MarketLine Blog

Posts tagged to Japan

Toshiba operational profit downgrade: Japanese company now more dependent on turnaround plan succeeding


The announcement of a five-year turnaround plan towards the end of 2018 was met cheerily by stock markets; even though several profit-making businesses had been sold, expectations were the company would begin to recover after being flushed with funds from the NAND sale. Yet now the company has reported results that are well down on original expectations, casting doubt over how soon the company can return to being a safe bet for investors. The stated ambition is to reach profit margins of at least 10% when the five-year plan concludes… Read more

Chinese ban on waste imports: End to off-shoring dirt


Introduction of the ban on imported solid waste, coming to force in China as of January 1, 2018, means the country will be importing a lot less of foreign waste material, and replacing it with recycled material collected in its own domestic market instead. China’s dominance in manufacturing means that for years it has been the world’s largest importer of recyclable materials. The country’s hunger for plastic, the most difficult waste material to dispose of, has spawned a lucrative industry where plastic waste was purchased from the international market and… Read more

Shinzo Abe reelected as tensions in Asia rise


Japan has in the past decade been hit by two major financial crises. The first one was the global financial crisis of 2008 and the second one came about following the Fukushima nuclear power plant disaster. The latter resulted in a nuclear meltdown and forced the Japanese government to immediately cease operations at all other nuclear power plants in the country, which together generated almost a third of all electricity consumed in Japan. As Japan increasingly relied on fossil fuel powered electricity in the aftermath of Fukushima, increased imports of… Read more

Toshiba NAND business sold: Business must reform or risk becoming a ‘zombie’ company


Now the immediate future of Toshiba has been secured through the $18bn sale of the NAND business, the company must scale down operations to become sufficiently nimble and competitive enough to become prosperous again. With all the large profitable sections sold or bankrupt, Toshiba now mainly exists as a collection of firms which are low-growth and unlikely to yield consistent profits. To solve this problem the company must sell or close the worst performers and use any funds raised to help the company expand again. If this course of action… Read more

Toshiba NAND business sale: Suitable sale is becoming increasingly difficult to achieve


A major problem Toshiba has with the sale of the NAND business is the company as a whole is in such a bad financial condition, potential buyers are in a very strong negotiating position. Toshiba has already sold off other profitable parts of the business in order to cover costs resulting from an accounting scandal in which profits were overstated. Now the second largest NAND business in the world is up for sale, prospective buyers are aware that the Japanese technology giant desperately needs a deal, and soon. Downward pressure… Read more

Negative Interest rates: Desperate times, desperate measures


Central banks across the developed world have taken to Negative Interest Rate Policies (NIRP) in a radical attempt to stimulate demand- the idea being that those sitting on assets will be penalized in an attempt to either lend the capital or spend it. The UK’s Monetary Policy Committee (MPC) has not ruled out the idea, but Japan, the European Central Bank, Denmark, Sweden and Switzerland have enacted NIRP already for a variety of reasons; Japan and the ECB in last ditch efforts to stimulate demand, Denmark, Sweden and Switzerland in… Read more