[narafa]

Originally Posted by Nonpiker

thanks for the kind words bobnat. My apologize to traderabc and nader. I was in a foul mood when i posted. However, corporations do not consider interest rate differentials when considering acquisitions. It does not make sense from a strategic stand point. I can not defend that point anymore then that. In addition, by buying a Japanese corporation you are not just investing in the japanese economy. The last time I took a look Japan was a large exporting nation no? And where do they export to?

That's ok my friend and thanks for your apology. You should have been over-stressed. Anyway, I hope that your mood is fine now to be able to trade calmly

Originally Posted by Nonpiker

I am not arguing with you nadar regarding interest rate differentials but from and m&a perspective your logic is flawed.

I agree with you that there are lots of reasons behind a M&A deal other than the value of the currencies or the interest rates differential. This is a strategic decision and should be approached with great care and might take months to study before actually applying it and going for.

What I meant is that usually when interest rates favor the USD, American corporations would be more sketical in investing money in the Japanese economy unless they have other strong strategic objectives to make them go for it.

Anyway, let's close the point at this point. I can understand your point and agree with it, but I am convinced that a company making a M&A deal in Japan would only affect the USD/JPY currency rate for a very short time, thus we can't judge the trend through such transactions only.

Thanks,

Nader