|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||26.47 - 26.47|
|52-week range||26.47 - 26.47|
|Beta (5Y monthly)||1.38|
|PE ratio (TTM)||10.87|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
(Bloomberg) -- The future of some Japanese regional banks looks increasingly precarious after the sector had the most credit rating downgrades in the country last year.The latest blow to the troubled lenders adds to pressure on the weakest among them to consolidate and boost profitability. Local banks are battling to revive lending as the population shrinks and negative interest rates persist in the world’s third-largest economy.Downgrades in Japan more than doubled overall last year to 49, according to data compiled by Bloomberg, and of that 13 were banks. All except Japan Post Bank Ltd. were regional lenders.Read how stricken local banks in Japan are buying riskier debt to survive“Regional banks’ credit won’t likely recover unless yields start to rise,” said Shunsuke Oshida, a senior credit analyst at Manulife Asset Management in Tokyo, adding that there’s too much competition among too many lenders. “There’s a need to reduce the number of banks through consolidation.”The Financial Services Agency is seeking to make it easier for banks to merge by ensuring they are exempt from anti-monopoly rates. Core business profit at Japan’s regional lenders fell to the lowest in more than a decade in the year ended March 2019, FSA figures show.CLO InvestmentsAmong the downgrades, Shizuoka Bank Ltd. was cut to AA- from AA at Rating & Investment Information Inc., while Gunma Bank Ltd. was lowered to A3 from A2 by Moody’s Investors Service.Low rates in Japan have forced some regional lenders to buy riskier assets such as collateralized loan obligations, and dump holdings of Japanese government bonds, which traditionally made up the bulk of their investments.Upgrades overall slowed to 79, compared with 118 in 2018, according to the data from five rating agencies. Of that, only one lender’s rating increased, that of Kiyo Bank Ltd., which is based in the western prefecture of Wakayama.(Adds shift to riskier assets in seventh paragraph.)\--With assistance from Rie Morita, Rimi Yoneya and Adam Wahid.To contact the reporter on this story: Ayai Tomisawa in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Andrew Monahan at email@example.com, Beth Thomas, Russell WardFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...
(Bloomberg) -- In an era of low global interest rates, currency traders will have to look elsewhere for an impetus. In Canada, they can bank on population growth.The flood of immigrants and non-permanent residents to levels not seen in a century has been one of the main drivers supporting Canada’s economic expansion over the past several years. That has kept the Bank of Canada as an outlier in the global easing trend as it held its policy rate unchanged, bolstering the allure of the loonie.“These high levels of immigration -- if they are to continue and help support growth -- are actually supportive of a Canadian dollar over time,” Frances Donald, chief economist at Manulife Investment Management, said in an interview in Toronto.The country’s population grew by 208,234 in the July to September period, or 0.6%, the fastest quarterly increase since at least 1971. Some 83% of that increase is due to international migration, according to estimates from Statistics Canada released Thursday in Ottawa. Over the past year, Canada’s population has jumped by almost 560,000, an increase of 1.5% -- that’s the fastest annual pace since 1990.“This is the story I think markets are missing: how powerful immigration is at actually changing your financial markets, particularly your rates and FX,” Donald said.The Canadian dollar is on pace to take the No. 1 spot among its Group-of-10 counterparts this year, strengthening by more than 3% against the U.S. dollar.Canada’s population boom has driven robust gains in the housing and labor markets, countering the effect of an aging demographic. This has helped to avoid the Japanification trap of low growth, low inflation and low interest rates that are slowly becoming evident in other parts of the world.“What’s fascinating about the story however, from a strategist, like myself, is not even how it relates to GDP growth but how we’re substituting one form of policy for another,” Donald said.While Donald argues immigration can be a proxy for monetary policy, currency strategists say the central bank is still the main driver of the loonie, and immigration is more of a long-term variable that can influence policy.“Immigration informs the output gap and hence policy stance,” wrote Mazen Issa, senior FX strategist at TD Securities in New York. “FX will react to how the Bank changes policy.”Case in point, Bank of Canada Governor Stephen Poloz has cited the country’s robust labor force, supported by new entrants, as a reason for holding interest rates despite concerns around a slowdown. The nation’s population growth may be masking a deeper economic problem that could hamper long-term growth: over the past two years Canada’s productivity hasn’t grown at all.Read more: Population Boom Masks Lingering Productivity Concerns in CanadaRelying on human capital to improve growth and inflation numbers over time actually acts as a curve steepener, Donald added. “If we rely on this so called human stimulus then we don’t have to rely on monetary policy to the same extent.”(Updates Canadian dollar’s move throughout and adds productivity details in ninth paragraph.)\--With assistance from Theophilos Argitis, Susanne Barton and Laura Cooper.To contact the reporter on this story: Shelly Hagan in ottawa at firstname.lastname@example.orgTo contact the editors responsible for this story: Theophilos Argitis at email@example.com, Divya Balji, Chris FournierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick...
British life and general insurer Aviva Plc will keep its operations in Singapore and China, it said on Monday, two days ahead of an expected strategy update and following speculation of a sale of the Singapore business. Aviva began a review of its Asia business earlier this year under new CEO Maurice Tulloch. "Following a thorough review of options for the Singapore business, including seeking offers ... Aviva has concluded that the best value for shareholders will be achieved by retaining the business," the company said.
(Bloomberg Opinion) -- Two- and-a-half years after the Indian central bank took the highly unusual step of directing banks to put 12 large corporate debtors into bankruptcy, the most closely watched of the “distressed dozen” cases has finally been resolved.With the Supreme Court in New Delhi clearing the decks for the sale of Essar Steel India Ltd., the Ruia family has accepted defeat. Control of the 10 million-tons-a-year integrated plant in western India will pass to ArcelorMittal, which will pay banks 420 billion rupees ($5.9 billion), or 90% of their claims.This final episode of a drawn-out legal saga, in which the Ruias made multiple attempts to hold on to their prized asset, was a nail-biter. At the last moment, the bankruptcy tribunal’s appellate authority had inexplicably jumped into the fray and ordered that more of ArcelorMittal’s money be given out to unsecured operational creditors and less to secured financial lenders.India’s $200-billion-plus bad debt mess is starting to attract serious global capital from pension and sovereign funds. Had expected recovery rates of 90% shriveled to 60%, private equity funds assembling this stock of patient money to take over secured lenders’ exposure would have fled. Thankfully, the court restored the power of the creditors’ committee to decide who gets what.It’s been a costly delay. When the Reserve Bank of India referred large cases to new bankruptcy tribunals, it was hoping to solve 25% of the country’s bad-loan problem in 270 days. There was interest among potential buyers, particularly for steel plants, because global metals demand was stabilizing. But with missed deadlines, lengthy litigation and suspected fraud holding back asset sales, liquidation has emerged as the default option, with only 15% of closed insolvency cases ending in a resolution plan. A lot has changed in India’s corporate distress landscape between 2016, when India promulgated its bankruptcy law, and now. For one thing, global demand for steel — and steel assets — is starting to sag. That isn’t all. With practically all sectors of India’s economy facing a demand funk, there’s trouble everywhere from real estate and roads to power and telecom.Each industry comes with its own unique challenges. In residential real estate, it’s the homeowners’ interest that makes creditor coordination difficult. In telecom, the difficulty comes from exorbitant government demands for spectrum fees. The danger of a voluntary bankruptcy filing by Vodafone Idea Ltd. has everyone from investors to the government worried. The mobile operator posted a $7.1 billion quarterly loss, the worst in India’s corporate history. A new complexity is that creditor institutions themselves — from shadow lenders to small deposit-taking banks — are becoming insolvent, prompting India to extend the bankruptcy law to nonbank lenders as well. This quick fix would further weigh on a system creaking under its case load. A steel plant can preserve value through a lengthy in-court bankruptcy by utilizing its fixed capacity. A lender has to continuously make new loans to stay in business. Without the trust of the financial markets, its enterprise value very rapidly falls to zero. Early liquidation is the best possible outcome for an insolvent lender’s creditors seeking to extract value, but it’s also the scenario that poses the biggest risk to stability of the existing financial system.The current law can’t solve this dichotomy. Rather than overburdening it, India must keep the bankruptcy tribunal focused on what it can actually handle. A recent example of overreach is the start of an insolvency petition against Aviva Plc’s local life insurance joint venture for not paying its landlord. Such things used to happen in Indonesia, where a Jakarta commercial court declared Canadian insurance firm Manulife Financial Corp.'s Indonesian unit bankrupt in 2002, and followed it up two years later by holding Prudential Plc’s local business insolvent. A higher court had to reverse those rulings. By setting right the balance between secured and unsecured lenders, the Essar judgment has scored a win above all for common sense. The verdict will rekindle hope in the integrity of India’s bankruptcy process, but it will take a lot more work to allay concerns about its effectiveness.To contact the author of this story: Andy Mukherjee at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
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Discovery is targeting 500,000 insurance clients in South Africa to take regular surveys on their mental health in an extension of a programme which rewards "good" behaviours. The South African insurer's model already offers clients insurance discounts and everything from free coffee to cheap flights for buying healthy food, exercising and driving safely. Dinesh Govender, CEO of Vitality, the insurer's behaviour change programme, said the aim, as with its physical fitness scheme, was both to make its clients healthier and over time bring down the cost of claims.
The asset and wealth arm of Canada's Manulife Financial Corporation said on Monday it had opened an office in Ireland to expand its European operations and as part of planning for Britain's exit from the European Union. Banks, insurers and asset managers have been opening offices, hiring staff and moving capital to various locations across the trade bloc to ensure they can continue to serve clients in the event Britain leaves the EU without an exit deal. Currently staffed by four employees, Manulife Investment Management's Dublin office plans to hire two more people over the next six to nine months.