Archives of “April 2019” month

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The BOJ is about to overtake GPIF to become the biggest holder of Japanese stocks

  
  Analysis

Japan’s Government Pension Investment Fund (GPIF) manages the largest pool of retirement savings in the world.

UP until now they’ve been the country’s largest holder of equities.
The BOJ ‘Hold my beer’ QQE policy, though, will soon see the Bank overtake the fund.
The Nikkei says the Bank will overtake the GPIF in 2020 as  top shareholder in Tokyo-listed companies
  • BOJ held over 28 trillion yen (around $250 billion) in exchange-traded funds as of the end of March, equating to 4.7% of the total market capitalization of the first section of the Tokyo Stock Exchange
  • Given the bank has a buy target of 6 trillion yen in new purchaseseach year, its holdings will put it ahead of GPIF in November. of 2020
  • GPIF are currently on 6%
–
If any ForexLive traders are travelling to Japan, do not leave your luggage unattended. The BOJ will snap that up too.
Mine!

Nippon Paint to buy Australia’s DuluxGroup for $2.7bn

  
  Analysis

The board of Australia’s DuluxGroup has unanimously backed a A$3.8bn ($2.7bn) takeover bid from Japan’s Nippon Paint, the paint and coatings maker said on Wednesday.

Nippon Paint offered to pay A$9.80 a share for the Sydney-listed company, a 27.8 per cent premium on its closing price on Tuesday, DuluxGroup said in a statement to the Australian Stock Exchange.

Shares in DuluxGroup surged 27.6 per cent, while Nippon Paint stocks fell 3.7 per cent on the news.

“The Board has carefully considered the strategic options available to DuluxGroup to maximise value value, including continuing to pursue domestic and global growth as a standalone company, and we have unanimously concluded that the transaction with Nippon is in the best interest of our shareholders,” DuluxGroup chairman Graeme Liebelt said.

DuluxGroup said the offer would give the company “increased opportunity” to pursue its growth ambitions and said no changes were expected to its leadership or operations. It said the offer gave DuluxGroup an implied enterprise value of $4.2bn.

Nippon Paint said it had “essentially no operations in Australia or New Zealand”.

Shareholders will vote on the deal in July.

Japan trade balance for March: Y 528.5bn (expected Y 363.2bn)

  
Analysis, Economy

March 2019 trade balance from Japan, exports held down by trade wars

Trade balance: Y 528.5bn
  • expected Y 363.2bn, prior was Y 334.9bn
Trade balance (adjusted): Y -177.8bn
  •  expected Y -242.5bn, prior was Y 116.1bn
Exports -2.4% y/y:, not quite as bad as expected
  • expected -2.6%, prior was -1.2%
Imports +1.1% y/y, a miss
  • expected 2.8%, prior was -6.7%
Yen unresponsive. What else is new?

ICYMI: Satellite images show movement at North Korea’s main nuclear site

  
Analysis, Politics

Some news doing the rounds referring to satellite imagery taken last week of North Korea’s main nuclear site.

Which is the Yongbyon nuclear site
The Center for Strategic and International Studies in Washington DC says images show activity near the site’s Uranium Enrichment Facility and Radiochemistry Laboratory, and that:
  • “n the past, these specialized railcars appear to have been associated with the movement of radioactive material or reprocessing campaigns.
Something to keep an eye on.
But its not surprising really. If nuclear development ever did halt in NK (which is very doubtful) it would have restarted again after the failure of the Hanoi summit since.
Some news doing the rounds referring to satellite imagery taken last week of North Korea's main nuclear site.Winners are grinners! (reprised)

Netflix EPS $0.76 vs $0.57 estimate

  
  Analysis

Revenues $4.52B vs $4.5B estimate

  • earnings-per-share $.76 versus $.57 estimate
  • revenues of $4.52 billion versus $4.5 billion estimate
  • sees 2nd quarter streaming paid net change +5M versus estimate 6.09 million
  • See 2nd Quarter revenues of $4.93 billion vs estimate $4.95 billion
  • adds 1.7 million domestic paid subscribers in Q1
  • adds 7.86 million international paid subscribers  in Q1
  • does not expect entrance of Disney and Apple into online streaming to affect growth

US stocks give up most of gains but major indices end the day higher.

  
Analysis, US Market

Netflix earnings after the close

The major stock indices have given up a lot of their gains on the back of concern about North Korea.  Nevertheless, the major indices are ending the session higher.
The final numbers are showing:
  • The S&P is up 1.57 points or 0.05% at 2907.16
  • THe Nasdaq is up 24.215 points or 0.30% at 8000.22
  • The Dow is up 68.16 points or +0.26% at 26452.79
Netflix will report after the close.  They are expected to report earnings of $0.57. The reported EPS for the same quarter last year was $0.64. Revenue is expected at  $4.5B

China looking to lift a ban on poultry and possibly looking to buy more pork

  
  Analysis

According to sources as part of a trade deal

According to sources, China is looking to lift a trade ban on poultry and may buy more pork to meet a growing supply deficit. This is part of a trade deal with the US.  However, it is not willing to allow a prohibited growth drug used in roughly half of the US hog herd.  The China hog population has been hurt by an African swine fever.  According to sources 200 million pigs could be culled or die as a result of the fever (about 30% of the pork output).
You can read more about the ins and outs of the pork and chicken trade issues HERE.
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