Monday, May 30, 2016

Japan Dependency Ratio

1.3 Japanese of working age supporting every senior by 2060
100,000 Japanese quit job every year to take care of elderly or sick relative
45% of Japanese household has one elderly to take care

Gold

US listed SPDR gold shares is 5% of total world demand.
Cost for extracting gold is $900 for the sector.

Monday, May 16, 2016

Super Stocks

1. SAB Miller
2. SAP *
3. Reckitt
3. Fresenius KGAA
5. WPP
6. Experian
7. LSE
8. Want Want
9. Symrise *
10. NRI
11. Dairy Farm
12. Shenzhou Intl
13. Sun Art Retail
14. William Hill
15. Samsonite
16. Belle
17. Vitasoy
18. Starbucks *
19. 3M
20. Mondelez

Thursday, May 12, 2016

Diabetes in Asia

WHO data bears this out. According to a March report, the number of adults living with diabetes globally has increased to 422 million from 108 million in 1980. The western Pacific region, including China and Japan, account for 131 million.
In India, the number of diabetes patients totaled 31.7 million in 2000 and is projected to rise to 79 million by 2030. Diabetes is expected to be the world's seventh largest killer by 2030 "unless intense and focused efforts are made by governments, communities and individuals," Dr. Poonam Khetrapal Singh, WHO's regional director for Southeast Asia, said recently to the Times of India.
Along with growing urbanization and rising per capita income have come changing social perceptions, fast-food diets and the overconsumption of relatively unhealthy foods typically associated with obesity, diabetes, high blood pressure, strokes and some cancers. In step with changing public demand, the private sector has responded as new market opportunities have emerged.
Businesses ranging from weight loss clinics to "detox centers" and fitness clubs have appeared in countries that might once have been characterized by consumers more focused on meeting basic daily needs than on specialized health, allergy and cosmetic treatments.
A case in point is Asia's burgeoning weight management industry. Euromonitor International estimates that the industry will grow to $202 billion in 2018, with most growth coming from emerging markets. Already in 2013, the Asia-Pacific region accounted for 12% of weight management retail sales globally, growing by 57% from 2008.

Tuesday, May 10, 2016

ASEAN Banks

Risks

Indon - NIM is too high but sustained for 15 years
65% of CASA deposits with the 3 banks, very strong

Thailand - SME loan book risk
NPL ratio and debt servicing not so good

Sg - oil and gas, China exposure

Malaysia - dangerous, bad debts rising
NPL ratio and debt servicing is worst

Phils - ok

Saving grace: healthy Tier 1 ratio and loan loss reserves

Monday, May 9, 2016

Robots helping to keep Japanese farms alive and thriving

4. Robots helping to keep Japanese farms alive and thriving

Japanese farmers are under pressure from both cheap imports and declining productivity due to the aging of the population. But some are starting to take action. A high-tech approach is one solution, and they are also changing their way of doing business to take advantage of their strengths.

On a recent evening at 7 p.m., the sound of a machine echoed from a greenhouse in Yamamoto, Miyagi Prefecture, in northern Japan. A 1.5-meter tall robot was picking bright red strawberries in the dark, without human assistance.
Using its two high-performance cameras, the robot located the fruit with a flash of light, then gently stretched out its arm to pick only the ripest, sweetest ones. As a result, the farmer can ship fresh strawberries first thing in the morning.
Farm equipment maker Shibuya Seiki developed the harvest robot, which sells for 40 million yen ($374,100) per unit. The company, based in Ehime Prefecture, on the island of Shikoku in western Japan, is conducting demonstration experiments of the cutting-edge technology.

Generally speaking, growing strawberries in Japan requires 2,100 man-hours per 1,000 sq. meters. The number is 80 times higher than for rice, another crop that needs great care. Finely-shaped, deliciously sweet strawberries produced in Japan are considered a high-end brand item among wealthy consumers in Asian countries. But Japanese strawberry farmers are coming under heavy pressure due to the shortage of skilled labor.

Japan's agricultural productivity is rather low compared to other countries, but the development of industrial robots holds promise in easing the problem.

In Tottori Prefecture, western Japan, Coho salmon swim in aquaculture tanks floating off the coast near the city of Sakaiminato.

The facility's operator, Nippon Suisan Kaisha, has installed auto-feeding robots, delivering just the right amount of feed to maintain the growth of its farmed fish, even in bad weather. The technology also prevents excess feed from polluting the surrounding sea.

Stronger together
Using industrial robots can help keep farms and fishing operations open 24 hours a day, just like a Japanese convenience store.

In Japan, people 65 years old and older account for more than 60% of the agriculture workforce -- double the number in the U.S. Many believe that robots hold the key to maximizing productivity of farming and fishing, given the country's limited land and human resources. Tsukasa Teshima, a senior researcher at the National Agriculture and Food Research Organization, said the robot will partner with farmers and help create new forms of agriculture. The organization has been conducting research and development on Japanese agriculture and food.

Advanced technology is also starting to challenge the mindset of farmers, who traditionally focus on producing crops, and their products are usually sold by other entities. But at least one early mover is looking to expand its presence in the near future.

In Chiba Prefecture, northeast of Tokyo, Shigeru Someya, a rice and wheat farmer, recently introduced a self-driving tractor produced by Japanese farm machinery maker Kubota and  spent 1 million yen for a control system. He believes the tractor will improve efficiency, and he has gained management know-how since starting a co-operative farm stand to sell crops directly to consumers. "We set the prices," said Someya. "Because we are selling our products by ourselves, we can now decide the direction for growth."

Refurbishing the land

Abandoned farmland in Japan totals roughly 42,000 hectares, about the size of Toyama Prefecture, on the coast of the Sea of Japan. Such disused farmland is expected to continue to expand and deteriorate, due to an inflow of cheap imported agricultural products.

But some innovative companies are bucking the trend. Ehime-based venture company Telefarm has played a key role in bringing new life to farmland left derelict for more than 10 years in the mountains around the city of Ozu, Ehime Prefecture.


Refurbishing the land, including removing tree roots with heavy machinery and other labor, cost roughly 1.3 million yen. But the money did not come from the traditional sources of agricultural cooperatives or banks. The project attracted 140 capital investors from across the country, who are now waiting to see the results of their investment in the reclaimed land. It took three months to raise the cash through crowdfunding -- sourcing funds over the internet from a large number of people who agree with the concept of the project. Along with the tech-oriented approach, the internet and its potential to connect any number of people around the world is helping to create new channels of funding in Japanese agriculture.

Thursday, May 5, 2016

Japan's impairment

According to Tokyo-based M&A adviser Recof, Japanese companies' cross-border acquisitions exceeded 10 trillion yen in 2015 for the first time.


As Japanese companies invest more in foreign markets, they would do well to keep this 3 trillion yen lesson in mind, and do their homework before snapping up a tempting acquisition.

Stages of successful EM investing

1. Chaos but some stability came, as a result of change in govt, a new leader in charge etc

2. Macroeconomic stabilization, inflation comes down

3. Functioning capital market, no need a lot of bets, just 1 or 2 stocks


Tuesday, May 3, 2016

Rehypothecate


If I have a margin account, and I buy one share of IBM and then I use that to borrow another $100 on my IBM, Bear Sterns can take that one share of IBM that’s in my account and borrow against it for their own purposes. Pledge it as collateral to another bank and give me a $100 Bear Sterns IOU in my account. Now, I’ll still... My equity will go up and down based on the price of IBM, but I won’t have a share in there. I’ll actually have a Bear Sterns IOU.

01:00:08
So if the music stops and Bear Sterns files bankruptcy, suddenly as opposed to my share of IBM in my account, I’m an unsecured creditor of Bear Sterns. And that’s what the hedge fund and other communities realised belatedly, having not gone through this before. The other dress rehearsal was LTCM in 98. And they began to shrink their balances to ensure that they weren’t incurring margin debt, and that was forcing Bear Sterns to return the collateral, and thus... 

Monday, May 2, 2016

Tiger Temple

Collects USD 6m in tourist receipts per year
Bred 281 tigers but only 148 left
Suspected of illegal trading of animals

From NYT, Thai Officials battle Buddhist monks over Tigers' fate at popular temple