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Archive for the tag “Sony”

Japan’s Currency Dance: Weaken the Yen—But Not Too Weak

Weaken the yen: That has been a desperate plea by the captains of Japanese industry for years as the strong currency has hurt such exporters as Sony and Toyota. Reversing the yen’s rise was a major goal of Liberal Democratic Party leader Shinzo Abe during his successful campaign against incumbent Prime Minister Yoshihiko Noda last month.

Sure enough, now that Abe is prime minister, the yen has weakened. A lot. With the government promising a big new spending program and the central bank expanding its quantitative easing policy, Japan’s currency on Jan. 18 hit a two-and-a-half-year low of ¥90.10 to the dollar. Since mid-November, when the election season got underway and an LDP victory became a near certainty, the yen has weakened by 10 percent.

Read Here – Businessweek

Facebook Needs a Dislike Button for Abe’s Ideas

For Shinzo Abe, it isn’t enough to see Sony Corp. and Panasonic Corp., two icons of industrialJapan, reduced to junk-debt status. The man who probably will become prime minister next month might do the same for the yen.

That is the upshot of his desire to browbeat the Bank of Japan into unlimited easing. Granted, his Liberal Democratic Party did that for most of the half-century it was in power until 2009. But Abe’s designs on the BOJ smack of a monetary jihad that would do more harm than good.

Read Here – Bloomberg

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