Financial Communique » Asian Finances

Panasonic predicted worst annual loss in its history

Viliyana Filipova — Wed, 08 Feb 2012 04:22:34 +0000

Panasonic Corp revised its forecast for net losses in fiscal year ending in late March to a record 780 billion yen (10.2 billion dollars) – another Japanese company, which lowered their expectations after the floods in Thailand. In October Panasonic predicted that losses for the period will reach 420 billion yen. The projected result will probably be the worst in history, founded in Osaka in 1918 company. Worst loss of the Panasonic until amounted to 427.8 billion yen reported for the period March 2001 – March 2002. The largest manufacturer of plasma televisions in the world follow Sony Corp. and Sharp Corp. and also lowered its forecast for the period, citing slowing global economic growth and the damage inflicted by the Japanese manufacturers and suppliers from flooding in Thailand and the earthquake in Japan on March 11. Panasonic wrote off 290 billion yen from its commercial reputation and acquired Sanyo Electric Co. 250 billion yen.
“The business of consumer electronics brings in less revenue than planned due to weak fundamentals and a strong yen”, said Jeff Lof, chief analyst at Macquarie Capital Securities in Tokyo. For the 12 months ending in March Panasonic’s operating profit will likely reach 30 billion yen compared with the previous forecast of the company for 130 billion yen, said in a statement. Panasonic lowered its forecast for revenue in the 12 months to the end of March to 8 trillion. from 8.3 trillion yen. For the last quarter of 2011 the company announced a net loss of 197.6 billion yen. (2.6 billion dollars). In October Panasonic stopped production at three factories in Thailand, because the worst flooding last 70 years there.

Starbucks started partnership with Tata

Viliyana Filipova — Mon, 30 Jan 2012 22:27:48 +0000

Shortly after the U.S. coffee chain Starbucks reported record results for the first quarter of the current financial year, it became clear that the company intends to enter India. The chain will open its first facility in India in August. Entering the local market will be in partnership with the manufacturer of tea and soft drinks Tata Global Beverages, part of conglomerate Tata Group. By the end of the year the company expects to have 50 new branches throughout the country. Although Indians are known as a connoisseur of tea, the taste of coffee is more beloved. “We are witnessing an evolution in the style of life in India. More and more Indians try to fit in your standard of living and lifestyle of international standards, “says the opinion of the joint venture. The entry of Starbucks in India will continue expanding the company’s Asian and Pacific markets, which currently generate more revenue for the company compared to U.S. business. For the first decade of the century coffee consumption in India has almost doubled to 108 thousand tons, and last year in India, there were 1,600 coffee shops. President of Starbucks to China, Asia Pacific, John Culver expects growth of 30% for 2012.
Earlier this month the Indian government changed the number of laws that were abolished restrictions on foreign investment to chain retailers. Under the new laws international companies hold over 51% of local companies must obtain at least 30% of raw materials and goods in the local market, recalls Bloomberg. Starbucks already has signed a contract for the supply of coffee with Tata Coffee, a subsidiary of Tata Global Beverages.

Asian markets consolidate the increase from Friday

Viliyana Filipova — Mon, 14 Nov 2011 09:50:58 +0000

The Asian indexes continue to win territory after the beginning of the positive trend on Friday amid optimism that the new government in Greece and Italy will help to contain the European debt crisis and after two influential Chinese economists said the economy is behaving as expected policies restricted lending, slow inflation and tame housing prices. The regional MSCI Asia Pacific Index rose 1.2 percent to 118.81 points today, about 4 shares it rose to each, which reduced its value, and 10 sub-index registered progress. The Japanese Nikkei 225 gained 1.05 percent to 8 603.70 points, after it became clear that the country has emerged from recession, growth in the second quarter of the Japanese financial year has reached 6% equated to an annual base, which is best result for the last 2 and half years. The shares of Nissan Motor Co. value increased by 2% to 719 yen, while those of the manufacturer of industrial robots Fanuc Corp. rose 3.6 percent to 12,810 yen.
“The Italian government is formed, drowning out the concerns of investors that the country will go bankrupt”, said Naoki Fujiwara of Shinkin Asset Management Co. in Tokyo, after it became clear that the former European Commissioner Mario Monti competitiveness is proposed as a new prime minister of Italy. “People are worried that financial reform can not succeed without adequate government support. But the outlook remains unclear whether European countries can do to reduce debt levels”, he added. The shares of construction equipment manufacturer Komatsu Ltd. have added 3.8 percent to its value to 1978 yen.

Asian indexes with positive session

Viliyana Filipova — Thu, 13 Oct 2011 12:51:37 +0000

The main indexes of the Asian markets today again unified trend growth after yesterday’s diverse session, after European leaders are closer to the general plan to overcome the debt crisis and the U.S. Federal Reserve announced that it had discussed the purchase of additional assets, reducing fears the global economy. The regional MSCI Asia Pacific Index rose 1.2 percent to 117.57 points, bringing its profit for the last 6 sessions to 9.5%. The Japanese Nikkei 225 advanced 1% to 8 823.25 points, while stocks of the largest publicly traded credit institution Mitsubishi UFJ Financial Group Inc value increased by 2.1% to 340 yen, while those of Mazda Motor Corp. rose 4.5 percent to 163 yen. The shares of construction equipment manufacturer Komatsu Ltd. have added 4.4 percent to its value to 1770 yen, while those of industrial robot manufacturer Fanuc Corp. rose 3.4 percent to 11,970 yen after it became clear that the orders in September rose by 20% yoy. The Chinese Shanghai SE Composite Index gained 0.8 percent to 2 438.79 points. In Hong Kong Hang Seng rose 2.3 percent to 18 757.80 points by the shares of Europe’s largest credit institution HSBC Holdings Plc increased its value by 3.3% to HK $ 64.65, after the European Commission called for “coordinated approach” to the recapitalization of banks in the euro area and those of chain stores menswear Esprit Holdings Ltd. jumped 16% to HK $ 11.78 after the company denied allegations that he was overstating the data on the number of its stores in China.
The index of Chinese companies listed on the Hong Kong Stock Exchange, Hang Seng China Enterprises, rose 3.7 percent to 9 802.58 points, after the Chinese government announced measures to assist small businesses affected severely by tight monetary policy in the country including tax incentives and easier access to bank loans.

Asian markets closed on negative positions

Viliyana Filipova — Tue, 06 Sep 2011 18:58:50 +0000

Down the main index ended trading on Asian markets. Deepened investor concerns about the development of the debt crisis in Europe and doubts about their “health” of the U.S. economy. In Japan, the Nikkei closed with a fall of 2.2% to 8590 points, which is its lowest closing level this year. In Australia, the S & P / ASX 200 wrote off 1.5 percent and South Korea’s Kospi fell 0.7 percent. In Hong Kong Hang Seng wiped 1.8 per cent while the Shanghai Composite Index (SCI) in Shanghai fell 0.5%.
“The news, especially the euro area continued to be negative,” commented strategists from Credit Agricole.
The largest decreases noted shares of financial companies. Shares of HSBC Holdings fell 3.5 percent on the stock exchange in Hong Kong, Sumitomo Mitsui Financial Group fell assess their market by 3.4% in Tokyo and Westpac Banking Corp. – 2.3% in Sydney. For sales and is preparing Wall Street. Futures contracts show that today the trade will be dominated by negative moods.

Indian economy with slowest increase from 6 quarters

Viliyana Filipova — Wed, 31 Aug 2011 10:03:20 +0000

The Indian economy grew at its slowest pace in six quarters, but the results exceeded even the gloomy forecasts, reinforcing expectations that the central bank of the country will continue to raise interest rates as a measure against inflation. The Gross Domestic Product (GDP) of India, whose economy is the third largest in Asia, has slowed its growth to 7.7% in the three months to the end of June. The results slightly ahead of the average forecast of a Reuters survey of annual growth of 7.6%. Contributed to the delay the release of the leading interest rates, high inflation and a gloomy economic outlook worldwide. The economic growth in India, for the quarter January to March was 7.8% annually is slows down progressively from January 2010. India reported an increase in GDP of 8.5 percent for the year year ended March 30, but given the inflation level, which fluctuates around 9%, the government lowered its assessment of economic growth for the current year to 8.2%. Since March 2010 the Indian central bank has raised interest rates leading 11 times, but inflation in July remained high – 9.22 percent, prompting speculation of renewed increases in interest rates.

The Japanese Prime Minister Naoto Kan resigned

Viliyana Filipova — Fri, 26 Aug 2011 18:25:06 +0000

The Japanese Prime Minister Naoto Kan resigned after little more than a year at the head of government. Khan retired from the management office of the Democratic Party. The rating of 64-year-old Naoto Kan collapsed less than 20 per cent due to dissatisfaction with the Japanese on how to deal with the crisis of nuclear accident at the Fukushima-1 nuclear power plant following a powerful earthquake and tsunami of March 11th. He promised to resign after parliament adopted two laws – the issue of government bonds to cover the budget deficit and to promote energy production from renewable sources. Lawmakers approved the legislation this morning, stated Monday. It is expected that the ruling Democratic Party on Monday to elect its new leader, according to Japanese political tradition would be the new prime minister. The vote in the House will be Tuesday. It is believed that the best chances to take the party and prime minister is former Foreign Minister Seiji Maehara of the conservative wing of the DPJ, known for its hard line toward China and North Korea, told AFP. If elected, 49-year-old Maehara will become the youngest prime minister of Japan after World War II.
Until now, the local press pointed the favorite Finance Minister Yoshihiko Noda. Other contenders for the premiership are the Minister of Economy, Trade and Industry Banri Kayeda, Minister of Agriculture, Forestry and Fisheries Michihiko Kano and former Minister of Transport Amount Mabuchi.

Higher taxes in Japan

Viliyana Filipova — Sun, 26 Jun 2011 20:11:24 +0000

The raising of the taxes in Japan should increase the funds for reconstruction of areas devastated by the earthquake and tsunami of 11 March, the government offered expert committee. It is not clear whether recommendations are binding on the political tension surrounding the Prime Minister Naoto Kan. The Commission proposal provides a basis for establishing the costs of restoring the northeastern parts of Japan, which was devastation by an earthquake of magnitude 9.0 and deadly tsunamis, which are expected to be over 10 trillion yen (124 billion dollars). The government plans to Cannes next month to present to parliament a small additional budget to overtime budget of 4 trillion. yen, approved in May, to combat the effects of natural disasters. Yesterday the government adjusted its assessment of material damage from the disaster to 16.9 trillion. yen, which is below the original estimates of 16-25 trillion yen.
It is not yet clear whether the proposals will soon adopt a particular form of the background of the uncertain future of the government, Reuters notes.

Positive session on the world markets

Viliyana Filipova — Fri, 10 Jun 2011 10:40:22 +0000

The leading indexes on the world exchanges reported a steady growth on Thursday, which cut the negative series of recent days. Impact did the press conference by Jean-Claude Trichet and good data on U.S. trade balance. The meeting of the OPEC also affected, in addition to a sharp jump in oil by over 3%, lead to increased inflation fears. The regular meeting of the European Central Bank (ECB) on interest rates expected no change. After the meeting it became clear that will be monitored with caution inflation and probably next month will lead to a renewed increase in interest rates. Earlier in the day the Bank of England (ATSB) has also left unchanged the base rate in the UK at 0.5%, highlighting the cause weak economic recovery. At the end of the day leading French CAC 40 index closed at 3878.65 (1.06%) points from all 40 companies only financial giant Credit Agricole closed in the red.
In Germany, the DAX 30 rose to 7159.66 (1.41%), with distinction BMW (+3.16%) and Volkswagen (+3.03%). The London’s FTSE 100 advanced to 5856.34 (0.84%) points. The positive sentiment in the United States were boosted by an unexpectedly good data on trade balance as a reason strong exports and decreased imports of petroleum products.
The S & P 500 reported a growth of 0.74 percent in 1289 and DJIA jumped to 12,124 (0.63%) points.

Asian indexes with positive session

Viliyana Filipova — Tue, 24 May 2011 16:03:57 +0000

The stock market indexes in Asia were able to achieve slight growth in today’s session after three consecutive days of decline, supported by increases in shares of mining and energy sectors. They are ranked among the best performers in today’s trading after prices of metals and oil prices rose. The shares of Sony rose 2.7 percent on the Tokyo Stock Exchange, after management predicted that the company will return to profit in fiscal 2011. The largest exporter of Japanese electronics out of the net loss of 3.2 billion dollars for the fiscal year ended in late March 2011. The regional index MSCI Asia Pacific has achieved a slight growth of 0.2 percent to 131.90 points in today’s volatile session. Last three weeks have brought losses on the stock index against the consequences of the earthquake in Japan on 11 March and the introduction of more stringent policy of many central banks in the region. The leading Japanese Nikkei 225 index rose 0.2 percent to 9 477.17 points, while the exchange in Sydney S & P / ASX 200 lost 0.3 percent to 4 628.80 points. Mining companies have brought an increase of 0.3 per cent of South Korean index Kospi, after copper prices rose 1.6 percent.
The exchange of Hong Kong’s Hang Seng added 0.1 percent to 22,730 points, but the broad Chinese Shanghai Composite Index fell 0.3 percent. Thus Shanghai Composite rose to 10% losses to five-month peak, which said on April 18. The MSCI Asia Pacific has lost 4.4 percent this year compared with a lead of 4.8 percent for the broad U.S. index S & P 500 and a decline of 0.4 percent for the European Stoxx Europe 600.