Japan Economy Forum

[Aepsilons]

Japan carrier ANA says quarterly profit more than doubles


Tokyo (AFP) —

Japanese carrier ANA said Wednesday its net profit more than doubled to $68 million for the April-June quarter thanks to strong results in its international business on the back of a weak yen.

ANA Holdings, the parent company of All Nippon Airways, reported the soaring profit after an expansion at Haneda airport in downtown Tokyo allowed it to run more overseas routes and fuel costs dropped owing to a decline in crude oil prices.

The company said its logged a group net profit of ¥8.4 billion for the first quarter of the fiscal year to March 2016, up from ¥3.5 billion a year earlier.

Operating profit soared to ¥16.7 billion from ¥347 million during the same period last year, with revenue up 7.0 percent at ¥413.9 billion.

ANA left its full-year forecast unchanged, still expecting net profit of 52 billion yen on revenue of ¥1.79 trillion.

“International passenger numbers and revenues both increased due to steady business demand and growing numbers of in-bound travellers to Japan,” the company said in a statement.

Domestic passenger revenue rose 2.7 percent to ¥152.3 billion while international passenger income jumped 9.2 percent to ¥119.3 billion, ANA said.

“The Japanese aviation sector is enjoying strong demand for business use on the back of the nation’s economic recovery,” said Hiroshi Hasegawa, analyst at SMBC Nikko Securities in Tokyo.

“A weak yen has helped boost the number of foreign tourists coming to Japan, especially from Asian countries,” he told AFP.

ANA has been in a spat with its rival and one-time flag-carrier Japan Airlines over the allocation of landing slots at Haneda, after JAL emerged from one of the nation’s biggest-ever bankruptcies following a government rescue.

“ANA has continued to benefit from an expansion of international slots at Haneda,” Hasegawa said.

ANA recently said it was throwing a lifeline to bankrupt domestic rival Skymark Airlines, Japan’s third-biggest airline, which flies on domestic routes.

Skymark filed for bankruptcy protection in late January in the face of potentially massive penalties linked to a cancelled US$2.2 billion jet order with Airbus.

The Skymark deal would expand ANA’s landing slots and give it the upper hand in setting airfares.

Earlier this month, US carrier Delta Air Lines joined a rival bid to rescue Skymark, whose creditors will vote on the competing proposals next month.

If the Delta deal is successful, it would be the first foreign airline to get access to slots for domestic flights at Haneda.

Japan Airlines is scheduled to release its first-quarter results on Thursday.

 

[opruh]

Sad to see Japan's economy going down the trash.

 

[kawaraj]

Japan's Nikkei to buy FT Group for 1.3 bln dollars

LONDON, July 23 (Xinhua) -- Japan's media company Nikkei Inc. is to acquire the FT Group from British publisher Pearson Plc for 844 million pounds, or 1.3 billion U.S. dollars in cash, ending the market rumors about the new ownership of the global news organization.


Boosted by the news, Pearson's share price on London Stock Exchange closed 2.07 percent higher than its previous close on Thursday.

PACKAGED ASSETS

The deal comprises the Financial Times newspaper, FT.com and FTChinese.com, and titles such as The Banker and Investors Chronicle, but excludes the FT Group's London property in central London and the Economist stake, announced Pearson Thursday.

For the past few weeks Pearson has been exploring a sale of FT Group, which comprises the Financial Times, a number of related titles and a 50 percent stake in Economist Group, publisher of the Economist magazine.

Pearson said that in 2014, FT Group contributed 334 million pounds of sales and 24 million pounds of adjusted operating income to Pearson. On 30 June 2015, FT Group had gross assets of approximately 250 million pounds.

At the FT, total circulation across print and digital rose more than 30 percent over the last five years to 737,000, with digital circulation growing to represent 70 percent of the total, from 24 percent, and mobile driving almost half of all traffic. Content and services now account for the majority of revenues, said the publisher.

The FT has an editorial team of 500 journalists in more than 50 locations around the world. It was first published as a four-page newspaper in 1888 and was bought by Pearson in 1957.

BIDDING COMPETITION

"A contribution will be made to the Pearson group pension plan following closing of the transaction, expected to be around 90 million pounds. In addition, Pearson has committed to fund the pension plan to self-sufficiency in the near term," said Pearson.

Earlier this week, US-based media Bloomberg reported that Pearson is seeking to sell FT Group to Axel Springer SE as well as investors in Europe, the Middle East and Asia.

"The offer from the Japanese group trumped rival interest from Germany's Axel Springer which has been in talks in recent week with Pearson," reported FT Thursday.

Chris Beauchamp, Senior Market Analyst at London-based financial company IG, commented in a note: "Nikkei had not been viewed as one of the primary contenders, but with sales in retreat in its home markets the group evidently decided a bold stroke was needed... It is the end of an era, but the sale will give them the funds to expand its education division."

Nikkei is one of Japanese largest publishers with annual sales of around one billion pounds.

GLOBAL, DIGITAL

The direct benefit from the divesture would be the dedication on Pearson's education assets.

"The balance of the proceeds will be used by Pearson for general corporate purposes and investment in its global education strategy," said Pearson.

John Fallon, chief executive at Pearson, said in a statement: "Pearson has been a proud proprietor of the FT for nearly 60 years. But we've reached an inflection point in media, driven by the explosive growth of mobile and social. In this new environment, the best way to ensure the FT's journalistic and commercial success is for it to be part of a global, digital news company."

He added that Pearson will now be 100 percent focused on its global education strategy.

"The world of education is changing profoundly and we see huge opportunity to grow our business through increasing access to high quality education globally," he said.

Evercore, Goldman Sachs and J.P. Morgan Cazenove acted as financial adviser to Pearson on this transaction. Rothschild Group acted as financial advisers to Nikkei on this transaction, noted Pearson. (1 pound=1.56 U.S. dollars)

Japan's Nikkei to buy FT Group for 1.3 bln dollars - Xinhua | English.news.cn

that is the right direction, soft touch on the media world.

 

[Aepsilons]

Japanese Consortium to Supply 21% of Boeing 777X Structures



Boeing Commercial Airplanes has completed a deal with several Japanese manufacturers to supply a significant portion of the structural components for the 777X aircraft, a revamped version of its long-range, twin-engine passenger jet to be introduced in 2020. The design includes some elements developed for the 787 Dreamliner, including composite wings and the GE9X high-bypass turbofan engines.

The jet builder reportedly has 306 firm orders for the new jets, which will enter into production in 2017.

Boeing, with Japan Aircraft Industries (JAI), and Japan Aircraft Development Corporation, initiated a "memorandum of understanding” last year that anticipated JAI would provide up to 21% of the major structural components for the two versions of the 777X.


JAI is a consortium of Mitsubishi Heavy Industries, Kawasaki Heavy Industries, Fuji Heavy Industries, ShinMaywa Industries, and NIPPI Corporation. JADC is a trade association that coordinates joint commercial and technological programs involving the Japanese aircraft industry.

“The JAI companies are investing in new facilities and introducing robotic and other automated systems to ensure they deliver high-quality products on time, every time,” according to Shigeru Murayama, JADC chairman and president of KHI. “This is a measure of their commitment to the success of the 777X.”

The finalized agreement indicates that the Japanese manufacturers will supply fuselage sections; center wing sections; pressure bulkheads; main landing gear wells; passenger, cargo and main landing gear doors; wing components; and wing-body fairings.

Boeing noted it has partnered with Japanese aerospace suppliers for nearly 50 years, to develop and manufacture the most of its commercial aircraft series. It added that in 2014 it purchased over $5 billion of goods and services in Japan. It said it expects its Japanese purchases to total approximately $36 billion between 2014 and the end of the decade.

“Our Japanese industry partners have consistently performed to the highest standards and contributed enormously to the resounding success of the current 777,” according Boeing’s Kent Fisher, vice president and general manager, Supplier Management. “In working with us on the affordability goals of the 777X, they have modeled the kind of partnership and commitment needed to serve our customers and the changing demands of the marketplace.”



Boeing Inks Agreement with Japan Aircraft Industries for 777X Structures | News content from American Machinist

 

[Aepsilons]

Profits soar at Japan’s ‘Big Three’ container lines


Japan’s three largest container lines saw their net profits surge in the first quarter of fiscal 2015, buoyed by brisk container traffic volume from Asia to the United States as well as a weaker yen and lower fuel prices.

Industry leader Nippon Yusen Kabushiki Kaisha (NYK Line) saw its group net profit rise in the April-June quarter at a faster pace than Mitsui O.S.K. Lines (MOL) and Kawasaki Kisen Kaisha Ltd. ("K" Line), more than quadrupling on a year-on-year basis.

NYK Line’s group net profit swelled 321.3 percent in the April-June quarter from a year earlier to 43.067 billion yen (US$347 million). MOL’s group net profit jumped 50.2 percent to 12.783 billion yen. “K” Line’s group net profit ballooned 138.2 percent to 10.194 billion yen.

The three shipping firm’s sharp profit rises come despite modest growth in their group revenues. NYK Line posted 588.703 billion yen in revenue, up 1.1 percent. MOL posted 449.435 billion yen in revenue, up 1.2 percent. “K” Line posted 335.457 billion yen in revenue, up 4.9 percent.

According to the Japan Maritime Center (JMC), container traffic volume from Asia to the U.S. grew for the fourth consecutive month in June on a year-on-year basis, rising 6.2 percent to 1.317 million TEUs, the biggest amount on record for the month of June.

Container traffic volume from Asia to the U.S. in the April-June quarter amounted to 3.876 million TEUs, up 5.5 percent from the same three-month period last year, the JMC said.

NYK attributed its profit growth to greater efficiency and efforts to reduce fuel consumption in its container shipping business.

While posting first-quarter profit growth, all three companies were wary about the future, citing declines in spot market rates due to overcapacity as more mega-ships come into service and the impact this would have on future revenue.

MOL and “K” Line also expressed pessimism about global economic prospects given the uncertain economic situations in China and the Europe.

As such, the three largest Japanese shipping firms all revised downward their full-year revenue and operating profit forecasts, although they left unchanged their full-year net profit forecasts.


Profits soar at Japan’s ‘Big Three’ container lines | JOC.com

 

[Aepsilons]

Toyota says quarterly profit up 10% to $5.2 bn, lifts sales forecast


Tokyo (AFP) —

Toyota on Tuesday said its net profit for the three months to June jumped 10 percent to US$5.2 billion, crediting a weak yen and cost cuts, while it also boosted its annual sales forecast.

The Corolla and Camry maker’s revenue in the latest quarter rose 9.3 percent to ¥6.98 trillion ($56.3 billion), as it separately announced an overhaul of its operations in China, the world’s biggest vehicle market.

The Japanese giant’s vehicle sales were slightly lower at 2.1 million vehicles in the quarter.

“Favorable foreign exchange rates and cost reduction efforts were (the) main positive factors, while decreased vehicle sales and increased expenses to support initiatives for enhancing competitiveness were negative factors,” Toyota Managing Officer Tetsuya Otake said in a statement.

Japanese automakers have benefited from a steep slide in the yen, which has made them more competitive overseas and inflated the value of repatriated overseas profits.

Toyota said it now expected revenue for the fiscal year to March 2016 to come in at ¥27.8 trillion, edging up from an earlier ¥27.5 trillion estimate, while net profit is forecast to be ¥2.25 trillion for the year.

In a separate statement, the company said it was reorganising its Chinese operations, including adding a new production line at one plant that would boost capacity at the site by 100,000 vehicles annually.


Toyota says quarterly profit up 10% to $5.2 bn, lifts sales forecast ‹ Japan Today: Japan News and Discussion

 

[Cossack25A1]

Japanese Fan Comics Could Die Under New Trade Deal
Brian Ashcraft
Filed to: comics 8/12/15 6:30am

“Doujinshi” (同人誌) is Japanese for fan-created, self-published comics, magazines, and novels. While Japan has strict copyright laws, doujinshi tend to get a free pass and flourish. A new trade agreement could change that forever.

Doujinshi is a proving ground for new artists, who can create a name for themselves through their self-published works and make the leap from amateur to pro. The country’s biggest geek event, Comiket, is centered around doujinshi. Fans line up to buy independently produced parodies of famous manga and starring popular characters.

Copyright holders typically turn a blind eye to doujinshi, knowing it’s where future manga artists often get their start. But under the Trans-Pacific Partnership (TPP), that still might not stop the police from going after doujinshi creators for violating copyright law.

TPP is proposed trade deal with twelve countries possibly participating, including the U.S., Canada, Mexico, Japan, South Korea, Taiwan, the Philippines, Thailand, Australia, and Colombia, among others. China is currently not part of the TPP negotiations.

As The Yomiuri Shimbun explains, current Japanese copyright law dictates that violations can only be investigated once the copyright holder files a complaint. No complaint means no investigation.

TPP, however, aims to streamline the process so that the copyright holder does not have to file. A third party can report copyright violations. The reason, The Yomiuri Shimbun notes, is that U.S. companies often experience copyright violations and this TPP provision would combat those.

The rub is that by giving third parties the ability to report copyright violations, fans or rival doujinshi creators could start ratting people out to the authorities. See the below image, via The Yomiuri Shimbun:

According to The Yomiuri Shimbun, a person involved in the TPP negotiations said that the copyright provision will allow for a degree of parody.

“If creators can be prosecuted without complaints from rights holders, it could lead to some kind of snitching battle between fans,” said manga artist Ken Akamatsu, who started out in doujinshi. “Places for people to share their work will also disappear.”

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Japanese Fan Comics Could Die Under New Trade Deal
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I guess this is the reason why USA is pushing TPP with Japan because comic industry in America cannot compete with Japanese manga industry.

 

[LowPost]

Sanctions could lead to Russia-Japan currency swaps

The Japan Bank for International Cooperation (JBIC) says the country is leaning towards direct ruble-yen currency swaps, as Western sanctions are making it difficult to conduct business using US dollar transactions.
"We're now studying that [the effects of ruble devaluation]. We need some of the swap arrangements with the local banks. We are elaborating opportunities with Russian banks such as Gazprombank, VTB, VEB… Because of the US sanctions, we cannot use the US dollar anymore, we have to switch to other currencies," JBIC’s senior managing director Tadashi Maeda told Sputnik news agency on Thursday on the sidelines of the Eastern Economic Forum (EEF) in Vladivostok.

The interest rate is very high and could “hinder” swaps, Maeda added, talking about the use of the Russian ruble.

READ MORE: Ditching US dollar: China, Russia launch financial tools in local currencies

In December, the central banks of China and Russia effectively switched to domestic currencies in trading using swaps and forwards as a way of reducing the influence of the US dollar and foreign exchange risks. The three-year 150 billion yuan swap arrangement has boosted trade turnover between the two countries, which has already reaching $88.4 billion. Moscow and Beijing expect trade turnover to reach $100 billion in 2015.

Sanctions could lead to Russia-Japan currency swaps — RT Business

 

[Aepsilons]

Japan foreign exchange reserves jump to $1.24 trillion in August


The nation’s foreign exchange reserves totaled $1.24 trillion at the end of August, up $1.83 billion from a month before, the Ministry of Finance said Monday.

The balance grew for the first time in four months thanks to a rise in the dollar value of euro-denominated assets held by the government on the back of the currency’s advance against the greenback.

Of the total external reserves, foreign currency-denominated securities accounted for $1.12 trillion, and deposits $68.66 billion.

Gold reserves amounted to $27. 92 billion, and the International Monetary Fund’s special drawing rights came to $18.31 billion.

Japan foreign exchange reserves jump to $1.24 trillion in August | The Japan Times

 

[Aepsilons]

Japan's unemployment rate improves to 3.1 percent


Japan's jobless rate in October fell to 3.1 percent from the previous month's 3.4 percent, marking the lowest level in about 20 years, the country's government data showed on Friday.

Japan records lowest unemployment rate in 20 years at 3.1% | World news | The Guardian

 

[Aepsilons]

Japan output, retail sales rise, sign of gradual pickup from recession

Japan's industrial output rose for a second straight month in October and retail sales grew much faster than expected - a tentative sign of the economy's recovery from a recession.

The latest indicator should ease concern among policymakers after data last week showed weakness in household spending and consumer inflation, which have kept pressure on the Bank of Japan to top up its already massive stimulus.

Trade ministry data on Monday showed factory output rose 1.4 percent month-on-month in October, versus economists' estimate for a 1.9 percent gain and 1.1 percent increase in September, led by general-purpose machinery, cars and electronics.

Separate data showed retail sales rose 1.8 percent in the year to October, more than a 0.8 percent annual gain expected, on sales of clothes, food and drink, cars and home appliances.

Monday's data underlines analysts' expectations that the economy is headed for a modest rebound over the current October-December quarter, after it suffered a second straight quarter of contraction through September - a technical recession.

"Factory output is expected to bottom out gradually, led by the electrical machinery sector reflecting a recovery in shipments centering on exports. General machinery is likely to stop falling," said Junichi Makino, chief economist at SMBC Nikko Securities.

"Fine weather and a rise in Chinese tourists helped spur retail sales, which have held firm since summer despite some weakness in items such as home appliances. I expect consumption will pick up in line with improving real household income."

Manufacturers surveyed by the ministry expect output to rise 0.2 percent in November and decrease 0.9 percent in December.

The ministry maintained its assessment on factory output to say it is seesawing. Officials noted that output levels remain low although a falling trend may be reversed.

Shipments grew for a second straight month in October to a level seen about a year ago, helping reduce inventory to its lowest in a year.

The batch of data comes at a time of growing economic strains, with Japan's relapse into recession in the last quarter and China's slowdown clouding the outlook.

While the Bank of Japan's 2 percent inflation target remains elusive, Prime Minister Shinzo Abe, under pressure to rev up growth that has stagnated for decades, ordered his cabinet on Friday to compile an extra fiscal spending plan this fiscal year.


Read more at Reutershttp://Japan output, retail sales rise, sign of gradual pickup from recession| Reuters

 

[Aepsilons]

Japan’s second-quarter business investment up 11% despite economic slowdown


Capital spending by Japanese firms rose 11.2 percent in the July to September period from a year earlier, the government said Tuesday, a bright spot for an economy that slipped back into recession in the fiscal second quarter.

The data will affect revisions to Japan’s economic growth figures for the same period, with the Cabinet Office scheduled to release revised gross domestic product data next Tuesday.

Investment by all nonfinancial sectors for purposes such as building plants and introducing equipment grew for the 10th straight quarter to ¥10.49 trillion, the Finance Ministry said, even as the economy shrank for a second consecutive quarter despite Prime Minister Shinzo Abe’s efforts to foster growth.

“The data reflects the broader trend of an economy recovering moderately,” a ministry official said, adding that the government will monitor future corporate activity closely.

The growth in capital spending may lead to an upward revision to the GDP data, some analysts said, although the outlook remains uncertain.

“The GDP may be revised upward … but it is still difficult at this point to project that capital spending will grow strongly,” said Toru Suehiro, senior market economist at Mizuho Securities Co.

In preliminary numbers, released last month, Japan’s economy contracted an annualized 0.8 percent for July to September on an inflation-adjusted basis, with capital spending down 1.3 percent for the second straight quarterly decline as firms maintained a cautious stance amid a slowdown in emerging economies, including China.

Tuesday’s data showed that on a quarter-on-quarter basis, business investment, excluding spending on software, increased a seasonally adjusted 5.4 percent.

Capital spending by manufacturers rose 12.6 percent from a year earlier to ¥3.88 trillion, helped by companies willing to bolster output capacity to meet robust demand for cars in North America as well as for smartphone components.

Business investment by the nonmanufacturing sector increased 10.4 percent to ¥6.62 trillion, led by leasing and construction companies.

The Abe administration has been trying to shore up domestic demand, but consumption remains sluggish. It is also urging Japanese companies to further raise wages and boost investment with their record profits due partly to a weak yen that Abe suggests has been caused both by government and Bank of Japan policies.

A weak yen is a boon to exporters, such as auto and electronics makers, when their profits are repatriated. For the July to September period, the dollar averaged ¥122.31, down ¥18.47 from the same period last year.

The data also showed pretax profit at businesses in all sectors covered by the poll rose 9 percent to ¥15.22 trillion, despite some sectors such as oil and coal as well as chemicals being adversely impacted by falling crude oil prices.

The yen’s weakness helped lift sales in all sectors, up 0.1 percent to ¥328.24 trillion.

The ministry surveyed 31,878 companies capitalized at ¥10 million or more, of which 23,574, or 74 percent, provided valid responses.


Japan's second-quarter business investment up 11% despite economic slowdown | The Japan Times

Japan’s second-quarter business investment up 11% despite economic slowdown


Capital spending by Japanese firms rose 11.2 percent in the July to September period from a year earlier, the government said Tuesday, a bright spot for an economy that slipped back into recession in the fiscal second quarter.

The data will affect revisions to Japan’s economic growth figures for the same period, with the Cabinet Office scheduled to release revised gross domestic product data next Tuesday.

Investment by all nonfinancial sectors for purposes such as building plants and introducing equipment grew for the 10th straight quarter to ¥10.49 trillion, the Finance Ministry said, even as the economy shrank for a second consecutive quarter despite Prime Minister Shinzo Abe’s efforts to foster growth.

“The data reflects the broader trend of an economy recovering moderately,” a ministry official said, adding that the government will monitor future corporate activity closely.

The growth in capital spending may lead to an upward revision to the GDP data, some analysts said, although the outlook remains uncertain.

“The GDP may be revised upward … but it is still difficult at this point to project that capital spending will grow strongly,” said Toru Suehiro, senior market economist at Mizuho Securities Co.

In preliminary numbers, released last month, Japan’s economy contracted an annualized 0.8 percent for July to September on an inflation-adjusted basis, with capital spending down 1.3 percent for the second straight quarterly decline as firms maintained a cautious stance amid a slowdown in emerging economies, including China.

Tuesday’s data showed that on a quarter-on-quarter basis, business investment, excluding spending on software, increased a seasonally adjusted 5.4 percent.

Capital spending by manufacturers rose 12.6 percent from a year earlier to ¥3.88 trillion, helped by companies willing to bolster output capacity to meet robust demand for cars in North America as well as for smartphone components.

Business investment by the nonmanufacturing sector increased 10.4 percent to ¥6.62 trillion, led by leasing and construction companies.

The Abe administration has been trying to shore up domestic demand, but consumption remains sluggish. It is also urging Japanese companies to further raise wages and boost investment with their record profits due partly to a weak yen that Abe suggests has been caused both by government and Bank of Japan policies.

A weak yen is a boon to exporters, such as auto and electronics makers, when their profits are repatriated. For the July to September period, the dollar averaged ¥122.31, down ¥18.47 from the same period last year.

The data also showed pretax profit at businesses in all sectors covered by the poll rose 9 percent to ¥15.22 trillion, despite some sectors such as oil and coal as well as chemicals being adversely impacted by falling crude oil prices.

The yen’s weakness helped lift sales in all sectors, up 0.1 percent to ¥328.24 trillion.

The ministry surveyed 31,878 companies capitalized at ¥10 million or more, of which 23,574, or 74 percent, provided valid responses.


Japan's second-quarter business investment up 11% despite economic slowdown | The Japan Times

 

[neolithic]

Lessons can be learned from Japan's energy efficiency experience — China Daily

 

[Husnainshah]

@
Nihonjin1051 Hi there! I'm planning to invest in Japan early next year. I need a little help. Could ya hit me up at shaw_zedong@hotmail.com

 

[neolithic]

26 natl universities to abolish humanities, social sciences