WIRE REPORTS

DAILY REPORTS

Feb 1 Japan's biggest bank reports surge in net income Japan's major banks reported a mixed bag of earnings results for the April-December period, as valuation losses from equity holdings and an incoming corporate tax shake-up prompted a number of firms to book charges. Mitsubishi UFJ Financial Group Inc. was the only one of Japan's megabanks to report net profit gain in the period from the year before. Japan's biggest bank by assets logged a 48% surge in net income largely due to a one-time gain from conversion of its holdings of preferred shares in Morgan Stanley into common shares at the end of June. [MUFG] MUFG said its net profit came to ¥815.80 billion in the nine-month period, compared with a ¥551.83 billion profit in the same period a year earlier. (Wall Street Journal) Jan 18 Credit card firms see profit in overseas push Credit card companies are enhancing their services for overseas travelers to draw in new members and encourage card use amid a boom in foreign trips due to the rising yen. Among such services, customers of Mitsubishi UFJ Nicos Co.'s Platinum American Express Card now don't have to take their heavy winter coats when they travel to a warm destination between Dec. 1 and the end of March. Instead, customers who pay an annual membership fee of ¥21,000, can leave their coats at Narita, Haneda, Chubu, or Kansai airports for up to 30 days and pick them up when they return. (Japan Times) Jan 15 Firms look to hire foreign students Hundreds of foreign students from Japan's top universities turned up at a career forum Saturday in Tokyo, hoping to secure a job before their graduation in 2013. Clad in dark suits, the students flocked to Tokyo Dome City in Bunkyo Ward to attend briefings by 47 firms - including First Retailing Co., Sony Corp. and Mitsubishi Electric Corp. A total of 1,560 students, mostly Asian, registered to attend the Tokyo event and a job fair in Osaka on Sunday, both organized by recruitment consultancy Fourth Valley Concierge Corp. (Japan Times) Jan 11 Nikkei edges up; euro debt crisis limits gains Japan's Nikkei stock average edged higher on Wednesday, taking comfort from a rise on Wall Street, though the debt turmoil in the euro zone capped gains. Spain and Italy, which are now at the forefront of Europe's sovereign debt crisis, will test investor appetite this week with bond auctions, while the European Central Bank is due to hold a rate-setting meeting later in the day. A trader, however, said the U.S. KBW banks index, which advanced 1.9 percent on Tuesday, was a good indicator of risk appetite for Japanese stocks. Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group rose between 0.9 and 1.6 percent. (Reuters) Jan 6 Airline may spur busiest share offering year since 2007 Japan may see its busiest year for initial public offerings since the global financial crisis, with Japan Airlines Corp., social network providers and manufacturers preparing to issue shares. As many as 50 domestic companies will offer shares to the public for the first time in 2012, Toshio Isohashi, head of IPOs at Mitsubishi UFJ Morgan Stanley Securities Co., said Wednesday in Tokyo. That would be the highest number since 2007, the year before Lehman Brothers Holdings Inc.'s bankruptcy triggered the deepest postwar global recession. (Japan Times) Jan 3 Solar power from external walls / New material allows for more efficient energy production Mitsubishi Chemical Holdings Corp. plans to sell a new type of external building material that generates power from sunlight beginning in fiscal 2013, it has been learned. Unlike conventional solar panels, whose installation sites are limited to roofs and other specific places, the new material can be used for walls of buildings and other structures in sunny locations. The new material will likely boost the spread of renewable energy. If the material is used for skyscraper walls, just one or two buildings could produce electricity equal to that generated at a large-scale solar power plant, according to experts. (Yomiuri) Jan 2 Most top firms predict no growth in new year More than 70 percent of 105 leading Japanese companies see economic activity here either receding or flattening out because of the yen's continued strength and slowdowns in the U.S. and European economies, according to survey released Monday. Japan's economy is regarded as "slowing" or "gradually slowing" by 17 companies, and leveling out by 58, the December survey carried out by Kyodo News said. The survey sought responses from the top executives at leading companies including Canon Inc., Nippon Steel Corp., Sony Corp., Toyota Motor Corp. and Mitsubishi UFJ Financial Group Inc. (Japan Times) Jan 1 Japan's Defense Industry Lifeline The Japanese government's decision to relax rules on defense exports has the potential to give the country a much-needed national security boost. By deciding this week to relax its rules prohibiting the export of defense equipment, the new Japanese administration of Yoshihiko Noda has done something that local defense industry and the country's security experts have for many years been crying out for. Until now, the numbers just didn't add up for Japan's big defense firms, such as Mitsubishi Heavy Industries and Kawasaki Heavy Industries. heir only customer, the Japanese government, has stubbornly held defense spending below 1 percent of GDP, with much of that money going towards imported American weaponry; indeed, the defense budget has generally been declining in recent years. (The Diplomat) Dec 27 Satellite launch business faces cloudy future Japan's H-IIA rocket appears to have joined the ranks of the world's major launch vehicles following the Dec. 12 launch of an intelligence-gathering satellite. With 19 successes and one failure, however, Japan may stand little chance of capturing a substantial slice of the commercial satellite launch market, given the presence of well-entrenched competitors such as Europe and Russia. The government and Mitsubishi Heavy Industries Ltd. are hoping that the successful development of the H-IIA will provide a big break for Japan as it advances into the satellite launch market. (Japan Times) Dec 14 How Long Can Japan's Niche Brands Survive? Isuzu clung to the U.S. market two to three years after the automotive press began predicting its departure. Although Isuzu relied on sport/utilities for most of the 2000s, and that segment took a big plunge just before the brand left North America in '09, it didn't exactly light the SUV world on fire even when the segment was popular. The new automotive world order calls into question the continued viability of Japan's small, niche companies. Bigger companies have shed interest in smaller automakers, or have ended joint venture deals. The Japanese industry is not the juggernaut it was 10 or 20 years ago, and it's reasonable to question whether the country can support more than three brands, as in other mature markets. Subaru, Mazda, Mitsubishi, and Suzuki are planning ever-smaller models. Compacts, or C-segment cars, have thinner profit margins generally than C/D- and D-segment midsize cars, and B-segment subcompacts have thinner margins still. (motortrend.com) Dec 12 Japan launches new spy satellite Japan launched a new spy satellite into orbit on Monday amid concerns over North Korea's missile programme and to monitor natural disasters in the region, officials said. The Japanese H-2A rocket carrying an information-gathering radar satellite lifted off at 10:21 am (0121 GMT) from the Tanegashima Space Center in southwestern Japan. "The rocket was launched successfully," said Toshiyuki Miura, a spokesman for Mitsubishi Heavy Industries, which built the satellite and worked on the launch with the Japan Aerospace Exploration Agency (JAXA). "The satellite was separated into orbit around the Earth later," Miura added. The government decided to build an intelligence-gathering system after North Korea launched a missile in 1998 that flew over the Japanese archipelago and into the Pacific, shocking many in Japan. (AFP) Nov 27 China gives Japan cold shoulder on cyberattack Japan asked China to help probe a cyberattack earlier this year on the computer system of Mitsubishi Heavy Industries Ltd., government sources said. The late September request was made because the cyberattack on the major defense contractor was suspected to have originated in China, the sources said Saturday. China said in its reply it would contact the relevant authorities, but there has been little progress since, leaving the investigation at a standstill, they said. (Japan Times) Nov 24 Nikkei falls to lowest level since April 2009 The Nikkei average fell more than 1.5 percent to its lowest intraday level since April 2009 on Thursday, hurt by a worrying German bond sale and expectations that mounting European debt concerns will continue to push overseas equities markets lower. But strategists say that Tokyo's fall is being tempered by expectations of buying by public pension funds, as well as the Bank of Japan's exchange-traded fund (ETF) purchases which are part of the central bank's liquidity-boosting program. "There are no reasons to be optimistic, but there is reason to expect BOJ and public pension fund buying, so the downside is supported for now," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley. (Reuters) Nov 12 Age of low-cost flights It appears that Japan is finally entering the age of low-cost flights. All Nippon Airways has set up a joint venture, Peach Aviation, with a Chinese investment fund and plans to set up another joint venture, AirAsia Japan, with AirAsia of Malaysia, a leading low-coast carrier (LCC) in Asia. Japan Airlines, now undergoing rehabilitation, has decided to launch an LCC joint venture, Jetstar Japan, with Australia's Qantas group and Mitsubishi Corp. Peach Aviation will use Kansai airport as its base airport, starting flight operations in March 2012. AirAsia Japan will use Narita airport, starting flight services in August 2012. Jetstar Japan plans to start business in 2012. At present, nine overseas LCCs are flying to and out of Japanese airports. (Japan Times) Oct 29 Europe crisis prompts two brokerages to slash jobs Daiwa Securities Group Inc. and Mitsubishi UFJ Morgan Stanley Securities Co. plan to sharply cut their workforces, mainly due to the massive losses they have incurred amid the European financial crisis. Daiwa Securities said Friday it will slash 300 jobs related to its business in Europe and Asia by March, while Mitsubishi UFJ Morgan Stanley Securities plans to cut about 1,300 jobs, around 20 percent of its workforce. Daiwa Securities also said it will cut pay for executives by up to 40 percent until March after incurring a group net loss of ¥28.79 billion in the April-September first half, more than five times larger than the loss it suffered a year earlier. (Japan Times) Oct 24 Japan contractor hacking likely got military data: Asahi A cyber attack on Japan's biggest defense contractor likely netted military data on warplanes and information on nuclear power plants, the Asahi newspaper reported Monday, as pressure mounts on Japan to bolster cyber security after the attack came to light in August. It remains unclear whether the military data from Mitsubishi Heavy Industries Ltd, including information on warplanes, helicopters and other equipment ordered by Japan's Defense Ministry, is deemed sensitive defense information, the Asahi said, citing a source close to the matter. A Japanese defense ministry official said, that as of now, the ministry is not aware of any leaks of information classified as defense secrets. (Reuters) Oct 23 Japanese shipbuilders ask steelmakers to cut plate price Bloomberg reported that Japanese shipbuilders will ask local steel mills to cut prices for plate used to construct vessels or be replaced by rivals from South Korea or China as the yen strengthens. Mr Kazuaki Kama chairman of Shipbuilders' Association of Japan is scheduled to meet Mr Eiji Hayashida head of the Japan Iron and Steel Federation as soon as next week to demand lower prices. The association, which counts Mitsubishi Heavy Industries Limited and IHI Corporation as members, is joining the nation's carmakers in reviewing costs and prices as a near record high yen makes Japanese products less competitive. Japanese shipbuilders, the world's third largest by output, pay local mills as much as 30% more for plates than South Korean yards. (steelguru.com) Oct 20 Japan smart grid: Mitsubishi Electric fires up full-scale tests Mitsubishi Electric has started full-scale tests on a variety of smart grid and smart community technologies at its Japanese production locations. Overall goals of the renewable energy-oriented project are to develop a sustainable and reliable electric grid, consumer energy management programs and an electric infrastructure capable of uninterrupted power delivery following extreme emergencies, such as the devastating March earthquake and tsunami. (smartgridnews.com) Oct 16 1 culprit likely in cyber-attacks / Police find matching MO in Mitsubishi Heavy, Kawasaki Heavy cases Police increasingly believe the same hacker was responsible for the recent cyber-attacks on Mitsubishi Heavy Industries Ltd. and Kawasaki Heavy Industries Ltd. A computer virus found in the attack on Kawasaki Heavy Industries, which was sent by e-mail through a computer at the Society of Japanese Aerospace Companies (SJAC), forced infected personal computers to access a Web site in the United States, sources close to the issue said Saturday. Police have found that infected PCs at Mitsubishi Heavy Industries were made to access the same Web site. The police suspect the hacker used the U.S. site as a so-called springboard, via which the attacker manipulated computer terminals from the outside. (Yomiuri) Oct 9 Many firms reluctant to disclose cyber-attacks Soon after the discovery that Mitsubishi Heavy Industries, Ltd. had been the victim of a cyber-attack, several major companies revealed that they, too, had suffered attacks in the past. However, many other firms remain wary of such disclosures. The parties that came forward were Mitsubishi Electric Corp., Kawasaki Heavy Industries Group and IHI Group. Major defense equipment manufacturer IHI Corp. made its announcement on Sept. 20. "It's true our industry has been targeted. Our aim [in revealing the attack] is to let people know this situation needs to be tackled as a social problem," a company employee involved with the issue said. (Yomiuri) Oct 5 Japan offers $43 billion credit to megabanks Japan's three biggest banks received a combined $43 billion credit line from the government to help finance domestic companies' overseas takeovers as businesses seek to counter the strong yen. The Japan Bank for International Cooperation, known as JBIC, is offering a $15 billion credit line to Mitsubishi UFJ Financial Group Inc.'s banking unit, the state-run lender said in a statement on its website today. Units of Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. each received $14 billion in credit under the pact. Prime Minister Yoshihiko Noda is under pressure to help Japanese companies weather the yen's 11 percent rise against the dollar in the past six months, which has hampered the nation's recovery from a record earthquake in March. The deal is aimed at helping banks to procure dollars and offer loans to companies planning acquisitions abroad, the statement said. (BusinessWeek) Oct 2 Japan eyes private firms help on cyber attacks Japan plans to work more closely with private companies by sharing information on cyber attacks after defense contractor Mitsubishi Heavy Industries was hacked, Nikkei business daily reported Sunday. The government also aims to ratify an international treaty on online crimes, the Nikkei said without citing a source. The United States has recently pressured Japan to take more action against cyber attacks after Mitsubishi Heavy, which works closely with Boeing, said in September network information such as IP addresses may have been leaked. Tokyo is considering asking private companies including utilities, railway operators, defense contractors, automakers and electronics to sign an agreement with public bodies to share information on cyber attacks, the Nikkei said. (Reuters) Sep 30 Australia, Japan sign open skies aviation agreement Australia and Japan have signed an open skies aviation agreement that will allow Australian carriers fly into smaller Japanese airports, just as flag carrier Qantas looks to set up a low-cost airline partnership in Japan. The deal allows unlimited flights between the two countries, including to Tokyo's Haneda airport, and lifts capacity restrictions at Tokyo's larger Narita Airport from 2013, Australia's Transport Minister Anthony Albanese said on Friday. Qantas, Japan Airlines and Mitsubishi have announced plans to launch a new domestic airline -- Jetstar Japan -- as part of the Australia's carrier's wide-ranging overhaul to improve profitability. (Reuters) Sep 22 Many major manufacturers shopping for parts overseas Many major manufacturers are procuring fewer parts domestically and buying more components overseas to lessen the impact of the super-strong yen, a trend that is hurting small and midsize firms and could weaken the nation's industrial base. At a press conference Wednesday, Mitsubishi Motors Corp. President Osamu Masuko said the recent yen-dollar exchange rate, which has been hovering in the 76 yen range against the dollar, was affecting his company's bottom line. "It's a tough level for companies that are highly dependent on exports," Masuko said. MCC plans to raise the percentage of parts it buys overseas from the current 18 percent to 25 percent in 2013 to cut costs. (Yomiuri) Sep 22 Nissan, Mitsubishi strengthen cooperation Japanese automakers Nissan and Mitsubishi are strengthening their cooperation by expanding the number of models they make for each other in Japan. Nissan and its smaller rival Mitsubishi have had what is called an original equipment manufacturer, or OEM, deal since December 2010. They manufacture specific vehicle models for each other and sell them under their own brands. Nissan Motor Co. said Thursday it will provide the Fuga luxury sedan to Mitsubishi Motors Corp., starting from summer next year. (AP) [ More... ]