Tag Archives: yen

Business/Economics, International

What Economic Recovery? Despite making a profit Nissan will cut production, blames inflation!

21 June 2012, Japan’s Nissan Motor is cutting production in Japan.

Starting next month Nissan will end production of four models of cars in Japan. It amounts to 15% of Nissan’s Japanese production.

The move comes after Nissan reported a profit of $4.29 billion USD for the Japanese year ending in March.  Company officials say the production cut is meant to offset surging production costs, and declining car sales in Japan.

The rising value of the yen is also making it more difficult to sell cars made in Japan to other countries.

Nissan officials say they will try to keep workers employed by assigning new jobs to them.

 

Business/Economics, International

No Economic Recovery for Japan. Blame Europe

The head of Bank of Japan announced that as long as Europe struggles with a credit crisis, the value of the Japanese yen will keep going up.  That’s bad when Japan’s economy is based on exports. The more their yen is worth, the more their products will cost.

Masaaki Shirakawa said the result is that more and more Japanese companies will move their operations to other countries.  That means unemployment in Japan will only go up.

The Japanese Labor Ministry reported that there are now, officially, 2.88 million Japanese who can not find jobs.  They also said that while unemployment has been going up, the number of jobs available are unchanged.

Business/Economics, Fukushima

Global Economic War: Japanese industry moving to China

Since the 11 March 2011 disasters, Japanese industries moving to China has increased 65%.  That’s according to the Chinese Commerce Ministry.

There are two big factors why Japanese industries are moving to a mortal enemy’s territory: Money and Electrical Power.

Since the March disasters, including the ongoing Fukushima Daiichi meltdown, about half of Japan’s nuclear power plants are shut down.  The problem is that Japan built it’s current industries around nuclear power.  There just isn’t enough alternative electricity sources to power Japan’s factories.

Also since March, the Japanese yen has been going up in value.  This makes it more expensive to build things in Japan; Japan has no significant resources so it must import everything.

Japanese media are finally getting concerned about the growing unemployment there, mainly because so many factories have shut down and moved out of the country.

I wounder how this will affect the plans to create a TPP (Trans Pacific Partnership), especially since one of its goals is to block out China.

Business/Economics, International, U.S.

Global Economic War: Increase in Japanese Corporate Bankruptcies, they blame the falling U.S. dollar

Corporate bankruptcies in Japan have risen for the second month in a row, they blame the rising value of their yen, which is being pushed up by the falling U.S. dollar.

Credit research firm Teikoku Databank says 969 companies failed in August!

The strong yen is causing a drop in orders and exports, and causing trading losses in currency derivatives.

The research firm warns of a vicious spiral, with more companies shifting production overseas to escape the high yen, in turn cutting even more orders to Japanese firms and putting them at risk of bankruptcy.

Business/Economics, International, U.S.

Global Economic War: Japan creates fund to help Japanese corporations to take over foreign companies, blames crashing U.S. dollar

Finance Minister Yoshihiko Noda announced that a U.S.$100 billion fund is being created, to help Japanese companies to use yen to buy foreign money, and take over foreign companies.

Noda says the fund is a response to the crashing U.S. dollar, which is forcing up the value of the Japanese yen.  The more the yen is worth, the more expensive it makes Japanese exports.  Already Japan has seen the effect, reduced sales to other countries.

The fund will loan money to Japanese companies, and investors, who will then use it to buy foreign money, and foreign companies.  It’s hoped that action will bring down the value of the yen.

The Japanese government will counter speculators from abusing the fund, by requiring daily reports of financial transactions.