Japan's housing starts in November rose 6.8 percent from a year earlier to 72,838 units on the back of demand for condominiums and owner-occupied houses, marking the sixth straight month of growth, the government said Monday.
The figure marked the second-lowest level for the month, following 68,198 units last year, since 1965 when comparable data became available, according to the Ministry of Land, Infrastructure, Transport and Tourism.
The ministry said while there are signs of recovery, housing starts remain at a low level and need "to be watched very carefully" amid the persistence of tough employment and income conditions.
In the January to November period, housing starts rose 2.7 percent from the year before to 738,609 units, meaning this year's total is certain to exceed last year's 775,277 units.
Starts on condominiums for sale surged 106.1 percent year on year to 8,922 units in November and those for single-family homes for sale rose 14.2 percent to 9,506 units.
Starts of owner-occupied houses increased 7.1 percent to 27,235 units during the same period, while those of rental houses dropped 9.5 percent to 26,703 units.
By region, housing starts increased 12.4 percent in the Tokyo metropolitan region, 8.6 percent in the Chubu region centering on Nagoya, 0.2 percent in the Kinki region including Osaka and 4.0 percent in the rest of the nation.
http://www.breitbart.com/article.php?id=D9KC721O0&show_article=1
Sunday, January 2, 2011
November - Annual export growth accelerates
- Japan's export growth picked up in November for the first time in nine months due chiefly to the yen's pullback from 15-year highs, but analysts say signs of softening overseas demand cloud the outlook.
Uncertainties about overseas economies bode ill for the Japanese government, whose fiscal policy options are limited due to a self-imposed cap on new borrowing for the year starting next April. The government is set to compile the 2011/12 budget this week.
Economists expect export growth to resume slowing towards the first quarter of next year but to regain strength later on demand from emerging economies.
This outlook is not assured, however, given a weak U.S. job market, Europe's debt problems and China's policy tightening aimed at staving off potential asset price bubbles.
"As the global economy is clearly slowing, although it is not deteriorating, Japan's annual export growth may turn flat in January-March, which will weigh on the economy's growth," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.
"But even if the Japanese economy's slowdown and downside risks become more evident early next year, the government could hardly do anything about it, with little room left to boost fiscal spending."
http://www.reuters.com/article/idUSTOE6BL00G20101222
Uncertainties about overseas economies bode ill for the Japanese government, whose fiscal policy options are limited due to a self-imposed cap on new borrowing for the year starting next April. The government is set to compile the 2011/12 budget this week.
Economists expect export growth to resume slowing towards the first quarter of next year but to regain strength later on demand from emerging economies.
This outlook is not assured, however, given a weak U.S. job market, Europe's debt problems and China's policy tightening aimed at staving off potential asset price bubbles.
"As the global economy is clearly slowing, although it is not deteriorating, Japan's annual export growth may turn flat in January-March, which will weigh on the economy's growth," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.
"But even if the Japanese economy's slowdown and downside risks become more evident early next year, the government could hardly do anything about it, with little room left to boost fiscal spending."
http://www.reuters.com/article/idUSTOE6BL00G20101222
Economy expected to grow 1.5% in FY 2011
The Japanese economy is expected to grow a real, or price- adjusted, 1.5 percent year on year in fiscal 2011, supported by overseas economic recovery, with consumer prices remaining flat, government sources said Tuesday.
On a nominal basis, the economy could expand 1.0 percent in the year starting April, the sources said, with the Cabinet of Prime Minister Naoto Kan expected to approve the projections on Wednesday.
The Japanese economy, previously assessed by the government as "pausing," will likely start recording moderate growth in the new fiscal year, largely benefiting from economic recovery overseas especially in Asia, which would accelerate Japanese production and exports, they said.
But the level of growth in fiscal 2011 is expected to be lower than in the current year, in which the government boosted domestic consumption and industrial output with fiscal stimulus measures.
The government is also projecting that the nationwide consumer price index will remain flat, halting recent falls. However, the stabilization will fall short of suggesting that the Japanese economy will overcome chronic deflation in the upcoming business year.
http://www.breitbart.com/article.php?id=D9K89A981&show_article=1
On a nominal basis, the economy could expand 1.0 percent in the year starting April, the sources said, with the Cabinet of Prime Minister Naoto Kan expected to approve the projections on Wednesday.
The Japanese economy, previously assessed by the government as "pausing," will likely start recording moderate growth in the new fiscal year, largely benefiting from economic recovery overseas especially in Asia, which would accelerate Japanese production and exports, they said.
But the level of growth in fiscal 2011 is expected to be lower than in the current year, in which the government boosted domestic consumption and industrial output with fiscal stimulus measures.
The government is also projecting that the nationwide consumer price index will remain flat, halting recent falls. However, the stabilization will fall short of suggesting that the Japanese economy will overcome chronic deflation in the upcoming business year.
http://www.breitbart.com/article.php?id=D9K89A981&show_article=1
Gender Gap
Japan is likely to sink deeper into stagnation unless society can change in a way that makes it easier for women to play a greater role by capitalizing on their abilities. This problem is highlighted every year by Japan's abysmal positions in the international rankings of gender equality.
This year, Japan was ranked 94th of 134 countries in the Global Gender Gap Index (GGGI), compiled by the World Economic Forum, a Geneva-based nonprofit foundation best known for its annual meeting in Davos, Switzerland, that brings together business and political leaders from around the world. The index is based on such criteria as the ratios of men and women among members of parliament and corporate executives, and in wages.
Similarly last year, Japan ranked 57th among 109 countries in the United Nations' Gender Empowerment Measure, which measures women's standing in political and economic areas in a country.
However, Japan did take the 12th position among 138 nations in the rankings of the Gender Inequality Index, a measure of inequality in achievements between men and women introduced this year by the United Nations. The higher the ranking, the lower the inequality.
But Japan's relatively good performance was due to higher weight given to such criteria as maternal mortality.
This may make some Japanese breathe a sigh of relief. But the fact that the achievements of Japanese women in society are rated low despite their high marks for health and longevity underscores serious problems with Japanese society.
In the West, the hollowing-out of the manufacturing sector, which was supported mainly by male workers, took place in the 1980s as manufacturers shifted production to low-wage nations amid globalization.
This trend made it a crucial policy challenge in these countries to tap the abilities of women to nurture service industries.
In particular, improving the environment for women to work outside the home was regarded as the most pressing need. Consequently, efforts were made to increase the numbers of women in places like the corporate sections responsible for decision-making and in Congress.
In the Netherlands, where many male heads of households lost their jobs during this period, their wives entered the work force. For women who can't work full-time due to a shortage of child-care centers, the country enacted legislation to ensure that part-timers receive equal treatment at workplaces.
The introduction of the 35-hour workweek system in France was driven by calls for a system that makes it easier for women to work while raising children.
As international competition for the empowerment of women has spread, more countries have placed priority on promoting women's participation in politics. Now, more than 100 nations have adopted a quota system that assigns a certain percentage of elected seats to women.
This trend toward female empowerment was behind the decision to discuss how to expand the contribution of women to economic growth at this year's summit of the Asia-Pacific Economic Cooperation forum in November.
It is time for Japan to launch a national drive to reform the systems to ensure more effective use of the power of women for its economic regeneration.
Japanese society is awash in systems, rules and practices that hamper expansion of the role of women: poor policy support for child care and nursing care; excessively long work hours; tax and pension systems that discourage women from working.
One good starting point for change would be the introduction of a quota system or some other measure to increase the ratio of women among Diet members for a wholesale review of all these systems, rules and practices.
Women in farming households played the central role in developing farm products that appeal to consumers through initiatives like the "michi no eki" (roadside station) market program.
Impressive performances of Japanese women in international sports events leave little doubt that the nation stands to gain a lot by making better use of their abilities.
http://www.asahi.com/english/TKY201012300136.html
This year, Japan was ranked 94th of 134 countries in the Global Gender Gap Index (GGGI), compiled by the World Economic Forum, a Geneva-based nonprofit foundation best known for its annual meeting in Davos, Switzerland, that brings together business and political leaders from around the world. The index is based on such criteria as the ratios of men and women among members of parliament and corporate executives, and in wages.
Similarly last year, Japan ranked 57th among 109 countries in the United Nations' Gender Empowerment Measure, which measures women's standing in political and economic areas in a country.
However, Japan did take the 12th position among 138 nations in the rankings of the Gender Inequality Index, a measure of inequality in achievements between men and women introduced this year by the United Nations. The higher the ranking, the lower the inequality.
But Japan's relatively good performance was due to higher weight given to such criteria as maternal mortality.
This may make some Japanese breathe a sigh of relief. But the fact that the achievements of Japanese women in society are rated low despite their high marks for health and longevity underscores serious problems with Japanese society.
In the West, the hollowing-out of the manufacturing sector, which was supported mainly by male workers, took place in the 1980s as manufacturers shifted production to low-wage nations amid globalization.
This trend made it a crucial policy challenge in these countries to tap the abilities of women to nurture service industries.
In particular, improving the environment for women to work outside the home was regarded as the most pressing need. Consequently, efforts were made to increase the numbers of women in places like the corporate sections responsible for decision-making and in Congress.
In the Netherlands, where many male heads of households lost their jobs during this period, their wives entered the work force. For women who can't work full-time due to a shortage of child-care centers, the country enacted legislation to ensure that part-timers receive equal treatment at workplaces.
The introduction of the 35-hour workweek system in France was driven by calls for a system that makes it easier for women to work while raising children.
As international competition for the empowerment of women has spread, more countries have placed priority on promoting women's participation in politics. Now, more than 100 nations have adopted a quota system that assigns a certain percentage of elected seats to women.
This trend toward female empowerment was behind the decision to discuss how to expand the contribution of women to economic growth at this year's summit of the Asia-Pacific Economic Cooperation forum in November.
It is time for Japan to launch a national drive to reform the systems to ensure more effective use of the power of women for its economic regeneration.
Japanese society is awash in systems, rules and practices that hamper expansion of the role of women: poor policy support for child care and nursing care; excessively long work hours; tax and pension systems that discourage women from working.
One good starting point for change would be the introduction of a quota system or some other measure to increase the ratio of women among Diet members for a wholesale review of all these systems, rules and practices.
Women in farming households played the central role in developing farm products that appeal to consumers through initiatives like the "michi no eki" (roadside station) market program.
Impressive performances of Japanese women in international sports events leave little doubt that the nation stands to gain a lot by making better use of their abilities.
http://www.asahi.com/english/TKY201012300136.html
Tuesday, December 28, 2010
Japan Leisure Hotels - Main Investor Exit - Analyst Comment
Interesting comments on JLH and its valuation from its analyst Hardman and Co.
http://hardmanandco.com/Research/JPLH_Dec2010.pdf
It is very interesting that Hardman believes that Japan Leisure Hotel's hotels should be valued in line with international hotel chain valuations; when it is common knowledge in Japan that Leisure Hotels or Love Hotels trade at much bigger caprates compared to their traditional hotel cousins in Japan
In the current market climate in Japan; combined with lack of financing, JLH's poor performance (most recently posting a loss in H1 2010) and also the upcoming regulatory change in the LH industry http://japanrealestatecommentary.blogspot.com/2010/05/japan-leisure-hotels-law-to-change.html
it is difficult to see any buyer emerging for the Bonita hotel chain
http://hardmanandco.com/Research/JPLH_Dec2010.pdf
It is very interesting that Hardman believes that Japan Leisure Hotel's hotels should be valued in line with international hotel chain valuations; when it is common knowledge in Japan that Leisure Hotels or Love Hotels trade at much bigger caprates compared to their traditional hotel cousins in Japan
In the current market climate in Japan; combined with lack of financing, JLH's poor performance (most recently posting a loss in H1 2010) and also the upcoming regulatory change in the LH industry http://japanrealestatecommentary.blogspot.com/2010/05/japan-leisure-hotels-law-to-change.html
it is difficult to see any buyer emerging for the Bonita hotel chain
Japan Leisure Hotels - Board Statement
20 December 2010
Japan Leisure Hotels Limited
("JPLH" or the "Company")
Potential Offer for the Company
Funds managed by DKR Oasis Management Company, LP ("DKR Oasis") own approximately 87.6% of the Company's issued share capital. DKR Oasis recently informed the Board that it wanted to exit its investment in the Company and was taking active steps to achieve this end. There are a number of ways such an exit could be structured including an offer being made for its shares or a sale of the Company's assets.
The Takeover Panel has ruled that an offer for the Company will be subject to the City Code on Takeovers and Mergers (the "Code"). If an offer is made under the Code, DKR Oasis is in a position to deliver control of the Company by selling its shares (in which event the buyer will be required to make a cash offer on no less favourable terms to the remaining minority shareholders) or by providing an irrevocable undertaking to accept a takeover offer made for the Company's shares.
Under the AIM Rules, the Company cannot liquidate its assets without first obtaining the approval of shareholders in general meeting. At any such meeting, DKR Oasis would be in a position to vote through the required resolution. Although DKR Oasis does not currently control the Board, and so cannot force the Board to enter into contracts to liquidate its investments in the Bonita hotel portfolio, DKR Oasis can under Guernsey law gain control of the Board or requisition shareholder meetings to achieve its ends should it wish to do so.
The Board has recently been working with DKR Oasis to help maximise any sale proceeds for the benefit of all shareholders but it is not anticipated that the proceeds of any offer for the Company will deliver a premium to the current share price and it may even result in a discount.. Also, a sale of the assets to realise value in the short term is likely to be at a substantial discount to the previously announced net asset value per ordinary share which was based on the value of the assets on a going concern basis..
The Board believes that given additional time it might be possible to deliver greater value to shareholders than has been offered to date and is in discussions with DKR Oasis to explore whether it would be prepared to exit its investment in the Company over a longer timeframe.
The Board is willing to consider proposals from any new party interested in considering an offer for the Company or its assets. The asset manager New Perspective has indicated its willingness to continue as manager or alternatively to resign in order to facilitate any preferred exit structure
A further announcement updating shareholders will be made when appropriate. There can be no certainty that any offer will be made nor as to the terms on which any offer may be made.
In accordance with Rule 2.10 of the Code, the Company confirms that, as at 20 December 2010, it had 44,100,002 ordinary shares in issue. The International Securities Identification Number (ISIN) reference for these securities is GG00B28QMS50 and the SEDOL code is B28QMS5.
In accordance with Rule 19.11 of the Code, a copy of this announcement will be published on the Company's website: www.japanleisurehotels.com.
http://www.investegate.co.uk/article.aspx?id=201012201506323044Y
Japan Leisure Hotels Limited
("JPLH" or the "Company")
Potential Offer for the Company
Funds managed by DKR Oasis Management Company, LP ("DKR Oasis") own approximately 87.6% of the Company's issued share capital. DKR Oasis recently informed the Board that it wanted to exit its investment in the Company and was taking active steps to achieve this end. There are a number of ways such an exit could be structured including an offer being made for its shares or a sale of the Company's assets.
The Takeover Panel has ruled that an offer for the Company will be subject to the City Code on Takeovers and Mergers (the "Code"). If an offer is made under the Code, DKR Oasis is in a position to deliver control of the Company by selling its shares (in which event the buyer will be required to make a cash offer on no less favourable terms to the remaining minority shareholders) or by providing an irrevocable undertaking to accept a takeover offer made for the Company's shares.
Under the AIM Rules, the Company cannot liquidate its assets without first obtaining the approval of shareholders in general meeting. At any such meeting, DKR Oasis would be in a position to vote through the required resolution. Although DKR Oasis does not currently control the Board, and so cannot force the Board to enter into contracts to liquidate its investments in the Bonita hotel portfolio, DKR Oasis can under Guernsey law gain control of the Board or requisition shareholder meetings to achieve its ends should it wish to do so.
The Board has recently been working with DKR Oasis to help maximise any sale proceeds for the benefit of all shareholders but it is not anticipated that the proceeds of any offer for the Company will deliver a premium to the current share price and it may even result in a discount.. Also, a sale of the assets to realise value in the short term is likely to be at a substantial discount to the previously announced net asset value per ordinary share which was based on the value of the assets on a going concern basis..
The Board believes that given additional time it might be possible to deliver greater value to shareholders than has been offered to date and is in discussions with DKR Oasis to explore whether it would be prepared to exit its investment in the Company over a longer timeframe.
The Board is willing to consider proposals from any new party interested in considering an offer for the Company or its assets. The asset manager New Perspective has indicated its willingness to continue as manager or alternatively to resign in order to facilitate any preferred exit structure
A further announcement updating shareholders will be made when appropriate. There can be no certainty that any offer will be made nor as to the terms on which any offer may be made.
In accordance with Rule 2.10 of the Code, the Company confirms that, as at 20 December 2010, it had 44,100,002 ordinary shares in issue. The International Securities Identification Number (ISIN) reference for these securities is GG00B28QMS50 and the SEDOL code is B28QMS5.
In accordance with Rule 19.11 of the Code, a copy of this announcement will be published on the Company's website: www.japanleisurehotels.com.
http://www.investegate.co.uk/article.aspx?id=201012201506323044Y
Japan Leisure Hotels - Main Investor to Exit
Following the half year loss posted by Japan Leisure Hotels in H1 2010; it has been announced by the Board of JLH that its main investors, DKR Oasis, is looking to exit either by selling its shares in a TOB under the Takeovers Code or by Japan Leisure Hotels selling its hotels. According to the Financial Times, this could mean that Japan Leisure Hotels will be listed from AIM.
the FT says -
One of the more colourful companies on Aim looks set to join the hundreds that have left the junior market over the past two years.
Japan Leisure Hotels operates a portfolio of so-called love hotels, one of those Japanese idiosyncrasies that make sense to the country’s inhabitants.
They act as a refuge for married couples who live with family, philanderers and those – often backpacking foreigners – looking for a cheap room for the night.
Japan Leisure’s biggest shareholder is DKR Oasis Management, which has an 87.6 per cent stake. It has told the board it wants to realise its investment. Japan Leisure said it did not expect the proceeds of any offer to “deliver a premium to the current share price, and it may even result in a discount”.
In the short term, said the company, a sale was likely to be at a substantial discount to the previously announced net asset value per share of 77p, based on the value of the assets on a going concern basis.
Japan Leisure tried to raise £100m when it listed in 2007, convinced that it would be able to consolidate the fragmented Japanese industry. In the event it had to settle for £3m at 50p a share, leaving DKR Oasis with its large stake. Another attempt at a £50m fundraising in 2009 failed.
The shares fell 2½p to 23p on Tuesday, giving a market capitalisation of £10m.
The Takeover Panel has ruled that any offer will be subject to the City Code, so any buyer would have to offer similar terms to minority shareholders. The board is willing to consider proposals from any new party for either the company or its assets.
The board believes that given additional time it might be possible to deliver greater value to shareholders than has been offered to date, and it is talking to DKR Oasis to see if it “would be prepared to exit its investment over a longer time frame”.
So far this year 178 companies have delisted from Aim, against 293 departures in 2009. The total number of companies on the junior market fell below 1,200 at the end of November, the lowest level since 2004.
http://www.ft.com/cms/s/0/15a512b6-0d2e-11e0-82ff-00144feabdc0.html#axzz19RwfLEcf
the FT says -
One of the more colourful companies on Aim looks set to join the hundreds that have left the junior market over the past two years.
Japan Leisure Hotels operates a portfolio of so-called love hotels, one of those Japanese idiosyncrasies that make sense to the country’s inhabitants.
They act as a refuge for married couples who live with family, philanderers and those – often backpacking foreigners – looking for a cheap room for the night.
Japan Leisure’s biggest shareholder is DKR Oasis Management, which has an 87.6 per cent stake. It has told the board it wants to realise its investment. Japan Leisure said it did not expect the proceeds of any offer to “deliver a premium to the current share price, and it may even result in a discount”.
In the short term, said the company, a sale was likely to be at a substantial discount to the previously announced net asset value per share of 77p, based on the value of the assets on a going concern basis.
Japan Leisure tried to raise £100m when it listed in 2007, convinced that it would be able to consolidate the fragmented Japanese industry. In the event it had to settle for £3m at 50p a share, leaving DKR Oasis with its large stake. Another attempt at a £50m fundraising in 2009 failed.
The shares fell 2½p to 23p on Tuesday, giving a market capitalisation of £10m.
The Takeover Panel has ruled that any offer will be subject to the City Code, so any buyer would have to offer similar terms to minority shareholders. The board is willing to consider proposals from any new party for either the company or its assets.
The board believes that given additional time it might be possible to deliver greater value to shareholders than has been offered to date, and it is talking to DKR Oasis to see if it “would be prepared to exit its investment over a longer time frame”.
So far this year 178 companies have delisted from Aim, against 293 departures in 2009. The total number of companies on the junior market fell below 1,200 at the end of November, the lowest level since 2004.
http://www.ft.com/cms/s/0/15a512b6-0d2e-11e0-82ff-00144feabdc0.html#axzz19RwfLEcf
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