The Japanese electronics maker Sony reported 7-times growth in profits thanks to cost cuts, the company launched last year, transmit Reuters. The positive financial result of the company jumped to 79.2 billion yen (about $ 871 million) on 10.4 billion yen profit reported for the third quarter of 2009. The revenues of the Japanese have risen to 2.24 trillion. yen and operating profit reached 146.1 billion yen. A year ago the company reported an operating loss of 18 billion yen. Sony revised up its estimates for the full financial year ending March 31. The new company is expected to lose 70 billion by Eni, which is 22% more than the announced forecast losses of 95 billion yen. The company of Sony felt the financial crisis in many of the units, but now everything looks that the bad times are passing and company will start making high profits again.
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Nokia, which is the largest manufacturer of mobile phones in the world will cut 220 people from its Japanese affiliates. The measures are part of a restructuring plan ma company. A week ago the Finnish company has already announced cuts to 330 jobs in Denmark and Finland. Although the Finnish company announced the cuts that will maintain its business in Japan. The company, which recorded a loss in the third quarter for the first time since he became a public company, announced several restructuring plans, including distressed at Nokia Siemens Networks (NSN), which plans to cut up to 6000 jobs. Yesterday it became clear that another major player in the mobile phones continues with cuts, by freeing 450 people in its development center in the U.S. The company made very strong cut of employees because of the financial crisis, which hurt very hard the sector of mobile phones.
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China will overtake Japan in economic development and will become the second largest world economy over the next two years. This will give Beijing more influence on the world economic and political scene and will enhance the reputation of the ruling Communist Party in the country, say analysts interviewed by AP. Statistics to be published this week in Beijing will probably show that gross domestic product (GDP) of China grew by an impressive 9.5% yoy in the third quarter. This will further reduce the difference to Japan, which is expected to account most 1 percent GDP growth annually in the third quarter. Economists expected in 2010 or in 2011 China to shift its Asian rivals of the position of second largest economy in the world that Japan held for more than 40 years. Shift in the rankings, however, would be largely symbolic and will have little impact on world trade, according to analysts. In 2008, GDP of the United States amounted to 14.2 trillion. dollars annually, while that of Japan – to 4,9 trillion. dollars. Before the economic crisis to hit China, the country’s economy is growing at double-digit annual growth from 2003 to 2007 to reach a value of GDP of 4,3 trillion. dollars in 2008, according to the World Bank.
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In September in Japan have sold 31 700 units of Toyota Prius, which is by 4,4 times more than the same month the previous year. With this success, became the model for the fifth consecutive month, the best-selling car in the Land of the Rising Sun. Secondly, is ranked Honda Fit (Jazz) with 17 200 sales, which is almost two times less than the Toyota Prius. The third position is for Toyota Vitz (Yaris), which is preferred by 12 700 Japanese. Prius hybrid to climb to the top in sales in May, when it appears the new generation of models. In April, even the best-selling car in Japan has been the main competitor of the Prius – Honda Insight, but in September this model occupies only fifth place. Last month, the Japanese have bought 321 700 new cars, which is a 3.5% increase from September 2008th.
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The Japanese automaker Mazda planned to collect 96 billion yen (1.1 billion dollars) from sales of the existing and issuance of new shares, says a company release quoted by Bloomberg. The company, which today announced the first quarter of 2009 loss of 26 billion yen (less than expected), will issue 363 million new shares and 96.8 million will be from existing funds. The manufacturer will use the funds to finance development of new greener cars. After the announcement of new shares in the company fell by 5.6 percent to 185 yen. Since the beginning of the year, shares of Mazda reported 24 percent increase. The possible increase in the shares of the company is not expected, while the stock exchange announced the news.
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The level of unemployment in Japan in July rose to 5.7 percent, which is the highest level since 1953 when it is launched and reporting of the indicator, forward Bloomberg, citing official statistics. The growth of unemployment exceed the forecasts of analysts who had expected it to rise to 5.5 percent after 5.4 percent in July. Highest level of people without permanent employment was in April 2005. The ratio of space to applications fell to 0.42, which means that for 42 seats have fought 100 candidates, which is also a record, the agency added. Companies from Toyota to Japan Airlines, continue to exempt staff, as well as outside of Japan. The country’s exports declined by 36.5 percent in July, which is ten consecutive decrease.
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Japan is on the brink of revolutionary change in the course of their state government, although this step is a product rather irrational intentions of the citizens of the country, says the Wall Street Journal. On Sunday, voters in the country of the rising sun is expected to bring down government From Liberal Democratic Party (LDP), which oversees Japan is 54 years. This probably will happen, although they expressed skepticism about the chances of the opposition formation to meet its election promise. Polls show that voters give a significant advantage to the Democratic Party of Japan (DPJ). Formation, which is only 11 and is composed of reformist, trade union leaders and defenders of consumer rights and so far never fully concentrate power in his hands.
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The Japanese car building company Toyota group reported a loss of 77.8 billion yen (819 million) for the first quarter of financial year which began on April 1. Loss for the first quarter of the new financial year is less than expected and reflects the successful cost reduction. The median forecast was for a loss of 184 billion yen, forward Bloomberg. The reasons for the negative result is the high rate of the yen and a sharp decrease in global sales delivered worldwide agencies. However, Toyota reduced its estimates of losses throughout the financial year ending at the end of March 2010, to 450 billion yen (4.7 billion dollars) compared with initial estimates of 550 billion yen (5.8 billion dollars) .
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The Japan’s trade surplus grew by 388 percent to 508 billion yen (5.43 billion dollars) in June versus the same month year earlier, taking into account the first increase on an annual basis over the past 20 months, announced today the country’s Finance Ministry, quoted of global agencies. Exports decreased by 35.7% to 4.6 trillions yen, but its pace of decline has been reported to delay reduction of 40.9 percent in May, government data show. Imports in June is less with 41.9 percent to 4.09 trillions yen, BTA writes. The exports to Japan decreased the rate of decline for all major markets and especially China with stable demand for machinery. Exports to the United States also report a favorable trend, decreasing by 37.6% compared with 45.4 percent in May.
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Japan should diversify its currency reserves (which are mainly in dollars and dollar US Treasuries) in the medium-term debt and to purchase bonds to be issued by the IMF. Nakagava is the bearer of the Democratic Party of Japan (DPJ), which won the partial local elections in Tokyo and water in sociological studies of parliamentary elections in the country to be at the end of July. Among expected to assume the post of finance minister. Existing management representatives of the Japan Liberal Party has repeatedly said in recent days its support for the dollar as world reserve currency and interest to maintain the share of US Treasuries in the Japanese currency reserves, but in a DPJ victory in early elections and a change in the former policy may negatively impact on the dollar in the medium and long term. We remind you that Japan holds over 1 trillion dollars in foreign exchange.
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