I have written about my skepticism regarding the British pound's newly found "safe haven" status (for example, see "Hard Currency: My Reactions To The Financial Times' Promising Podcast"). During my last post, I forgot to point out that the British pound declined versus the U.S. dollar (FXB) for the entire month of May while the euro crisis heated up. This decline has currently taken a pause right at the support of the 20-day moving average (DMA), but I doubt this reprieve will last long.

Click to enlarge:

The ascendancy of the British pound against the U.S. dollar ended this month in dramatic fashion

In fact, the U.S. dollar index (UUP) has enjoyed a sharp recovery in May, breaking its recent downtrend and challenging highs last seen in January. Overall, the dollar has experienced a robust 10% bounce from the lows of 2011.

Click to enlarge:

The dollar index restarts its

Japan Smaller Capitalization Fund, Inc. is traded on The New York Stock Exchange under the symbol JOF. It commenced operations on March 21, 1990 and is managed by Nomura Asset Management. It is a closed end fund investing almost exclusively in small cap Japanese equities. I am loathe to recommend single country funds but in this case I must make an exception. The Japanese stock market has been in decline for many years and the stocks are just plain cheap.

As of the close of its fiscal year, on February 29, 2012, JOF was selling at an 11.5% discount from net assets and it presently sells at approximately the same discount. Last fiscal year JOF saw its Net Asset Value decline by 9.7% while its market price declined by 18.3%. JOF's benchmark, the Russell/Nomura Small Cap Index declined only 2.3%. The difference in performance can be partially accounted for by

Japanese Equity Valuations are Historically Low & Quantitative Easing Could Lead to Further Yen-Weakening vs. the U.S. Dollar

Co-authored by Christopher Gannatti, Research Analyst, WisdomTree

Expansionary Monetary Policy-Possibly a 2012 Japanese Equity Market Catalyst

On February 14, 2012, the Bank of Japan (BOJ) made a statement that it would target a 1% inflation rate. Compared to the last 20-years when powerful deflationary[1] forces gripped the Japanese economy, a 1% inflation target is a large commitment. At its latest meeting on April 27th, the BOJ took further steps to easing monetary pressures by raising the maximum outstanding amount of financial assets it can purchase through its asset purchase program, specifically through an additional 10 trillion yen in Japanese Government Bonds, 200 billion yen exchange traded funds, and 100 billion yen in equity issued by real estate investment corporations[2].

While true that the majority of the program's capacity is directed at the

By Ingrid Lunden

Mobile carrier NTT Docomo (DCM) today announced a move in its strategy to grow its content business outside of its traditional base of Japan: it issued a tender offer to acquire Buongiorno, a mobile content company based in Italy, paying up to ¥24 billion ($300 million) for the assets.

Docomo notes in a statement that the acquisition would be made by its Germany-based subsidiary, Docomo Deutschland, and that Maruo del Rio, Buongiorno's majority shareholder and chairman with 20 percent of Buongiorno's stock, has already agreed to sell his stake to the carrier. The deal would see Buongiorno become a subsidiary of NTT Docomo.

This is not the first time that Docomo has made moves to build up its European/rest-of-world business in mobile content, but it is an area that has been lying somewhat dormant for a while. A decade ago, well before the mobile world was hit

F4Q 2012 Earnings Conference Call

May 10, 2012 03:15 ET

Executives

Company Speakers

Presentation

Unidentified Company Speaker

We thank you for coming today. I would like to talk about the financial results for the year ended March 2012, the medium-term management plan through March 2014, and the outlook for the fiscal year ending March 2013.

Please take a look at slide one of the PowerPoint Presentation. As we look at our operating environment, the global economy is maintaining its moderate rate of growth, although risk levels remain elevated due to the financial turmoil in the euro area and increasing volatility of the oil market affected by higher geopolitical risks. The emerging and developing economies are showing a gradual slowdown in their growth rates, but the growth rates remain fast-paced and they continue to be the key force for global recovery. We believe that China’s growth

F4Q12 Earnings Call

May 11, 2012 12:00 AM ET

Executives

Toyoaki Nakamura – Representative Executive Officer, EVP and Executive Officer

Presentation

Unidentified Company Representative

Now we would like to move to the meeting of Financial Results for the year ended March 31, 2012. First let us introduce members who are present here today: Mr. Toyoaki Nakamura, Executive Vice President and Executive Officer, Mr. Toshiaki Kuzuoka, Senior Vice President and Executive Officer, Mr. Yoshihito Kitamatsu, General Manager-Finance Department One.

So in accordance to this PowerPoint presentation, I’d like to have Mr. Nakamura to make presentation.

Toyoaki Nakamura

So let me explain the consolidated financial results for fiscal 2011 using the PowerPoint presentation. If you can turn the page to 1-2, consolidated statement of operations. Revenues were ¥9.665.8 billion. This was 104% year-on-year and we came up with the revised forecast on March 15, and it was 102% compared

F4Q11 Earnings Call

May 10, 2012 4:30 am ET

Executives

Masaru Kato – Corporate Executive Officer, Executive Vice President and Chief Financial Officer

Yoshinori Hashitani – Vice President, Investor Relations Division

Analysts

Yasuo Nakane – Deutsche Securities

Kota Ezawa – Citigroup Securities

Yuji Fujimori – Barclays Capital

Shiro Mikoshiba – Nomura Securities Co., Ltd.

Takashi Watanabe – Goldman Sachs Japan Co.

Hideki Yasuda – Ace Research Institute Co., Ltd

Presentation

Operator

Now we would like to start the announcement of Sony Corporation’s Fiscal Year 2011 Consolidated Financial Results. Let me introduce the presenters, to your right, Corporate Executive Officers, EVP and CFO, Masaru Kato; Head of the IR, Yoshinori Hashitani. First about on the consolidated financial results, Kato will give a presentation.

Masaru Kato

Well, first I’d like to explain the consolidated results for fiscal 2011. Sales decreased year-on-year due to negative foreign exchange, the impact of

F4Q11 Earnings Call

May 10, 2012 9:00 am ET

Executives

Edward Reid – Investor Relations

Masaru Kato – Corporate Executive Officer, Executive Vice President and Chief Financial Officer

Yoshinori Hashitani – Vice President, Investor Relations Division

Analysts

Daniel Ernst – Hudson Square Research

Jeff Loff – Macquarie Capital Securities

Shannon S. Cross – Cross Research LLC

Presentation

Operator

Good day ladies and gentlemen and welcome to the Fourth Quarter Fiscal Year 2011 Sony Corporation Conference Call for overseas investors. My name is Keisha and I will be your operator for today. At this time all participants are in listen-only mode, later we will conduct a question-and-answer session (Operator Instructions). As a reminder this conference is being recorded for replay purposes. I will now like to hand the conference over to Mr. Edward Reid from Investor Relations Department of Sony Corporation. Please proceed.

Edward Reid

Thank you very

Stocks plunged lower on Tuesday as investors expressed their concerns over the ongoing parliamentary elections in the debt burdened currency bloc overseas. Uncertainty levels intensified after Greece failed to form a coalition government, leading to a wave of profit taking across equity markets all around the globe. Amidst the resurfacing debt drama, gold faced major headwinds; futures prices for the precious yellow metal broke below $1,600 an ounce, sinking over 2% on the day [see also Have Gold ETFs Lost Their Luster?].

Although headlines from the Euro zone are likely to sway sentiment for the rest of the week, the iShares MSCI Japan Index Fund (EWJ) will also come into focus as investors digest relevant economic data later today. EWJ could see an increase in trading volumes following the release of the latest Japanese Leading Index, which is comprised of 12 major economic indicators; analysts are expecting for the figure

Japan's market took a nose dive following last year's earthquake and nuclear disaster. But Japanese stocks may already be poised for a comeback. Consumer spending is already improving and corporate earnings are expected to rise 69% this year. Currently, Japan's equities are the most expensive among the world's 60 biggest markets. The Nikkei 225 is up 35% since March 2009. Policy makers in Japan have committed to spend 20 trillion yen to rebuild and spur economic growth. Also, the Bank of Japan pledged in April to continue adding monetary stimulus.

However, Japan still faces a shrinking population and the world's highest debt burden. Some worry that the Nikkei has come too far too fast and that the economy will not be able to keep up. The strength of the Japanese yen may be slowing the economic recovery as well. A higher yen makes Japanese products more expensive abroad, thus slowing

F4Q11 and Full Year 2012 Earnings Call

April 27, 2012 04:00 am ET

Executives

Osamu Hirokado - IR

Ryuji Yamada - President & CEO

Kiyoyuki Tsujimura - Senior EVP

Masatoshi Suzuki - Senior EVP

Kazuto Tsubouchi - EVP & CFO

Kaoru Kato - EVP and Managing Director, Corporate Planning & Strategy Department

Fumio Iwasaki - EVP and Managing Director, Network Division

Mr. Takashi Tanaka - SVP, Consumer and Marketing.

Analysts

Daisaku Masuno - The Nomura Securities

Atsuo Takahashi - Mizuho Securities

Shinji Moriyuki - SMBC Nikko

Presentation

Hirokado

Good afternoon, ladies and gentlemen. Thank you very much for sparing your precious time for attending this Analyst Meeting announcing the results for the fiscal year ended March 2012.

I am Hirokado from IR department and I'll be presiding this meeting. Now please be advised that this meeting is broadcast live on our cellular phone service as well

Pike Research just released a report on the Total Cost of Ownership of Alternative Fuel Vehicles for Fleet Operators. The report compares the purchase price plus lifetime fuel cost of mid-sized cars available in the US.

Although the authors hesitate to declare any alternative fuel the cheapest option, the chart below clearly shows that the “BEV-100″ (Battery-Electric with 100-mile range, a.k.a. the Nissan Leaf) to be the least expensive option even at high electricity prices ($0.14/kwh) and low gas prices ($3/gallon.) However, the Leaf only has a clear lead when the $7500 tax credit is taken into account.

(click to enlarge)

The other vehicles in the chart are (from left to right):

• A conventional car with a 4 cylinder, 2.4 liter engine
• A flex-fuel vehicle (FFV) with a 4 cylinder, 2.4 liter engine
• A car with a four cylinder diesel engine.
• The diesel car running on Biodiesel.
• A conventional car

The Washington Post has a practice of running a story every month or so about Japan facing a demographic nightmare because its population is living longer. The idea is that this will impoverish the nation's youth, imposing a crushing burden of caring for the elderly. Of course, those who know arithmetic know better.

This month's feature began by telling readers:

The ominous demographics of this aging nation have long been seen by Japanese as a distant concern, not a present-day one. But that mind-set is being called into question by a prime minister who says that a crisis requiring immediate sacrifices has already begun.

In recent months, Prime Minister Yoshihiko Noda has staked his job and bet his support on a tax increase designed to fund Japan’s soaring social security costs.

And the potential tax hike is only a sneak preview of the burdens to come as Japan grows into

Q1 2012 Earnings Call

April 25, 2012 8:00 am ET

Executives

Toshizo Tanaka – Executive Vice President and Chief Financial Officer

Presentation

Toshizo Tanaka

Good morning or good afternoon, ladies and gentlemen, and welcome to Cannon’s Conference Call. Please refer to today’s slides and note that our financial comparisons made during my presentations will be on a year-on-year basis unless otherwise stated.

Please refer to Slide 2. This is today’s agenda.

Please turn to Slide 3. In the first quarter, global economy saw only a gradual recovery. In addition to continuing weakness in Europe, we also saw sign of dissertations in managing the market. As for exchange rate, although the year end moved away from its excessive appreciation, it remained strong against U.S. dollars and euro.

In addition to the challenging business environment, we faced some effect of last year’s Thai flood. Under these situations, despite posting

F4Q12 Earnings Call

April 27, 2012 12:00 AM ET

Presentation

Unidentified Company Representative

Welcome to the Honda Financial Results Audio Presentation. On April 27, 2012, Honda Motor Company announced its financial results for the fiscal fourth quarter, which ended on March 31, 2012. During this audio presentation, we would like to review the financial results and highlight the major factors, which influenced Honda’s business operations during the period. The presentation material, which will serve as the basis for today’s program, is available on Honda’s Investor Relations website at http://world.honda.com/investors.

For those of you who have not yet downloaded the material, please do so now, as we will start immediately, following a forward-looking statement.

This audio presentation contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such

F4Q12 Earnings Call

April 27, 2012 12:00 pm ET

Executives

Takumi Shibata - Group COO; Chairman and CEO, Wholesale

Junko Nakagawa - CFO

Analysts

Masao Muraki - Deutsche Bank

Natsumu Tsujino - JPMorgan Securities

Jun Shiota - Daiwa Capital Markets

Sasaki - Mitsubishi UFJ Morgan Stanley Securities

Mitsumasa Okamoto - Merrill Lynch

Takehito Yamanaka - Credit Suisse

Presentation

Takumi Shibata

This is Takumi Shibata, Group COO. I was able to rearrange my schedule today to join the call and because I'm attending, some of you may think that we are going to make an important announcement. Well, don't worry, we are not going to. As we did on the call last quarter, I will first say a few words and then hand over to our CFO, Mr. Junko Nakagawa to discuss the highlights of our fourth quarter and full-year result and after that we will take

Exchange traded funds pegged to the Japanese yen were the worst currency ETF performers in early 2012 on efforts by Japan's central bank to push the yen lower, and easing tensions over the eurozone debt crisis.

Yet over the past month, the yen has recovered versus the dollar after many traders apparently threw in the towel on the Japanese currency. The yen is seen as a traditional safe-haven currency.

CurrencyShares Japanese Yen Trust (FXY) is the largest exchange traded product that follows the yen/dollar cross.

"For Japan's exporters, the outlook for global growth is tepid because of a slowly recovering U.S. economy and the sovereign debt crisis in Europe. These firms have also been fighting against a continuously rising yen. From January 2007 to December 2011, the yen rose more than 50% against the U.S. dollar. All of these factors weigh heavily on a stock market tilted toward cyclical stocks,"

By Dean Popplewell

This EUR market is having a difficult time deciding what it wants to do in the short term as it gyrates around familiar prices levels. The initial reaction to the two notch Spanish downgrade by S&P was itself rather muted. The cut certainly was not a surprise, however, the timing was a bit unexpected and not a helping hand for the Italians who are paying a hefty premium to shift their own debt. While the Spanish out look is "negative" the country does remain three notches above "junk" status. Thus far, the single currency has avoided recording any dramatic losses and should probably be thanking the German bunds safe-haven status from preventing bigger losses.

The markets main focus this morning has been on Italian 10-year borrowing costs and investors appetite for periphery product. Thursday evening's Spanish downgrade was horrible timing for today's sale. Pre-sale, Italian benchmark yields

Those who have tried shorting the yen (FXY) over the past few years, and I include myself in this category, have not had good results: Since July of 2007, the yen has appreciated over 34% against the U.S. dollar. The chart below illustrates.

(Click to enlarge)

However, the case that the yen is overvalued and due for a monumental correction is only growing stronger, in my opinion. The rationale is simple: Japan's debt problem is perhaps the biggest in the world - bigger than the eurozone, the U.K., and the U.S. The infographic below, courtesy of Glassman Wealth, illustrates.

(Click to enlarge)

To further put things in perspective, Japan is running twin deficits: Both a budget deficit and a trade deficit - the latter of which reached a record high as Japan's energy imports grew due to the Fukushima disaster. Twin deficits have contributed to the decline of the U.S.

By Carl Delfeld

About a decade after Japan's bubble burst, I was having a cool San Miguel beer with a leading money manager at the Hong Kong Jockey Club. We were discussing the rise of China and whether Japan could snap out of its slump, when my friend made a comment that stuck with me over the years.

"Carl, there's only room for one big dog in Asia."

It certainly seems so. After dominating Asia for a long time, China fell apart after turning inward in the late nineteenth century and early twentieth century. Meanwhile, Japan was turning from isolation to looking outward and re-igniting its economy. This imbalance in strength led to the tragic Sino-Japanese war. After World War II, Japan immediately began its amazing export-led industrial recovery while China again faced turmoil, turned inward and cut itself from the world under Mao's misguided leadership.

The Tables Have Turned