Yen falls after ultra loose policy.

The yen hit today as the new Bank of Japan Chief, Haruhiko Kuroda, announced that he would continue with the ultra-loose monetary policy put in place by his predecessor. The policy has been credited with boosting Japan's economy and ending years of deflation but has also weakened the yen significantly. Analysts had expected Kuroda to take a more hawkish stance on monetary policy, so his announcement surprised many. As a result, the yen fell against most major currencies, including the dollar and the euro. Investors are now closely watching for any signs of change in the BoJ's policy under Kuroda's leadership, but ultra-loose monetary policy is here to stay.

In addition to Kuroda's announcement, other factors contributed to the yen's decline. One of these was a rise in U.S. Treasury yields, which made the dollar more attractive to investors seeking higher returns. Another factor was concerns over geopolitical tensions in the Middle East, which led some investors to seek safe-haven assets such as gold and the Swiss franc instead of the yen. Overall, the yen will continue to be influenced by a range of global economic and political factors beyond Japan's monetary policy decisions.

www.sba.tax

Comments

Cloud Bookkeeping

HS2 cost cuts new routes and add delays.

Transport department officials have begun work on «Project Silverlight» suggesting the highspeed rail scheme might face four additional years of delay. The planned High Speed 2 rail line faces further delays of up to four years and more cuts to the project under plans being drawn up by ministers to rein in its ballooning costs. The extra delays to the country’s biggest infrastructure project would mean that it would not be completed until as late as 2045 — 12 years after originally planned. «This is a function of inflation; we are having to find huge savings because the cost of everything the department is already doing will have become so much more expensive by then,» said one government official. In October, the FT reported that the Treasury had asked HS2’s management team to identify potential cuts or «scope reductions» to the high-speed line. Transport department officials have subsequently begun work on Project Silverlight aimed at fi...

Small business will be excluded from fraud law.

Ministers are planning to exclude small businesses from anti-fraud legislation by narrowing the scope of a criminal offence targeting companies that fail to prevent economic crimes. MPs and anti-corruption campaigners had hoped the government would seek to amend the economic crime and corporate transparency bill to ensure the new offence covered all companies. The plans to limit the scope of the amendments will also disappoint those who had hoped the legislation would remove key hurdles to the prosecution of white-collar crime. A new «failure to prevent» offence for fraud would bring it in line with existing similar corporate offences for bribery and tax evasion. At present, prosecutors need only prove that organisations lacked «reasonable» or «adequate» controls to pursue the offence in bribery and tax evasion cases. «It would be much more sensible for the government to provide strong guidance for SMEs on what these proce...

Doubt on CS's collateral.

Credit Suisse provided an emergency $140mn loan to Greensill Capital based partly on invoices to companies that deny ever doing the business stated on the documents. The Swiss bank provided the loan in October 2020, less than five months before the collapse of Greensill, a supply chain finance firm that counted former British prime minister David Cameron as a senior adviser. Invoices issued by metals magnate Sanjeev Gupta’s Liberty Commodities and sold to Greensill formed part of the collateral for the loan, according to documents seen by the Financial Times and people familiar with the transaction. Yet several of the parties named on the invoices have told the FT they did no business with Liberty. GFG has consistently denied any wrongdoing. Credit Suisse’s loan had a clause dictating that the collateral value had to be equal to or greater than the $140mn borrowed. The terms of the debt agreement only allowed invoices on Green-sill’s balance sheet to count towards this tally if t...

Search This Blog