SoftBank taps Alibaba stake to raise $11.5bn after huge loss
Nikkei -- May 19
SoftBank Group said Monday it would raise $11.5 billion using its holdings of Alibaba Group stock, part of plans to generate 4.5 trillion yen ($42 billion) in cash to shore up its balance sheet.
"To have some cash on hand, we will pare down our assets," CEO and Chairman Masayoshi Son told a news conference.
SoftBank will use derivative contracts to be settled in a few years to raise cash from its stake in the Chinese e-commerce group.
While SoftBank appears to have no immediate cash flow problems, its Vision Fund, which had driven the Japanese technology earnings growth, has seen the value of some of its tech investments fall.
On Monday, SoftBank reported a 1.43 trillion yen net quarterly loss after big bets on real estate and ride-sharing misfired during the coronavirus pandemic.
Son warned on Monday that the titan might not pay a dividend next year after its largest ever annual loss as a public company. He told investors to expect a clutch of business failures within the Vision Fund, a $100bn vehicle backed by outside investors.
"About 15 of 88 companies [in the Vision Fund] may go bankrupt. Another 15 will grow significantly. The remaining will be so-so," Son said.
"Unicorns are falling into the corona[virus] valley," said Son, referring to the nickname for valuable tech startups.
Tokyo consumer prices up 3.2 percent in May as food costs jump
NHK - May 26
Overall prices in the Japanese capital remain high as people continue to pay more for food and some services.
Japan data signals stronger recovery, aided by return of tourists
straitstimes.com - May 23
Japan’s slow post-pandemic recovery is showing signs of growing momentum, according to the latest gauges of strength in the service and factory sectors.
Honda electric motorcycles for sale to general public
NOJ - May 21
Honda announced that it will start selling electric motorcycles to the general public for the first time in Japan.
Big Japan firms offer largest wage hikes in 31 years
NHK - May 20
Employees at some of Japan's biggest firms can expect a sizable bump in their pay checks this year. They'll see an average increase of nearly 4 percent following annual wage negotiations. That's the largest jump in 31 years.
Sony Group zeroes in on games, chips with financial unit spinoff
Nikkei - May 19
Sony Group will spin off its financial unit to focus resources on entertainment and image sensor operations as the investment burden needed to compete with foreign rivals continues to rise.
China surpasses Japan as world's top auto exporter
Nikkei - May 19
China overtook Japan as the world's top auto exporter in the first quarter, spurred by rising demand for electric vehicles and increased deliveries to Russia.
Japan April trade deficit halves, imports fall for 1st time in 2 yrs
Kyodo - May 19
Japan's trade deficit nearly halved to a one-year low of 432.41 billion yen ($3 billion) in April, as imports dropped for the first time in 27 months on lower crude oil prices, while U.S.-bound auto shipments delivered record exports, the Finance Ministry said Thursday.
Why Japan is embracing crypto rapidly
Crypto Daily - May 18
Japan, which missed out on the Web2 revolution -- by failing to produce its own Meta, Google, Amazon, and Alibaba -- is now looking to regain its economic prowess by embracing the burgeoning crypto and Web3 industry.
Japan economy grows more than expected in Q1 after technical recession
straitstimes.com - May 17
Japan's economy expanded at a faster pace than expected in the first quarter as a further easing of pandemic regulations boosted consumption.
Nikkei 225 rises above 30,000
NHK - May 17
The benchmark index for the Tokyo Stock Exchange climbed above 30,000 for the first time in a year and 8 months. The gains reflect rising investor confidence amid robust earnings and improving forecasts at Japanese companies.
7 major Japanese power companies plan to raise electricity rates by up to 39.7 percent
NOJ / TV Asahi - May 17
Seven major electric power companies in Japan have announced plans to raise prices from next month, as the government has virtually accepted the increase in regulated rates for households.
Japanese millennial could soon be billionaire after his AI company's shares surge
Business Insider - May 17
A Japanese millennial who uses AI to help solve a problem in the rapidly aging society has hit it big.
Japan's Megabanks Predict Bumper Profit, Resist Buybacks
Bloomberg - May 17
Japan's biggest lenders are predicting their highest profits in years. Still, a cautious outlook is holding them back from returning surplus capital to shareholders.
Nikkei 225 hits year's high as Japan earnings impress
NHK - May 16
The Tokyo Stock Exchange's benchmark index rose to its highest level this year on Tuesday. Semiconductor-related shares led the gains as investor confidence was boosted by the robust earnings forecasts of many companies.
Japan's vending machine culture is ahead of the curve
Nikkei - May 16
In today's Japan, millions of vending machines dispense a mountain of goods and services ranging from green tea, umbrellas, canned cakes, bananas, omikuji fortunetelling slips, noodles, batteries, T-shirts and shampoo.
Chinese cash keeps Japan's struggling hot spring resorts bubbling
South China Morning Post - May 13
An exodus of money from China has turned into a lifeline for cash-strapped inns and hotels fighting to survive after years of Covid curbs
