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☆ Japan's MUFG Bank, two others lead $290 mln Sierra Space fundraising -Nikkei
▼ + stars: | 2023-09-26 | by ( ) www.reuters.com time to read: +2 min

TOKYO, Sept 26 (Reuters) - MUFG Bank is among three Japanese firms leading a $290-million fundraising round for U.S. spaceship company Sierra Space, spearheading a commercial "spaceport" project in the southwestern region of Oita, the Nikkei daily said on Tuesday. A spokesperson of Tokio Marine & Nichido Fire, a unit of Tokio Marine Holdings (8766.T), confirmed that the three companies formed a strategic partnership with Sierra, but declined to elaborate on their investments. Sierra Space, spun off in 20221 from billionaire-owned Sierra Nevada Corp, is among a handful of space industry players attempting to build a private space station that NASA hopes will replace the two decade-old International Space Station by 2030. The Oita project took a hit this year from the bankruptcy of another U.S. space company Virgin Orbit , which had partnered with airline ANA Holdings (9202.T). MUFG Bank, one of Japan's three biggest, has invested in domestic space startups such as orbital debris-removal firm Astroscale.

Persons: Sierra, inc's, Kantaro Komiya, Clarence Fernandez Organizations: MUFG, Space, Nikkei, SpaceX, MUFG Bank, Tokio Marine, Tokio Marine Holdings, Sierra, Mitsubishi UFJ, Kanematsu Corp, CNBC, Sierra Nevada Corp, NASA, Japan Airlines, Orbit, ANA Holdings, Mitsui Sumitomo Insurance, Japan Aerospace Exploration, SLIM, Thomson Locations: TOKYO, Oita, Sierra, Kanematsu, Asia's, Japan

☆ Kioxia's banks to refinance $13.5 bln loan for Western Digital merger -Bloomberg
▼ + stars: | 2023-09-20 | by ( ) www.reuters.com time to read: +1 min

Sumitomo Mitsui Financial Group (8316.T), Mizuho Financial Group (8411.T) and Mitsubishi UFJ Financial Group (8306.T) intend to submit a commitment letter for the refinancing next month, Bloomberg reported citing unnamed sources. Part of the loan will be used to pay special dividends to Kioxia's shareholders, Bloomberg said. Of the 2 trillion yen loan, 400 billion yen will likely be funded through loan commitments and the Development Bank of Japan will provide a loan of 300 billion yen. The rest will likely be equally split between the three megabanks, Bloomberg reported. Kioxia and Western Digital are speeding up merger talks and nailing down a deal structure, Reuters reported in May, amid a slump in the market for flash memory.

Persons: Kioxia, Kiyoshi Takenaka, Sam Nussey, Makiko Yamazaki, Edwina Gibbs Organizations: Taipei, REUTERS, Rights, Western, Bloomberg, Sumitomo Mitsui Financial Group, Mizuho Financial Group, Mitsubishi UFJ Financial, Kioxia, Mizuho, MUFG, Development Bank of Japan, Western Digital, Reuters, Thomson Locations: Taipei, Taiwan

Stock incentives are seen positively by the market "as higher stock prices directly boost such incentives," she said. Sony, which introduced stock incentives years ago for some management levels, recently changed its framework to make the incentives more attractive, a spokesperson said. "The stock incentives are aimed at beefing up engagement with employees and promoting their interest in raising corporate value." Today, employee stock incentives are also a way for companies to replace cross-shareholdings, a common practice where companies take stakes in partners to cement relationships and avoid activist investors. Despite its increasing popularity, just a quarter of top 100 Japanese companies have employee stock incentives compared to more than 80% in the United States or Germany, data by consulting firm Human Resources Governance Leaders shows.

Persons: Kim Kyung, Motomi Hashimoto, Hitoshi Tanimura, Shintaro Takano, Shinzo Abe, Shinji Ishikawa, Makiko Yamazaki, Ritsuko Shimizu, Miral Organizations: Nikkei, REUTERS, Rights, ANA Holdings, ANA, Sony Group, Tokyo Stock Exchange, Nomura Securities, Reuters, Sony, Human Resources, Leaders, Mitsubishi UFJ Trust, Thomson Locations: Tokyo, Japan, Omron, United States, Germany

☆ Japan finance minister offers no clues on intervention as yen weakens
▼ + stars: | 2023-09-01 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

Banknotes of Japanese yen are seen in this illustration picture taken June 15, 2022. Some market players were surprised by the lack of determination to keep the yen from falling beyond 145 yen to the dollar. Traders are watching for any signs of intervention by Japanese officials to shore up the ailing currency. However, Japanese officials have rarely escalated verbal warnings since last month against speculators trying to sell off the yen. The weak yen has driven up import bills for fuel and foods, depriving households of purchasing power and prompting Prime Minister Fumio Kishida to scramble for measures to subsidise gasoline retail prices and to mitigate rises in utility bills.

Persons: Florence Lo, Shunichi Suzuki, Suzuki, Japan's, Daisaku Ueno, Fumio Kishida, Tetsushi Kajimoto, Tom Hogue, Kim Coghill Organizations: REUTERS, Rights, Japanese Finance, Mitsubishi UFJ Securities, Authorities, U.S . Federal Reserve, Bank of Japan, Thomson Locations: Japan

☆ Mitsubishi UFJ to invest $936 mln in U.S. Bancorp
▼ + stars: | 2023-08-03 | by ( Makiko Yamazaki | ) www.reuters.com time to read: +1 min

People queue inside a branch of the Mitsubishi UFJ (MUFJ) Financial Group's bank of Tokyo-Mitsubishi UFJ in Tokyo, Japan, February 1, 2016. In return, MUFG's stake in the fifth largest U.S. bank will rise to 4.4% from 2.9%. MUFG sold its U.S. retail banking unit MUFG Union Bank to U.S. Bancorp for $8 billion last year. As part of the deal, U.S. Bancorp received $3.5 billion in additional cash held by MUFG Union Bank which it is required to repay within five years. The Minneapolis-based bank will also help MUFG with U.S. dollar liquidity support, allowing the Japanese bank to diversify dollar funding sources in case of contingencies.

Persons: Yuya, MUFG's, MUFG, Makiko Yamazaki, Muralikumar Anantharaman, Edwina Gibbs Organizations: Mitsubishi, REUTERS, Bancorp, Union Bank TOKYO, Mitsubishi UFJ Financial, U.S . Bancorp, U.S, MUFG, Bank, MUFG Union Bank, Thomson Locations: Tokyo, Japan, U.S, Minneapolis

☆ Mitsubishi UFJ to invest $937 mln in U.S. Bancorp
▼ + stars: | 2023-08-02 | by ( ) www.reuters.com time to read: +1 min

People queue inside a branch of the Mitsubishi UFJ (MUFJ) Financial Group's bank of Tokyo-Mitsubishi UFJ in Tokyo, Japan, February 1, 2016. REUTERS/Yuya Shino/File PhotoTOKYO, Aug 3 (Reuters) - Japan's Mitsubishi UFJ Financial Group (MUFG) (8306.T) said on Thursday it would invest $936.7 million in U.S. Bancorp (USB.N) to raise its stake in the U.S. bank to 4.4%. The payment is in connection with MUFG's $8 billion sale of its U.S. retail banking unit MUFG Union Bank to U.S. Bancorp last year. In the deal, U.S. Bancorp received $3.5 billion in additional cash held by MUFG Union Bank which the U.S. bank is required to repay. MUFG also said it has agreed with a bank subsidiary of U.S. Bancorp on U.S. dollar liquidity support to strengthen its sustainable non-Japanese yen funding capacity.

Persons: Yuya, MUFG, Makiko Yamazaki, Tom Hogue Organizations: Mitsubishi, REUTERS, Mitsubishi UFJ Financial, U.S . Bancorp, U.S, Bancorp, MUFG's, MUFG, Bank, MUFG Union Bank, Thomson Locations: Tokyo, Japan, U.S

☆ Meet Ted Pick, the hard-charging 'deal junkie' who rose to the top at Morgan Stanley the old-fashioned way — and looks poised to succeed James Gorman as CEO
▼ + stars: | 2023-08-01 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +20 min

Employees knew they were getting promoted if Pick told them to wear a tie the following day, an ex-managing director recalled. While Morgan Stanley currently trades at a premium among its Wall Street peers, its enviable success isn't thanks to Pick. Succession has traditionally been a bloody sport on Wall Street, and Morgan Stanley is no exception. Gonzalo Marroquin/Patrick McMullan via Getty Images Show less Morgan Stanley investment management head and dark horse in the race for CEO, Dan Simkowitz. Despite enjoying the stock price gains under Gorman's reign, plenty of longtime employees want another dyed-in-the-wool Morgan Stanley loyalist, according to a former senior executive.

Persons: Morgan Stanley, Ted Pick, Pick, Gucci loafers, Blackstone, Tony James, Morgan, James Gorman, Gorman, Andy Saperstein, Dan Simkowitz, John Mack, Ted, James, Phil Purcell, Mack, Purcell, Merrill Lynch, Paul Taubman, Colm Kelleher, coheads, Gonzalo Marroquin, Patrick McMullan, Saperstein, Euromoney, Parker Gilbert, He's, John, cohead, Bolu, Goldman Sachs, Pablo, tony, Betsey Kittenplan, Smith Barney, James cochairs, Jim Breyer, Anna Wintour, John Mack pranking Pick, John Waldron, Goldman, I'm, Howard Marks, Bill Parcells, atta, Brian Moynihan, aren't, David Solomon, Jamie Dimon's, Eaton Vance, he's, you've, Richard Drew, — Organizations: Employees, Archegos Capital Management, Blackstone, McKinsey, Getty, Middlebury College, China Construction Bank, Harvard Business School, Mitsubishi, Wall, Autonomous Research, Anguilla, Agricultural Bank of China, Capital Management, Metropolitan Museum of Art, Vogue, New York Rangers, Oaktree Capital Management, Bloomberg, Staten, Disney, JPMorgan, Trade, AP Locations: China, Beijing, Manhattan, New York City, Caracas, Venezuela, Brookville, tony Long

NEW YORK, July 27 (Reuters) - Bill Hwang, the founder of Archegos Capital Management, on Thursday asked a judge to let him subpoena documents from 10 banks, in an effort to shift blame as he defends against criminal fraud charges that the firm's collapse was his fault. The office of U.S. Attorney Damian Williams, which is prosecuting Hwang, did not immediately respond to a request for comment. Other banks also lost money when Archegos collapsed, but less than Credit Suisse. That caused it to miss margin calls, and banks to dump stocks that had backed the swaps and which they had bought as hedges. The case is U.S. v. Hwang et al, U.S. District Court, Southern District of New York, No.

Persons: Bill Hwang, Hwang, Damian Williams, Archegos, Goldman Sachs, Jefferies, Mitsubishi UFJ, Morgan Stanley, Nomura, Alvin Hellerstein, Hwang et, Jonathan Stempel, Daniel Wallis Organizations: YORK, Archegos Capital Management, UBS, Credit Suisse, Prosecutors, Bank of Montreal, Deutsche Bank, Mitsubishi, Court, Southern District of, Thomson Locations: Manhattan, Macquarie, Mizuho, U.S, Southern District, Southern District of New York, New York

☆ Morgan Stanley and MUFG’s next act is well-timed
▼ + stars: | 2023-07-19 | by ( Una Galani | ) www.reuters.com time to read: +3 min

Morgan Stanley (MS.N) and the $94 billion Mitsubishi UFJ Financial (8306.T) are tapping deeper into a good thing at the right time. As well as collaborating on foreign exchange trading, Morgan Stanley and MUFG will now integrate the institutional Japan equities business by consolidating research and institutional sales into Morgan Stanley’s joint venture entity. It’s a bright backdrop for Morgan Stanley and MUFG’s partnership. Follow @ugalani on TwitterCONTEXT NEWSMorgan Stanley and Mitsubishi UFJ Financial on July 18 announced plans to deepen their 15-year alliance, including in foreign exchange trading and in Japanese research and equities businesses for institutional clients. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Morgan Stanley, MUFG, James Gorman, Ohta, Morgan, isn’t, Morgan Stanley’s, Antony Currie, Thomas Shum Organizations: Reuters, Wall, Mitsubishi UFJ, MUFG, Sumitomo Mitsui Financial, Jefferies, Tokyo Stock Exchange, Mitsubishi UFJ Financial, Thomson Locations: MUMBAI, U.S, Japan

☆ Analysis: BOJ in a bind as price pressures heighten case for early policy tweak
▼ + stars: | 2023-07-14 | by ( Leika Kihara | ) www.reuters.com time to read: +5 min

But there's no clarity on what the final decision would be," said one of the sources on the chance of a policy shift in July. Lately, however, BOJ policymakers been dropping signs that inflation is being increasingly driven by improving consumer demand. CREDIBILITY ON LINEThere is no consensus within the BOJ on how soon it should start dialing back stimulus. Proponents of early action point to the rising cost of YCC, such as market distortions caused by the BOJ's huge bond buying. "A July policy tweak would contradict the logic the BOJ had been using to justify keeping easy policy," said Naomi Muguruma, senior market economist at Mitsubishi UFJ Morgan Stanley Securities.

Persons: Kazuo Ueda's reassurances, Ueda, Naomi Muguruma, Mitsubishi UFJ, Mitsubishi UFJ Morgan Stanley, Leika Kihara, Kim Coghill Organizations: Bank of, Mitsubishi, Mitsubishi UFJ Morgan, Mitsubishi UFJ Morgan Stanley Securities, Tokyo, Thomson Locations: TOKYO, Bank of Japan

☆ World Bank names CEOs to help bring private funds to climate, development finance
▼ + stars: | 2023-07-10 | by ( David Lawder | ) www.reuters.com time to read: +2 min

WASHINGTON, July 10 (Reuters) - The World Bank on Monday named 15 chief executive officers including financiers and asset managers to a group launched by the lender's president, Ajay Banga, aiming to marshal more private capital to combat climate change and boost investment in developing countries. Banga announced the initiative at a global finance summit in Paris last month alongside Mark Carney, the U.N. special envoy on climate action, and Shriti Vadera, chair of Prudential Plc (PRU.L). The World Bank and the CEOs will work "to develop, test, implement and ultimately scale financing structures that can most effectively mobilize private capital," Carney said in a statement. He said in a statement that the Private Investment Lab CEOs were a "crucial piece of the puzzle" to devise ways to pull more private sector investment into the intertwined challenges of poverty, climate and fragility. Reporting by David Lawder; Editing by Will Dunham and David GregorioOur Standards: The Thomson Reuters Trust Principles.

Persons: Ajay Banga, Joe Biden, King Charles . Banga, Mark Carney, Shriti Vadera, Carney, Thomas Buberl, Larry Fink, BlackRock, Noel Quinn, Hendrik du Toit, Jessica Tan, Sim Tshabalala, Bill Winters, Dilhan, Mark Gallogly, Banga, David Lawder, Will Dunham, David Gregorio Our Organizations: Bank, Investment, U.S, Prudential Plc, World Bank, AXA, HSBC, Shemara, Mitsubishi UFJ Financial, Ping An, Royal Philips, Standard Bank, Standard Chartered, Sustainable Energy, Tata Sons, Temasek, Cairns, Mastercard, Private Investment, Thomson Locations: Britain, Paris, Macquarie, Banga

TOKYO/SINGAPORE, July 5 (Reuters) - Oil benchmark Brent fell on Wednesday, reversing some of the gains made after Saudi Arabia and Russia announced they would extend and deepen output cuts into August, as concerns over a global economic slowdown weighed on market sentiment. Brent was down 46 cents, or 0.6%, at $75.79 a barrel by 0704 GMT, after climbing $1.60 on Tuesday. Investors remained concerned about oil demand, however, after business surveys showed a slump in global factory activity because of sluggish demand in China and in Europe. "The trajectory of global oil stockpiles may soon become as relevant as OPEC+ supply cuts and macro headwinds given the International Energy Agency's outlook for a tightening oil market in H2 2023," analysts from Commonwealth Bank of Australia said in a note. Reporting by Yuka Obayashi in Tokyo and Muyu Xu in Singapore; Editing by Sonali Paul and Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.

Persons: Brent, Tomomichi Akuta, Yuka Obayashi, Xu, Sonali Paul, Muralikumar Organizations: . West Texas, Mitsubishi UFJ Research, Consulting, Federal, Market, U.S, of, Petroleum, Investors, Traders, American Petroleum Institute, Reuters, International Energy, Commonwealth Bank of Australia, Thomson Locations: TOKYO, SINGAPORE, Saudi Arabia, Russia, ., Monday's, U.S, United States, Europe, China, Algeria, OPEC, Tokyo, Singapore

☆ Oil prices ease as worries over global economic slowdown weigh
▼ + stars: | 2023-07-05 | by ( ) www.cnbc.com time to read: +2 min

Oil prices eased on Wednesday, paring the previous day's gain as fears over a global economic slowdown denting fuel demand outweighed expectations of tighter supply due to output cuts announced by top exporters Saudi Arabia and Russia for August. Brent crude was down 14 cents, or 0.2%, at $76.11 a barrel by 0027 GMT, after climbing $1.60 on Tuesday. "Oil prices came under pressure again due to lingering worries over a slowdown in the global economy and further hikes of interest rates in the United States and Europe," said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting. The latest decision by Saudi and Russia could be viewed as a bearish signal for prices, as it confirms that optimistic views on demand growth are faltering. Investors remained concerned about oil demand, however, after business surveys showed a slump in global factory activity because of sluggish demand in China and in Europe.

Persons: paring, Brent, Tomomichi Akuta Organizations: Raffles, . West Texas, Mitsubishi UFJ Research, Consulting, Saudi, OPEC, of, Petroleum, Investors, Traders, American Petroleum Institute, Reuters Locations: Yantai, East China's Shandong province, Saudi Arabia, Russia, ., Monday's, U.S, United States, Europe, China, Algeria

It was the first time the BOJ summary showed a board member explicitly mentioning the need for an early debate of a tweak to YCC, which contrasts with Governor Kazuo Ueda's remarks ruling out any imminent change in policy. Under YCC, the BOJ guides short-term interest rates at -0.1% and the 10-year bond yield around zero as part of efforts to sustainably achieve its 2% inflation target. Some market players bet the central bank could tweak YCC, such as by widening the allowance band set around the 10-year yield target, as early as July to address market distortions caused by its huge bond buying. FRESH YEN WORRIESYCC is also blamed by some analysts for causing an unwelcome yen fall that pushes up raw material import costs. However, Kanda stopped short of saying Japan was ready to take "decisive action" - language he used shortly before Japan stepped into the currency market last year.

Persons: policymaker, Kazuo Ueda's, Ueda, Daisaku Ueno, MItsubishi UFJ, MItsubishi UFJ Morgan Stanley, YCC, Masato Kanda, Kanda, Shunichi Suzuki, Japan's, Leika Kihara, Shri Navaratnam, Sam Holmes Organizations: Bank of Japan, MItsubishi, MItsubishi UFJ Morgan, MItsubishi UFJ Morgan Stanley Securities, Finance, Thomson Locations: TOKYO, Japan, Asia

As of end-March, the three banks had total credit exposure of about $64 billion to China, or roughly 1% of their total assets, according to their financial statements. The FSA's request to look into China-related geopolitical risk was made in May, said two other sources. At a meeting last month, one of the banks was asked by the FSA how it is assessing risk related to China operations, one of them said. China claims democratically governed Taiwan as its territory and has never renounced the use of force to bring it under its control. Dealing with China sanctions would be extremely complex, the executive added.

Persons: Banks, SMFG, Antony Blinken, Wang Yi, Takaya Yamaguchi, Makiko Yamazaki, Sumeet Chatterjee, Jamie Freed Organizations: Financial Services, Mitsubishi UFJ Financial, Sumitomo Mitsui Financial Group, Mizuho Financial Group, Mizuho, American Chamber of Commerce, Reuters, Thomson Locations: China, TOKYO, Ukraine, Russia, United States, China . U.S, Beijing, West, Taiwan, U.S, Tokyo, New York

☆ Japanese lender Mizuho to buy Greenhill in $550 mln deal to expand US footprint
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +1 min

May 22 (Reuters) - Japan's Mizuho Financial Group Inc (8411.T) will acquire independent investment bank Greenhill & Co Inc (GHL.N) in an all-cash transaction, in a bid to expand further into U.S. investment banking. Of Japan's three megabanks, Mizuho has, however, been slower to move than bigger rivals Mitsubishi UFJ Financial Group (8306.T) and Sumitomo Mitsui Financial Group (8316.T). The Greenhill business will sit within Mizuho's banking division, led by Michal Katz, head of banking in the Americas, the statement said. Greenhill Chairman and CEO Scott L. Bok will become chairman of the M&A and restructuring advisory business, it added. Last year, Mizuho CEO Yoshiro Hamamoto told Reuters that the group's brokerage arm Mizuho Securities Co "has room for further growth" in the United States and acquisitions were an option it was exploring.

☆ Why Warren Buffett is so keen on Japan's versions of Berkshire Hathaway
▼ + stars: | 2023-05-05 | by ( Tim Hornyak | ) www.cnbc.com time to read: +9 min

But Warren Buffett added a spark in April when he visited Japan to announce that Berkshire Hathaway boosted its investment in Japanese trading houses to 7.4%. Buffett said the five — Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui, and Sumitomo Corp. — are comparable to Berkshire itself. Samurai roots for Buffett's Japanese stocks The five trading firms that Berkshire has invested in are the biggest of Japan's so-called sogo-shosha, or general trading companies. Today, Japan's trading companies derive most of their revenue from non-trade activities. Shosha: The Big Five Mitsubishi The largest of Japan's trading companies is Mitsubishi Corp. , set up in 1954.

☆ Sumitomo triples down on Jefferies at right time
▼ + stars: | 2023-04-28 | by ( Antony Currie | ) www.reuters.com time to read: +3 min

MELBOURNE, April 28 (Reuters Breakingviews) - Jun Ohta may have preferred to catch a bigger Wall Street fish. But the CEO of Japan’s Sumitomo Mitsui Financial Group (8316.T) is expanding his relationship with relative minnow Jefferies (JEF.N) at an opportune moment. The $56 billion SMFG also intends to increase its ownership of the $7.6 billion company run by Richard Handler to 15% by purchasing ordinary shares that it will convert into preferred stock. Slumping deal flow after what Jefferies called an “off-the-charts” 2021 prompted its earnings to more than halve last year. SMFG will buy common stock on the open market and then convert it into non-voting preferred stock.

☆ Japan's SMFG boosts U.S. presence via bigger stake in Jefferies
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +1 min

April 27 (Reuters) - Japan's Sumitomo Mitsui Banking Corp (SMBC) said it will combine its U.S. equity and M&A business with Jefferies Financial Group Inc (JEF.N) as part of a deal in which its parent, Sumitomo Mitsui Financial Group (8316.T), will boost its stake in the U.S firm and its presence in the country. Sumitomo Mitsui Financial Group (SMFG) will raise its stake in Jefferies from 4.5% currently to as much as 15%, giving it the right to nominate a member to the U.S. company's board of directors, the companies said in a joint statement on Thursday. Its SMBC Nikko Securities unit, formerly Citigroup Inc's (C.N) Japanese broker and a key investment banking unit that SMFG bought in 2009, has a limited footprint abroad. SMFG's bigger domestic rival, Mitsubishi UFJ Financial Group Inc (8306.T), has boosted its U.S. presence through a $9 billion investment in Morgan Stanley (MS.N) in 2008, which gave MUFG some 20% ownership of the Wall Street bank. The Financial Times first reported the news on SMBC and Jefferies.

Kirin has offered A$95 cash per Blackmores share, a 23.7% premium to the stock's last close, and a tad higher than its 22.4% jump in morning trade. Before the Kirin deal, its shares had been trading at one-third of their value at the height of the daigou craze in 2016. The board of Blackmores has unanimously recommended shareholders support the deal, with top shareholder and former chairman Marcus Blackmore also agreeing to vote in favour. Blackmores' share price rose as much as 22.4% to A$94, its highest since December 2021. Blackmores shareholders will be able to vote on the offer at a shareholder meeting in July and the companies expect the deal to close in early August.

☆ Japan's SMFG is first global bank to sell AT1 bonds since C.Suisse wipeout
▼ + stars: | 2023-04-19 | by ( Junko Fujita | ) www.reuters.com time to read: +2 min

AT1 bonds - the riskiest tranche of a bank's bonds also known as "contingent convertibles" or "CoCo" bonds - can be converted into equity or written off if a bank's capital level falls below a certain threshold. SMFG sold the bonds in two tranches, in 89 billion yen ($662.50 million) five-year notes, and 51 billion yen 10-year bonds. The 89 billion yen issuance carries a coupon rate of 1.879% for the initial five years and two-month period, a regulatory filing showed. "In Japan, where spreads over corporate bonds are thin, the terms for these AT1 bonds were reasonably good, provided that the banking sector is credible," said Pictet's Otsuki. Japanese banks' AT1 bonds had been configured in a way the value is secured even if the government is involved in restructuring, and SMFG's new issues are seen to have the same features, she said.

☆ SMFG becomes first big Japan bank to sell AT1 bonds since Credit Suisse's debt wipeout
▼ + stars: | 2023-04-19 | by ( Junko Fujita | ) www.reuters.com time to read: +2 min

SMFG priced the bonds in two tranches, in 89 billion yen ($662.50 million) five-year notes, and 51 billion yen 10-year bonds, whose terms market players said were attractive. "In Japan, where spreads over corporate bonds are thin, the terms for these AT1 bonds were reasonably good, provided that the banking sector is credible," said Nana Otsuki, senior fellow at Pictet Japan. Swiss regulator FINMA determined that Credit Suisse's AT1 bonds would be wiped out, a decision that rocked global credit markets. AT1 bonds - known as "contingent convertibles" or "CoCo" bonds - can be converted into equity or written off if a bank's capital level falls below a certain threshold. The 51 billion yen one would yield 2.180% for the first 10 years and two months.

☆ World stocks hold on to upbeat mood, dollar stalls
▼ + stars: | 2023-04-11 | by ( Dhara Ranasinghe | ) www.reuters.com time to read: +4 min

European stock markets opened broadly firmer (.STOXX), U.S. stock futures pointed to a positive open for Wall Street shares , and Japan's blue-chip Nikkei rallied over 1% (.N225). Friday's non-farm payrolls suggested labour markets remain resilient, boosting expectations for a 25 basis point (bps) U.S. rate increase in May. NEW BOJ CHIEFIn Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.57%, while MSCI's world stock index was up 0.3% (.MIWD00000PUS). U.S. Treasury yields edged down in European trade , with rate sensitive two-year yields last down 3 bps at 3.96%. Brent crude futures rose 61 cents, or 0.74%, to $84.81 a barrel, while U.S. WTI futures gained 68 cents, or 0.83%, to $80.41 a barrel.

☆ Analysis: Japan's upbeat wages may keep new BOJ chief on hook for policy tweak
▼ + stars: | 2023-04-11 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

However, a widely expected upgrade in the Bank of Japan's price forecasts due this month may show inflation staying near 2% for several years. "The BOJ will probably upgrade its price forecasts this month. In doing so, it could offer new guidance on future policy and tweak YCC around summer or autumn," she said. With more firms hiking prices and employees' pay, the BOJ may revise up the forecasts and see inflation stay around 2% through fiscal 2025, analysts say. "The BOJ may see scope to tweak YCC as early as June," he said.

☆ Japan's current account swings back to black on overseas investment
▼ + stars: | 2023-04-10 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

The current account surplus stood at 2.1972 trillion yen ($16.59 billion) in February, smaller than a 2.5357 trillion yen surplus forecast by a Reuters poll of 16 economists. That followed the prior month's 1.9893 trillion yen deficit, which was caused by effects of the Chinese New Year holidays in January. The income surplus stood at 3.4407 trillion yen, more than enough to offset the trade deficit of 604.1 billion yen, the data showed. As a result, current account surplus will expand gradually from now on," he said. Japan's position as an export powerhouse has also waned in recent years, in part because companies have moved production overseas, making overseas investment a pillar of the country's earning power.

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