[TODAY'S TOP STORIES] from [The Japan Times]
[BUSINESS NEWS]
Tuesday, May 26, 2009
Economy looking up for first time since '06
(Kyodo News) The government on Monday raised its assessment of the economy for the first time in more than three years, citing a gradual pickup in external demand and falling corporate inventories, possibly indicating the worst of the recession is over.
"While the economy is in a difficult situation, the tempo of worsening has become moderate," the Cabinet Office said in its monthly economic report for May.
It is the first time since February 2006 the government has upgraded its overall assessment of the economy, abandoning the wording it used over the past two months, when it said, "The economy is worsening rapidly while in a severe situation."
It noted that some economic indicators, including those related to industrial output and exports, have improved, while others such as those gauging the health of consumer spending and housing markets have shown signs of leveling out.
The government expected the economy to be backed by strengthening economic conditions abroad, especially in China, the ongoing progress in inventory adjustment and the effects from a huge package of stimulus measures, which include tax cuts for the purchase of environmentally friendly cars and expressway toll discounts.
But the report says the economy remains vulnerable for the time being, warning in particular that deteriorating job conditions could be the next big obstacle to recovery.
The government lowered its assessment of employment conditions for the first time since December, when it said for the first time ever that they were "getting worse rapidly."
Now it says, "The employment situation, which is worsening rapidly, is severe."
The seasonally adjusted unemployment rate in March, released earlier this month, rose at its fastest pace in more than 40 years to hit a four-year high of 4.8 percent.
Because salaries have also been cut, Cabinet Office officials are concerned about a possible renewed slowdown in consumer spending, a key driver of domestic demand.
In the latest monthly economic report, the government kept the assessment for consumer spending unchanged for the fourth straight month, saying it is "decreasing modestly."
On the outlook of private consumption, the report says the impact of the swine flu outbreak must be watched carefully.
Its evaluations of all economic areas, except the job environment, were either upgraded or kept intact.
The assessment of industrial production was upgraded for the first time since December 2007, saying it is "nearing the bottom," while that of bankruptcies improved for the first time since June 2004.
The description of capital spending remained "decreasing" for the sixth consecutive month.
On the economic climate overseas, the government upgraded its overall view for the first time since December 2003, saying there are some positive effects arising from policy responses and fewer risks, although the situation remains severe.
The United States, Asia and the euro zone all received higher grades for their economic conditions.
[BUSINESS NEWS]
Tuesday, May 26, 2009
Honda passes Toyota as No. 1 with suppliers
NEW YORK (AP) Honda Motor Co. has overtaken Toyota Motor Corp. as the company auto parts suppliers most want to do business with, according to an annual survey released Monday.
Toyota was the No. 1 automaker among parts suppliers since 2002, but its ratings have fallen steadily over the last two years, according to a study by Planning Perspectives Inc., a U.S.-based company that surveys manufacturing and service industries. Honda's marks also declined from last year, although not by as much.
Japanese automakers continued to enjoy the best relations with their suppliers, with Nissan Motor Co. coming in third among the six automakers ranked. Ford Motor Co., whose supplier relations improved dramatically for the second year in a row, came in fourth, followed by General Motors Corp. and Chrysler LLC.
A total of 231 first-tier parts suppliers representing 52 percent of automakers' annual purchases responded to the survey, which was conducted over three weeks in April. The survey ranked the automakers based on degree of trust, open and honest communications, amount of help given to suppliers to reduce costs and supplier profit opportunities, Planning Perspectives said.
"While Ford still has a lot of work to do, what they're doing with their suppliers is working," said John W. Henke, president and chief executive of Planning Perspectives, in a written statement.
Suppliers who work with Toyota complained of a younger, less experienced staff at the automaker's purchasing group, Henke said. It said Ford's improvement was due to its recent decision to transfer its top European purchasing executive to the United States.
Ford remains the only automaker among the Detroit Three that has not accepted government aid. Rival Chrysler is in the midst of bankruptcy proceedings and many of its biggest creditors are parts suppliers waiting to be paid.
GM, meanwhile, is holding out hope for an out-of-court restructuring.
[BUSINESS NEWS]
Tuesday, May 26, 2009
Consumer electronics dive 14%
(Kyodo News) Shipments of consumer electronic products fell 13.7 percent in April from a year earlier to \200.3 billion, declining for the seventh consecutive month due largely to sluggish demand for car navigation systems and other audiovisual equipment for automobiles, an industry body said Monday.
But the pace of decline slowed from a drop of 14.8 percent in March, partly because of relatively robust demand for flat-panel televisions and DVD players, the Japan Electronics and Information Technology Industries Association said.
The association is expecting some improvement in shipments in May, saying demand for environmentally friendly TVs is likely to increase further thanks to the government's so-called eco-point system.
The program provides incentives to buyers of ecologically friendly electronic appliances, including TV sets designed for terrestrial digital broadcasting.
By product, shipments of audiovisual equipment for automobiles tumbled 27.1 percent to \44.7 billion, down for the seventh straight month.
Shipments of visual equipment such as TVs fell 6.6 percent to \140.8 billion and those of audio devices dropped 24.4 percent to \14.8 billion.
[BUSINESS NEWS]
Tuesday, May 26, 2009
NTT unit to buy Pacific Crossing
(Kyodo News) NTT Communications Corp. said Monday it has agreed to acquire all of Pacific Crossing Ltd. at a price of more than \10 billion to expand its underwater cable network to meet growing data communication needs, particularly between Japan and the United States.
The unit of telecommunications giant NTT Corp. said it plans to complete the acquisition by mid-September. Pacific Crossing privately owns an undersea fiber optic ring network connecting the U.S. and Japan.
"We had been purchasing undersea cables when the need arose, but we've decided to purchase a whole company in view of future growth in information and Internet use," NTT Communications spokesman Koji Yamamoto said.
Pacific Crossing, registered in Bermuda, operates a cable measuring 21,000 km with a capacity of 3.2 terabits per second.
[BUSINESS NEWS]
Tuesday, May 26, 2009
Eco-point plan helps retailers' share prices
(Bloomberg) Bic Camera Inc., Kojima Co. and other appliance retailers advanced in Tokyo trading Monday after a government program prompted higher sales of environmentally friendly goods.
Bic Camera jumped 7.5 percent to close at \31,150 on the Tokyo Stock Exchange, the highest since Nov. 13. Kojima surged 17 percent to \619, its highest since November 2007. Edion Corp. advanced 6.1 percent to \683. K's Holdings Corp. gained 3.3 percent to \2,195 and Yamada Denki Co. added 0.5 percent to \5,780.
"After the eco-point system started, sales of televisions, refrigerators and air conditioners almost doubled from a year ago," Bic Camera spokeswoman Mayumi Tamura said.
Customers buying products with high eco-points, as the incentives are known, increased, Tamura said.
[BUSINESS NEWS]
Tuesday, May 26, 2009
Economy looking up for first time since '06
(Kyodo News) The government on Monday raised its assessment of the economy for the first time in more than three years, citing a gradual pickup in external demand and falling corporate inventories, possibly indicating the worst of the recession is over.
"While the economy is in a difficult situation, the tempo of worsening has become moderate," the Cabinet Office said in its monthly economic report for May.
It is the first time since February 2006 the government has upgraded its overall assessment of the economy, abandoning the wording it used over the past two months, when it said, "The economy is worsening rapidly while in a severe situation."
It noted that some economic indicators, including those related to industrial output and exports, have improved, while others such as those gauging the health of consumer spending and housing markets have shown signs of leveling out.
The government expected the economy to be backed by strengthening economic conditions abroad, especially in China, the ongoing progress in inventory adjustment and the effects from a huge package of stimulus measures, which include tax cuts for the purchase of environmentally friendly cars and expressway toll discounts.
But the report says the economy remains vulnerable for the time being, warning in particular that deteriorating job conditions could be the next big obstacle to recovery.
The government lowered its assessment of employment conditions for the first time since December, when it said for the first time ever that they were "getting worse rapidly."
Now it says, "The employment situation, which is worsening rapidly, is severe."
The seasonally adjusted unemployment rate in March, released earlier this month, rose at its fastest pace in more than 40 years to hit a four-year high of 4.8 percent.
Because salaries have also been cut, Cabinet Office officials are concerned about a possible renewed slowdown in consumer spending, a key driver of domestic demand.
In the latest monthly economic report, the government kept the assessment for consumer spending unchanged for the fourth straight month, saying it is "decreasing modestly."
On the outlook of private consumption, the report says the impact of the swine flu outbreak must be watched carefully.
Its evaluations of all economic areas, except the job environment, were either upgraded or kept intact.
The assessment of industrial production was upgraded for the first time since December 2007, saying it is "nearing the bottom," while that of bankruptcies improved for the first time since June 2004.
The description of capital spending remained "decreasing" for the sixth consecutive month.
On the economic climate overseas, the government upgraded its overall view for the first time since December 2003, saying there are some positive effects arising from policy responses and fewer risks, although the situation remains severe.
The United States, Asia and the euro zone all received higher grades for their economic conditions.
[BUSINESS NEWS]
Tuesday, May 26, 2009
Honda passes Toyota as No. 1 with suppliers
NEW YORK (AP) Honda Motor Co. has overtaken Toyota Motor Corp. as the company auto parts suppliers most want to do business with, according to an annual survey released Monday.
Toyota was the No. 1 automaker among parts suppliers since 2002, but its ratings have fallen steadily over the last two years, according to a study by Planning Perspectives Inc., a U.S.-based company that surveys manufacturing and service industries. Honda's marks also declined from last year, although not by as much.
Japanese automakers continued to enjoy the best relations with their suppliers, with Nissan Motor Co. coming in third among the six automakers ranked. Ford Motor Co., whose supplier relations improved dramatically for the second year in a row, came in fourth, followed by General Motors Corp. and Chrysler LLC.
A total of 231 first-tier parts suppliers representing 52 percent of automakers' annual purchases responded to the survey, which was conducted over three weeks in April. The survey ranked the automakers based on degree of trust, open and honest communications, amount of help given to suppliers to reduce costs and supplier profit opportunities, Planning Perspectives said.
"While Ford still has a lot of work to do, what they're doing with their suppliers is working," said John W. Henke, president and chief executive of Planning Perspectives, in a written statement.
Suppliers who work with Toyota complained of a younger, less experienced staff at the automaker's purchasing group, Henke said. It said Ford's improvement was due to its recent decision to transfer its top European purchasing executive to the United States.
Ford remains the only automaker among the Detroit Three that has not accepted government aid. Rival Chrysler is in the midst of bankruptcy proceedings and many of its biggest creditors are parts suppliers waiting to be paid.
GM, meanwhile, is holding out hope for an out-of-court restructuring.
[BUSINESS NEWS]
Tuesday, May 26, 2009
Consumer electronics dive 14%
(Kyodo News) Shipments of consumer electronic products fell 13.7 percent in April from a year earlier to \200.3 billion, declining for the seventh consecutive month due largely to sluggish demand for car navigation systems and other audiovisual equipment for automobiles, an industry body said Monday.
But the pace of decline slowed from a drop of 14.8 percent in March, partly because of relatively robust demand for flat-panel televisions and DVD players, the Japan Electronics and Information Technology Industries Association said.
The association is expecting some improvement in shipments in May, saying demand for environmentally friendly TVs is likely to increase further thanks to the government's so-called eco-point system.
The program provides incentives to buyers of ecologically friendly electronic appliances, including TV sets designed for terrestrial digital broadcasting.
By product, shipments of audiovisual equipment for automobiles tumbled 27.1 percent to \44.7 billion, down for the seventh straight month.
Shipments of visual equipment such as TVs fell 6.6 percent to \140.8 billion and those of audio devices dropped 24.4 percent to \14.8 billion.
[BUSINESS NEWS]
Tuesday, May 26, 2009
NTT unit to buy Pacific Crossing
(Kyodo News) NTT Communications Corp. said Monday it has agreed to acquire all of Pacific Crossing Ltd. at a price of more than \10 billion to expand its underwater cable network to meet growing data communication needs, particularly between Japan and the United States.
The unit of telecommunications giant NTT Corp. said it plans to complete the acquisition by mid-September. Pacific Crossing privately owns an undersea fiber optic ring network connecting the U.S. and Japan.
"We had been purchasing undersea cables when the need arose, but we've decided to purchase a whole company in view of future growth in information and Internet use," NTT Communications spokesman Koji Yamamoto said.
Pacific Crossing, registered in Bermuda, operates a cable measuring 21,000 km with a capacity of 3.2 terabits per second.
[BUSINESS NEWS]
Tuesday, May 26, 2009
Eco-point plan helps retailers' share prices
(Bloomberg) Bic Camera Inc., Kojima Co. and other appliance retailers advanced in Tokyo trading Monday after a government program prompted higher sales of environmentally friendly goods.
Bic Camera jumped 7.5 percent to close at \31,150 on the Tokyo Stock Exchange, the highest since Nov. 13. Kojima surged 17 percent to \619, its highest since November 2007. Edion Corp. advanced 6.1 percent to \683. K's Holdings Corp. gained 3.3 percent to \2,195 and Yamada Denki Co. added 0.5 percent to \5,780.
"After the eco-point system started, sales of televisions, refrigerators and air conditioners almost doubled from a year ago," Bic Camera spokeswoman Mayumi Tamura said.
Customers buying products with high eco-points, as the incentives are known, increased, Tamura said.
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