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Not only Japan is doooooooomed for a 7.0 quake ......

  1. Avatar Image

    GTR

    but their trade surplus's projected to get thinner and thinner...

    TOKYO—One of the world's greatest export engines is running out of steam.

    For decades, Japan used the combination of manufacturing might and an export-oriented trade policy to shower markets around the world with its cars and consumer electronics and semiconductors.

    No longer.

    The Japanese government is expected to announce Wednesday that the country recorded its first annual trade deficit since 1980. If the yen remains strong and global demand weak, economists warn that Japan could run trade deficits for years to come.

    Posted 2 years ago #
  2. Avatar Image

    HKE

    man today was filled with walls of text of conspiracies theory and nao this? ...

    Posted 2 years ago #
  3. Avatar Image

    GTR

    This should make some of their car execs barf...

    Everybody is talking about how much the Euro is losing against the dollar. At closer look, it is not alarming. Even during normal times I have seen lower Euro rates than the current $1.27. But wait until you look at the Euro from a Japanese perspective. (Like the one I have at the moment, sitting in a pittoresk cabin half way up Mount Fuji that could use better heat.) The anemic euro might discourage people like me from coming to Japan. What it really does is discourage Japanese automakers from exporting to Europe. A lot has been said about the strength of the Yen against the dollar. It’s nothing compared to the Euro. Against the Euro, the yen turned into Godzilla. This has Japanese automakers extremely worried. They don’t really know what to do about it.



    The Nikkei [sub] made a table of manufacturers’ assumed exchange rates, i.e. the exchange rate that is in the budget, and of the drop in operating profit for each yen below that rate. The table is in yen. The dollar fetches around 77 yen ( it has fetched less) at the moment. If there is 1,000 in the right column, then think there are $13 million.

    On Monday, the Euro momentarily dropped to 97 yen in Tokyo, its lowest level in about 11 years. Let’s run the numbers for Toyota. Assume the Euro stays there, that would cost Toyota $779 million in operating profit – in Europe alone. Ouch!

    The pain is even greater for small Mazda. Says The Nikkei:

    “Among automakers, Mazda Motor Corp. is most seriously affected by the euro’s deprecation because it has no plants in Europe. It exported some 200,000 Mazda 3s and Mazda 2s to Europe, including Russia, in 2010. But because exports are unprofitable at the euro’s current exchange rate, Mazda will try to make due for now with cost cuts.”

    Mazda is aiming for a 25 percent cut in procurement and production costs, but that may not be enough. Even for automakers with local production in Europe, the euro is falling faster than they can adjust production.



    The low Euro of course is a boon for European automakers, especially for the export-heavy Germans. I would love to see a table that discloses how much more money they make for every cent the Euro sinks, but I have never seen such a table.

    If you look closely, and with an open mind, you see something else that is highly alarming: The dollar/euro rate is masking the fact that both are dropping rapidly. Euro and dollar fall, the euro just falls a little faster than the greenback It is like two people who just fell out of another airplane. One watching the other guy, the drop might look benign. Viewed from the bottom (and this is where Japan should be,) it looks like a ….. get out of the way!!!!

    http://www.thetruthaboutcars.com/2012/01/dropping-euro-makes-japanese-carmakers-want-to-throw-up/

    Posted 2 years ago #
  4. hooray?

    well after the dust settles, it will be the prefect opportunity to rebuild the city into the utopia we've only glimpsed @, in various series like Ghost in the Shell or Railgun

    ^_^

    Posted 2 years ago #
  5. All gonna be okay as long as they have anime, manga and seiyuus~

    Posted 2 years ago #
  6. Avatar Image

    HKE

    poyohebat said:
    All gonna be okay as long as they have anime, manga and seiyuus~

    hooray for derailment!

    Posted 2 years ago #
  7. I imagine it's a good time for some Japanese themselves to own European cars though.

    BMW and Mercedes FTW. Oh, and Volkswagens too.

    Posted 2 years ago #
  8. UncommonOtaku said:
    hooray?

    well after the dust settles, it will be the prefect opportunity to rebuild the city into the utopia we've only glimpsed @, in various series like Ghost in the Shell or Railgun

    ^_^

    Utopia's never work in the real world and always end up becoming at best thinly disguised dystopia's.

    GITS BTW is hardly a utopia it's rampant with crime and corporate corruption.

    Related to the topic Japan is not the only country on a path to self destruction the US government may not last much longer either if it continues down the path of conservative authoritarianism and corporate fascism and the EU needs to deal with it's corruption problems and stop letting every damn country in.

    China also is in trouble it tried to grow it's economy too fast and too large a chunk of the GNP is tied up in unsustainable construction projects.
    Google Chinese ghost malls and cites.
    Plus the present government is very incompatible with the new economic system and emerging culture.

    Posted 2 years ago #
  9. The question begs: What countries are they going to have deficits with? I can't imagine them having one with the US. My guess is that it's with China.

    Posted 2 years ago #
  10. Char said:

    GITS BTW is hardly a utopia it's rampant with crime and corporate corruption.

    Not only that but most of the world in that series is in the shitter.

    Posted 2 years ago #
  11. Peter Barton said:

    Not only that but most of the world in that series is in the shitter.

    its already liek that now - hello?

    Posted 2 years ago #
  12. UncommonOtaku said:

    its already liek that now - hello?

    It's worst in the world of GitS.

    Posted 2 years ago #
  13. except we don't have cybernetics or virtual immortality yet.

    it would be nice though if we did.

    Posted 2 years ago #
  14. Avatar Image

    GTR

    poyohebat said:
    All gonna be okay as long as they have anime, manga and seiyuus~

    This should also have you worried about their 2D industrial complex...

    http://io9.com/5874951/why-manga-publishing-is-dying-and-how-it-could-get-better

    Posted 2 years ago #
  15. Why is it everything in Japan going down?

    Are they really serious that if Japan falls, everything associated with it must also go down?

    Posted 2 years ago #
  16. Avatar Image

    GTR

    kanika said:
    The question begs: What countries are they going to have deficits with? I can't imagine them having one with the US. My guess is that it's with China.

    - russia
    - Oceana
    - ASEAN block
    - nigga rich oil countries in mideast (by default)
    - south africa

    Posted 2 years ago #
  17. Avatar Image

    GTR

    Rebellion said:
    Why is it everything in Japan going down?

    Are they really serious that if Japan falls, everything associated with it must also go down?

    japan being not as competitive as korea and germany is considered a decline... Yeah japan still has edge in making niche/hi-quality things but it's a tough sell in the international market where US dollar is still tha king and reliable safe haven.

    Posted 2 years ago #
  18. Avatar Image

    GTR

    man... sucks for those Plasma TV fans like me who's still chasing after the late Pioneer Kuro in quality. Since Pioneer got out of TV business 4 years ago the Kuro ELITE is still unsurpassed.

    Panasonic headed for record $10 billion annual loss

    (Reuters) - Japan's Panasonic Corp warned of a record annual $10.2 billion net loss, joining beleaguered rivals Sony and Sharp in a sea of red ink as they struggle to fix their broken TV businesses and show they have not lost their way.

    Panasonic's forecast loss of 780 billion yen ($10.2 billion) for the year to March dwarfed expectations, and is almost all due to restructuring charges and writedowns for its Sanyo Electric unit.

    At a press briefing in Tokyo on Friday, Panasonic President Fumio Ohtsubo apologized for the unprecedented loss. "I feel the responsibility for the huge amount," he said.

    He gave no sign, however, that he would step aside to let someone else try to revamp the sprawling consumer electronics giant, as Sony's boss Howard Stringer has done.

    Sony on Thursday pressed its reset button after warning of a bigger-than-expected annual loss, announcing that Kazuo Hirai will take over from Stringer as CEO in April, triggering an 8 percent jump in its share price on Friday, its biggest one-day percentage gain in almost a year.

    "We will accelerate our profit structure reform and make sure we achieve a V-shaped performance improvement in the next business year," Ohtsubo told reporters instead.

    Together, Panasonic, Sony and Sharp Corp expect to lose $17 billion this year, highlighting the savaging of Japan's electronics industry by foreign rivals led by South Korea's Samsung Electronics, weak demand and a strong yen.

    With TVs becoming smart - linked to other devices like tablets and smartphones - an inability by Panasonic to win in the TV market risks hobbling sales across their wider consumer electronics line-up.

    Panasonic trimmed its forecast for the number of flat-screen TVs it will sell by 1 million to 18 million sets.

    "They don't seem like a company that's progressing towards a particular goal," said Yuuki Sakurai, CEO and president of Fukoku Capital, which managed assets worth $7.6 billion as of last March.

    "What exactly is this company good at? What does it want to do? They don't have answers to these questions."

    Panasonic, which is in the process of shedding 17,000 jobs by end-March, also missed third-quarter market forecasts, diving to a loss of 197.6 billion yen from a profit a year earlier, much of the damage coming from the TV business.

    TV HERE TO STAY

    Ohtsubo dismissed any suggestion he will ditch the TV business.

    "I don't think it's a business that has lost its growth potential," he said. Panasonic, he explained, wanted to "develop TV in a different manner" by exploring growth in sales to businesses, such as high-quality monitors for hospitals, rather than direct to more fickle retail consumers.

    Yet, even with expansion into niche markets, the living-room market still dominates and the near-term outlook for TV sales is grim.

    By 2015, annual global sales of liquid crystal TVs will contract by 8 percent to $92 billion, forecasts flat panel industry research company DisplaySearch. Worse still, plasma sets, a market that Panasonic dominates, will shrink 38 percent to $7 billion.

    If Panasonic's market share "keeps shrinking by 10 percent or so, they may need to prepare some more restructuring," said Shiro Mikoshiba, analyst at Nomura Holdings in Tokyo.

    Moody's Investors Service downgraded the debt ratings of Panasonic and Sony last month and retained a negative outlook for both, citing their continued TV losses.

    SANYO WRITE DOWN

    It's not only TVs, though, that pose a risk to profits and are keeping investors away from Panasonic shares, say analysts.

    Panasonic shares initially fell on Friday, extending a slide to their lowest in more than 30 years, but later rallied to close 1.2 percent higher ahead of the quarterly results, likely helped in part by the jump in Sony shares.

    Punching a big hole in Panasonic's finances, and adding to 514 billion yen in restructuring costs, is a 250 billion yen goodwill writedown from the 2009 acquisition of rival Sanyo, bought as part of a strategy to focus more on business-to-business markets such as auto components and green technologies.

    If that business performs poorly, analysts say there could be a need for a bigger write-off.

    "On its balance sheet, Sanyo's goodwill comes to 900 billion yen. That's really, really big and we know the situation of the battery business is really, really terrible," Nomura's Mikoshiba said before the earnings release.

    "Panasonic's previous record net loss in 2001/02 was because of the impact of a sudden slump in PCs after the IT bubble burst, but there was hope then for growth in flat-screen TVs," said Hideyuki Suzuki, general manager for investment research at SBI Securities.

    "This time, and not just for Panasonic, it doesn't feel like they've got rid of all the rot."

    Ohtsubo said he had no regrets over buying Sanyo. The acquisition, he insisted, "provided clarity about the future course of Panasonic."

    SILVER LININGS

    "One silver lining is that there is investment being made for the future," said Hiroyuki Fukunaga, CEO of Investrust.

    "You could take the added restructuring costs as a serious move by the company to reform and improve its business. You could look at this as the bottom, to show all the losses and then move aggressively towards the next quarter," he said.

    Panasonic does expect to make an operating profit - which excludes one off items such as restructuring charges - though this is now seen at just 30 billion yen, down from a previous 130 billion yen. Last year, Panasonic logged an operating profit of 305 billion yen.

    Ohtsubo took up much of his earnings presentation talking about the company's most profitable parts: its refrigerators, washing machines and other household appliances, which increased quarterly operating profit by more than 8 percent to 26 billion yen, with an operating margin of 8 percent.

    Next year, Ohtsubo promised more products to attract global consumers. The firm already sells a wide range of items from shavers, massage chairs and the more traditional kitchen appliances to bicycle pumps, fax machines, light bulbs, nose hair trimmers and lighted toilet seats.

    Posted 2 years ago #
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    HKE

    GTR post:

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    ---

    Sry, but not at 6 am in the morning.

    Posted 2 years ago #

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