November - industrial output down, unemployment flat, CPI down

Japan's industrial output dropped last month — with production, shipments and inventory figures all decreasing — but government forecasters had manufacturing and production looking for a rebound this month and next, officials said Wednesday.

The unemployment rate adjusted for seasonal differences was unchanged in November from the previous month, at 4.5 percent, the government also announced.

Industrial output dropped a seasonally adjusted 2.6 percent in November, according to the Ministry of Economics, Trade and Industry. It was the first decline in two months.

It said industries contributing most to the decrease were transport equipment, information and communication electronics equipment and iron and steel. Large and small passenger cars and cellphones were among the commodities adding to the decline.

The ministry described the data as "flat," and said manufacturing and production were expected to increase 4.8 percent in December and to increase 3.4 percent in January

In other economic data announced Wednesday, the government said the core Consumer Price Index fell 0.2 percent in November from year-earlier figures, its second consecutive monthly fall. The index, which does not include fresh foods, was 99.6 against the 2010 base of 100.

Core CPI for Tokyo in December — considered an indicator of future trends for the entire country — fell 0.3 percent.

In recent years, Japan has wrestled with deflation, or falling prices, which can drag on economic growth.
The ratio of job offers to job seekers was 0.69 in November, an improvement from 0.67 the previous month.

Figures released by the Ministry of Internal Affairs said there were 2.80 million people unemployed in Japan in November.


http://old.news.yahoo.com/s/ap/20111228/ap_on_bi_ge/as_japan_economy

November - Exports Fall 4.5%; 2nd Straight Month

Japan's exports fell for the second straight month in November, hit by faltering demand from Asia and Europe.

Exports shrank 4.5 percent from a year earlier to 5.198 trillion yen ($66.7 billion), according to a finance ministry report released Wednesday. The result is steeper than October's 3.8 percent decline.

The data underscore the growing pressures facing the world's third-largest economy, which relies heavily on exports to drive growth. A persistently strong yen, Europe's debt problems and the recent flooding in Thailand are eroding gains made since the March earthquake in Japan disrupted manufacturing.

Economists predict economic growth will slow this quarter after the economy expanded at an annualized rate of 5.6 percent in the July-September period.

Shipments to Asia — usually a source of robust demand — fell 8 percent in November. Exports to the European Union and the Middle East also retreated, while those to North America rose slightly.
Goldman Sachs economist Chiwoong Lee described the falloff in shipments to Europe as "especially pronounced."

"This suggests that the deterioration in financial conditions in Europe may be having a negative impact on demand there," he said in a research note.

By sector, electrical machinery exports took a 10.7 percent hit as demand for semiconductors and audio equipment tumbled. Motor vehicles shipments slipped 0.6 percent from a year earlier.

Meanwhile, imports jumped 11.4 percent to 5.882 trillion yen as Japan bought more fossil fuels to meet electricity demand.

That resulted in a November trade deficit of 684.7 billion yen. It was the second straight monthly deficit.
The turmoil in Europe and the U.S. has driven up the yen as global investors flock to the currency as a relatively safe haven. The yen hit multiple historic highs against the dollar this year.

A rising yen shrinks the value of overseas earnings when repatriated and makes Japanese products less competitive in overseas markets. The yen has weakened to around 78 to the dollar recently, but exporters say it is still too high.

The currency levels have forced manufacturers including Nissan Motor Co. and Panasonic Corp. to shift some production overseas, a trend that could further undermine Japan's exports.


http://old.news.yahoo.com/s/ap/20111221/ap_on_bi_ge/as_japan_economy

Toyota Plans Comeback; tagetting record sales in 2012 and even bigger 2012

Toyota is aiming for a comeback, targeting record global sales of 8.48 million vehicles in 2012 and an even bigger number in 2013, after being battered this year by the March disaster in Japan and flooding in Thailand.

Toyota Motor Corp., Japan's top automaker, relinquished its title as the world's biggest in global vehicle sales for the first half of this year, sinking to No. 3 behind U.S. rival General Motors Co. and Volkswagen AG of Germany.

Toyota's global vehicle sales for this year totaled 7.9 million vehicles, including group companies, down 6 percent from the previous year, it said in a statement Thursday.

General Motors Co. spokesman Jim Cain said it will release its full-year global sales totals in January.
The Detroit-based automaker had been at the top for more than seven decades until Toyota took the crown in 2008.

After the first three quarters, GM sold 6.788 million vehicles worldwide, according to its filings with the U.S. Securities and Exchange Commission. If fourth-quarter results are consistent with prior months, it will sell just more than 9 million vehicles in 2011. Last year, GM sold 8.39 million vehicles around the world.

Volkswagen also has not released its 2011 tally but said earlier this month it delivered 7.51 million vehicles globally during the January-November period.

Toyota's targets for 2012 and 2013 do not include group companies such as Daihatsu Motor Co. and Hino Motors, and so aren't directly comparable with numbers from GM and Volkswagen.

Toyota said its sales target for calendar 2012 is based on achieving 20 percent growth from its global sales this year and would be a record high for the company, underlining its turnaround ambitions.
The automaker's current sales record of 8.43 million vehicles was attained in 2007.

"It won't be a surprise to me if Toyota reaches a new record in global sales," said Mamoru Katou, auto analyst at Tokai Tokyo Research. Hybrids remain popular in Japan, the Camry sedan is doing well in the U.S. and demand is robust in emerging markets, he said.

Toyota has been making up for sales declines in North America and Japan with momentum in relatively new but booming markets such as China and India.

The manufacturer of the Prius hybrid and Lexus luxury models said it plans to sell 8.95 million vehicles around the world in 2013, not including group companies.

Toyota said it had not yet figured out forecasts for the group companies. It is possible the target might exceed 9 million vehicles, had they been included.

Targeted overseas sales of 6.95 million vehicles this year, up 19 percent year-on-year, would also be a new record for Toyota, if attained.

Toyota acknowledged many uncertainties, which could push the numbers in either direction. One possible plus is the extension of Japanese government incentives for green vehicles, according to Toyota.
Toyota, with its strong hybrid lineup, has been a major beneficiary of such incentives.
Still, Toyota has gone through some hard times lately.

The global financial crisis in 2008 was behind a serious sales plunge in the key North American market.
Then came massive recalls, mostly in the U.S., that tarnished Toyota's once pristine reputation for quality amid speculation it had not been as forthright as it should have been about defects.

Toyota was on a gradual recovery track when the March 11 earthquake and tsunami struck in northeastern Japan, damaging suppliers and disrupting production because of a severe parts shortage.
Production got slammed again later in the year, although on a smaller scale, from flooding in Thailand.
Toyota also said it expects to produce 8.65 million vehicles next year, up 24 percent from 6.97 million this year. It expects to produce 8.98 million vehicles in 2013, it said. Those numbers do not include group companies.

Michael Robinet, managing director of IHS Automotive Consultants in Northville, Michigan, said a global sales lead doesn't matter as much as how much money the company makes per vehicle, its model portfolio and overall profit.

A difference of several tens of thousands of vehicles is not significant for automakers that sell millions of vehicles like Toyota and GM, he said.

"It doesn't matter all that much when you're already in the 9 million to 10 million unit range," Robinet said.


http://old.news.yahoo.com/s/ap/20111222/ap_on_bi_ge/as_japan_toyota

Anti-Yakuza Laws Begin to Bite VI - Movie Studio Toei Cuts Yakuza Links

In their movies, if Toei Studios Kyoto tried to break off ties with the yakuza organized crime syndicates, the story wouldn't have a happy ending.

But in this real-life drama, the movie company announced on Nov. 21 that it will not have any further social or professional connections to the yakuza.

"Eradication of gangsters is a social requirement," a Toei Studios Kyoto official said. "Even if we make yakuza movies, we will be committed to not having relations with them in real life."

The company, which has produced popular gangster movies including the "Jingi Naki Tatakai" (Battle Without Honor and Humanity) series, said its employees will not attend parties held by crime organizations and not accept illegal requests for money.

According to sources related to the film-making industry, Toei Studios Kyoto staff members solicited advice from yakuza members in regards to movies in the past that needed some realism.

On Nov. 21, however, about 50 actors, actresses and production staff promised not to do so again.
They vowed to "not be afraid of," "not to give money to" or "not to take advantage of" gangsters.
On their part, some yakuza syndicates are trying to distance themselves from society.

Yamaguchi-gumi, a Kobe, Hyogo Prefecture-based organized crime syndicate and the biggest in Japan, said that it will refrain from an annual New Year's visit to the Kobe Gokoku Jinja shrine, according to sources.

In September, Hyogo prefectural police requested in writing that the prefecture's association of Shinto shrines and Gokoku Jinja shrine--a shrine designated as a place for worship for those who died in the war--to not allow the gangsters to visit on New Year's Day.

Yamaguchi-gumi's top officials have been visiting the local shrine near the syndicate's headquarters in Nada Ward every year before dawn on New Year's Day.

"We have not been told of the reason for the syndicate's voluntary restraint," a shrine official said. "But we will not refuse private visits by the members as we respect freedom of religion."

With all prefectures having enacted anti-yakuza ordinances by October, the Association of Shinto Shrines sent a written request to prefectural shrine associations on Nov. 9 requesting that they deal with matters related to the crime syndicates with care.

The Hyogo prefectural association of Shinto shrines decided Nov. 17 to reject group visits and notified the prefecture's 3,800 shrines.

http://ajw.asahi.com/article/behind_news/social_affairs/AJ201111240080a

Anti-Yakuza Laws Begin to Bite V - Tips on whats acceptable and whats not

With the passing of nationwide legislation in October that prohibits ordinary citizens from having business dealings with criminal organizations, Sapio (Nov. 16) offers tips on what is acceptable and what is prohibited.

For assistance, the weekly magazine has turned to lawyer Hideyuki Takashima for some insights on such queries as: If one unknowingly engages in a contractual agreement with gang members, is that a violation of the law? If gangsters purchase certain items and one offers similar items to regular customers, is that a violation? How far can one take “associating” with criminal organizations before there is a violation?

To summarize, a problem will typically arise when one knowingly assists in promoting the businesses of gangsters.

In the operation of an izakaya, Takashima says that if a few gang members arrive to eat and drink at the counter or at tables with other customers, it is probably allowable. “However, if group, numbering a few dozen, turn up to use a private room, there might be a problem since it looks like a formal meeting,” the lawyer says. “The boundary line is whether one is fostering their activities.”

The size of the purchase is the key for the delivery of bento boxes, pizzas, and supermarket and convenience store orders. “If it is a personal purchase and does not appear to be an official catering order, it is acceptable,” the lawyer says.

For printing, markings denoting a yakuza organization or title on greeting cards or business cards are not allowable. “The printing of a gang name or title is promoting their activities,” Takashima explains. “Personal cards and private orders are probably acceptable.”

Hoteliers need to take every effort to confirm the identity of anyone using the hotel facilities, Takashima advises. “If they don’t know gangsters are behind a request to rent a room, or find out later, they are probably safe,” he says. “Whether or not a hotelier decides to cancel a party or banquet arrangement after learning that gang members are involved is a matter that is up to the discretion of the staff members.”

http://www.tokyoreporter.com/2011/11/07/tokyo-times-guide-for-dealing-with-yakuze-following-enactment-of-new-legislation/