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Akvod on 26 January 2013
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NYANKS said:
Akvod said:
NYANKS said:

Hey can someone break this down for me.  Does this mean anything to Sony? It was written yesterday.    

http://money.cnn.com/2013/01/25/investing/japan-yen-nikkei/index.html

Japan has denied that it is deliberately trying to weaken the yen, saying the recent depreciation is part of a normal market correction.

Related: Japan spurs talk of currency war

But the nation's exporters, including major automakers Toyota (TM) and Honda (HMC), stand to benefit from a weaker yen, which makes Japanese goods more competitive on the global market.

Meanwhile, investors have been piling into Japanese stocks since December, when Abe returned to power, promising to lift the economy out of recession.

Abe quickly unveiled a $117 billion fiscal stimulus package, including increased spending on public works, disaster recovery and aid to smaller businesses.

The combination of fiscal stimulus and central bank easing has attracted the attention of investors around the world, said said Michelle Gibley, director of international research at Schwab.

"Japan is really the story in 2013," said Gibley. "The motto this year could be 'don't fight the BoJ.'"


More favorable exchange rate effects for Sony. So dollars (or whatever) made abroad means more Yen for Sony. Also, investors believe that the Japanese economy with grow more with the stimulus, although I'm not sure how much of that is contributing to the stock price increase.

Overall, very good news from Japan. They're finally being aggresive with their fiscal and monetary policy, unlike the rest of the world.

Good news! Hey, I just edited with another article more about Sony and the convertible bonds, can you evaluate that if you can? Sorry lol

I'll put it here too:   http://www.bloomberg.com/news/2013-01-24/sony-27-convertibles-jump-revives-market-in-slump.html

 

Sony posted in November a net loss of 15.5 billion yen for the three months ended Sept. 30, its seventh straight quarterly loss. The Tokyo-based company, which has 256 billion yen of debt maturing by December, kept its forecasts to report the first annual profit in five years.

“Investors have done very well in deals such as Sony’s,” Barclays’ Smith said. “Getting rewarded like that for taking risk only whets their appetite for more of such deals.”

Basically Sony seems less risky now that things are starting to turn their rate, making their bonds seem more attractive, increasing demand, and therefore increasing price.