Mainichi: Japanese Business Sentiment:

https://mainichi.jp/english/articles/20200401/p2g/00m/0bu/038000c

Article:

TOKYO (Kyodo) -- Business sentiment among large Japanese manufacturers fell into the negative in March for the first time in seven years, weighed down by fears of the global economic fallout from the coronavirus crisis, the Bank of Japan's Tankan survey showed Wednesday.

Comments and Ideas:

This is not a surprise as many companies are feeling the same. But I wonder, what is the real worry, declining sales and profits and or the worry of stockholders and what they are thinking. It seems today, the obsession with what stockholders are thinking seems to dominate many big companies.

Japanese companies used to take a long term approach, meaning when there were setbacks or quarters of not so good growth, it wasn't the end, it was just a temporary business cycle situation meaning ups and downs were expected in the normal flow of business.

Article:

The key index measuring confidence among companies such as automobile and electronics makers dived to minus 8 from zero, the lowest level since March 2013 when it also marked minus 8. The result was stronger than the average of minus 10 forecast in a Kyodo News poll.

The index for large non-manufacturers including the service sector slid to 8, falling sharply from 20 in the December survey but above the market consensus of 4.

Comments and Ideas:

As with any survey, they have to be taken with a grain of salt, meaning you never know exactly if every company thinks the same way, as any sector or industry is very complicated. But yes, it might not look good but that doesn't always mean bad for all companies within an industry or sector. OK, yes, we can say all the airlines are not doing good etc. and we can most likely say most hotels are not doing very good too.

But somewhere, somehow, there has got to be some businesses out there who are going to persevere through this down period, and not resort to layoffs etc, for the good of all in the company and not just the stockholders, who many times only think of the next quarters profits. 

Article:

To blunt the impact of the coronavirus pandemic on the world's third-largest economy, Prime Minister Shinzo Abe has said the government is ready to compile its "boldest-ever" stimulus package including cash handouts to struggling households and small companies.

The size will be larger than the 56.8 trillion yen ($526 billion) emergency package launched during the 2008 global financial crisis, he told reporters Saturday.

Comments and Ideas: 

Lets hope Abe and the government can see the need and compassion to help those in need. And maybe not just once.

No I am not a liberal and or "B Sanders" or "socialist" type that gives everything to everyone. But these are extra ordinary times, when governments needs to step in and do what is needed for the good of society, the country, and the world. All countries are in this together.

I think the need for small businesses may be bigger than the need for large companies. Large companies, most likely can whether the storm much better than small business, which usually are always on the edge most of the year. Any change in business conditions, such as this, can set them up for challenging times.  Small business really need to be helped in this situation.

Article:

The index for big manufacturers is, however, forecast to further drop to minus 11 in the coming months amid growing concerns over the impact of the worldwide spread of the virus on production, consumption and other economic activities, as directives for staying at home have been issued in many countries to contain the virus.

In the nonmanufacturing sector, the reading for the next quarterly survey is expected to fall to minus 1, according to forecasts in the latest Tankan, as the tourism and retail industries are expected to face a severe business environment due to the lack of inbound tourists.

The government plans to ban the entry of foreigners from 49 countries and regions including the United States and China.

Comments and Ideas: 

Again big manufacturers might be able to whether this storm better than small companies. They usually have enough resources to overcome many crisis, but yes, this crisis might not be so good for everyone. But then again, they also might need help too in the future. But lets hope,also, they see the big picture and not just layoff employees who they are eventually going to need in the future.

Tourism and retail, big and small retail, and hotels and airlines are the areas that are going to need the most help. The Japanese tourism industry the last five years as mainly depended almost mostly on foreign tourists, especially from China. 

But with the continued ban on tourists being able to come to Japan, its going to get worse.

There has got to be a better way for the good of all countries, societies, and economies.

Have a nice day and be safe out there!

© 2020, Tom Metts, all rights reserved