Japan exporters should fear slowdown, not boycott 22 Oct 2012 Ire over islands has hit Chinese consumers’ yen for things Japanese. But China’s slowing economy is having an even bigger impact on exports. And while China has toppled the U.S. as Japan’s biggest market, it’s plunging demand from Europe that’s dragging trade down the most.
Sprint shareholders have most to smile about 15 Oct 2012 Softbank’s $20 bln deal to buy 70 pct of the U.S. cellphone operator hands them a premium of about 30 pct. The Japanese group’s owners aren’t keen. Meanwhile, Sprint’s mountain of debt will shrink thanks to an $8 bln cash injection. But it will still be weak compared to rivals.
Global economy hobbled by coordination failures 15 Oct 2012 Political wrangling in the euro zone and United States dominated debate at last week’s IMF meetings. But a longer-term concern is the slowdown in emerging markets. Though the developed world needs to work off its excess debt, it’s hard to see other countries picking up the slack.
Softbank-Sprint tie-up gets bad signal from market 12 Oct 2012 Investors wiped $6.9 bln off the Japanese telco’s value on Oct. 12, three times the boost to its U.S. target. The deal would stretch Softbank financially, and may preclude smaller purchases closer to home. CEO Masayoshi Son has shown chutzpah; he must show discipline too.
Softbank catches Japanese overseas M&A bug 11 Oct 2012 The $40 bln group may take control of $17 bln Sprint Nextel. Aside from pooling iPhone purchases, combining the No. 3 cellphone carriers in the U.S. and Japan has little industrial logic. It looks like another “get out of Japan” deal fueled by cheap money and docile shareholders.
BOJ’s conundrum is how to be more irresponsible 11 Oct 2012 When Japan’s central bank pioneered quantitative easing in 2001 it was the apogee of monetary adventurism. But the bar for unusual policy is set much higher today. If the BOJ wants to stay in the game, it needs to make brazen promises with a straight face – and be believed.
New recall narrows Toyota’s recovery window 10 Oct 2012 It may take just 40 minutes to replace the gizmo responsible for the Japanese automaker’s latest embarrassment, but with 7.4 million cars to fix, that’s 565 years of mechanic time. With the China boycott, the tsunami, and previous recalls, Toyota’s problems seem never ending.
Japan’s banks are in danger of turning European 10 Oct 2012 So warns the International Monetary Fund, which worries the country’s lenders are loading up with too much sovereign debt. Unlike Greece or Spain, Japan controls its own currency. Even so, there’s a risk the government is drawing its banks into a toxic embrace.
IMF’s long-term worry: decades of higher rates 9 Oct 2012 Don’t get too comfortable with low borrowing costs, is the downbeat message from the normally overoptimistic fund. Slightly feebler 3.3 pct growth for 2012 is the short-term concern. But past fiscal excesses and an ageing population could push up interest rates for a generation.
Anti-Japan protests reshape China’s auto market 5 Oct 2012 The spat over disputed islands may help German carmakers overtake their Japanese rivals in China. The likes of Audi and BMW have been luring customers with price cuts and attractive technology. If memories of protesters smashing Japanese cars linger, Germans stand to benefit.
Japan’s new LDP chief a reversion to welcome past 27 Sep 2012 Budget-cutting former prime minister Shinzo Abe has been chosen to lead the opposition. The current DPJ government has done half Japan’s budget work by increasing the sales tax from 2014. Now an Abe premiership is the country’s best hope of cutting pensions and other spending.
Japan slithers further into the monetary morass 19 Sep 2012 The Tokyo central bank decision to say it will print more money next year is unlikely to change much in a country that has defied conventional economic wisdom for decades. But it does make quantitative easing a more dangerous and global contest.
Consumer boycotts won’t decide Sino-Japan fight 19 Sep 2012 Protesters have called for shoppers to stop buying Japanese goods. But past attempts to snub French wine or Danish goods suggest this rarely works. And if Chinese workers attack Japanese factories, they would share much of the pain. Economic war looks reassuringly hard to wage.
Markets sagely dismiss China’s anti-Tokyo tantrums 18 Sep 2012 Smashed cars and shuttered factories haven’t rattled investors. China and Japan have more to lose in trade and investment than to gain from tit-for-tat bickering. Companies big in China like Nissan may suffer, but Japan Inc. has more to fear from Ben Bernanke than from Beijing.
China’s anti-Japan protests could bring heavy cost 17 Sep 2012 Weekend rallies recall 2005, when riots erupted over Japan’s bid for a seat on the UN security council. This time, however, the stakes are higher. China’s economy is more fragile, making unrest harder to contain. And Japan is more reliant on the whims of the Chinese consumer.
Japan holds atomic energy to impossible standard 17 Sep 2012 If Tokyo follows up on its pledge to phase out its reactors, the costs will not be limited to higher electric bills. The replacement fossil fuels are far more dangerous. In demanding perfect safety from nuclear energy - but not from coal - Japan is going with an alarming trend.
Hon Hai cash not enough to restore Sharp’s edge 3 Sep 2012 The Taiwan company’s boss left Japan without a new deal for the 9.9 percent stake in Sharp he proposed buying in March. Sharp only has cash to last about six months. Without an overhaul or sale of its LCD and solar businesses, the electronics maker may struggle to stay afloat.
Oil’s climb raises risk of Asian stagflation 30 Aug 2012 Growth is slowing, but crude has climbed by a quarter in the past two months. That’s not good for energy-hungry Asia, which relies heavily on imports. Higher fuel costs could keep inflation high, making it more difficult for central banks to cut rates as economic growth slows.
Old grudges don’t change Sino-Japan potential 29 Aug 2012 Forty years after the two countries declared relations “normal”, they seem anything but. A clash over contested islands has produced foolish rhetoric from Tokyo and angry protests in Chinese cities. Yet economic ties are a success. More gains will come if cool heads prevail.
Asia’s slowdown may heighten tension over isles 14 Aug 2012 A Korean soccer player may have lost an Olympic bronze amid his country’s spat with Japan over mid-sea islands. Asian politicians’ interest in aquatic outposts reflects a desire to look patriotic, and an economic slowdown increases the acrimony over disputed rocks and reefs.