General Edition Sunday, February 19, 2006 Issue No. 363
+++ INDEX
- What's new
- Services lineup
- News
- Candidate roundup
- Upcoming events
- Property
- News credits
Yen Mortgages for Women
The Yen mortgage seminar is back with a twist
offering a Japanese-speaking lifestyle seminar
by Resona Bank to Japanese women or foreign
female PR holders. Date: Tuesday, Feb 28, 2006 |
| +++ WHAT'S NEW |
The New York Times published an entertaining piece on
Friday (http://tinyurl.com/as82f), about the rapid growth
in the number of people day trading in Japan. We have been
following this phenomenon for some time now, and agree that
it is primary trend.
The article notes that accounts at online brokerages rose
to 7.9m accounts by September 2005, over double the number
the year before. Of course, that doesn't represent 7.9m
people, probably more like 2-2.5m, since most traders have
multiple accounts to take advantage of IPO allocations only
offered by certain brokers, as well as speed, certainty of
trade execution, and just simple "account management" by
users who like to keep things neat.
While the media wring their hands about the explosion in
the number of housewives in particular who are day-trading
and the negative implications of that trend, in fact the
amount of money a newbie puts into their account is not
huge -- typically several hundred thousand yen through to
several million. So they are not risking the family's life
savings. It's more like taking a flutter.
Furthermore, the fervor is not just for stocks. There are
also online auctions -- Yahoo Auctions and others, online
foreign exchange, and even just running an online store --
selling low-end items that would in the real world be hard
to dispose of, but which with catchy copywriting and
pricing promotions sell online like hot cakes. We have a
number of Japanese friends in their 20's who make JPY2m-3m
a month in sales from an online web site. Indeed, whatever
takes your fancy, there are thousands of web sites
attracting a steady buyers, sellers, and traders who are
online all day every day.
The reason for the boom in online money-making is pretty
obvious: there isn't much else you can do in Japan which is
legal and low-cost to make a bit of extra money. And with
the media hyping people like Yuka Yamamoto (NYT story) who
at 28 years old has made more than $1m doing day trading,
naturally there are many others who want to try their hand
as well. This frothy environment is a breeding ground for
fraud and con artists, but despite the Livedoors of the
world, the momentum remains. We believe that the online
investment boom is still just getting started and that it
is not unreasonable to expect that in 2-3 years there will
be more than 10m day traders operating more than 25-30m
online accounts. That's our prediction anyways.
The financial impact of millions of ordinary people going
online to invest is having some interesting results. For
example, New Zealand's dollar, which in the light of a
large and growing trade deficit should be plummeting by
now, is instead holding at historic high levels against the
yen on the basis of "uridashi" bond issuances in Japan of
NZ dollars. Japanese investors love the 7%+ interest rate
and continue to lap up such issuances, despite the fact
that the NZ dollar is forecast to drop more than 15-20% over
the next 2 years. Then, there are the warnings coming out
of Morgan Stanley and other foreign brokerages that Japan
is pretty much fully priced. If the market was a mature
one, that would normally be so. But given that there are
possibly millions of new players out there thinking about
signing up and logging in to trade/buy/sell, we suspect
that the markets -- particularly the more speculative
JASDAQ and Mothers anyway, will bounce back well. Right now
29% of trading on the TSE and other markets combined is by
individuals and we suspect this percentage will double over
the same period.
Probably the most worrisome aspect of online trading is its
addictive qualities. Whereas housewives traditionally got
hooked on pachinko, with negative repercussions for the
children, now they can do the same thing in the convenience
and privacy of their own homes -- and with the chance of
actually being able to make some money in the process.
Indeed, in researching a divorce book recently, we were
related one story by a husband who arrived home from work
around 21:00 in the evening only to find his wife still
online, buying and selling goods on Yahoo Auctions, while
the kids sat in front of the TV in the next room hungry and
tired. It wasn't the first time, and they had a major fight
that led to a complete breakdown of their marriage. We
wonder how often this scene is being repeated around the
country?
Unfortunately there isn't a single answer for curing
addictions of any sort, and online trading is a lot like
gambling -- a very difficult addiction to break. Then of
course there is the positive fact that the rise of people
being able to make money online is creating a revolution in
career and lifestyle options. We think that just like any
other make-money-fast fad (e.g., MLM), this one will have
to run its course and reach equilibrium. Over time there
will be as many stories about the downside as the
opportunities and the gloss will wear off. There will also
be a saturation of just how much business can actually
be conducted online.
However, we think this point of balance is at least a
couple of years away and so in the meantime, we're going to
be watching the taming of the online wild west. There will
be a lot more stimulating Diet discussion about whether
there really is an income gap growing in Japan between
those pursuing the New Economy and those diligently
sticking to their assigned but dead-end jobs, we think
there is. But the politicians won't have an answer for it.
So in essence -- there's never been a better time to start
an online business or trading account... Yahoo!
...The Information Janitors/
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| +++ SERVICES LINE-UP |
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MAGAZINE INTERNSHIP The J@pan Inc magazine currently has an internship opening for a web programmer. |
| +++ NEWS |
- Government tells BoJ to hold rate rises
- Bail application rejected for Horie
- JCI acquires security company
- Hawaii deep seawater industry thrives
- Panel suggests more foreign workers
-> Government tells BoJ to hold rate rises
Although Japanese economic data shows a strong rate of
growth, 5.5% annualized, the government is apparently
pressuring the Bank of Japan to hold off on tightening
the money supply and/or putting up interest rates any
time soon. Memories are still recent of the 1990's
post-bubble debacle and again in 2001, when the BoJ
tightened too much and tipped the country back into
recession. One very positive aspect of the numbers out
last week was the strong growth in domestic consumption,
which accounts for 55% of the GDP. Consumers are the
cornerstone to sustained growth in this country, but
have been hesitant to spend. Finally in the last quarter,
consumer spending rose 0.8%, or 3.3% for the year.
(Source: TT commentary from theaustralian.news.com.au,
Feb 18, 2006)
http://tinyurl.com/8p3sv
-> Bail application rejected for Horie
Jiji Press has reported that Livedoor founder Takafumi
Horie has been denied bail and will have to stay in jail
until his trial. Horie has been charged with fraud, based
on his insider buying and selling of assets, as well,
possibly, of money laundering. ***Ed: We wonder what he
thinks of his empire being dismembered even before the
trial begins?** (Source: TT commentary from forbes.com,
Feb 17, 2006)
http://www.forbes.com/technology/feeds/afx/2006/02/17/afx2534612.html
-> JCI acquires security company
Japan Communications Incorporated, headed by Dr. Frank
Sanda, has announced that it is acquiring Arxceo
Corporation of Alabama, USA, a provider of anomaly-based
attack prevention technology. The acquisition is valued at
around US$15m. JCI says it wants the technology to
strengthen its mobile broadband security capabilities,
particularly as the company enters new markets. (Source:
TT commentary from ecoustics.com, Feb 14, 2006)
http://news.ecoustics.com/bbs/messages/10381/199481.html
-> Hawaii deep seawater industry thrives
Associated Press reports that the export of bottled
Hawaiian deep sea water, after desalination, is a US17m a
year business and is now Hawaii's fastest-growing export.
The water is pumped from 915m below the Kona coast of
Hawaii island by the Natural Energy Laboratory of Hawaii
Authority -- a state organization. It is then shipped to
private companies which desalinate and bottle the product
for sale in Japan. The State makes money from both the
pumped water and also by certifying that the water is
authentic -- so they're right behind the industry. ***Ed:
Deep sea water is an MLM favorite and is supposed to be a
dietary supplement that aids weight loss, stress reduction,
improved skin tone, and digestion.** (Source: TT commentary
from kpua.net, Feb 17, 2006)
http://www.kpua.net/news.php?id=7506
-> Panel suggests more foreign workers
An LDP Cabinet Office panel has said that Japan should
accept more specialist and highly-skilled foreign workers
-- which in itself isn't news. However, in addition, they
have said that in conjunction with various free trade
agreements being considered at present, the government
should also consider bringing in overseas laborers and
provide better on-the-job training to foreign trainees who
do actually make it here. Legal foreign laborers in Japan
would comprise a major ground shift in immigration in this
country if it were allowed. The panel's proposals will be
finalized later this year and will be submitted to the PM.
(Source: TT commentary from nikkei.co.jp, Feb 16, 2006)
http://www.nni.nikkei.co.jp/AC/TNKS/Nni20060216D16JFA01.htm
NOTE: Broken links
Many online news sources are now removing their articles after just a few days of posting them, thus breaking our links -- we apologize for the inconvenience.
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| +++ CANDIDATE ROUND UP |
DaiJob, Inc's executive placement team, AMBITION Consulting
-----------------------------------------------------------------------------------------------
DaiJob has great candidates. Contact Alex Burr at
alexander.burr@daijob.com, or Ph: 03-3499-3040 for details.
-> Sales, Financial IT
Male, early 40s, native Japanese, fluent English
Experience:
- Over 17 years experience in sales providing financial solutions to investment companies including Banks, Security Houses, Insurance & Asset Management companies
- Track record of over-achievement including deals of up to $1.2 million
- Excellent bi-lingual ability with an American Education.
- Strong product and financial solution knowledge having worked at Sungard and Telekurs
* Looking for JPY20mil (package). Available within 1 month.
--------------------------------------------
-> Human Resources Director/Manager
Male, 38, native Japanese, business level English
Experience:
- Overall experience in HR Operations: Hiring, Training, Staffing, Labor affairs, Payroll, Insurance, Benefits, etc.
- Various industries: IT, Automotive, Consulting, Pharma, Mobile and Datacom
- Management experience: Budgeting and Cost reduction, Headcount, Motivation, Retention management, etc.
- Team player with excellent interpersonal skills.
* Looking for JPY11M. Available within one week.
--------------------------------------------
-> International Business Planning
Male, late 40s, Native Japanese, Business English
Experience:
- 20+ yrs progressive business planning experience in energy and technology
- New overseas business planning and development
- Optimizing high-tech business solutions
- Leading role in a long-term IT system export project into a major Chinese financial institution
- Corporate-sponsored US MBA
* Looking for JPY15m. Available within 1 month.
| +++ UPCOMING EVENTS/ANNOUNCEMENTS |
ICA EVENT March 23 Speaker: Brian Mitchell, Senior VP, Strategy, Business Planning, Mergers and Acquisitions, Asia Pacific and Japan, Oracle Corporation Details: at http://www.icajapan.jp, (RSVP Required) |
IT events announcements are priced at JPY50,000 per week. |
| +++ THIS WEEK'S PROPERTY |
No listings this week.
E-mail us at editors@terrie.com for more details on any property listed here.
>>>>--------------------------------------------------<
END
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