SoftBank’s Buybacks Paused in August. So Did Its Stock Rally
(Bloomberg) -- SoftBank Group Corp. suspended its multi-billion dollar buyback program in August, bringing to a halt the significant share price gains that Masayoshi Son’s conglomerate has largely enjoyed since the plan and asset sales were announced earlier this year.In a filing to the stock exchange
Bloomberg · 6d ago
SoftBank Soars After Arm Deal, Renewed Talks to Go Private
(Bloomberg) -- SoftBank Group Corp. shares soared after the company reached a deal to sell chip designer Arm Ltd. for as much as $40 billion and revived talks about taking the group private.SoftBank’s shares jumped as much as 10% in Tokyo on Monday, the most in about six months. SoftBank announced the
Bloomberg · 09/14 01:58
SoftBank Buybacks Raise Prospect of Management Buyout, Analyst Says
(Bloomberg) -- SoftBank Group Corp. has been repurchasing so much of its own stock that a management-led deal to take the company private is looking feasible, a Tokyo-based analyst said.SMBC Nikko Securities Inc. analyst Satoru Kikuchi mentioned the prospect in response to investor questions about the
Bloomberg · 09/09 08:50
Nikkei tumbles on likely end of 'Abenomics'
Japanese shares fell on Friday by their most in almost a month on news Prime Minister Shinzo Abe will resign, bringing an abrupt end to his stable government and policy mix of aggressive monetary and fiscal stimulus dubbed Abenomics. "The Nikkei will likely head to around 21,000, a level where
Reuters · 08/28 06:59
A $2 Trillion Debt Deluge Means the BOJ Needs to Buy More Bills
(Bloomberg) -- A surge in Japan’s bill issuance is exerting upward pressure on yields and reinforcing the case for the central bank to buy more.Yields on three-month treasury bills rose to -0.06% last week, a level last reached in early 2016 before the Bank of Japan introduced its negative rate policy. Demand from global funds, typically the biggest buyers, has failed to keep pace with supply, prompting the BOJ to step up purchases.The government’s $2.2 trillion stimulus plan has unleashed a flood of bond supply, with issuance set to increase by almost two-thirds in the current fiscal year. While borrowing costs remain low by historical standards, the uptick in yields threatens to infect other parts of the curve and weigh on the nation’s hefty debt burden.“The BOJ may be thinking that it can let the market absorb supply as long as it doesn’t affect yield curve control given debt issuance is likely to decrease next fiscal year,” said Toru Suehiro, senior market economist at Mizuho Securities Co. in Tokyo.The government boosted planned debt issuance to 212.3 trillion yen ($2 trillion) for the fiscal year ending March 2021, to deliver what Prime Minister Shinzo Abe said would be the world’s biggest stimulus. T-bills accounted for almost three quarters of the increase.Global funds haven’t been able to absorb the glut in supply despite buying more.Monthly net purchases by foreign investors averaged 20.8 trillion yen in the second quarter, compared with 17.5 trillion yen a year earlier, according to data from the Japan Securities Dealers Association.More than two-thirds of the nation’s negative-yielding T-bills were owned by global funds as at end-March, based on BOJ figures. These investors borrow yen from their Japanese counterparts at deeply negative rates while lending dollars, earning an extra yield pickup. But ample dollar supply from the Federal Reserve in recent months has capped these premiums.T-bill yields have dipped since Aug. 12, the day the BOJ increased daily purchases by 1 trillion yen to 3 trillion yen.“Bill yields have risen because the basis isn’t favorable for foreign investors,” said Naomi Muguruma, senior market economist at Mitsubishi UFJ Morgan Stanley Securities Co. “Given the negative-rate policy, the BOJ couldn’t tolerate a continuous rise in yields, and that’s why it increased purchases.”Local banks also own these bills, and lenders can use them as collateral for yen and dollar loans from the central bank.“Collateral demand for T-bills from banks has declined,” said Souichi Takeyama, a rates strategist at SMBC Nikko Securities Inc. “It all comes down to whether or not the BOJ will increase purchases” to contain a rise in bill yields, he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Bloomberg · 08/19 23:00
Shares of several financial companies are trading higher after Russian President Vladimir Putin claimed to have given regulatory approval for a coronavirus vaccine. The Nasdaq index fell as traders rotate out of technology stocks.
Benzinga · 08/11 17:59
Japan's large banks to look at building settlement system for small payments
Japan's three biggest banks and two smaller banks are starting talks on building a common settlement infrastructure for small payments, with the aim of cutting interbank fees, they announced on Thursday. While everyday transactions in Japan are usually comple
Reuters · 08/06 09:03
Japan Inc. Sticks With Bonus Commitments Despite Pandemic · 08/05 09:31
Shares of several financial services companies are trading lower amid macro concerns following a steep decline in US GDP and rising jobless claims, as well as weakness in tech names ahead of this week's earnings.
Benzinga · 07/30 18:49
Japan’s Biggest Banks May Stave Off Bad Loan Surge, for Now
(Bloomberg) -- Japanese banks face sharply higher bad loan costs due to the pandemic, but the damage is unlikely to show through in first-quarter earnings reports.The three largest lenders have already forecast credit costs will swell to an 11-year high of $10
Bloomberg · 07/27 20:00
SMBC Nikko Securities Inc. -- Moody's affirms SMBC Nikko's ratings; outlook stable
Moody's Japan K.K. has affirmed SMBC Nikko Securities Inc.'s A1 and P-1 issuer ratings. The affirmation of SMBC Nikko's rating reflects the company's (1) weak liquidity and solid funding; (2) weak, but relatively stable profitability, with its main focus on d
Moody's · 07/15 08:16
Is Sumitomo Mitsui Financial Grp, Inc. (SMFG) Going to Burn These Hedge Funds?
We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional invest
Insider Monkey · 07/08 00:58
Battery Giant TDK Expects Virus to Boost Gadget, Auto Prospects
Bloomberg · 07/03 05:30
Bond Market Lessons From Australias Test of Yield Curve Control
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If U.S. Stocks Are a Bubble, Theyre Hardly Alone
Bloomberg · 06/22 07:00
Japan begins to unwind dominant position in dollar swaps with Fed
Japan, the biggest taker of cheap dollar funding from the U.S. Federal Reserve during the coronavirus pandemic, is weaning itself off that supply as it shies away from emergency swaps and returns to now sedate interbank markets. When the Federal Reserve annou
Reuters · 06/19 09:32
Texas Cases Up by Record; California on Face Masks: Virus Update
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Argentina Corporates Are Bright Spot After Nations Default
Bloomberg · 06/17 17:50
Japans Mammoth Spending Likely Requires Third Extra Budget
Bloomberg · 06/03 21:00
Japan's Banking Minnows Swim in Risky Waters
Bloomberg · 06/02 23:00