Active Investing in Japan

Weak yen brings buy interest to blue chip exporters, sparking an afternoon session rally which brought the Nikkei back near breakeven from earlier triple-digit losses.

* Nikkei 225 Stock Average: -28.14 (-0.2%) to 17,732.77
* Nikkei 225 futures Osaka: -70 (-0.4%) to 17,730
* TOPIX: -5.70 (-0.3%) to 1,745.92; Advancers 640 x decliners 942 (unchanged 150); 10 of 33 sectors posted gains
* TOPIX 2nd Section: 5th straight loss
* Jasdaq: +0.01 (+0.01%) to 79.56
* Yen trading at a 4.5-year low against the US dollar

The June 18th Newsweek Int’l Edition covers a disturbing situation, but one that may be improving, where underemployed younger workers in Japan are now forming unions and even publicly demonstrating in an attempt to demand more work and make their voices heard regarding inequalities in compensation, among other things. It’s worth a read. Let’s hope those who want to work get fully employed, get married, have children and help out with some of Japan’s demographic challenges.

There is an interesting recap by the Japan Times (it may not be available online for much longer) of an economics symposium last weekend in Tokyo.

Ambrose Evans-Pritchard, international business editor of The Daily Telegraph, notes “Globalization has been very kind to Britain,” but explains how there was once fear Britain’s assets would all be taken over by foreigners and nothing would remain as Thatcher brought an “era of Schumpeterian creative destruction.” The best example is Switzerland’s UBS takeover of Warburg. Interestingly enough, UBS now runs its global operations out of Liverpool Street in London, says Evans-Pritchard. It may be the case Switzerland was the one to lose out, while England benefits most from the takeover.

“The City of London is in effect almost wholly controlled by foreigners. There is very little left that’s owned by the British, and it doesn’t matter at all. The place is thriving.”

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