they take precedent for a few days. the boj matters a lot for dollar-yen and japanese equities. the hurdle for japan has increased considerably. the issue is that we get more fatcats then we were thinking -- fed cuts then we were thinking -- than we were thinking and dollar rates will be behaved. dollar-yen is a fairly important for inflation in japan. it's one of the major contributors. if that is not a worry anymore, fundamentally the boj will not be under pressure to move. they also moved partly because of political pressure where it became an issue for the g
yes, we have a different handle now for dollar-yen and the yen could stabilize. should have talked to the boj. they could've had this talking to. they thought it was squarely in their hands. i know it is a while away. does that mean we get to september 20 the boj has a decision that we shouldn't be worried if they hike rates? dirk: historically, dollar-yen depends more on u.s. rates because of more volatile. if you think it serve a by the difference between japanese and u.s. rates, -- if you...
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Aug 9, 2024
08/24
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bmi thinks we could see 100 versus the greenback on the yen. on dollar-china, we are seeing the convergence towards the 716 level. the yen, again above 714, a weak face. this is something we have not seen since november 2023. the signal may be the chinese authorities don't want to strong of a chinese currency. let's flip the board and take a look at what we are seeing out of chinese bonds. the expectations of policy easing in the doldrums the stock market is and is what's been fueling the chinese bond rally in the past year. we are seeing some expectations that that could continue. authorities announced they began ramping up the bonnie -- the bond rally. across the curve in china today, tom. tom: april long singapore with a check on the asian markets. thank you. chinese stocks are rising briefly and now flat on the csi 300 after the data showed that inflation increased more than expected. consumer prices rising 0.5% last month from your earlier. investors are still concerned. john joins me from beijing for the latest. thanks for joining us. wha
bmi thinks we could see 100 versus the greenback on the yen. on dollar-china, we are seeing the convergence towards the 716 level. the yen, again above 714, a weak face. this is something we have not seen since november 2023. the signal may be the chinese authorities don't want to strong of a chinese currency. let's flip the board and take a look at what we are seeing out of chinese bonds. the expectations of policy easing in the doldrums the stock market is and is what's been fueling the...
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Aug 6, 2024
08/24
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value of the yen going up even higher than what many analysts had expected.ward? you mention the _ impact going forward? you mention the rate _ impact going forward? you mention the rate hike. - impact going forward? you mention the rate hike. it is a i—off or could we see more obvious given what last week? i think it is fair to say that last wednesday when the bank of japan governor spoke, he hinted that there could be more rate hikes to come. i don't think that would happen any time soon given this very extreme reaction that we saw just because of that reasonable rate hike that we had yesterday. yesterday's sell—off was actually dubbed as a family name, so i don't think there will be any more hikes injapan when it comes to the bank of japan. when it comes to the company's performance, the compa ny�*s performance, the fundamentals company's performance, the fundamentals are still fairly strong for those japanese companies and the economy has been doing quite well. many analysts were saying yesterday don't sell in panic because this would come back, and today
value of the yen going up even higher than what many analysts had expected.ward? you mention the _ impact going forward? you mention the rate _ impact going forward? you mention the rate hike. - impact going forward? you mention the rate hike. it is a i—off or could we see more obvious given what last week? i think it is fair to say that last wednesday when the bank of japan governor spoke, he hinted that there could be more rate hikes to come. i don't think that would happen any time soon...
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Aug 6, 2024
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we've got the yen at 14525, slipped a little bit. we've got equities recovering as well, what your outlook for the yen strength. you feel it un right -- unwinds and has a little bit of room to run yet? >> yes, this is the most frequently asked question the last 72 hours. i would say looking at the positioned metrics that we have we think that it's in this speculative investing community some between 50% to 60% complete, so we are not done by any stretch, most people would probably concur with the yen is one of the most undervalued currencies, which means that once we get it on the scale, the odds of that are continuing larger than otherwise. some of the other technical studies we've done, such as that once you get a very large sharp moves in short amounts of time like we had with the yen over the last week or so, the technical damage that it inflicts is not easily undone. see you don't tend to get v-shaped reversals back to where the move started from, only the outcome for stabilization and markets along current levels at a shallower
we've got the yen at 14525, slipped a little bit. we've got equities recovering as well, what your outlook for the yen strength. you feel it un right -- unwinds and has a little bit of room to run yet? >> yes, this is the most frequently asked question the last 72 hours. i would say looking at the positioned metrics that we have we think that it's in this speculative investing community some between 50% to 60% complete, so we are not done by any stretch, most people would probably concur...
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Aug 5, 2024
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a lot of that having to do with what we call the yen carry trade.in the last couple weeks about the move up in the yen as a result of the move up in interest rates. and perhaps we yunderestimated how much money was at stake here. dominic chu you've been tracking this action and take it from there. >> the overnight hours in asia saw the chaps to react, the first time zones to react to the jobs related selloff. that epicenter is the nikkei in japan in tokyo, the benchmark 225 dropping by you can see there over 12% by the time the market closed. again, the worst day for the japanese market going all the way as david mentioned to that black monday timeframe in '87. it ended up being the worst one-day point drop in nikkei history down 4,451 and washed away all the gains the nikkei has seen so far this year to date period. now a big focal point for traders in asia and here in the u.s. has been to david's point what's going on with the currency. the yen has been on a weakening trend as you can see most of the year going up for the value of the u.s. dollar
a lot of that having to do with what we call the yen carry trade.in the last couple weeks about the move up in the yen as a result of the move up in interest rates. and perhaps we yunderestimated how much money was at stake here. dominic chu you've been tracking this action and take it from there. >> the overnight hours in asia saw the chaps to react, the first time zones to react to the jobs related selloff. that epicenter is the nikkei in japan in tokyo, the benchmark 225 dropping by...
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Aug 21, 2024
08/24
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i am someone that remains a structural yen bear. at the moment, i think the yacht -- the dollar-yen is headed there. i think people have parked the long-term fundamental negatives of the yen for the moment. instead, they are focusing on the negative story of dollar bearishness. dollar-yen will have downside. we might get a scare in that carry trade. that will filter through the equities again. i'm still nervous short-term but i expect stocks to be higher by the end of the year. despite the fact yields will be higher because the fed will not need to cut as much because the economy is doing fine in the u.s. and everywhere. avril: goldilocks scenario. let's bring you into the conversation. do you agree with that on dollar, specifically? >> we definitely agree on the u.s. economy. we agreed that there is too much bearishness. i think it's because everyone wants more cuts than the fed will need to do. so i think we are in an agreement there. i think we have between now and next march about three put in it. but we do see that. there is no
i am someone that remains a structural yen bear. at the moment, i think the yacht -- the dollar-yen is headed there. i think people have parked the long-term fundamental negatives of the yen for the moment. instead, they are focusing on the negative story of dollar bearishness. dollar-yen will have downside. we might get a scare in that carry trade. that will filter through the equities again. i'm still nervous short-term but i expect stocks to be higher by the end of the year. despite the fact...
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Aug 26, 2024
08/24
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, and that decline was about 16%, between the high and the low for dollar-yen.he low so far even at the extreme point couple of weeks ago is only 12%, so there could be quite a way to go. if you compare the conditions, they are more favorable for the yen now than they were two years ago, what has changed is the fact that the bank of japan is starting to raise interest rates, and the fed is closer to lowering. that's a big change from what we saw in the previous cycle. the fact that mr. ueda last week reinforced his message that there is more work to do is helping the yen. jerome powell clearly's ignoring -- clearly signaling that the federal reserve will start lowering rate soon as well. it is coming together very favorably for the japanese yen, not so much for the u.s. dollar. if you look at where projections are from previous cycles, dollar-yen will probably go below 140. if you go into the mid 135 levels based on similar projections we have had in the past, so room to go and the yen probably has not finished against the u.s. dollar yet. joumanna: i remember,
, and that decline was about 16%, between the high and the low for dollar-yen.he low so far even at the extreme point couple of weeks ago is only 12%, so there could be quite a way to go. if you compare the conditions, they are more favorable for the yen now than they were two years ago, what has changed is the fact that the bank of japan is starting to raise interest rates, and the fed is closer to lowering. that's a big change from what we saw in the previous cycle. the fact that mr. ueda...
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Aug 5, 2024
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stocks selling, they turn to mondays, they hedge, which means they buy yen, pushing the yen higher.t has a pillover effect into the japanese markets, because a strong yen hurts those exporters. >> paul, thank you. >>> what can the bond market tell us? rick san telei is live at the cboe. >> yes, briefly it was in positive territory. it's going to be a lot more than brief in positive territory as time goes on. it's a way that many like to be short, and even though rates may be generically going down, doesn't mean that curve can't move. today it's all about the vix. here's what you need to look at. early in the morning, 65 and change, rounded to 66, by lunch, cut in half. how many times -- look at the big chart, whether it's 2008 or 2020, it had closes above 8 on. here's our lucky day. this is one of the architects of many of the new volatility contracts, so we have the man. rob, we disagreed off camera. my thought is when you see 65 and change, then it gets cut in half, if we don't get a good close, i don't think it will mirror other events of this type. you seem to have a different o
stocks selling, they turn to mondays, they hedge, which means they buy yen, pushing the yen higher.t has a pillover effect into the japanese markets, because a strong yen hurts those exporters. >> paul, thank you. >>> what can the bond market tell us? rick san telei is live at the cboe. >> yes, briefly it was in positive territory. it's going to be a lot more than brief in positive territory as time goes on. it's a way that many like to be short, and even though rates may...
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Aug 6, 2024
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the yen carry trade. >> oh, yeah.t has been going on for a month. >> we have done a lot of talk on the network. i want to get more focus on the markets. you want to talk about currency, but let's talk about stocks. stifel out with a note and they believe the s&p will correct to 5,000 in october. they believe there is a risk of the bear market if the slowdown becomes a recession. do you agree or disagree? do you think right now is a good time for portfolio protection and if so, what would you do? >> seasonally we're in a weak period. in an election year, the markets have 14% correction. they go up 26% over the next year. to me, this is a window of opportunity for investors to get in. if traders are batting this market around and when you have a big move, everybody comes out and comes out with bearish notes. think the economy slows, not recesses. i think the fed is forward looking. i think he will cut conversationally at jackson hole. for us, we're buying into this at dollar cost averaging into halloween. >> where? it i
the yen carry trade. >> oh, yeah.t has been going on for a month. >> we have done a lot of talk on the network. i want to get more focus on the markets. you want to talk about currency, but let's talk about stocks. stifel out with a note and they believe the s&p will correct to 5,000 in october. they believe there is a risk of the bear market if the slowdown becomes a recession. do you agree or disagree? do you think right now is a good time for portfolio protection and if so,...
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Aug 5, 2024
08/24
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amid all this, the yen, the yuan, they are rallying. take a closer look at what we are seeing as this stock selloff accelerates. the bonds are rallying across the curve. take a look at what we are seeing in japan. circuit breakers on jgb futures triggered earlier today. the gains also moderating on u.s. treasuries but there is also a bit of safe haven buying given the concerns surrounding iran's potential retaliatory action on israel. a lot going on today, paul. paul: avril is going to stick with us. our next guest joining us now is simon. a day like this, it's hard to know where to start, but let's start in japan where we are seeing some of the heaviest selling, three days straight now. where is the floor here? at what point do you say that this market is looking oversold and it is time to pick up some bargains? simon: i think there is clearly a massive unwind going on here. we have seen three particularly crowded trades. long stocks, short volatility, and short yen all being unwound at the same time. and positioning in july in many of
amid all this, the yen, the yuan, they are rallying. take a closer look at what we are seeing as this stock selloff accelerates. the bonds are rallying across the curve. take a look at what we are seeing in japan. circuit breakers on jgb futures triggered earlier today. the gains also moderating on u.s. treasuries but there is also a bit of safe haven buying given the concerns surrounding iran's potential retaliatory action on israel. a lot going on today, paul. paul: avril is going to stick...
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Aug 1, 2024
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paul: you mentioned that yen strength. how about the other asian currencies -- what are we seeing their? avril: specifically for the ones in south east asia, traders expect further upside. it is not just about the federal reserve. it is also because of how the yuan and yen have been climbing. this chart shows you the one-month risk reversals first out this -- south east asia fx. it is at a five-month hi, and this tells you there is a premium for being hedged -- that is to the upside. they are expecting more gains in some of these currencies. all this is against the backdrop of what we got from powell a couple hours ago. have a closer look at what he had to say. chair powell: my colleagues and i remain focused on achieving our dual mandate goals up achieving maximum climate and -- maximum employment and standard prices. where strongly committed to returning inflation to our 2% goal in support of a strong economy that benefits everyone. we have made no decisions about future meetings, and that includes the september meeting.
paul: you mentioned that yen strength. how about the other asian currencies -- what are we seeing their? avril: specifically for the ones in south east asia, traders expect further upside. it is not just about the federal reserve. it is also because of how the yuan and yen have been climbing. this chart shows you the one-month risk reversals first out this -- south east asia fx. it is at a five-month hi, and this tells you there is a premium for being hedged -- that is to the upside. they are...
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Aug 5, 2024
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how closely correlated the nasdaq and the yen have become. this helps to explain it, but only part of the story. it's also fundamental. megacap ceos over the last few weeks saying the more the better, but investors are worried about the impact on earnings. valuations, you mentioned that before the break, they have re-rated, though over the last few weeks, on july 10th, that's when the nasdaq hit a record high. with forward price-to-earnings multiple above 30. that has changed. you now see that only two of them have multiples. the valuations have looked too rich, fading a bit, which some people may see as a buying opportunity. >> i think you're so apt to high defend light that. and people are talking about the fact that on one hand they shed a lot of market caps, but maybe it does all come down to valuations. even for showing like nvidia, the cyclical warrants valuations in the long run. >> semis has been the biggest generative ai winners in terms of sectors. so it's the names with the highest expectations. i also point to microsoft, well over
how closely correlated the nasdaq and the yen have become. this helps to explain it, but only part of the story. it's also fundamental. megacap ceos over the last few weeks saying the more the better, but investors are worried about the impact on earnings. valuations, you mentioned that before the break, they have re-rated, though over the last few weeks, on july 10th, that's when the nasdaq hit a record high. with forward price-to-earnings multiple above 30. that has changed. you now see that...
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Aug 6, 2024
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economy slow down also with the yen.hawkish tone from the bank of japan and the yen appreciation as well as the volatility in the currency. along with a potential reversal of the carry trade to continue. those are actually still weighing on japanese stocks. so those factors -- until those factors are out-of-the-way, investors are likely to remain quite cautious, and, you know, goldman sachs today had a note on how they see this move to continue for the time being, especially after the retail investors were hurt during this big decline. so it would take a lot more time for cinnamon to return and for people to buy into the story of japanese stocks. tom: what a turnaround from earlier in the year, when so many investors were talking about the benefits coming through in terms of exposure to japanese equities, corporate governance, the upside and what was happening with the the yen, and of course that's all turned. we will see if additional catalysts come through but it could be a challenge few days. when he sue, thank you ve
economy slow down also with the yen.hawkish tone from the bank of japan and the yen appreciation as well as the volatility in the currency. along with a potential reversal of the carry trade to continue. those are actually still weighing on japanese stocks. so those factors -- until those factors are out-of-the-way, investors are likely to remain quite cautious, and, you know, goldman sachs today had a note on how they see this move to continue for the time being, especially after the retail...
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Aug 20, 2024
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avril: what about yen volatility. is that something that central banks need to keep a more close watch on? >> i think over the past two weeks, we will have enough volatility. as far as monitoring, it seems that a lot of this carry trade problem has already been unwound. i think this will probably mitigate going forward, but we will keep an eye on that. going forward, if you look at japanese equities, as long as the end is not surgery on 100 40, probably things will still be fine. paul: to that point, that touches on the question of the day today, how high can the yen go without spooking risk. you just nominate 140 there. could that mark potentially be lower? >> our expectation is that a yen probably will continue to stay fairly weak. the reason is that you look at the recent history, the yen has been pushed so low, actually far beyond what's the rate differential indicated. but there is an is strengthening that hasn't already put it back closer fundamental so we don't expect any further strengthening our major strengt
avril: what about yen volatility. is that something that central banks need to keep a more close watch on? >> i think over the past two weeks, we will have enough volatility. as far as monitoring, it seems that a lot of this carry trade problem has already been unwound. i think this will probably mitigate going forward, but we will keep an eye on that. going forward, if you look at japanese equities, as long as the end is not surgery on 100 40, probably things will still be fine. paul: to...
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Aug 7, 2024
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the yen sliding against the dollar. and ahead, how tim walz long history with china might prove awkward for the candidate. and we speak with the man running the adani group energy business and the impact of the hindenburg research allegations. >> from our viewpoint this report was nothing but a cumulation already -- but an accumulation of everything that had already been alleged. and presented in a way that was explosive and shocking. >> time to look at markets. most risk on an avril hong is in singapore. another impressive reversal in japan. >> we are seeing the rebound continuing in the rest of the region but most notably in japan and this is against the backdrop of what we got from the deputy governor of the boj saying they will not hike rates in the face of markets being unstable and this comes one day after a three way meeting between the boj, finance ministry and financial services agency. the readout from the meeting did not help placate markets but it is the words also cheated that seem to be what markets are ha
the yen sliding against the dollar. and ahead, how tim walz long history with china might prove awkward for the candidate. and we speak with the man running the adani group energy business and the impact of the hindenburg research allegations. >> from our viewpoint this report was nothing but a cumulation already -- but an accumulation of everything that had already been alleged. and presented in a way that was explosive and shocking. >> time to look at markets. most risk on an...
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Aug 8, 2024
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but eventually the yen carried trade turned into a stronger yen, perpetually stronger yen, and stocks starkted getting really -- started getting really heavy. i think we're in the first or second inning of this correction. i don't think we're over yet. that said, the meltdown really began around 5430, somewhere in that ballpark, on the futures market. it's very possible we run up and touch that tread line. maybe even go higher as we're running stops. so we can get really bill bounces but i think that if you're a portfolio holder and you felt a little bit of pain this week, take this bounce as an opportunity to derisk because there's no guarantee that we don't get another round of selling. in fact, i think that's probable. >> i think it comes down to the cadence and the timing. if you look at the risk-reward over the next three to five montds it's going to in theory be a lower federal reserve, a higher bank of japan, 30% probability of another hike from the bank of japan. which shouldn't come as much of a surprise the second time around. the train has already left the station. so with
but eventually the yen carried trade turned into a stronger yen, perpetually stronger yen, and stocks starkted getting really -- started getting really heavy. i think we're in the first or second inning of this correction. i don't think we're over yet. that said, the meltdown really began around 5430, somewhere in that ballpark, on the futures market. it's very possible we run up and touch that tread line. maybe even go higher as we're running stops. so we can get really bill bounces but i...
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Aug 19, 2024
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dollar-yen with quite a move. real japanese yen strength. dollar-yen down .9%.y markets unchanged on the s&p. it welcomed moment for a lot of people who have been whipsawed. lisa: it goes to what steve said , which is a lot of the carry trade's have been unwound. a lot of the leverage that would lead to the correlation where people would have to sell u.s. risk assets to bail themselves out of the carry trade's getting blown up on the yen trade is not as much of a pleasant factor. jonathan: i get the feeling we are only one jobs data point away from playing this game all over again. lisa: is that that fund? jonathan: september 6 circled on the calendar. coming up, met gordon will be joining us alongside kelsey barrow of jp morgan. this is bloomberg. jonathan: ♪ >> the labor market is still tight. u.s. economy is still relatively strong. >> perhaps the fed chairs talking the talk and walking the walk. >> the federal reserve has a decision on timing and the extent of the cuts. >> may be fade the idea they will be over tracked aggressively everybody else does. >> --
dollar-yen with quite a move. real japanese yen strength. dollar-yen down .9%.y markets unchanged on the s&p. it welcomed moment for a lot of people who have been whipsawed. lisa: it goes to what steve said , which is a lot of the carry trade's have been unwound. a lot of the leverage that would lead to the correlation where people would have to sell u.s. risk assets to bail themselves out of the carry trade's getting blown up on the yen trade is not as much of a pleasant factor. jonathan:...
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Aug 16, 2024
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and dollar-yen the 1.845 level after the rally and the yen a couple of weeks ago and the recalibrationt are we going to get from the fed. we have been seeing a blue up spectacularly and appears to be creeping back and seeing a variety of investors and borrowing to invest the proceeds in higher yielding assets. how is this picking back up despite the volatility? >> amazing how short lived our memory is and we have forgotten last week. one of the key things and we have hardshipping on this is that you don't have an alternative funding currency at this point and makes the yen look more attractive and you had excessive volatility and coupled with the unwind we have seen in the equity markets. there was an analysis we put out in looking in the past 15 years of what drives the trade and it has been the fact of what we are seeing in equity markets, the stability, that has been the consistent support for kerry trades. >> are we going to get support in parliament that we are fueling this along? >> we saw that earlier last week when deputy governor mentioned even brought in the line of being a l
and dollar-yen the 1.845 level after the rally and the yen a couple of weeks ago and the recalibrationt are we going to get from the fed. we have been seeing a blue up spectacularly and appears to be creeping back and seeing a variety of investors and borrowing to invest the proceeds in higher yielding assets. how is this picking back up despite the volatility? >> amazing how short lived our memory is and we have forgotten last week. one of the key things and we have hardshipping on this...
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Aug 8, 2024
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dollar yen hovering at 146.climb from the weakness the 147.7 a day ago spot by the b.o.j. deputy governor's comments. of on a day like this there are a number of names bucking the twend. shiseido one of them. shiseido showed demand from china, showed the first half loss. amid all this what we're see seg this steepest decline in the stock since 19 7. for soft bank we saw loss and this was for the second quarter. showed how despite the share buyback plan that really failed to lift the stock as we saw these losses coming through for its vision fund assets poll. paul: we've got a few other name, big names set to report later as well. what are we expecting? >> i think two clear themes are emerging from the number of names that are reporting later today out of the asia pacific. and that is a.i. as well as weak chinese demand for the lieives tokyo electron. a.i. is likely to boost. we're going to probably see these operating profit. fastest pace of growth in two years. we could also be seeing guidance improve because i
dollar yen hovering at 146.climb from the weakness the 147.7 a day ago spot by the b.o.j. deputy governor's comments. of on a day like this there are a number of names bucking the twend. shiseido one of them. shiseido showed demand from china, showed the first half loss. amid all this what we're see seg this steepest decline in the stock since 19 7. for soft bank we saw loss and this was for the second quarter. showed how despite the share buyback plan that really failed to lift the stock as we...
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Aug 27, 2024
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but there will be more offers to buyy yen.rms of dollars will go up. that's what happened in 1977 but late 1978 it took 50% more dollars to give an amount of yen when taken here earlier. but what happens when the price of the yen in terms of dollars up? japanese labor is no longer so cheaper japanese goods are no longer so attractive to american consumers. on the other hand american labor is no longer dear to japanese. american goods are more attractive. we will export more to them. paidwill import less fromm. the. new jobs will be created in export industries to replace any jobs that might have been lost in industries competing with imports. that is how a free market in foreign exchange imbalances trade around the world when it is permitted to offer it. >> the problem is more often than not free-market is not permitted to operate. for reasons that seem to make sense if you don't examine them carefully, and governments insist on interfering. when they do is not possible to hide the harmful effects for very long. the main reaso
but there will be more offers to buyy yen.rms of dollars will go up. that's what happened in 1977 but late 1978 it took 50% more dollars to give an amount of yen when taken here earlier. but what happens when the price of the yen in terms of dollars up? japanese labor is no longer so cheaper japanese goods are no longer so attractive to american consumers. on the other hand american labor is no longer dear to japanese. american goods are more attractive. we will export more to them. paidwill...
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Aug 7, 2024
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to strengthen, the japanese yen to strengthen, the jump was too sudden.p was too sudden. after the comment, it has weakened slightly. the comment, it has weakened sliuhtl . ., ., , slightly. something that has been said — slightly. something that has been said a _ slightly. something that has been said a lot _ slightly. something that has been said a lot over- slightly. something that has been said a lot over the - slightly. something that has been said a lot over the last| been said a lot over the last few days is carry trades. what does that mean and how has it made things worse? it is does that mean and how has it made things worse?— does that mean and how has it made things worse? it is a very --oular made things worse? it is a very pepuiar trading _ made things worse? it is a very popular trading strategy - made things worse? it is a very popular trading strategy where | popular trading strategy where investors borrow money in a country with low interest rates, so in this case, japan, to reinvest in another country for higher returns, so while borrow
to strengthen, the japanese yen to strengthen, the jump was too sudden.p was too sudden. after the comment, it has weakened slightly. the comment, it has weakened sliuhtl . ., ., , slightly. something that has been said — slightly. something that has been said a _ slightly. something that has been said a lot _ slightly. something that has been said a lot over- slightly. something that has been said a lot over the - slightly. something that has been said a lot over the last| been said a lot...
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Aug 6, 2024
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using the dollar to resell the yen to buy treasuries. i mean, i don't know. i feel like this mag 7 trade has been around actually for quite a while and actually i think it predates the nvidia -- i think it goes back to during the pandemic. so it makes sense to me that it gets overdone and people look to rotate on to something else. i had actually thought we would expand it, be broader than we are, the iwm trade i would thought would have worked more, it worked a little bit but given the underperformance over so long it really hasn't worked at all. so we forget now, though, we might be in a cutting phase by the fed. we should be. everyone expects in september that seems the most likely path for sure. that used to be positive for stocks. i think it could be again. >> we will continue this conversation because if you're trying to figure out where the macro economy is going or maybe what the fed is going to do you want to look at the banks. banks know a lot about things, loan demand, credit availability and few companies know as much about banks as kbw. a 62-year
using the dollar to resell the yen to buy treasuries. i mean, i don't know. i feel like this mag 7 trade has been around actually for quite a while and actually i think it predates the nvidia -- i think it goes back to during the pandemic. so it makes sense to me that it gets overdone and people look to rotate on to something else. i had actually thought we would expand it, be broader than we are, the iwm trade i would thought would have worked more, it worked a little bit but given the...
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Aug 5, 2024
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how do we compare the yen with the dollars? we need some way of transforming the one into the other. that is where exchange rate enters in the price of yen in terms of the dollar. suppose at some exchange rate, japanese goods are in general cheaper than american goods. then we won't be buying much from japan and selling little to them. but what will the japanese do with the extra dollars they earn? they don't want to buy american goods by assumption. those all, dear. they want to buy japanese. but to buy japanese goods. they needn't. calls will come from all over the world to places like this, offering to buy for dollars. but there will be more offers to buy in the sale. yet in order to get customers, those offering to will have to raise the price. the price of yen in terms of dollars will go up. as you remember, that is what happened in 1977 and 1978. by late 1978, it took 50% more dollars to buy a given amount of yen than it had taken a earlier. but what happens when the price of the yen in terms of dollars goes up? jeff in h
how do we compare the yen with the dollars? we need some way of transforming the one into the other. that is where exchange rate enters in the price of yen in terms of the dollar. suppose at some exchange rate, japanese goods are in general cheaper than american goods. then we won't be buying much from japan and selling little to them. but what will the japanese do with the extra dollars they earn? they don't want to buy american goods by assumption. those all, dear. they want to buy japanese....
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Aug 27, 2024
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how do we compare the yen with the dollars? we need some way of transforming the one into the other. that is where exchange rate enters in the price of yen in terms of the dollar. suppose at some exchange rate, japanese goods are in general cheaper than american goods. then we won't be buying much from japan and selling little to them. but what will the japanese do with the extra dollars they earn? they don't want to buy american goods by assumption. those all, dear. they want to buy japanese. but to buy japanese goods. they needn't. calls will come from all over the world to places like this, offering to buy for dollars. but there will be more offers to buy in the sale. yet in order to get customers, those offering to will have to raise the price. the price of yen in terms of dollars will go up. as you remember, that is what happened in 1977 and 1978. by late 1978, it took 50% more dollars to buy a given amount of yen than it had taken a earlier. but what happens when the price of the yen in terms of dollars goes up? jeff in h
how do we compare the yen with the dollars? we need some way of transforming the one into the other. that is where exchange rate enters in the price of yen in terms of the dollar. suppose at some exchange rate, japanese goods are in general cheaper than american goods. then we won't be buying much from japan and selling little to them. but what will the japanese do with the extra dollars they earn? they don't want to buy american goods by assumption. those all, dear. they want to buy japanese....
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Aug 23, 2024
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the dollar-yen has moved off what we saw earlier on the session. it is not just about the boj but also about the fed and what we get from powell. >> let's talk about that. during -- jerome powell could shed light o on a cut from the fed. it is a highly anticipated speech. is the central bank going to cut at its september meeting and how big will that cut be? mike mckee has this preview. >> all wall street wants to know, how far will he go? investors would love a rate cut pledge from chairman powell. that is not likely and he is also unlikely to say how far the fed will cut or what their next steps will be. expect acknowledgment the fed is close to changing rates as long as the incoming financial data beats forecasts. he still have to get some of his colleagues onboard. >> this mandate on the inflation sites is really important. we seem to be getting good movement in that direction, before we act or before i recommend acting, i think we need to see a little bit more. >> he didn't say how much a little bit might be. for wall street, powell just raisi
the dollar-yen has moved off what we saw earlier on the session. it is not just about the boj but also about the fed and what we get from powell. >> let's talk about that. during -- jerome powell could shed light o on a cut from the fed. it is a highly anticipated speech. is the central bank going to cut at its september meeting and how big will that cut be? mike mckee has this preview. >> all wall street wants to know, how far will he go? investors would love a rate cut pledge from...
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Aug 7, 2024
08/24
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CNBC
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the yen's been volatile. that impacts the companies and where the numbers trend, but what are you watching right now? >> yes, slightly bac backward-looking. the weekend has been ultimately very, very positive. you think about sony. a lot of the sales are coming from yo it side of japan with the playstation and the u.s., its music usiness, its movie business. generally two different kinds of stories. softbank, of course, very much focused the tech investment, eeking out a small gain of about 1.9 billion yen. it saw gains in some of its chinese companies. others like auto, automation companies, companies booking gains from sales of shares of alibaba and t-mobile, which is something they've been doing. for soft baifrpg the buyback has been a big story. there's been a long tale of pressure that has said how are you trading at such a discount to the total value of assets you hold from alibaba. they're trying to address that through the buyouts. sony, it was a story of beyonce and pay slaystation 5. it's secontinui
the yen's been volatile. that impacts the companies and where the numbers trend, but what are you watching right now? >> yes, slightly bac backward-looking. the weekend has been ultimately very, very positive. you think about sony. a lot of the sales are coming from yo it side of japan with the playstation and the u.s., its music usiness, its movie business. generally two different kinds of stories. softbank, of course, very much focused the tech investment, eeking out a small gain of...
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Aug 5, 2024
08/24
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BLOOMBERG
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not just the yen rallying but also the chinese renminbi. amidst all of this the levels we are watching on dollar-yen because it has broken through the 100 week moving average. this is close to erasing the declines the yen for this year. let's talk about cross assets. the extreme selling and buying we have been seeing today depending on which asset you're looking at. the topix seeing it's worth day since 2011. we are also seeing indiscriminate selling hitting the bags. we also see a rapid coming down of yields raising the concerns about what we will see four bangs. seeing the worst day since the 1980's. nikkei futures, jgb futures and also interesting to see that on a day like this, a china equities not fearing as badly. a bit of a safe haven. sentiment towards the chinese equities. the steep selling also being seen on the taiex losing the most. we have not seen declines like this ever. the worst decline ever on record. tech stocks taking a beating on the msci asia pacific index. berkshire hathaway halving it's stake in -- its stake in apple
not just the yen rallying but also the chinese renminbi. amidst all of this the levels we are watching on dollar-yen because it has broken through the 100 week moving average. this is close to erasing the declines the yen for this year. let's talk about cross assets. the extreme selling and buying we have been seeing today depending on which asset you're looking at. the topix seeing it's worth day since 2011. we are also seeing indiscriminate selling hitting the bags. we also see a rapid coming...
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Aug 5, 2024
08/24
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BBCNEWS
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a stronger yen also affects a popular trading strategy, a carry trade come investors borrow money inith low interest rates, in this case japan and then reinvest that money somewhere else for a higher return. borrowing money in the yen to invest elsewhere has been very popular as investors bet japanese interest rates would remain at rock bottom. a new factory in japan's stock market individual investors until recently, people injapan have tended to keep their savings in cash and not invest them in their stocks. the government has encouraged individuals to invest in the stock market by promoting a step tax—free investment programme. those retail investors are facing their first market meltdown. in half an hour �*s time, we will have an update on the japanese markets. neil newman explained what he thinks is playing out in the japanese market. this is the seventh — in the japanese market. this is the seventh crash _ in the japanese market. this is the seventh crash during - in the japanese market. this is the seventh crash during my i the seventh crash during my career. the first one bei
a stronger yen also affects a popular trading strategy, a carry trade come investors borrow money inith low interest rates, in this case japan and then reinvest that money somewhere else for a higher return. borrowing money in the yen to invest elsewhere has been very popular as investors bet japanese interest rates would remain at rock bottom. a new factory in japan's stock market individual investors until recently, people injapan have tended to keep their savings in cash and not invest them...
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Aug 1, 2024
08/24
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BBCNEWS
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who else but the bbc�*s resident yen geek to explain?rom our asia business hub. what is going on? i was so disappointed _ what is going on? i was so disappointed i _ what is going on? i was so disappointed i did - what is going on? i was so disappointed i did not - what is going on? i was so disappointed i did not getl what is going on? i was so i disappointed i did not get to talk to you yesterday. i know you had breaking news, buti was so excited the bank of japan decided to raise rates, not the fact they raised rates but it shows the bank of japan is trying to return its monetary policy to something closer to global norms and it also shows they think the economy is ready for higher rates. i was actually playing this, her gong across bbc radio. can i play this? there you go. a gong. the n has been rallying, especially after the central bank governor said he was ready to raise rates even further. the currency hitting 148 against the us dollar. —— yen. not long ago we were talking about 160 against the dollar. this is what authorities an
who else but the bbc�*s resident yen geek to explain?rom our asia business hub. what is going on? i was so disappointed _ what is going on? i was so disappointed i _ what is going on? i was so disappointed i did - what is going on? i was so disappointed i did not - what is going on? i was so disappointed i did not getl what is going on? i was so i disappointed i did not get to talk to you yesterday. i know you had breaking news, buti was so excited the bank of japan decided to raise rates,...
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Aug 5, 2024
08/24
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BBCNEWS
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let's go to our asia business hub tojoin the bbc�*s resident yen geek, mariko oi, because, mariko, thepan is partly because of the japanese currency, isn't it? it isa it is a bit ofa it is a bit of a bloodbath today. the decay as you mentioned opening 7% lower and more crucially they are actually down by more than 15% in three sections —— nikkei. if confirmed at the end of today, biggest three—day funds in 2011 when the country was in the earthquake that triggered a meltdown at the nuclear power plant. concerns over the world was my biggest economy after that week jobs was my biggest economy after that weekjobs number, for japanese investors, is very much caused by that sudden jump in the value of the japanese yen. as we discussed last week, the bank ofjapan has raised interest rates for the second time this year 0.25%, which is still very low compared to the rest of the world but it was enough to prop up the value of the japanese currency. this is exactly what the japanese authorities actually wanted because they said the yen was getting too weak, and that was making the host of impor
let's go to our asia business hub tojoin the bbc�*s resident yen geek, mariko oi, because, mariko, thepan is partly because of the japanese currency, isn't it? it isa it is a bit ofa it is a bit of a bloodbath today. the decay as you mentioned opening 7% lower and more crucially they are actually down by more than 15% in three sections —— nikkei. if confirmed at the end of today, biggest three—day funds in 2011 when the country was in the earthquake that triggered a meltdown at the...