Firday’s Japan business news roundup

April 20, 2007
By Ken Worsley

There is so much going on today that I thought a quick roundup might be in order. Maybe this could become a regular thing…

The Nikkei (Nihon Keizai Shimbun) is reporting that KDDI is set to announce an 18% increase in profits for the year ending March 31, based on the success of its AU mobile brand. If reported, this profit figure would be 8 billion yen higher than KDDI’s forecasts for fiscal 2006.

Tesco is coming to Japan! The BBC tells us:

The Tesco Express store will launch in Tokyo, the first of up to 35 new outlets the UK’s largest supermarket group plans to open in Japan this year.

A Cabinet Office survey has revealed that Japan’s exporters are comfortable with a dollar/yen exchange rate at 106.6, though they expect the exchange rate to be around 115.5 yen to the dollar in January 2008.

After posting an 8.5% increase in profits last year, and sparking hope that Japan’s stagnant retailers might spring to life, Daiei is forecasting a whopping 36% fall in profit for the 2007-2008 fiscal year. According to Reuters:

Daiei last month became an affiliate of Aeon Co, creating the country’s biggest retail group by sales. The companies are hoping the group’s scale will give them stronger purchasing power and lower their costs, helping them compete in Japan’s crowded, shrinking market.

In the “no surprises there” department: US Agriculture Secretary Mike Johanns said he would be “very surprised” if any breakthrough on US beef were to take place during Prime Minister Shinzo Abe’s visit to the US next week.

This UPI article concerning Japan’s GDP growth projections by the World Bank showed up in Google News today. Have a careful look at it (It might change by the time you see it…)

BlackRock and Pacific Investment Management Co, two giant bond investors, are buying Japanese government bonds. Is inflation set to return to Japan?

Filed Under Business, Japan