money market

Global Weakness Threatens Japan Recovery

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By: Takashi Nakamichi, 02/04/2014

TOKYO—The sharp drop in Japanese stocks underscores a vulnerability of the "Abenomics" recovery: Weakness in overseas economies may undermine the success of measures to jump-start growth at home. "Economies are all connected, and we're really worried about how far the impact will reach" from the recent emerging-market turbulence, Toyoaki Nakamura, chief financial officer of Hitachi Ltd. 6501.TO -1.43% , said Tuesday, even as the electronics giant raised its earnings forecast for the fiscal year ending next month, predicting a record profit. Much of the boom engineered by Prime Minister Shinzo Abe in 2013 was driven by a big expansion in monetary stimulus from his handpicked Bank of Japan governor, which pushed down the value of the yen against the dollar and other major currencies.

 

For more information visit www.online.wsj.com

Mega Default In China Scheduled For January 31

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By: Gordon G. Chang, 01/21/2014

On Friday, Chinese state media reported that China Credit Trust Co. warned investors that they may not be repaid when one of its wealth management products matures on January 31, the first day of the Year of the Horse.

 

The Industrial and Commercial Bank of China sold the China Credit Trust product to its customers in inland Shanxi province.  This bank, the world’s largest by assets, on Thursday suggested it will not compensate investors, stating in a phone interview with Reuters that “a situation completely does not exist in which ICBC will assume the main responsibility.”

 

For more on this story visit www.forbes.com

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