THE GRAND-PATH » Economy

The net external asset balance of Japan marked a record high.

admin — Mon, 07 Jun 2010 22:24:44 +0000

According to Ministry of Finance, the net external asset balance of Japan as of the end of 2009 increased of 18.1% over the end of last year and became Japanese Yen 266.223 trillion (about US$ 2.95 trillion). It marked a record high. The reason is that it is arising out of the expansion of external bond investing and the proceeding of weaker yen. It increased in two years and was over than that of China, which is the second largest one. It has showed the largest creditor nation in the world for the 19th consecutive year.
　
The external asset minus the external indebtedness is the net external asset. The external asset of Japan increased in two years. It increased of 6.9% over the end of last year and became Japanese Yen 554.826 (about US$ 6.16 trillion). The appraisal gain increased by the proceeding of weaker yen.

Countermeasures to Deflation, Launch of New Fire Insurance

admin — Mon, 28 Sep 2009 22:08:19 +0000

On September 1st 2009, Sompo Japan Insurance, Inc announced that it begins to sell private fire insurance with the agreement value endorsement from this November. The usual fire insurance is sold with actual value agreement. That is to say, usual policy-holder cannot receive “claim paid” fully even if a building covered was burned down and then if the actual amount of loss or damage was under sum insured. In this case, the maximum amount paid by non-life insurance company should be the actual amount of loss. It means that such an insurance company got premium too much. Therefore, the company has returned some premium. It is the reason why Sompo Japan decided to review the structure of usual fire insurance.

A non-life insurance company is to determine the actual amount of loss or damage when a building covered was burned down. For example, the actual claim paid should be Japanese Yen 1.9 million even if the sum insured of a building covered was Japanese Yen 20 million and then if the actual loss or damage was Japanese Yen 1.9 million due to the reduction of reconstruction costs.

1.9% Rise of Mining & Manufacturing Product Trend in this July

admin — Mon, 28 Sep 2009 22:07:38 +0000

On August 31st 2009, Japanese Ministry of Economy, Trade and Industry announced the preliminary mining and manufacturing product trend in this July. According to it, Industrial Production Index is 82.4 (that of 2005 should be 100), which shows a 1.9%-percent rise over the preceding month. And then it grew for the fifth straight month. The overall assessment of the ministry is unchanged from the previous month. That is to say, we can find visible signs of a partial economic recovery. According to the research of Nikkei Quick News, the average figure of market expectation was that it showed 1.6%-percent rise over the preceding month. Shipment Index is 83.6, which shows a 2.3%-percent rise. Inventory Index is 95.1, which shows a 2.3%-percent down. Index of Inventory Rate is 135.1, which shows a 4.1%-percent down. The ministry forecasts that Industrial Production Index in this August will show 2.4% rise and that in this September will show 3.2%.

Each Business Taking Actions against Super-Flu

admin — Wed, 16 Sep 2009 23:15:33 +0000

On August 18th 2009, the second departed saint came in due to super-flu in Japan. From autumn to winter, there is a possibility that the number of its sufferers will be increasing remarkably. In such a situation, each business concerned is taking action against the epidemic of super-flu as soon as possible. A big consumer-electronics maker has a plan to start the sales of new air-cleaning devices with functions, which breaking down virus and removing bacteria, from this September. A pharmaceutical industry and mask makers have a plan to strengthen their support for it more and more.
　
On August 18th 2009, “Sanyo Electric Co., Ltd.” announced that the company confirmed “Virus Washer Function”, which bundled into air-cleaning devices, has been able to inhibit the action of virus of super-flu. It is the first time in the world to have proved such an inhibits. The company has a desire to increase its sales amount by appealing its function as much as possible. Basically, the function consists of the technique related to “electrolyzed water”. It is the technique to make two species of “active oxygen”, i.e. “hypochlorous acid” and “OH radical”, by applying electrolysis to tap water with chloride ions. These “active oxygen” are to inhibit the action of virus.

And also other consumer-electronics makers have a plan to sell new air-cleaning devices from this autumn. For an example, “Daikin Industries, Ltd.” adds the discharge technology to its new air-cleaning device. The company is to quicken the speed of knocking down and removing of virus four times by increasing the discharge amount of two new goods 1.5 times. These devices will be sold from September 11th 2009. Their shop prices prospected will exist between Japanese Yen 42,000 and 52,000.

SHARP, the biggest maker related to air-cleaning devices, scaled up the function of noise insulation added the new automatic function, which can keep the degree of humidity of 60 % in a room, to four new goods. These devices will be sold from September 11th 2009. Their shop prices prospected will exist between Japanese Yen 40,000 and 75,000.

According to JEMA (The Japan Electrical Manufacturers’ Association), the volume of shipments of air-cleaning devices has been on a declining trend since 2004. However, that thing in the period between these April and June rose of 37.7 % on the same period last year due to the epidemic of super-flu. Most makers predict that “its volume of shipments in fiscal 2009″ will be increased by 20 % compared to the previous year. This is for the first time in half a decade. The actual amount increased will be 1.75 million units.

According to “Ito-Yokado Co., Ltd.”, the demand for masks in the period of July and August, 2009, is increasing, which is five or six times higher than the same period of the previous year. Although the demand has not been increased rapidly after becoming of the first departed saint due to super-flu in Japan, it has been increasing gradually. The company is considering that the epidemic of super-flu has much effect on the demand indeed.

Most mask makers decided to strengthen production measures due to such a tendency. For example, “Daiwabo Co., Ltd.” doubled the production amount of performance masks. “HAKUGEN” has a plan to improve its plant in China until this autumn and increase the production amount of masks in the period of the end of this fiscal year by three times compared with that on the same period last year.
　
The pharmaceutical industry also decided to strengthen production measures. For example, “Chugai Pharmaceutical Co., Ltd.” had already supplied “Tamiflu” for 18.5 million persons to Japanese Government as for stock. “Tamiflu” is the brand name of “F. Hoffmann-La Roche, Ltd.” in Swiss. It should be “Oseltamivir”, which is the anti-flu medicine. The company decided to increase the production amount for 8.3 million persons to prevent from its epidemic in the period of July and September.

Ironical Increasing of Value related to Singer Arrested

admin — Wed, 09 Sep 2009 23:10:06 +0000

Noriko Sakai is very famous singer not only in Japan but also in East Asia and China. Quite recently, she was arrested by the stimulant use and possession. Victor Entertainment Inc. announced and sent letters to contents providers and so on that the company decided to stop releasing her new CDs, and to stop selling via songs related to her. And also the company will collect all of her CDs and DVDs, which are selling. The page related to her had been already deleted from HP of the company. And then there are also TV CM related to her, i.e. Nohshin, headache cure, and Noa, TOYOTA. Penalty should be occurred from these CM. According to the company, it cannot figure out the total amount of suffering this arrest up to now.
　
Ironically, her rankings are increasing rapidly, i.e. the sixth in Recochoku, which is one of music distribution sites, and the second in Video Clip Ranking. Some premiums will be placed on her CDs and DVDs. If we obtain them, we may be able to get some casual income.

Figures of Machinery Orders Received

admin — Mon, 07 Sep 2009 23:04:54 +0000

On August 10th 2009, Japanese Cabinet Office announced the detail of figures related to machinery orders received as of this June. According to it, the order volume by private-sector demand (seasonally-adjusted figure), excluding those figures of ship and electricity sectors, became Japanese Yen 732 billion (US$ 7.328 billion). It increased of 9.7% in 4 months when compared with the previous month. Its growth rate was substantial one relatively since last April. And also it was over than “2.9% up”, which Reuters had forecasted. But it dropped of 29.7% when compared with the previous year.

The figures of manufacturing and non-manufacturing sectors increased of 14.6 % and 7.3 % respectively when compared with the previous month. That of the demand from abroad increased of 43.8 % in 3 months.

In this June, the figure of manufacturing sector increased for two consecutive months. In manufacturing sector, those figures of 8 in 15 business increased. We are considering king-sized accepting order in the nonferrous metal industry contributed to such an increase mainly. The figure of iron and steel industry increased due to accepting order of boiler and computer. That of other transportation equipment industry increased due to accepting order from aircraft and railroad vehicle. That of non-manufacturing sector increased in 4 months. In this sector, accepting order of communication instrument and computer mainly from transportation industry contributed to such an increase. And also accepting order of computer chiefly from banking and insurance industry contributed to such an increase.

Japanese Cabinet Office is considering as follows:
* Although the decreasing curve of figure in manufacturing industry is getting moderate gradually, non-manufacturing is still weak.
* Indeed the figure of demand from abroad increased, but its level is quite low. Machinery orders do not reverse yet totally.

Besides, the office judged regarding the decreasing curve of figure regarding machinery orders as of this June is getting moderate gradually. The office advised same judgments for four consecutive months.
　
In the quarter basis, the figure forecasted in the first fiscal period, from April to June, decreased of 4.9 % for five consecutive fiscal periods when compared with the previous period. That thing forecasted in the second fiscal period will decrease of 8.6 % when compared with the previous period. This minus range will be larger than that in the first fiscal period. In an ordinary case, the actual achievement rate against figures forecasted in previous 3 fiscal periods is to be used in order to calculate a figure forecasted in a fiscal period. The achievement rate was so bad because of a steep downturn in economy. Therefore, there is some possibility that the figure forecasted in the second fiscal period may be lower than actual one.

　The office is considering as follows:
* The figure in the second fiscal period will increase of 5.2 % when compared with the previous period if it generally continues to be flat comparing with that in June.
* The figure of “8.6 % down” will be accomplished even if figures in July, August and September will decrease of 5.2 % respectively when compared with the previous month.

The figures related to machinery orders received was gained due to the monthly research of machinery for equipment received by machinery industry. It is watched as the advance indicator of equipment investment. It seems the Japanese market recognizes it positively because of the remarkable increase of machinery orders received in June.

Famous Singer Arrested

admin — Mon, 31 Aug 2009 23:55:48 +0000

Infrastructure, Hydrogen-fueled Car

admin — Wed, 26 Aug 2009 23:40:41 +0000

On August 4th 2009, Hydrogen Supply Utilization Technology Study Association, which consists of 13 companies, held on the first general meeting, and has begun operation to prevail Hydrogen-fueled Car. This car is one of next generation environmental cars, which realize energy savings and carbon dioxide cuttings dramatically. In order to prevail this car, the infrastructure, i.e. hydrogen filling up station and so on, should be kept in good condition. That is to say, a driver of hydrogen-fueled car had better get hydrogen at various places as well as getting gasoline.

Each member of the association is to provide its own know-how regarding supply and use of hydrogen to promote the commercialization of hydrogen service business. Of course, the association will proceed it by cooperating with car makers. From this fiscal year, the association will start to arrangement pf establishing infrastructures related to hydrogen service. The association has an intention to enable a driver to get hydrogen easily with the similar price as that of gasoline and diesel until 2015.

13 members of this association are as follows: ENEOS, Idemitsu Kosan, Iwatani International Corporation, Osaka Gas, Cosmo Oil, Saibu Gas, Japan Energy Corporation, Showa Shell Sekiyu, Taiyo Nippon Sanso Corporation, Tokyo Gas, Toho Gas, Japan Air Liquide, Mitsubishi Kakoki Kaisha.

Regulation of Margin Money

admin — Mon, 24 Aug 2009 23:35:43 +0000

On July 2009, Japanese Financial Services Agency FX traders has decided that the maximum magnifications of margin money should be up to 25 times. The agency has considered the reasonable regulation by collecting opinions. First of all, it shall regulate it up to 50 times as of next August. And then it shall decrease it to 25 times as of August 2011. The reason is to brake an excessive speculative trading and protect customers thoroughly by the adoption of the regulation.

On the end of this May, the agency announced officially the draft revision of Cabinet Office regulations regarding Financial Instruments and Exchange Act. After that, the agency had collected opinions from 709 groups and individuals against the draft. 90% of those things were adverse opinions. Hat is to say, they insisted investors had to make such transactions at their own risk, and then the regulation did not need. The Japan Federation of Bar Associations and so on revealed approval opinions. Finally, the agency has considered it had better bring the regulation in from the point of vies of protecting investors. And then it decided to revise Cabinet Office regulations.

Short-selling Regulation

admin — Tue, 18 Aug 2009 05:10:22 +0000

On July 24 2009, Japan Financial Services Agency announced that it is to re-extend the short-selling regulation of stocks until the end of this October. Therefore, Japanese Government is to amend Cabinet Office regulations and so on soon. The reason is that Japanese stock market is still fluctuating. The agency had strengthened the short-selling regulation of stocks from last October. The agency prohibited the short-selling without borrowing stocks and then required security companies, stock brokers and so on to report the agency regarding information of investors, who did short-selling of over a certain size. It seems the reporting obligation is to be continued after this November. Bank of Japan had already decided to postpone the action against cash management until the end of this year. It is one of actions regarding the finance crisis and its expiration date is the end of this September. The re-extension of the short-selling regulation decided by the agency is also one of actions regarding the finance crisis.