Latest news with #KantaroKomiya
Yahoo
21 hours ago
- Business
- Yahoo
Firefly Aerospace eyes Japan rocket launches for Asia market
By Kantaro Komiya TOKYO (Reuters) -Firefly Aerospace is exploring an option to launch its Alpha rocket from Japan as the U.S. rocket maker expands its satellite launch services globally, a Japanese company operating a spaceport in the country's northern Hokkaido said on Monday. The plan could make Japan the second offshore launch site - and first in Asia - for Firefly, the Texas-based rival to Elon Musk's market leader SpaceX, which had its Nasdaq debut earlier this month and is preparing for an Alpha launch in Sweden. Space Cotan, operator of the Hokkaido Spaceport located about 820 km (510 mi) northeast of Tokyo, said it and Firefly signed a preliminary agreement to study the feasibility of launching the small-lift rocket Alpha from there. Launching Alpha from Japan "would allow us to serve the larger satellite industry in Asia and add resiliency for U.S. allies with a proven orbital launch vehicle," Adam Oakes, Firefly's vice president of launch, said in a statement published on Space Cotan's website. A feasibility study would be conducted to assess the regulatory hurdles, timeframe and investments for a launch pad for Alpha in Hokkaido, said Space Cotan spokesperson Ryota Ito. The plan would require a space technology safeguards agreement (TSA) between Washington and Tokyo that would allow American rocket launches in Japan, Ito added. The governments last year kicked off the negotiations but have not reached an agreement. A U.S.-Sweden TSA signed in June cleared the path for Firefly's launches from the Arctic. Four of Firefly's six Alpha flights since 2021 have ended in failure, most recently in April. While Japan's national space agency has launched rockets for decades, private rockets are nascent and most Japanese satellite operators rely on foreign options such as SpaceX's Falcon 9 or Rocket Lab's Electron. Previously, U.S. company Virgin Orbit aimed to use Japan's southwest Oita Airport for launches but the plan was scrapped after the firm went bankrupt in 2023. Colorado-based Sierra Space has an ongoing plan to land its spaceplane on Oita beyond 2027. Taiwanese firm TiSpace last month conducted what could be the first foreign launch in Hokkaido, but the suborbital flight failed within a minute. Japan's government is targeting 30 launches of Japanese rockets a year by the early 2030s and subsidises domestic enterprises such as Space One and Toyota-backed Interstellar Technologies.
Yahoo
2 days ago
- Business
- Yahoo
Japan posts unexpectedly strong GDP, helped by resilient exports
By Makiko Yamazaki and Kantaro Komiya TOKYO (Reuters) -Japan's economy grew much faster than expected in the second quarter as export volumes held up well against new U.S. tariffs, giving the central bank some of the conditions it needs to resume interest rate hikes this year. Gross domestic product (GDP) rose 1.0% on an annualised basis, government data showed on Friday, marking the fifth straight quarter of expansion after the previous quarter's contraction was revised to growth. However, analysts warn global economic uncertainties fuelled by U.S. tariffs could weigh on the world's fourth-largest economy in the coming months, especially as automakers struggle to keep prices down for American customers. "The April-June data masked the real effect of Trump's tariffs," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute. "Exports were strong thanks to solid car shipment volumes and last-minute demand from Asian tech manufacturers ahead of some sectoral tariffs. But these aren't sustainable at all." The increase in GDP was helped by surprisingly resilient exports and capital expenditure and compared with median market expectations for a 0.4% gain in a Reuters poll. It followed a 0.6% rise in the previous quarter, which was revised up from a 0.2% contraction. The reading translates into a quarterly rise of 0.3%, better than the median estimate of a 0.1% uptick. The strong data contrasts with China, which saw factory output growth hit an eight month low and retail sales slow sharply in July. Private consumption, which accounts for more than half of Japan's economic output, rose 0.2%, compared with a market estimate of a 0.1% increase. It grew at the same pace as the previous quarter. Consumption and wage trends are factors the Bank of Japan is watching to gauge economic strength and determine the timing of its next interest rate action. Capital spending, a key driver of domestic demand, rose 1.3% in the second quarter, versus a rise of 0.5% in the Reuters poll. Net external demand, or exports minus imports, contributed 0.3 of a point to growth, versus a 0.8 point negative contribution in the January-March period. The United States imposed 25% tariffs on automobiles and auto parts in April and threatened 25% levies on most of other Japanese imports. It later struck a trade deal in July that lowered tariffs to 15% in exchange for a U.S.-bound $550 billion Japanese investment package. Japanese economy minister Ryosei Akazawa told a press conference that the latest GDP results confirmed that the country's economy was recovering modestly. "Looking ahead, we expect better employment and income conditions and policy measures to support the modest recovery," he said. "But we need to be mindful of downside risks from U.S. trade policies." Akazawa said the U.S. tariffs are likely to push down Japan's real GDP by 0.3-0.4%. The government last week cut its inflation-adjusted growth forecast for this fiscal year to 0.7% from the initially projected 1.2%, predicting U.S. tariffs would slow capital expenditure while persistent inflation weighs on consumption. Exports have so far avoided a major hit from U.S. tariffs as Japanese automakers, the country's biggest exporters, have mostly absorbed additional tariff costs by cutting prices in a bid to keep domestic plants running. The economic resilience, along with a U.S.-Japan trade deal struck last month, supports views the BOJ could hike interest rate later this year. However, economists expect exports will suffer in the coming months as they start passing on costs to U.S. customers. "It's possible the economy could slip into decline in the July-September quarter as exports slow," Shinichiro Kobayashi, principal economist at Mitsubishi UFJ Research and Consulting, said. "For the economy to fully pick up, private consumption holds the key. Consumption could improve towards the end of the year as inflation gradually slows and sentiment recovers," he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Japan posts unexpectedly strong GDP, helped by resilient exports
By Makiko Yamazaki and Kantaro Komiya TOKYO (Reuters) -Japan's economy grew much faster than expected in the second quarter as export volumes held up well against new U.S. tariffs, giving the central bank some of the conditions it needs to resume interest rate hikes this year. Gross domestic product (GDP) rose 1.0% on an annualised basis, government data showed on Friday, marking the fifth straight quarter of expansion after the previous quarter's contraction was revised to growth. However, analysts warn global economic uncertainties fuelled by U.S. tariffs could weigh on the world's fourth-largest economy in the coming months, especially as automakers struggle to keep prices down for American customers. "The April-June data masked the real effect of Trump's tariffs," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute. "Exports were strong thanks to solid car shipment volumes and last-minute demand from Asian tech manufacturers ahead of some sectoral tariffs. But these aren't sustainable at all." The increase in GDP was helped by surprisingly resilient exports and capital expenditure and compared with median market expectations for a 0.4% gain in a Reuters poll. It followed a 0.6% rise in the previous quarter, which was revised up from a 0.2% contraction. The reading translates into a quarterly rise of 0.3%, better than the median estimate of a 0.1% uptick. The strong data contrasts with China, which saw factory output growth hit an eight month low and retail sales slow sharply in July. Private consumption, which accounts for more than half of Japan's economic output, rose 0.2%, compared with a market estimate of a 0.1% increase. It grew at the same pace as the previous quarter. Consumption and wage trends are factors the Bank of Japan is watching to gauge economic strength and determine the timing of its next interest rate action. Capital spending, a key driver of domestic demand, rose 1.3% in the second quarter, versus a rise of 0.5% in the Reuters poll. Net external demand, or exports minus imports, contributed 0.3 of a point to growth, versus a 0.8 point negative contribution in the January-March period. The United States imposed 25% tariffs on automobiles and auto parts in April and threatened 25% levies on most of other Japanese imports. It later struck a trade deal in July that lowered tariffs to 15% in exchange for a U.S.-bound $550 billion Japanese investment package. Japanese economy minister Ryosei Akazawa told a press conference that the latest GDP results confirmed that the country's economy was recovering modestly. "Looking ahead, we expect better employment and income conditions and policy measures to support the modest recovery," he said. "But we need to be mindful of downside risks from U.S. trade policies." Akazawa said the U.S. tariffs are likely to push down Japan's real GDP by 0.3-0.4%. The government last week cut its inflation-adjusted growth forecast for this fiscal year to 0.7% from the initially projected 1.2%, predicting U.S. tariffs would slow capital expenditure while persistent inflation weighs on consumption. Exports have so far avoided a major hit from U.S. tariffs as Japanese automakers, the country's biggest exporters, have mostly absorbed additional tariff costs by cutting prices in a bid to keep domestic plants running. The economic resilience, along with a U.S.-Japan trade deal struck last month, supports views the BOJ could hike interest rate later this year. However, economists expect exports will suffer in the coming months as they start passing on costs to U.S. customers. "It's possible the economy could slip into decline in the July-September quarter as exports slow," Shinichiro Kobayashi, principal economist at Mitsubishi UFJ Research and Consulting, said. "For the economy to fully pick up, private consumption holds the key. Consumption could improve towards the end of the year as inflation gradually slows and sentiment recovers," he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
30-07-2025
- Automotive
- Mint
Panasonics battery unit profit grows 47% y/y in Q1 on AI boom
TOKYO (Reuters) -Panasonic on Wednesday said operating profit at its battery-making energy unit grew strongly in the first quarter due to the AI investment boom, offsetting negative impacts from U.S. tariffs and the termination of electric vehicle tax credits. Profit for the key unit, which makes batteries for Tesla and other EV makers, rose 47% year-on-year to 31.9 billion yen ($215.6 million). "Concerns remain over a further slowdown in EV demand due to U.S. tariff policies and termination of IRA 30D tax credit", Panasonic said in a presentation slide, but noted demand for data centre-bound energy storage systems is "growing more than anticipated". For the full-year that ends in March 2026, the company kept its operating profit forecast for the energy unit at 167 billion yen. Panasonic Holdings said in May it would cut 10,000 staff and expected to book restructuring costs of 130 billion yen as part of a push to improve group profitability. The electronics manufacturer said at the time it did not expect to book any restructuring costs in its energy business. Last week, Panasonic Energy's major customer Tesla warned of fallout from the U.S. government's legislation to cut a $7,500 tax credit for EV buyers. Panasonic Energy operates a plant in the U.S. state of Nevada that provides batteries to Tesla and earlier this month started production at its second U.S. plant, in Kansas. It also makes energy storage systems for data centres in its consumer business, which in the April-June quarter saw a rapid rise in demand owing to massive AI-related investments, the company said. But both auto batteries and consumer energy storage systems would see certain impact from U.S. President Donald Trump's tariffs, it added, without providing the impact forecast in numerical terms. Panasonic Energy is investing in new battery technologies as it competes with Chinese and South Korean rivals such as CATL and LG Energy Solution (LGES) in the global EV supply chain. Last week, LGES warned of slowing demand by early next year due to U.S. tariffs and policy uncertainties after it reported a profit jump for the April-June period. (Reporting by Kantaro Komiya; Writing by Daniel Leussink; Editing by Christopher Cushing and David Holmes)
Yahoo
06-07-2025
- Business
- Yahoo
Japan's May real wages fall the most in nearly two years
By Kantaro Komiya TOKYO (Reuters) -Japanese real wages in May fell at the fastest pace in nearly two years as persistent inflation continued to outpace wage growth and hinder consumption-led growth in the world's fourth-largest economy, government data showed on Monday. While a labour group report last week showed unionised Japanese workers had their biggest average pay hike in 34 years, the feeble broader wage data spells concerns about Japan's economic recovery amid uncertainties over U.S. trade tariffs. Inflation-adjusted real wages fell 2.9% in May from a year earlier, following a revised 2.0% drop in April, and the steepest decline in 20 months, labour ministry data showed. Real wages, a key determinant of households' purchasing power, fell for the fifth consecutive month. The consumer inflation rate the ministry uses to calculate real wages, which includes fresh food prices but not rent costs, rose 4.0% year-on-year in May. That far outpaced growth of nominal pay, or total average cash earnings, which rose 1.0% to 300,141 yen ($2,080) in May, decelerating significantly from a revised 2.0% gain in April and the slowest since March 2024. The main culprit behind the nominal pay growth slowdown was an 18.7% fall in special payments, which are mainly made up of volatile one-off bonuses, according to a labour ministry official. Meanwhile, regular pay or base salary increased 2.0% in May, and overtime pay rose 1.0%, both slowing compared to April. The result of spring labour negotiations may not be significantly reflected in the wage statistics until summer, the official said, adding many respondents in the government survey are small firms that have no labour unions and are slower to adopt pay hikes than big corporations. Data last week showed Japanese household spending surged in May at the fastest pace in nearly three years, offering some hope that consumption might be turning a corner despite cost pressures and wage-inflation gap. Wage trends remain crucial for sustaining this consumption momentum and are among the key factors the Bank of Japan (BOJ) is monitoring to determine the timing of the next interest rate hike. But uncertainties around trade conditions and the global economy threaten the outlook. The looming U.S. tariffs on Japanese exports could squeeze corporate profits, potentially undermining future wage growth and complicating the BOJ's monetary policy normalization schedule. ($1 = 144.2500 yen) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
