Japan Economy Forum

[Aepsilons]

Sharp says China smartphone screen shipments may exceed target


TOKYO —

Japanese display maker Sharp Corp, a supplier to Apple Inc, said its shipments of screens to Chinese smartphone makers may exceed its target for the fiscal year to next March as it expands its business to new models.

Norikazu Hohshi, head of Sharp’s device business, said on Thursday that the company would be shipping screens to 15 Chinese smartphone manufacturers this fiscal year and that it was in talks to supply screens for 25 new Chinese models, with shipments to begin as early as the January-March quarter.

The recent rise of Chinese smartphone manufacturers such as Xiaomi Technology Co Ltd helped to boost Sharp’s shipments of small and mid-sized liquid crystal displays by around 50% in the six months to end-September, to 100 billion yen.

The company forecasts the business will bring in 200 billion yen in revenue for the full year to next March.

Worries have mounted about softening prices of LCD screens for Chinese smartphones. Japan Display Inc, the world’s largest maker of LCD screens for smartphones, last month warned that it expected a 10 billion yen net loss for the year to March, reversing a previous forecast for a net profit.

Hohshi acknowledged that there had been a sudden drop in LCD screen prices for Chinese smartphones over the past six months but said this had not affected the high-resolution screens that Sharp is supplying.

Sharp says China smartphone screen shipments may exceed target ‹ Japan Today: Japan News and Discussion

 

[Aepsilons]

Toyota raises forecast on profit jump


TOKYO —


Toyota raised its annual earnings forecast after posting a 23% jump in quarterly profit Wednesday as a favorable exchange rate added to the momentum of the Japanese automaker’s sales growth.


Toyota’s fiscal second quarter profit was a better-than-expected 539 billion yen, up from 438 billion yen the same period the previous year. Analysts surveyed by FactSet had expected about 500 billion yen in quarterly profit


Quarterly sales grew 4% to 6.55 trillion yen as a weak yen boosted the value of overseas revenue.


The dollar was trading at about 100 yen last year, but has soared lately, trading Wednesday at about 114 yen. Toyota is expecting the dollar to average 104 yen for the fiscal year.


Toyota, which makes the Prius hybrid, Camry sedan and Lexus luxury model, said the favorable exchange rate added 40 billion yen to operating profit last quarter.


Unlike other Japanese automakers that have worked hard to move production abroad to reduce the risks of a fluctuating yen, Toyota has kept much of its production in Japan, partly because of political pressures on it, as a major manufacturer, to help Japan Inc. That is now paying off in a big way.


Toyota, the world’s top-selling automaker, raised its profit projection for the year through March 2015 to 2 trillion yen. That would be an increase of 10% from the previous year. It previously forecast 1.78 trillion yen in annual profit.


Toyota raised its annual sales forecast to 26.5 trillion yen from an 25.7 trillion yen, which was about what it recorded in fiscal 2013.


Toyota tends to be conservative in its forecasts so Wednesday’s revisions were not surprising, given what analysts surveyed by FactSet had projected.


The rosier projections are despite a lowered forecast for unit sales, to 9.05 million vehicles, down from the previous projection of 9.1 million vehicles, for the fiscal year.


Sales are languishing in the once booming market of China. Japan has taken a hit after the consumption tax was raised in April. But sales are expected to hold up in the U.S., Europe, South America and Africa for Toyota.


Toyota Executive Vice President Nobuyori Kodaira credited cost reductions and marketing efforts along with the weak yen for the favorable results.


Competition is intense among the world’s biggest-selling automakers: Toyota, General Motors Co of the U.S. and Germany’s Volkswagen AG.


Toyota has been at the top, since overtaking GM in 2008, although it fell behind in 2011, when its production was hit by the tsunami and quake disaster in northeastern Japan. Toyota appears set to clinch the top selling title again this year.


Toyota has battled other difficulties in recent years, including the massive recalls for unintended acceleration problems, mainly in North America, where it was fined by the authorities. Toyota is also among the automakers embroiled in the unfolding Takata air bag recall crisis.


Having scored success as a pioneer in gas-electric hybrids, Toyota is set to introduce another kind of green technology, the hydrogen-powered fuel-cell vehicle, to mass production.


Toyota raises forecast on profit jump, weak yen ‹ Japan Today: Japan News and Discussion

 

[mike2000]

Some sobering news, I'd say.


Hitachi's first-half net profit nearly triples

TOKYO —

Hitachi said Wednesday its net profit for the six months to September nearly tripled to 91.54 billion yen as it hiked its full-year earnings forecast.

The vast conglomerate said net profit was up from 32.77 billion yen a year earlier, as it pointed to a strong performance in its information technology and elevator divisions.

Operating profit rose about 23% to 214.02 billion yen on sales of 4.50 trillion yen, up 0.6%, said the company which sells everything from batteries to nuclear plants.

Hitachi also revised up its annual forecast.

It now expects a net profit of 250 billion yen on sales of 9.5 trillion yen, up from a previous outlook of 230 billion yen and 9.4 trillion yen, respectively.

Demand picked up for IT systems, electronic devices, and so-called social infrastructure such as elevators and trains, Hitachi said.

Strong demand for elevators and escalators in China helped results, Hitachi added, but it also warned that demand some parts of the world could be shaky.

“In terms of the overall global business environment going forward, the US economy will likely keep a steady recovery path while the global economy as a whole faces uncertainties,” it said in a statement.

“Risks pertaining to the European economy such as financial instability in southern Europe and the Ukraine crisis, a slowing growth in the Chinese economy, and geopolitical risks in the Middle East” may weigh on results.

Hitachi's first-half net profit nearly triples ‹ Japan Today: Japan News and Discussion

I like Itachi, its a world class company and it also has a large presence here in the U.K

 

[Aepsilons]

Japan machinery orders jump, give economy much needed boost


(Reuters) - Japan's core machinery orders unexpectedly rose for the fourth straight month in September and manufacturers grew more confident this month, suggesting the economy may be finally starting to gather speed after the hit from an April sales tax hike.

Thursday's data also offered an encouraging sign of firms starting to gradually ramp up on capital investment, seen as significant by the Bank of Japan for cementing a durable economic recovery.

The 2.9 percent month-on-month gain in core machinery orders, a highly volatile data series regarded as a leading indicator of capital spending in the coming six to nine months, follows a Reuters poll that showed still-fragile business sentiment.

The rise in core orders compared with a 1.9 percent drop seen in a Reuters poll of economists. Firms surveyed by the Cabinet Office also expect orders to fall 0.3 percent in the current quarter, after a 5.6 percent quarterly rise in July-September.

"Compared with weakness at households, corporate activity remains firm. Steady profits are providing incentives for firms to spend on investment. The key from now will be whether this will filter through households via wage growth," said Takeshi Minami, chief economist at Norinchukin Research Institute.

"Still, given weak consumption, it is wise not to proceed with the planned tax hike next year."

The data come as speculation grew that Prime Minister Shinzo Abe would postpone the hike to cushion the economy and call a general election in an effort to lock in his grip on power.

The April tax hike pushed Japan into its worst slump since the global financial crisis in the second quarter. Abe has said he will make a decision on the tax hike after assessing third-quarter GDP data, due out Monday.

Japanese companies overwhelmingly want Abe to delay or even scrap the tax hike out of concern it will derail the recovery, a Reuters Corporate Survey showed.

In the Reuters Tankan survey, which closely tracks the Bank of Japan's influential tankan quarterly poll, the sentiment index for manufacturers rose to 13 in November from 8 in October, but they expect a drop back to 9 in February.

Sentiment among service companies slid for the second straight month to its lowest in a year, it showed, as retailers continued to feel the pain from a sales tax hike in April.

The Reuters poll canvassed 486 big firms, of which 264 replied from Oct. 27 to Nov. 10. The results do not fully reflect the BOJ's Oct. 31 monetary easing, which stunned markets, pushing up Tokyo shares and weakening the yen.


Japan machinery orders jump, give economy much needed boost| Reuters

 

[Carlosa]

BBC News - Japan's economy makes surprise fall into recession

Japan's economy unexpectedly shrank for the second consecutive quarter, leaving the world's third largest economy in technical recession.

Gross domestic product (GDP) fell at an annualised 1.6% from July to September, compared with forecasts of a 2.1% rise.

That followed a revised 7.3% contraction in the second quarter, which was the biggest fall since the March 2011 earthquake and tsunami. ........................

 

[Aepsilons]

 

[C130]

not looking good for Japan. their anemic economy has been going on for almost three decades and no end in sight

they have zero resources like petroleum and natural gas.
declining/aging population

innovation and spirit can only go so far in this day and age

 

[terranMarine]

More than ever they need to address the ODA policy and friendly ties with China.

 

[Aepsilons]

 

[Aepsilons]

Economic measures to total ¥2 trillion


The Yomiuri Shimbun The government will incorporate a package of economic measures totaling at least ¥2 trillion, which includes those to revitalize local economies, in the fiscal 2014 supplementary budget, The Yomiuri Shimbun has learned.

A draft of the economic measures also includes moves to deal with the high level of energy prices amid a weakening yen and prepare for natural disasters such as typhoons and earthquakes, according to sources.

Prime Minister Shinzo Abe will instruct ministries and agencies to draw up economic measures at the Council on Economic and Fiscal Policy on Tuesday. The draft will be used as a basis of those measures.


Economic measures to total ¥2 trillion - The Japan News

 

[Aepsilons]

Sony Xperia Z3v Review

Unless you’re willing to pay full price for an unlocked model, it is otherwise quite difficult to get your hands on Sony smartphones in the US. A lack of network carrier partners is to be blame, but that is slowly changing, with Verizon Wireless having their latest flagship smartphone on offer, albeit with their own twist on it. So how much of a difference is there between the original Xperia Z3 and the Verizon version? We find out in the review of the Sony Xperia Z3v!



As mentioned, the Verizon version of the Sony Xperia Z3 is slightly different from the original, with the biggest difference coming in terms of design. While you still get the glass on the back and front, the curved metal frame has been replaced with one that is plastic, with metal inserts, and is a lot more flat, actually reminiscent of the Xperia Z2. This choice in design certainly feels like a step back, considering how great the curved sides of the Xperia Z3 look, but if you prefer a flatter profile, you won’t have much to complain about with the Xperia Z3v. You still get the solid build quality that you’d expect from Sony though, and is still quite thin at 8.9 mm. Great features from the Xperia Z3, such as the front-facing stereo speakers and the IP68 rating for resistance against dust and water, also make their way to this Verizon exclusive.



Other than the differences in design, the Xperia Z3v is largely identical to its namesake, boasting the same 5.2-inch 1080p IPS LCD display, and packing a quad-core Qualcomm Snapdragon 801 processor, clocked at 2.5 GHz, the Adreno 330 GPU, and 3 GB of RAM. This processing package, coupled with Sony’s minimalistic software experience, results in the smooth and seamless performance that you’d expect. Sony has also been improving its display tech with every iteration, and be it reading text, watching videos, or playing games, you will have a great time doing anything on the display of the Xperia Z3v.



The battery gets a slight bump to 3,200 mAh, compared to the 3,100 mAh unit of the Xperia Z3. This may not be enough to create a noticeable difference, but as was the battery experience on the Xperia Z3, you can easily push the battery life to a day and a half, if not beyond, with the Xperia Z3v. The Xperia Z3v can also be charged wirelessly, with any Qi wireless charger, a feature that isn’t available with the original.


There are also no surprises here when it comes to the camera. The 20.7 megapixel sensor makes a return on the Xperia Z3v, along with an unchanged camera software experience, which is packed with a ton of features, some more useful than others. The only quirk with the camera, which we’ve noticed with previous flagship Sony smartphones as well, is the fact that the 20.7 megapixels can be taken advantage of only in manual mode, which lets you shoot in a 4:3 aspect ratio. Everything said and done, you can certainly get the same level of picture quality with the Xperia Z3v, with very sharp and detailed images, with a great amount of color.

When it comes to the software, you get Android 4.4 Kitkat out of the box, with Sony’s minimalistic Xperia UI on top. As we’ve seen, the Xperia UI maintains a stock-like look and feel, keeping things relatively light, and therefore fast, apart from a few additions built in by Sony, such as Small Apps, Walkman, and Gallery. You also get PS4 integration with the Xperia Z3v. That said, this is a device available exclusively from Verizon, so there is no shortage of carrier bloatware on board, which does draw a little away from an otherwise clean Android experience.

And so, there you have it – the Sony Xperia Z3v! This device does feel a lot like a beefed up Xperia Z2, at least in terms of design, but with specifications and features identical to its namesake, it’s definitely almost as good as the original. The Sony Xperia Z3v is available from Verizon at a subsidized rate of $200 with a 2 year contract, or for the full retail price of $600. If you were looking forward to getting your hands on a Sony flagship, this may be your best bet.


Sony Xperia Z3v Review

 

[Aepsilons]

Vietnam's Citimart partners with Japan’s giant retailer Aeon



Ho Chi Minh City-based supermarket franchise Citimart recently announced a partnership with Japanese retail giant Aeon designed to boost their sales in Vietnam’s rapidly growing retail market.

Under the partnership, Citimart, which has renamed its 30 stores “Aeon Citimart,” will sell Aeon's Topvalu brand foods and daily necessities, Citimart founder Nguyen Thi Anh Hoa told news website Thoi Bao Kinh Te Saigon Online on Sunday.
Aeon will assist Citimart in building the new brand and controlling product quality in the hopes of increasing the number of Aeon Citimart stores to 500 by 2025, Hoa said.

The cooperation between Aeon and Citimart aims to take advantage of the two sides’ strength for development, she said, adding that the Japanese firm hasn't purchased shares or contributed capital as part of the cooperation.
Aeon is also negotiating a partnership with Fivimart, which has around 15 stores in Hanoi, Japanese newspaper Nikkei reported last month.

“They (Fivimart and Citimart) will be supplied with products sold at Aeon stores in Malaysia and Thailand, and the three companies will work together to cultivate local food and daily necessities suppliers and develop unique products,” Nikkei said, without quoting sources.

Aeon opened a shopping mall in Ho Chi Minh City's Tan Phu District, its first move into Vietnam, in January. The Japanese retailer just launched the second mall in HCMC's neighbor province of Binh Duong earlier this month.
Other foreign retailers, including South Korea's Lotte Mart and France's Big C, are also making plans to increase the number of supermarkets in Vietnam.

Vietnam's retail market is expected to post revenue of more than US$80 billion in 2014 and $100 billion in 2016, VnExpress said last month, quoting the German market research firm Statista.

Vietnam's Citimart partners with Japan’s giant retailer Aeon | Business | Thanh Nien Daily

 

[Levina]

Toyota raises forecast on profit jump
TOKYO —
Toyota raised its annual earnings forecast after posting a 23% jump in quarterly profit Wednesday as a favorable exchange rate added to the momentum of the Japanese automaker’s sales growth.


Toyota’s fiscal second quarter profit was a better-than-expected 539 billion yen, up from 438 billion yen the same period the previous year. Analysts surveyed by FactSet had expected about 500 billion yen in quarterly profit


Quarterly sales grew 4% to 6.55 trillion yen as a weak yen boosted the value of overseas revenue.


The dollar was trading at about 100 yen last year, but has soared lately, trading Wednesday at about 114 yen. Toyota is expecting the dollar to average 104 yen for the fiscal year.


Toyota, which makes the Prius hybrid, Camry sedan and Lexus luxury model, said the favorable exchange rate added 40 billion yen to operating profit last quarter.


Unlike other Japanese automakers that have worked hard to move production abroad to reduce the risks of a fluctuating yen, Toyota has kept much of its production in Japan, partly because of political pressures on it, as a major manufacturer, to help Japan Inc. That is now paying off in a big way.


Toyota, the world’s top-selling automaker, raised its profit projection for the year through March 2015 to 2 trillion yen. That would be an increase of 10% from the previous year. It previously forecast 1.78 trillion yen in annual profit.


Toyota raised its annual sales forecast to 26.5 trillion yen from an 25.7 trillion yen, which was about what it recorded in fiscal 2013.


Toyota tends to be conservative in its forecasts so Wednesday’s revisions were not surprising, given what analysts surveyed by FactSet had projected.


The rosier projections are despite a lowered forecast for unit sales, to 9.05 million vehicles, down from the previous projection of 9.1 million vehicles, for the fiscal year.


Sales are languishing in the once booming market of China. Japan has taken a hit after the consumption tax was raised in April. But sales are expected to hold up in the U.S., Europe, South America and Africa for Toyota.


Toyota Executive Vice President Nobuyori Kodaira credited cost reductions and marketing efforts along with the weak yen for the favorable results.


Competition is intense among the world’s biggest-selling automakers: Toyota, General Motors Co of the U.S. and Germany’s Volkswagen AG.


Toyota has been at the top, since overtaking GM in 2008, although it fell behind in 2011, when its production was hit by the tsunami and quake disaster in northeastern Japan. Toyota appears set to clinch the top selling title again this year.


Toyota has battled other difficulties in recent years, including the massive recalls for unintended acceleration problems, mainly in North America, where it was fined by the authorities. Toyota is also among the automakers embroiled in the unfolding Takata air bag recall crisis.


Having scored success as a pioneer in gas-electric hybrids, Toyota is set to introduce another kind of green technology, the hydrogen-powered fuel-cell vehicle, to mass production.
Toyota raises forecast on profit jump, weak yen ‹ Japan Today: Japan News and Discussion

proud owner of one <3

Hey there're a few things that I wanted to ask you regarding Japanese economy infact i remember mentioning in you in one of my posts after I read the news on Japan's recession.What I read was that the exports 've increased (courtesy: Abenomics ) but the owners 're sitting on the money and employees dont get the benefit which is said to be one of the reasons why ppl in Japan have stopped spending.True?? May be I've jumbled up my words, as economics is not my fav subject but i was still curious as to how this happened when 95% of the countries worldwide today only dreams of having such a technological dominance as Japan has over the rest.Even before I buy electronic goods I check the "made in -" on each product to confirm its from japan.(remember, more than 50% of the iPhone components are Made In Japan. Toyota plants in Japan have been full throttle to meet the demand. And I won't even mention digital cameras, which are 99.99% dominated by Canons and Nikons.)
I know the unemployment rate is at record lows (4.2%) but what is ironical is the permanent shortage of workers.
Just wanted to know your opinion...

 

[Aepsilons]

Boeing Co (BA) Extends Ties with Japanese Supplier Toray


Defense major, The Boeing Co. (BA), has declared that it has signed a deal that extends its partnership with Japanese chemical firm, Toray Industries.

Toray Industries, a leading supplier of composite materials, already has a contract with Boeing worth $6 billion for supplying the building material of the 787 Dreamliner. The present extension will include 777X wings, bringing the total contract value to a record $8.6 billion.

The existing contract runs through 2021. The extended contract will span more than 10 years from 2014.

This $8.6 billion deal will make Toray industries the sole supplier of carbon fiber to Boeing for its new version of the 777 aircraft.

Moreover, the two companies will collaborate to increase the usage of carbon fiber in the construction of aircraft, thus enhancing the commercial aspect of composites.

Boeing's 787 is the first-ever composite commercial aircraft. Carbon fiber makes up for approximately 50% of the body of the 787 jet, including its wings and fuselage. But carbon fiber will only account for approximately 25% of the structure of 777X since it will be used only in its wings instead of the entire body.

Boeing has been struggling to manage the supply chain of 787 effectively leading to program delays. Taking the standard route for 777X, the company has decided that the aircraft will have a metal fuselage. The production of the twin-aisle 777X aircraft is slated to start in 2017 with the first delivery due in 2020.

With this contract extension which will be effective in 2015, Boeing expects additional expenditure of $36 billion on local purchases in Japan by the end of the decade. The company had spent over $4 billion on goods and services in Japan last year.

Boeing has been making constant efforts to reduce its costs to maintain its growth trajectory as the cloud of sequestration looms large over the defense industry. In the third-quarter earnings conference call, Boeing boosted its operating margin guidance for 2014 from 10% to 10.5% for its Commercial Airplanes. The current contract extension with Toray reinforces the company's objective to maintain its operating margins by focusing on building cost-efficient jets.

Boeing currently holds a Zacks Rank #2 (Buy). Other well-placed stocks in the same industry include Engility Holdings, Inc.

Read more: Boeing Co (BA) Extends Ties with Japanese Supplier Toray - Analyst Blog - NASDAQ.com

 

[TaiShang]

China sees robust PV exports to Japan

North China's Hebei Province saw robust growth of photovoltaic products to Japan in the first ten months, local customs authorities have said

During this period, Hebei's PV exports to Japan hit 2.7 billion yuan (440 million U.S. dollars), up 180 percent, while exports to the European Union and the United States dropped 38.6 percent and 9 percent respectively, due to anti-dumping policies.

In October, the province's PV exports hit 690 million yuan, up 79percent year-on-year.

In the first half of this year, China's PV exports grew 14 percent to reach 7.4 billion U.S. dollars, according to Sun Guangbin, an official with the China Chamber of Commerce for import and export of machinery and electronic products.

During this period, China's PV exports to Japan hit 2.4 billion dollars, making Japan the biggest importer of China's solar panel products.