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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: fut_trade who wrote (1696)	2/10/1999 1:08:00 AM
From: borb	Read Replies (1) \| Respond to of 3902

"Now the drive is for cheap manufacturing of high-tech products in SE Asia and China." If that is the only reason, U.S. economic is suppose to be in big trouble.

To: fut_trade who wrote (1696)	2/12/1999 1:13:00 AM
From: chirodoc	Respond to of 3902

more proof that japan is struggling when will they deregulate and cut taxes Asia-Pacific February 12 1999 JAPAN: Aid planned for big manufacturers By Alexandra Harney in Tokyo The Japanese Ministry of International Trade and Industry (Miti) is considering a plan under which the country's biggest manufacturers would receive emergency funding to help them cut excess capacity, industry executives and analysts familiar with the proposal say. The initiative highlights how far the government is willing to intervene to support the big manufacturers amid the country's worst post-war recession. Last November, the government approved a ¥100bn (£540m) loan to Nissan Motor, the second biggest carmaker, through the Japan Development Bank, a government-sponsored institution, and may make a similar loan to NKK, the number two steel maker, analysts said. Under the plan being debated in the trade ministry, a government-backed institution would provide short-term financing to troubled companies on the understanding the funds would be used to close unprofitable facilities and improve efficiency. The loan would be supplemented by funding from private banks. It would not be targeted at specific companies or industries. Manufacturers that seem likely to meet the terms of the plan include Nissan and NKK. Both groups face surplus manufacturing and labour capacity because of earlier over-expansion. Trade officials are also believed to be considering legislation that would allow companies to spread extraordinary losses generated through restructuring over several years, to avoid damage to balance sheet and profit and loss statements. A trade ministry official said the idea was to spur economic growth and encourage restructuring by giving companies greater incentive to mothball excess capacity and reduce debt. Many manufacturers facing a fall in profits have been reluctant to close facilities, because of the costs of updating remaining factories and compensating workers. The plan would also pave the way for mergers and acquisitions by making Japanese companies more attractive to foreign buyers. Excessive debt levels have emerged as one of the biggest sticking points in talks about an equity tie-up between Nissan and DaimlerChrysler. The trade ministry declined to comment openly on the plan, but the discussion comes as the Justice Ministry is preparing to revise Japanese corporate law to make it easier for companies to reorganise. The trade ministry is still split on parts of the plan