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Higher interest rates in the United States and other countries mean investors can make bigger returns on investments there than they can in Japan. This encourages carry trades, in which investors borrow money in yen to invest it in higher-yielding assets priced in other currencies. That weakens the Japanese currency. A Big Mac costs 50% more in the next cheapest G10 currency, the New Zealand dollar, than it does in yen, he added. … and lots of drawbacksBut the falling yen has caused much pain at home and not just for small businesses like Japan Fraise.
Persons: hasn’t, Hiroko Ishikawa, “ It’s, ” Ishikawa, , we’re, We’re, Himari Semans, That’s, ” Nigel Green, Kit Juckes, Warren Buffett, ” Sean Callow, , Sato Hitomi, Semans, I’ve, , Laura He, Chris Lau Organizations: Tokyo CNN, US, Reserve, CNN, Nikkei, Bank of Japan, deVere, greenback, Labor, Societe Generale, New Zealand, Japan’s National Tourism Organization, Tokyo’s Locations: Hong Kong, Tokyo, Japan, United States, Sydney, Hawaii
Mark Zuckerberg's Meta declared its first dividend and another $50 billion in approved buybacks. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementMeta announced its first dividend and another $50 billion of authorized stock buybacks in its fourth-quarter earnings on Thursday. The social-media giant is clearly eager to reward its shareholders, but its latest moves could divide investors. Meta's new dividend and large-scale buybacks are intended to show it values its shareholders and wants to reward them.
Persons: Mark Zuckerberg's Meta, Warren Buffett, , Susan Li, Nigel Green, Tesla, Instagram, Warren Buffett's Berkshire Hathaway doesn't, allocator, Buffett, Zuckerberg, Apple's buybacks, Kraft Heinz Organizations: Service, Meta, Reality Labs, Facebook, Warren, buybacks, Chevron, Kraft
The flare-up came after an explosion at a Gaza hospital fueled investors’ fears that the crisis in the Middle East will escalate. AdvertisementAdvertisementOil prices flared up again Wednesday after a devastating explosion at a hospital in Gaza fueled investors' fears that the ongoing crisis in the Middle East will escalate. The commodity's next move will be driven by how Joe Biden responds to the hospital explosion, according to analysts. "Oil prices rallied 2% following the deadly explosion at the Gaza hospital as it boosts tensions across the Middle East just before the arrival of US President Joe Biden," deVere Group CEO Nigel Green said. AdvertisementAdvertisement"Clearly, the US is a major influence in the Middle East due to its economic interests, military presence, national security concerns, strategic alliances, and diplomacy efforts," he added.
Persons: Brent, , Joe Biden, Biden, Jordan, Nigel Green, Organizations: Service, West Texas, Hamas Locations: Gaza, Israel, Palestine, Iran, Saudi Arabia, East
World stocks gyrate as bank contagion fears bite
  + stars: | 2023-03-24 | by ( Koh Gui Qing | ) www.reuters.com   time to read: +5 min
"The growing sense of unease about the global banking system is heightening volatility in stock markets around the world," said Nigel Green, chief executive of deVere Group, a financial advisor. The failure of U.S. regional banks Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) this month triggered fears of a banking contagion and prompted U.S. Treasury Secretary Janet Yellen on Thursday to pledge action to safeguard bank deposits. JP Morgan Chase (JPM.N) dropped 1.52%, the S&P 500 banks index (.SPXBK) was down 0.33%, while the KBW regional bank index (.KRX) climbed 2.92%. "I don't expect this volatility (in bank stocks) to subside anytime soon," said Peter Doherty, head of investment research at private bank Arbuthnot Latham in London. Doherty said issues of "contagion risk within the U.S. banking sector" were undoubtedly weighing on appetite for bank stocks elsewhere.
How bad is the banking crisis?
  + stars: | 2023-03-20 | by ( Spriha Srivastava | ) www.businessinsider.com   time to read: +7 min
The Fed along with five other central banks announced coordinated action to reassure global banks. To make sense of those acronyms, GFC refers to the global financial crisis of 2007 to 2009, EZ crisis is the Eurozone crisis of 2009 onwards, temper tantrum likely refers to the taper tantrum of 2013, and the Covid 3/20 shock is when global markets went haywire in the early stages of the pandemic. So, you might be wondering: Just how bad is the banking crisis? "It means the banking crisis we've seen over the past few weeks has started a new chapter rather than reaching its ending." After the 2008 financial crisis, the Bank of International Settlements (BIS) made it necessary for all European banks to issue CoCo bonds.
Silicon Valley Bank's rapid implosion showed how bank runs can go at warp speed in the digital age. But while digital banking meant SVB's collapse accelerated to warp speed, its foundations had been left shaky. Digital banking, and the expectation of instantaneous transactions, is now the norm for the internet generation. Bianco said SVB's collapse should "scare the hell" out of bankers and regulators worldwide. Nigel Green, CEO of deVere Group, an independent financial adviser, said SVB's collapse had brought Trump-era deregulation into question.
Rishi Sunak has been named as the U.K.'s new prime minister and the country's first leader of color. Sunak's officiation is momentous not least in that it marks Downing Street's first prime minister of color and the U.K.'s youngest leader of modern times. Uniting a divided Conservative PartySunak's task as prime minister is further complicated by deep and severe divisions within the ruling Conservative Party. Rishi Sunak is tasked with a daunting in-tray as the U.K.'s new prime minister, including a crisis in public finances, political infighting and soaring energy bills. Chris Mcgrath | Getty Images News | Getty Images
The pound rose against the US dollar Thursday as Liz Truss resigned as UK prime minister. Truss' 45 days in office were marked by turmoil in financial markets over her government's mini-budget. Analysts said market volatility may lie ahead as the UK looks for its new prime minister. Pound sterling rose as much as 1.1% to $1.1337 before paring the rise to 0.8%. To investors, the UK looks ungovernable, and its economy resembles that of an emerging market, not a G7 nation," he wrote.
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