Yen breaches 100 threshold mark against US dollar

The Japanese currency has breached the 100 yen to the US dollar mark for the first time since April 2009.

It broke the threshold in New York on Thursday and was trading close to 100.8 yen to a US dollar in Asia on Friday.

The yen has fallen nearly 25% against the US dollar since November, after Japan unveiled a series of aggressive moves to spur growth in its economy.

The drop has helped boost exporters' profits and triggered a rally in the country's stock market.

The Nikkei 225 index rose nearly 3% on Friday. The benchmark index has surged more than 55% since November last year.

The Japanese currency has come close to the 100 yen to the dollar mark in recent days, but has been unable to breach that level.

Analysts said that on Thursday, strong data out of the US, which showed that first-time applications for unemployment insurance had fallen to the lowest level in more than five years, had helped the yen pass the mark.

The data triggered hopes of a sustained recovery in the US economy, they said, resulting in investors ditching safe-haven assets such as the yen in favour of the US dollar.

"A stampede out of safety and brightening US job prospects helped catapult the dollar over the key triple-digit threshold against the yen," said Joe Manimbo, senior market analyst at Western Union Business Solutions.

Aggressive measures

Is "Abenomics" the cure for Japan's deflation?

Japanese policymakers have taken various measures as they try to revive the country's sluggish economy.

A key policy initiative has been the Bank of Japan's decision to set a target inflation rate of 2%.

Unlike other economies in the region, Japan has been fighting deflation - falling prices - for most of the past two decades. That has dampened domestic demand as consumers and businesses have been putting off purchases in the hope of getting a cheaper deal later on.

Earlier this year, the central bank announced that it would double the country's money supply and buy long-term bonds to keep interest rates low.

The idea was that with more money in the system, and at a cheap rate, more people would have cash to spend, driving up consumer demand and eventually consumer prices.

All these measures have resulted in the yen weakening significantly over the past few months.

A weak yen bodes well for Japanese exporters. It not only makes their goods cheaper to foreign buyers, which should help boost sales, but also lifts their profits when they repatriate their foreign earnings back home.

The latter impact is already being felt by Japanese firms.

Over the past few days, leading exporters, such as Toyota and Sony, have reported a jump in profits, courtesy of a weak currency.

And with the yen expected to remain weak in the medium term, they have forecast a further jump in profits in the current financial year.

Double-edged sword?

However, some analysts have warned of the risks associated with these aggressive measures and the yen's continued weakness.

Every decline in the yen against the US dollar means Japan is paying for more for its energy needs - it's a steep rise in costs for everybody”

Sean Callow Westpac

They say that if Japan's economy does not start showing signs of recovery, and with interest rates in the country close to near zero, it may see a rise in "carry-trades".

This happens when traders around the world borrow yen at very low interest rates and use it to buy currencies to invest in countries where interest rates are higher.

Such trades have no impact on the real Japanese economy, but they result in the yen weakening further.

That would not bode well for Japan, not least because the country has seen its fuel imports rise in recent times, after almost all of its nuclear reactors were shut in the aftermath of the earthquake and tsunami in 2011.

"Every decline in the yen against the US dollar means Japan is paying for more for its energy needs - it's a steep rise in costs for everybody," said Sean Callow, senior currency strategist at Westpac.

Mr Callow said that while a weak yen would help boost profits of exporters, the rise in energy costs "would offset some of those gains".

At the same time, there are also concerns that if investors start to fear that the currency may keep on weakening, they may start to withdraw their savings and invest outside Japan.

That would not only put further pressure on the yen, but also see deposits in Japanese banks dip.

Some analysts have warned that in a worst-case scenario Japanese banks may not have enough cash to buy government bonds. As a result, the government may not be able to raise enough fresh money for its regular operations as well as to repay its debt.

"In that scenario the government will either face bankruptcy or the Bank of Japan will have to keep printing more money, which will eventually result in hyperinflation," said Takeshi Fujimaki, of Fujimaki Japan.

Hyperinflation involves price increases running out of control as a currency collapses in value.

"This is good for the government as the value of its debt will shrink immensely, but it will be miserable for the Japanese people as the value of their savings will erode," said Mr Fujimaki.

what does a business plan look like ?

there is no standard format for a business plan, but there are many common compenents of a business plan :
executive summary
table of contents

1. statement of purpose
2. company history
3. business description 
4. products and services
5. market analysis
1. customers
2. competition
3. marketing strategy
6. management
7. operations
8. financial plan
9. appendices 

many business plan will also include appendixes with additional information related to the business, its operations, its owners/managers, marketing/promotional plans, etc

Why Develop a Business Plan ?

 

in the book The Enterprenuer's Manual, Richard M White, Jr. states that business plan are "road maps" for business creation : "You identity your origin, select a destination, and plot the shortest distance between the two points"
true, a business plan is essentially a blueprint for a business. however, it also serves many other purposes :

1. a business plan is a detailed blueprint for the activities needed to establish a business (i.e. the details of a product or service, the market for that product or service, and the management of the business providing that product or service)
2. a business plan is the 'yardstick' by which a business owner measures success in meeting stated goals objectives
3. also, a business plan is a tool for obtaining a loan from a lending agency, or for attracting venture capital

China economic growth lower than forecast

China's economy, the world's second-largest, has slowed and performed worse than many analysts expected in the first three months of the year.

Annual growth was 7.7% in the January to March quarter, compared with 7.9% in the previous three months. Analysts had forecast a figure closer to 8%.
China wants to spur growth after it hit a 13-year low in 2012.
Other key data on Monday also came in lower than market expectations, raising questions over the outlook for growth.
Industrial output rose 8.9% in March from a year earlier, much lower than analysts' targets of 10%.
Meanwhile, fixed asset investment, a key driver of China's growth, rose at an annual rate 20.9% in the first three months of year. Analysts had expected growth of more than 21%.
"The Chinese economy is showing soft growth momentum in the first quarter," said Wei Yao of Societe Generale. "All these figures showed that the economy is in a weak recovery."
'Not a bad thing'

“Start Quote

Given Beijing's goal of restructuring the economy, a relatively moderate economic growth is not a bad thing in the longer term”

Wei Yao Societe Generale

Over the past few years, China has relied heavily on its exports and investment spending to maintain a strong pace of growth.

However, as economic growth in its key markets such as the US and Europe has slowed, and its exports have weakened, there have been calls for China to rebalance its economy.
Beijing has acknowledged this and has indicated that it wants to increase domestic demand to reduce its dependence on exports and achieve more sustainable growth.
At the same time, China has had to deal with a widening wealth gap, which has prompted fears of social unrest in the country.
There have been calls for the new leadership, which took charge in March, to work towards a more inclusive growth model.
Analysts said a slower rate of growth may actually help China, as it tries to achieve those goals.
"Given Beijing's goal of restructuring the economy, a relatively moderate economic growth is not a bad thing in the longer term," said Ms Yao of Societe Generale.
She added that this "could help policymakers focus more on the quality rather than speed of the economy".
Accommodative policy China has taken various steps over the past few months to spur growth.
The central bank has cut interest rates twice since June to reduce borrowing costs for businesses and consumers and increase lending.
Beijing has also approved infrastructure projects worth more than $150bn (£94bn).

 

A slowdown in exports has added to calls for China to restructure its growth model

Analysts said China was likely to continue to use easy monetary policies as a tool to sustain growth, and would not raise rates or look to limit access to capital.
"Certainly with this number, policy certainly would not tighten and would continue to be quite accommodative," said Tao Wang, an economist with UBS.
However, some analysts warned against any further aggressive easing measures, adding that such measures may promote asset bubbles and overheat the economy.
"Another year of propped-up growth via state spending and a credit deluge would, we fear, push China dangerously close to proving Wen Jiabao correct - that the current economic model is 'unsustainable'," said Alistair Thronton, senior China economist at IHS Global Insight.
"If something is unsustainable, at some point, it won't be sustained."

AUDITING AND ACCOUNTANT

Auditing according ASOBAC is a systematic process to collect and evaluate evidence objectively about assertions-assertions about economic actions and events to determine the level of compatibility between assertions-assertions with predetermined criteria and pass the results to interested users. In addition there are several other definitions of the audit. Type / classification audit basically there are 3 that financial statement audits, compliance audits, and operational audits. In addition there are several types / classification audit of view of the other side. Discussed in this book is a financial statement audit or audit of financial statements Basically there are 3 types of auditors that internal auditors, government auditors, and independent auditors / public accountant. Audit of financial statements is more associated with the independent auditor. Public accountant has been regarded as a profession because it has met the requirements / characteristics of a profession. The development of the public accounting profession has started from pre industrial revolution. Public accountant acting through Public Accounting Firm (KAP), which is usually a hierarchy of staff partner, manager, senior accountant and junior accountant (assistant). There is a miraculous kind of services rendered an accounting firm, both attestation services as well as non-attestation services. Attestation services that generally exist in KAP include audit, inspection, review, and audit procedures to be mutually agreed. While the non-attest services may include tax and management consulting. In the public accounting profession recognized the Public Accountants Professional Standards which consists of 6 standard, namely Auditing Standards, Attestation Standards, Standards of Accounting and Review Services, Consulting Services Standards, Quality Control Standards and Ethics Rules Compartment Public Accountants.

7 Reasons for Choosing Entrepreneurship

Anyone can be a businessman / entrepreneur. To become an entrepreneur is not only the capital had become an obstacle, it's just an excuse. The important thing is there is a strong will, there must be a way we can take in achieving dreams. Having your own business can be done with minimal capital first, with over time, we run the business would have grown consistently, until a turnover. To get an example picture, this time a lot of opportunities for entrepreneurship, scattered everywhere. But here I will write 7 reasons that drive a person to choose entrepreneurship:

 

 1. Want Rich Quick
Entrepreneurs are those who seek a better future, while employees are those who seek security, "Do not want to be a payday for life!" Dinsi Valentino said. That is, if you want to be rich do not just rely on payday. Because rich-wealthy people pay, still richer the person who gave the salary.

2. Do not Want Unrestricted / Other People Set
With your own business, we are free to set our own work and not spend most of our time to get the orders and the pressure of others.
3. Could Achieve Dreams And Creativity
When we already have a business of their own, then our result could be to further develop our business, by providing ideas that arise from the ideas of our own. Since we already had a very free that is not owned when an employee.
4. The state of destitute / recessive
What will you do when there is no more income, such as when hit by layoffs. To meet the needs of everyday life, like it or not then you will surely be thinking to start my own business, because sometimes too long to look for new jobs again. So the situation is what makes us suddenly become businessmen / entrepreneurs.
5. Unlimited Income
While being an entrepreneur, we are the boss and the employees of the business that we manage themselves, not bound by time and rules. We can earn money in very large, even infinite.
6. Want Independent
It's our business, results of our efforts, the results are also ours. So our own control. We are the ones who determines the success and the success of the business that we run.
7. Gaining satisfaction and pride Dedicated
By opening your own business, let alone thrive (branches everywhere), to have a lot of employees, and a lot of income. Owner entrepreneurs will derive satisfaction and pride.
Well when you've read the article above if you are motivated to want to plunge into the world of entrepreneurship and want to get out of your boss rules to choose to be your own boss ..?, The answer is you alone are decisive.

DIRTY MONEY

If you thought dirty money was only found in offshore bank accounts, check your wallet instead. But you may want to wash your hands afterward.

Almost 60% of Europeans believe cash is the dirtiest item they come into contact with, ahead of escalator handrails, buttons on payment terminals and library books, according to a survey of 1,000 people released on March 25 by Mastercard.

A further 83% of the respondents, taken from 15 countries across Europe, believe cash carries a lot of bacteria. And they are right.

Independent tests on European money conducted by a team of scientists at Oxford University in December 2012, revealed that the average banknote contains 26,000 bacteria, enough germs to make you feel nauseous, and possibly even spread disease.

"Europeans' perceptions of dirty cash are not without reason," Ian Thompson, the professor from Oxford University who tested the cash, said in a news release. "The bank notes we tested harbored an average of 26,000 bacteria, which, for a number of pathogenic organisms, is sufficient for passing on infection."

Even the newest, and therefore cleanest, notes tested contained 2,400 bacteria, with Swiss Francs and Danish Krone the dirtiest money of all.

"(The bacteria) comes from multiple hands," Hany Fam from Mastercard told CNN's Richard Quest. "These notes have a long time in circulation, they're handed, hand to hand, from different individuals and it's inevitable that germs accumulate on them."

Clearly, a credit card company like MasterCard has its own economic interests in pushing people away from cash.

"No, I'm not just advocating credit cards: I'm just saying that consumers are increasingly flocking to other forms of payment -- not only for cleanliness, obviously, but for ease, for convenience, for lots of reasons," Mastercard's Fam said.

Still, cash is dirty. A 2002 study published in the Southern Medical Journal also found bacteria-laden banknotes. Over 80% of cash tested carried germs that could be harmful to people with lowered immunity. Seven percent of bills showed traces of bacteria that can cause serious illness, including Staphylococcus aureus and Klebsiella pneumonia, according to the study. Only 7% of the bills were germ-free.

Another study conducted in 2008 at Switzerland's University Hospitals of Geneva found that some flu virus cells could last for up to 17 days on Swiss banknotes, according to SmartMoney.com

So what to do? To prevent infection, scientists suggest basic hygiene: Keep your hands away from your eyes, nose and mouth, and wash your hands often.

But that won't necessarily prevent illicit banknote contamination.

Last year three employees at a Michigan Circle K store became ill after handling money that had been contaminated with methamphetamine residue, according to a local news website, Ann Arbor.com.

Cocaine is also a common contaminate in the U.S. A 2009 study conducted by the University of Massachusetts Dartmouth found up to 90% of paper money circulating in America contained traces of cocaine.