Japan Economy News & Blog

Links and Resources: Online Colleges’ “100 Best Blogs for International Business Students”

Ken Worsley — Tue, 17 Nov 2009 14:11:01 +0000

Online Colleges recently published their list of the “100 Best Blogs for International Business Students.” I definitely recommend checking it out, though it might be a bit dangerous and time consuming if you have some actual work to do.

The majority of these blogs were new to me, though of course I recognized Claus Vistesen’s Alpha Sources and Edward Hugh’s Bonobo Land. And, yes, this blog made the list as well. It’s an honor to be named alongside some truly wonderful blogs.

Japanese government to collect used mobile phones in lottery campaign

Ken Worsley — Wed, 11 Nov 2009 14:16:58 +0000

Earlier today, the Ministry of Economy, Trade and Industry announced that it plans to kickoff a campaign to collect used mobile phones from November 21. During the campaign, which is scheduled to last until February of next year, consumers will be able to turn in their used mobile handsets at about 1,800 locations, including shops run by Kojima, Bic Camera and Ito-Yokado.

When turning in their used handset, customers will receive a ticket allowing them to apply online for a chance to win a gift voucher. The government plans to give out 800 vouchers worth 50,000 yen, 8,000 vouchers valued at 5,000 yen, and 150,000 gift vouchers worth 1,000 yen.

Of course, the government is after the rare metals that lurk inside many unused handsets. Since I have a few unused handsets lying around, I wonder how much they’re actually worth in precious metals. I doubt it’s worth 50,000 yen, but what would be the odds of winning one of those 800 50,000 yen vouchers?

Ishihara: Tokyo to bid for 2020 Olympics

Ken Worsley — Mon, 09 Nov 2009 07:02:35 +0000

Those who felt that Tokyo’s failed bid for the 2016 Summer Olympics was a colossal waste of $48 million are surely going to groan at today’s headline: Tokyo to bid for 2020 Summer Olympics: Gov Ishihara.

I wonder how this works now that the DPJ is in charge of the Tokyo Metropolitan Assembly. Do they have the power or desire to stand up to Ishihara?

McDonald’s betting on coffee for profit growth?

Ken Worsley — Tue, 03 Nov 2009 14:26:12 +0000

On Monday, McDonald’s Japan reported that its pretax profit had jumped 25% in the January-September period compared to a year ago, despite a 10% drop in same-store sales, which can be explained by the conversion of many shops to franchises during this period. Overall sales were actually up 3.3%, again hitting an all-time high. Existing store sales were up 1.7% although the number of customers actually showed a 0.6% decline.

In an effort to get more customers in its shops, McDonald’s gave away free coffee on a few dates during the third quarter. Although the number of customers at existing stores showed a decline, this figure is also mitigated by the transformation of centrally owned shops to franchises. (more…)

No change for now at Narita or Haneda

Ken Worsley — Thu, 15 Oct 2009 13:42:55 +0000

After transport minister Seiji Maehara announced on Sunday that Tokyo’s Haneda Airport (formally known as Tokyo International Airport) should become a 24 hour hub for domestic and international flights, the governor of Chiba Prefecture and the Mayor of Narita City spoke out strongly against the idea. Maehara’s proposal would alter the longstanding situation in which Haneda primarily serves domestic flights to Tokyo, while Narita handles international flights for the Kanto region.

For anyone living in Tokyo, Maehara’s reasoning is sound; Narita is simply less convenient for many travelers. At the same time, the lack of a domestic hub for connecting domestic flights to international means that South Korea’s Incheon airport has become a de-facto hub for Japanese travelers heading overseas. (more…)

Japan’s video game market shrank 10.5% in April-September period

Ken Worsley — Fri, 02 Oct 2009 14:05:07 +0000

According to gaming magazine Enterbrain, the domestic market for video game sales shrank by 10.5% in the April-September period, to 213.8 billion yen. According to the report, sales of Nintendo DS consoles increased by 29% to 1.69 million units, while sales of both the Sony PlayStation Portable and Nintendo Wii both fell. During the April-September period, the best selling game was Square Enix’s Dragon Quest IX, which moved 3.9 million copies. (more…)

News roundup, Thursday October 1: Wages, Tankan, Nikkei, Disney, auto sales and more

Ken Worsley — Thu, 01 Oct 2009 11:18:39 +0000

According to a report released yesterday by the Ministry of Health, Labour and Welfare, average wages at Japanese firms with five or more workers fell 3.1% in August, to 273,360 yen. August was the fifteenth straight month of decline in wages, and overtime pay dropped 13.4% to 16,259 yen. The industry with the highest average pay was “electricity, gas, heat supply and water,” at 452,968 yen, while workers in the food services industry came in lowest, with an average of 129,169 yen.

In a separate report released by the Ministry of Economy, Trade and Industry, it was announced that retail sales fell 1.8% in August, showing a decline for the twelfth month in a row. (more…)

Japan core CPI falls at record pace for fourth month in August

Ken Worsley — Thu, 01 Oct 2009 05:49:02 +0000

On Tuesday, the Ministry of Internal Affairs and Communications announced that Japan’s consumer price index had fallen 2.2% in August, while core consumer prices (excluding fresh food) tumbled a record 2.4%. Core CPI has now fallen at a record pace for four consecutive months.

As Japan includes energy prices as part of its core CPI, it’s always helpful to look at what the CPI looks like with energy stripped out. Here is a breakdown of CPI categories for August: (more…)

Things heating up over yen appreciation

Ken Worsley — Mon, 28 Sep 2009 07:10:32 +0000

When Peter Schiff recently said that Japanese policymakers were embracing a “strong yen” policy, one of my eyebrows raised a bit. Although Finance Minister Hirohisa Fujii has made it clear that he does not support currency intervention, I don’t remember hearing anything about a “strong yen” policy. As the Nikkei puts it:

During his bilateral talks with U.S. Treasury Secretary Timothy Geithner in Pittsburgh last week, Fujii said Japan would ”in principle” not intervene in the currency market.

”There is a sense of security in yen buying,” said Koji Fukaya, senior currency strategist at Deutsche Securities Inc. ”His remarks were perceived (by the market) as (Japan) accepting a strong yen,” he said.

Now Bloomberg is reporting Fujii’s contention that his statements were misconstrued: (more…)

Peter Schiff on the rising yen and the dollar carry trade

Ken Worsley — Sun, 27 Sep 2009 13:38:04 +0000

But are Japanese policymakers really embracing a “strong yen” policy? Or has the media twisted up some quotes?