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PowerShares DB Japanese Government Bond Futures ETN (JGBL)

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  • Feb. 20, 2014, 2:42 AM
    • Japan's trade deficit more than doubled to a record ¥2.79T ($27.3B) in January from ¥1.3T in December and exceeded consensus of ¥2.49T.
    • Export growth slowed to 9.5% on year from 15.3% and sharply missed expectations of 12.6%.
    • Imports, though, soared 25% vs 24.7% and 21.8%, driven up by the weak yen and significant energy needs because of the closure of the nuclear-power industry.
    • The large trade deficit contributed to GDP expanding at a lower-than-expected 1% in Q4.
    • "If the economy weakens further after a sales tax hike (in April), policymakers could resort to fiscal stimulus as early as summer," says economist Yasuo Yamamoto.
    • However, the trade figures may have been affected by a rush to purchase foreign-made goods before the tax increase and by the Chinese New Year.
    • The Nikkei is -2.15% while the USD-JPY is -0.5% at ¥101.80. (PR)
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JPNL, JGBL, JPP, JGBT, JPNS, HEWJ, FJP, JGBB
    | 4 Comments
  • Feb. 18, 2014, 2:56 AM
    • The Bank of Japan has surprised markets by expanding lending facilities that are designed to spur corporate investment by offering low-interest loans to commercial banks in the hope that they will lend the money to businesses.
    • At a policy meeting, the BOJ doubled one program to ¥7T ($68B) and said individual banks could borrow twice as much under another facility.
    • The BOJ also maintained its program of increasing the monetary base by ¥60-70T a year.
    • The boosting of the lending facilities comes after data yesterday showed that Q4 GDP grew a less-than-expected 0.3%. Notwithstanding, the BOJ maintained its view that Japan is recovering moderately.
    • The move helped weaken the yen and the Nikkei to surge 3.3%. The USD-JPY is +0.6% at ¥102.57. (PR)
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JGBL, JPNL, JPP, JGBT, JPNS, HEWJ, FJP, JGBB
    | 3 Comments
  • Feb. 17, 2014, 2:48 AM
    • Japanese GDP growth slowed to 0.3% on quarter in Q4 from 0.5% in Q3 and missed consensus of 0.7%.
    • Annualized GDP softened to +1% from +1.1% and undershot forecasts of +2.8%.
    • The GDP deflator, "which measures the change in prices of final goods and services and is considered as a key indicator for inflationary pressures," fell to -0.4% on year from -0.3%.
    • Industrial production +0.9% in December vs -0.1% in November and consensus of +1.1%. On year, output +7.1% vs +4.8%.
    • Capacity utilization +2.2% vs -0.5%.
    • Japan's Q4 economic performance was kept down by strong import growth, which is a negative factor in GDP calculations, and a limited increase in exports.
    • Imports +3.5% on quarter, exports +0.4%, business investment +1.3%, consumer spending +0.5%.
    • The soft growth adds to pressure on Prime Minister Shinzo Abe to detail reforms that will make Japan more competitive. This is especially the case with the upcoming rise in sales tax in April.
    • "This weak export performance gives us a sense of risk that the Japanese economy may significantly stall after April," says economist Takuji Okubo. "Abe really needs to be quick in showing to the market that he can deliver reform."
    • The data comes a day before the Bank of Japan is forecast to leave its monetary policy unchanged.
    • Despite the disappointing GDP, short covering helped the Nikkei end +0.6% following a day of choppy trading.
    • The USD-JPY is -0.1% at 101.73.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JGBL, JPNL, JPP, JGBT, JPNS, HEWJ, FJP, JGBB
    | 34 Comments
  • Feb. 12, 2014, 3:14 AM
    • Japan's core machinery orders, a leading indicator of capital expenditure, plunged 15.7% on month in December, with the fall far greater than expectations for a drop of 4.1%.
    • On year, orders +6.7% vs consensus of +17.6%.
    • Moreover, companies have predicted that core orders will drop 2.9% in January-March, which would be the first decline in four quarters.
    • "Today’s data on machinery cast some doubts on whether the fledgling recovery in business investment will continue," says economist Marcel Thieliant. The government has targeted increased capex as an important element in Japan's battle to end deflation.
    • However, it's worth noting that the data is volatile and the big drop followed a gain in November.
    • The USD-JPY is -0.2% at ¥102.46, while the Nikkei is +0.6%.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JGBL, JPNL, JPP, JGBT, JPNS, FJP, JGBB
    | Comment!
  • Feb. 10, 2014, 2:03 AM
    • Japan's current-account deficit widened to a record ¥638.6B ($6.2B) in December from ¥592.8B in November, due to surging imports - particularly of energy - and the weak yen. Consensus was for ¥685.4B.
    • Temporary factors also contributed to the increase in the deficit, including a sharp increase in demand ahead of a rise in sales tax in April.
    • A surplus in income from overseas investment is helping to ensure that the deficit doesn't become permanent, which would hurt investor confidence. (PR)
    • Consumer confidence slipped to 40.5 in January from 41.3 in December. (PR)
    • Bank lending increased 2.3% last month, as in December. (PR)
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, DBJP, NKY, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JGBL, JPP, JPNL, JGBT, JPNS, FJP, JGBB
    | Comment!
  • Jan. 27, 2014, 10:39 AM
    • Japan's trade deficit nearly doubled to a new high of ¥11.5T ($113B) in 2013, pulled upwards by the weak yen and increasing energy imports because of a shutdown of the country's nuclear industry.
    • Japan enjoyed surpluses for three decades until the Fukushima meltdown in 2011.
    • "It's hard to anticipate when Japan can emerge from trade deficits at this point," says economist Takeshi Minami. High energy costs could discourage companies from having production centers in Japan "and undermine Abenomics.
    • Previous
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JGBL, JPP, JPNL, JGBT, JPNS, FJP, JGBB
    | 3 Comments
  • Jan. 26, 2014, 7:11 PM
    | 5 Comments
  • Jan. 24, 2014, 2:41 PM
    • Short yen (FXY +0.8%) has been as popular a trade as long equities (maybe even more), and it too is reversing in January. Off 0.95% today, dollar/yen is down to ¥102.30 after starting the year above ¥105. Was it the weak Chinese PMI report this week, or the realization that Abenomics - really little more than devaluation - isn't working? Maybe it was just a trade that got too crowded.
    • The ETF story of 2013 - the Japan Hedged Equity Fund (DXJ -2.2%) - is now off 5.8% YTD, it's taking its sponsor WisdomTree (WETF -7.2%), one of the big individual stock stories of 2013, with it.
    • Japan ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JGBL, JPP, JPNL, JGBT, JPNS, FJP, JGBB
    | 1 Comment
  • Jan. 24, 2014, 4:23 AM
    • Asian shares have mostly fallen as investors have seemed to grow more fearful about the significance of poor Chinese manufacturing PMI data yesterday.
    • Investors have sought safe havens such as the yen - the USD-JPY is -0.3% at ¥103 - helping to send the Nikkei -1.9%.
    • "A correction could occur," says investment strategist Shane Oliver. "We have to expect more volatility. Shares are no longer dirt cheap, meaning the easy gains are behind us."
    • The once place where the PMI data didn't seem to to have an effect today was China, whose Shanghai Composite rose 0.6%. Stocks were partly boosted by money market rates falling again following a $42B+ injection of cash this week from the central bank ahead of the Lunar New Year. The seven-day repo rate dropped 77 bps to 4.61%.
    • "Bad news has been digested and liquidity has eased," says analyst Du Liang.
    • China ETFs: FXI, PGJ, GXC, FXP, CYB, YINN, HAO, CNY, TAO, CHIQ, ASHR, CHIX, YANG, MCHI, DSUM, PEK, KWEB, CQQQ, QQQC, XPP, YAO, CHXX, FXCH, CHII, CHXF, ECNS, CHIE, YXI, CHIM, KFYP, FCA, TCHI, CHLC, CHNA
    • Japan ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JGBL, JPP, JPNL, JGBT, JPNS, FJP, JGBB
    | Comment!
  • Jan. 22, 2014, 2:21 AM
    • As expected, the Bank of Japan has left its key interest rate at 0.1%, and maintained its program of expanding the monetary base by ¥60-70T a year.
    • The BOJ noted that the economy has continued to recover moderately and will keep doing so, although it will be affected by a "front-loaded increase and subsequent decline in demand" due to an upcoming rise in sales taxes.
    • While "inflation expectations appear to be rising on the whole," the BOJ said, CPI is "likely to be around 1.25% for some time." The bank's target is 2%.
    • The Nikkei is +0.2%, while the USD-JPY is +0.1% to ¥104.45. (BOJ Statement)
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, JGBL, JSC, JPP, ITF, DXJS, JGBT, JPNL, JPNS, FJP
    | Comment!
  • Jan. 20, 2014, 4:59 AM
    | 1 Comment
  • Jan. 15, 2014, 3:25 AM
    | Comment!
  • Jan. 14, 2014, 3:29 AM
    • Japan's current account deficit widened to a record ¥592.8B ($5.7B) in November from ¥127.9B in October and surpassed consensus of ¥380.4B.
    • The increase comes amid a rise in the value of imports, particularly because of the weak yen, and higher demand for foreign energy because of the shutdown of nuclear plants.
    • The long-term risk is that the deficit could become permanent, which could weaken confidence in Japan's massive debt. That scenario is being held off by a surplus in overseas income.
    • The Nikkei plunges 3.2% in the first day of trading this week. The dollar rises 0.4% to ¥103.42 after dropping 1.1% overnight. (PR)
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JGBL, JPP, JPNL, JGBT, JPNS, FJP, JGBB
    | 10 Comments
  • Jan. 13, 2014, 9:33 AM
    | 1 Comment
  • Jan. 8, 2014, 9:30 AM
    • As bearish as the rest of the investing universe on the yen (FXY), Morgan Stanley makes the case for a "tradable retracement" in dollar/yen back down to ¥98 (from nearly ¥105 today).
    • Among the catalysts could be a debt-induced slowdown in China hitting regional growth, and/or something to upset the current complacency in global financial markets.
    • There's also a possible loss in momentum in Abenomics - measures to boost long-term competitiveness are easy to announce, but less easy to put in place, and need time to see if they work.
    • Then there's the BOJ, whose recent commentary suggests the room for additional monetary easing has declined for the moment. Another boost could be months away.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, JSC, DXJS, ITF, JGBL, JPP, JPNL, JGBT, JPNS, FJP, JGBB
    | 2 Comments
  • Dec. 30, 2013, 4:53 AM
    • Japan's Nikkei 225 has closed the day and the year at a fresh six-year high of 16291, representing a rise of 0.7% for the session and 57% for the year. That makes 2013 the index's best annual performance since it jumped 92% in 1972.
    • Japanese stocks have been benefiting from the central bank's massive money printing, which has helped weaken the yen and boost exporters. The USD-JPY is +0.1% at ¥105.29 after the yen earlier hit a five year low of ¥105.41.
    • Elsewhere in Asia, Hong Kong ended flat and China -0.2%, while India is -0.2%.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, JSC, ITF, JGBL, JPP, DXJS, JPNL, JGBT, JPNS, FJP, JGBB
    | Comment!
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JGBL Description
The PowerShares DB Japanese Govt Bond Futures Exchange Traded Notes (Symbol: JGBL) (collectively, the "PowerShares DB JGB Futures ETNs," or the "ETNs") are the first exchange-traded products to provide investors with leveraged or unleveraged exposure to the U.S. dollar value of the returns of a Japanese bond futures index.
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Country: Japan
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