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Dec 07, 2016
byAkane Hashimoto

Trump Claims Japan's Richest Tech Billionaire Will Invest $50 Billion In U.S. Business"Entrepreneurs are always looking for new business opportunities." Japan Moves Closer to Legalizing Casino Gambling"A poll by the Yomiuri newspaper released Sunday found 57% of respondents opposed legalizing casinos while 34% were in favor." Japan shows the world how to strike trade deals "Mr. Abe should clearly know what he is expected to do as now a one of the most stable administration in developped countries." China pension reform aim isn’t to rescue stock market "Interesting article stating what they learn from GPIF."

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Noriyuki Morimoto's Blog

Mr. Aso’s Dodgy Classmates Who Worked in Securities Firms

Dec 05, 2016
byNoriyuki Morimoto

Deputy Prime Minister Taro Aso recently made a remark on the Japanese citizens’ general view of securities, saying “There’s a perception that investing in bonds or stocks is somewhat dangerous. It’s correct,” adding “Among my classmates, those who went on to work in securities firms were the especially dodgy ones,” openly remarking “They were doing things that amounted to fraud, or came pretty close to it.” Mr. Aso is also the minister in charge of the Financial Services Agency, which oversees securities firms, so his comment could have been controversial. But no reaction was to be heard. It seems to have been an oddly convincing statement. Actually, it’s no problem whatsoever that the now 76-year old Deputy Prime Minister recalls his past-day personal relations, feeling that “the dodgy ones” joined securities firms, where they did things that “amounted to fraud.” In the high-growth era of Japan, then a sparkling star among emerging economies, the securities business thrived at the boundary of investment and speculation, as having a stronger nature of the latter. There is a strong perception in the society that regards speculation as a sin with an anti-social aspect, as a shady activity comparable to gambling. However, for the securities business, speculation is also an important field. Liquidity is needed for a market to function in a healthy way, and bringing in speculative money is essential to ensure this. Although Mr. Aso’s remark is about a historical situation, it seems to be relevant in how it candidly addresses the speculative aspect of securities. To bring in speculative money, “dodgy ones” should have been the right human resources. Even if sales activities that “amounted to fraud” had took place, it should have been fine as long as such an approach matched the interest of speculative clients. Soliciting speculation is to provoke the underlying gambling spirit, and it should only be natural to look like fraud from a bystander who does not have speculative interests. As for the speculative clients, pretending to be fooled by solicitation should also have been a large part of the joy of speculation.

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Recent News

Today's Pick

Nov 30, 2016
byAkane Hashimoto

Thanks To Trump, Bank Of Japan's Kuroda Bank of Japan Posts First Loss in Four Years"Shall see how things go…" Japan suffers longest consumer price fall since 2011"Maintaining purchasing power shall be the most important thing for consumers."

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Updates

Nov 04, 2016
byPavilion Global Markets Ltd. _

A few Japanese surprises | Global Strategy Note

 

A positive view on Japanese equities: Increasingly, we are seeing some upbeat developments in Japan’s external and domestic sectors. Growing foreign income, accelerating exports, improving consumer confidence and construction activity together with on-going corporate reforms should bode well for Japanese equities. Over all, we expect Japanese earnings to surprise and Japanese equities to outperform those of other developed markets.

Nov 01, 2016
byPavilion Global Markets Ltd. _

Think small, go global | Global Strategy Note

 

Think small, go global: Small caps outperformed large caps around the world since the last bull market started in 2009; as a result they are pricier than large caps, and even more so in the United States. However, a few markets offer better growth perspectives at reasonable valuations, such as Japan and a few emerging countries. American small-cap investors should look eastward.

Oct 26, 2016
byPavilion Global Markets Ltd. _

Some U.S. homebuilding headwinds | Global Strategy Note

 

We aren’t coming home: U.S. homebuilding stocks have rallied dramatically since the end of the financial crisis, but have started to lag. We see a number of factors emerging that suggest the U.S. housing market will cool, and that home builder stocks will de-rate.

Oct 25, 2016
byPavilion Global Markets Ltd. _

The PBOC’s tough balancing act | Global Strategy Note

 

The PBOC: Today’s note takes a look the way the PBOC is providing easing to the Chinese economy. The PBOC’s ability to further ease its monetary policy remains limited by Chinese authorities’ desire to see a measured, controlled weakening of the renminbi. In this context, the central bank cannot inject large amounts of domestic liquidity without risking the creation of large capital outflows that would apply undue pressure to the currency. As long as large amounts of bad loans and overcapacity remain present, banks will need stable funding from the central bank. In our view, this is consistent with a slowly declining RMB and range-bound Chinese equities.

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