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Forums - General Discussion - Sony / Ninty Yen boost. Markets finally catch up with me ;-)

binary solo on 27 November 2012
kowenicki said:
binary solo said:
Isn't it the case that the Japanese economy is not doing great, so the only reason the Yen has been on the high side is because the European and US economies are doing as bad or worse? If Japan's improvement lags the USA and Europe's a bit, especially if USA and Europe raise interest rates slightly in the next year or so, then the Yen should depreciate further.

Is the 80/100 level significant in a medium term context?

Hopefully this also means an easing of the NZD vs the USD. We don't like being in the high 70s - low 80s. Mid 60s to low 70s is a lot more comfortable for us.

There isnt much chance of interest rates rising, or if they do it would be by very small amounts.  Feeling in the UK is that interest rates stay low for years to come.

I didnt know you lived in NZ.  The NZD is killing one of my clients that emigrated there a couple of years ago.  I am waiting to send him a significant 6 figure sum but we simply cant whilst the NZD is so high.  He is even thinking about selling the house he built over there, moving back to the UK, waiting for the currency to devalue and moving back to NZ again - it would probably pay off.

And yet, bizarrely, predictions are that the reserve bank will increase interest rates here (late) next year, and that would only push up the NZ dollar even more worsening our trade deficit. The NZ dollar is subject to rather sudden downshifts. There was a time when UK pensioners were on to a winner by moving here because it instantly tripled the value of their pension while only increasing cost of living by a relatively small amount. What cost 1 pound in GB cost about $1.50 here. Things aren't quite the same now. It does make gaming consoles cheaper though. Really hoping our dollar doesn't tank before the rest of the next gen launches.

Even a 0.25% lift in interest rates in Europe / the USA would be significant for how it's interpretted: real economic growth is being experienced and things are well and truly on the mend. Especially in the USA a small lift in interest rates would see people starting to go back to the dollar. Hopefull that lot start putting up interest rates at about the same time, or before we do.



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TheLastStarFighter on 27 November 2012

Sony actually would be OK today if not for the skyrocketing Yen. Not good, but OK. Their debt put them in a position where they couldn't easily handle the Yen increase. It's not unlike General Motors when the economic crash hit - no wiggle room and they went bankrupt. Nintendo is like Ford was, smaller but with boatloads of cash in the bank. A weaker yen could save Sony from bankruptcy... and it would make Nintendo billions.



007BondAgent on 27 November 2012

Finally some good news for sony and nintendo "especially nintendo"



Laurel Aitken on 27 November 2012

Well, that's good news. But Sony's problems are bigger than the cost of the yen.
They are losing market share in mostly everything they sell. They have to step up their game. This could help them, but the main solution has to come from them.



SnakeDrake on 27 November 2012

Damn Tokyo Jungle is doing its thing. :D



 

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Lostplanet22 on 27 November 2012

I knew it, another kowenicki thread about negative news for Sony... Tsjeez when will you give up dude??

=p



 

Mr Khan on 27 November 2012
kowenicki said:
maverick40 said:
hmmm this is good news. How long will it last though?


Potentially for a while.  Japanese election, fiscal cliff, euro situation looking a little more settled.

Wouldn't the fiscal cliff pull the bottom out of the dollar? Or by the comma in your sentence, did you mean "and" as in "both look a little more settled."

The Japanese election is the kicker, along with their endeavor to grow sales tax which can't be good in their 20-year-recession.



Monster Hunter: pissing me off since 2010.

Mr Khan on 27 November 2012
binary solo said:
kowenicki said:
binary solo said:
Isn't it the case that the Japanese economy is not doing great, so the only reason the Yen has been on the high side is because the European and US economies are doing as bad or worse? If Japan's improvement lags the USA and Europe's a bit, especially if USA and Europe raise interest rates slightly in the next year or so, then the Yen should depreciate further.

Is the 80/100 level significant in a medium term context?

Hopefully this also means an easing of the NZD vs the USD. We don't like being in the high 70s - low 80s. Mid 60s to low 70s is a lot more comfortable for us.

There isnt much chance of interest rates rising, or if they do it would be by very small amounts.  Feeling in the UK is that interest rates stay low for years to come.

I didnt know you lived in NZ.  The NZD is killing one of my clients that emigrated there a couple of years ago.  I am waiting to send him a significant 6 figure sum but we simply cant whilst the NZD is so high.  He is even thinking about selling the house he built over there, moving back to the UK, waiting for the currency to devalue and moving back to NZ again - it would probably pay off.

And yet, bizarrely, predictions are that the reserve bank will increase interest rates here (late) next year, and that would only push up the NZ dollar even more worsening our trade deficit. The NZ dollar is subject to rather sudden downshifts. There was a time when UK pensioners were on to a winner by moving here because it instantly tripled the value of their pension while only increasing cost of living by a relatively small amount. What cost 1 pound in GB cost about $1.50 here. Things aren't quite the same now. It does make gaming consoles cheaper though. Really hoping our dollar doesn't tank before the rest of the next gen launches.

Even a 0.25% lift in interest rates in Europe / the USA would be significant for how it's interpretted: real economic growth is being experienced and things are well and truly on the mend. Especially in the USA a small lift in interest rates would see people starting to go back to the dollar. Hopefull that lot start putting up interest rates at about the same time, or before we do.

Funny thing is that isn't your PM supposed to come from a ForEx background? He worked in currency exchange, did he not?



Monster Hunter: pissing me off since 2010.

chocoloco on 27 November 2012

I am worried of a delay on the US working out the fiscal cliff quickly because Beohner (pronounced boner) is still the leader of a largely Republican dominated US House. Though the Democrats have gained ground in the Senate and and retained the White House, the political picture remains the same as it was two years ago. The House has little reason other than the good of the country to cooperate with the President Obama. The last go at this only resulted in a long standing stalemate that pissed off the entire country. My outlook is that the dollar would more likely fall if it is not resolved soon than it is to gain immediately.



happydolphin on 27 November 2012
kowenicki said:
Kiss of death. Sony share price touched a long time record low today. Perhaps I am ahead of the market makers in seeing the light from the current data.

So the stock went down following this news, can you explain why, I'm not sure I understand. Is it because the american stock loses value somehow, I thought that the improved revenue forecast would make the stock go up.

EDIT: Nvm, google knows -> http://online.wsj.com/article/BT-CO-20121126-710935.html