Daily Management Review

Reuters: Sentiment of Japanese manufacturers worsened


02/19/2018


The moods of Japanese industrial producers has deteriorated significantly in February compared to January, the Reuters Tankan survey showed, indicating that the strong yen and global turmoil in the markets have undermined the mood of the business.



OiMax
OiMax
According to the monthly survey, which the quarterly survey of the Bank of Japan tracks, Japanese sentiment should have improved in the next three months, but weakness in the services sector has become a warning signal for the recovery of domestic demand.

A survey conducted by Reuters among 544 large and medium-sized companies, in which 259 firms responded on condition of anonymity, became available after Japan announced its longest economic growth since the 1980s. in the IV quarter. This became possible due to private consumption.

Nevertheless, recent turmoil in world stock markets increased investor interest in the Japanese currency, which causes concern for politicians, as a strong yen eats the profits of Japanese producers.

In addition, the appreciation of the Japanese currency may adversely affect business investment, consumer spending and overall growth.

"Our consolidated profit has deteriorated because of the strong yen," the manager of the transport equipment manufacturer wrote in a review.

The manufacturer of metal products said: "We suffer from the consequences of environmental regulation in China and the restrictions on the supply of natural gas, which seriously affected the producers."

Some other companies have complained that profits are being squeezed by rising oil and commodity prices, while others say they are benefiting from the rapid demand for semiconductors and cars.

The sentiment index for producers was 29 points in February, compared to the 11-year high of the previous month of 35 points. It is expected that in May the index will increase insignificantly - up to 30 points.

source: reuters.com






Science & Technology

Europe overtakes US by number of patents for self-driving car technologies

Samsung introduces display technology for folding screens

How retailers use technologies to increase sales

Facebook releases videochat devices Portal and Portal Plus

Smartphone makers will pay for pre-installing Google apps‍

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

World Politics

World & Politics

Brexit Negotiators Of Both Parties Close Down On Irish Border Text, Reports RTE

Bloomberg: Theresa May can face catastrophic defeat in parliament

New Asian Foreign Policy May Be Set By Congress After Democrats Taking Control Of House

Italy refuses to change draft budget

Italy is about to tighten its migration policy

Macron calls to create a pan-European army

Signals Of Mending Of US-China Emerge Before Anticipated G20 Meet

Moscovici: the European Commission may impose sanctions on Italy