Business
Japan tourism and retail stocks slide after China row
Japanese tourism and retail stocks fell on Monday after China warned its citizens not to travel to the country as Tokyo and Beijing remain locked in a row over Taiwan.
Japan’s Prime Minister Sanae Takaichi, who has been a vocal critic of China and its military activities in the region, suggested this month Tokyo could take military action if Beijing attacked Taiwan.
Shares in cosmetics company Shiseido plunged nearly 10% while department store chain Takashimaya and the owner of global fashion chain Uniqlo fell more than 5% in early trading.
China has consistently ranked among the top sources of tourists visiting Japan.
The share price falls came after the dispute between Beijing and Tokyo has deepened in recent days.
On Sunday, the Chinese government urged its citizens to reconsider studying in Japan, citing risks to their safety and a rise in crimes targeting Chinese people.
China’s Education Ministry also told students already based in Japan to closely monitor the security situation.
Last year, more than 100,000 Chinese students were enrolled in educational institutions in Japan, according to a Japanese government survey.
Also over the weekend, Chinese airlines – including China Southern Airlines, China Eastern Airlines, and Air China – offered refunds for flights to Japan.
Takaichi said in the Japanese parliament on 7 November: “If there are battleships and the use of force, no matter how you think about it, it could constitute a survival-threatening situation.”
A “survival-threatening situation” is a legal term under Japan’s 2015 security law, referring to when an armed attack on its allies presents an existential threat to Tokyo.
In such a situation, Japan’s self-defence forces can be called upon to respond to the threat.
Taiwan lies around 100km (60 miles) south of the closest Japanese island.
Beijing sees Taiwan as a breakaway province that will, eventually, be part of the country, and has not ruled out the use of force to achieve this.
But many Taiwanese consider themselves to be part of a separate nation – although most are in favour of maintaining the status quo where Taiwan neither declares independence from China nor unites with it.
The forecasts were made before the conflict in the Middle East broke out which could have a “very significant” impact, the OBR said.
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US stock market: Wall street crashes amid Iran tension; Dow jones slips over 900 points, Nasdaq dips by 2% – The Times of India
A fresh wave of global selling pressure hit Wall Street on Tuesday, as escalating tensions involving Iran deepened fears of prolonged economic disruption. The S&P 500 fell 1.8 per cent in early trade. The Dow Jones Industrial Average was down 907 points, or 1.9 per cent, as of 9:35 am Eastern time, while the Nasdaq Composite dropped 2.1 per cent. The renewed slide came just a day after US equities had erased steep early losses to close marginally higher — a rebound that had hinged on oil prices remaining contained. That relief faded as crude surged closer to levels that investors fear could reignite inflationary pressures. Brent crude, the global benchmark, jumped 8.2 per cent to $84.14 a barrel after trading near $70 less than a week ago. US benchmark crude rose 8 per cent to $76.92. Oil prices spiked after Iran struck the US Embassy in Saudi Arabia, broadening its list of targets to include areas central to global oil and natural gas production. Markets are particularly focused on the Strait of Hormuz, a strategic chokepoint off Iran’s coast through which roughly one-fifth of the world’s oil supply passes. Any disruption there could have outsized consequences for global energy markets. Uncertainty over the duration of the conflict is adding to volatility. US and Israeli strikes have already killed Iranian Supreme Leader Ayatollah Ali Khamenei, yet US President Donald Trump has indicated that hostilities could persist for weeks. In a late-night social media post on Monday, Trump said wars can be fought “forever” with the munitions available to the United States. The sharp rise in crude threatens to compound inflation, which remains elevated, by increasing fuel and transportation costs. According to data from motor club AAA, the average US gasoline price rose 11 cents overnight to about $3.11 per gallon.On Wall Street, airline stocks extended losses amid concerns over higher jet fuel costs and travel disruptions linked to the conflict. United Airlines fell 4.1 per cent, American Airlines declined 4 per cent and Delta Air Lines slipped 3 per cent. Bond markets also reflected rising inflation expectations. The yield on the 10-year US Treasury climbed to 4.10 per cent from 4.05 per cent late Monday and 3.97 per cent on Friday. Higher yields translate into more expensive borrowing costs for households and businesses, affecting everything from mortgages to corporate bond issuances.The impact in equity markets has been most pronounced in sectors and countries heavily reliant on energy imports. In South Korea — a major oil importer — the Kospi index plunged 7.2 per cent in its worst session in nearly two years as markets reopened after a holiday. Japan’s Nikkei 225 fell 3.1 per cent, despite analysts noting that Japan maintains strategic energy reserves estimated to last more than 200 days.
Sign at the main entrance to a Best Buy store in Venice, Florida.
Erik McGregor | Lightrocket | Getty Images
Best Buy posted mixed results on Tuesday as the retailer’s holiday-quarter sales declined and missed Wall Street’s expectations, but its earnings topped estimates as it showed improved profitability.
For the current fiscal year, the consumer electronics retailer expects revenue to range between $41.2 billion and $42.1 billion, compared with $41.69 billion in the most recent fiscal year. It expects adjusted earnings per share to range from $6.30 to $6.60, after it reported adjusted earnings per share of $6.43 for the previous fiscal year.
Best Buy anticipates that comparable sales, a metric that tracks sales online and in stores open at least 14 months, will range from a decline of 1% to an increase of 1%.
In a news release, CEO Corie Barry said demand for consumer electronics remained lackluster during the gift-giving season, but the company’s internal data indicates that Best Buy’s market share in the industry “was at least flat.”
Chief Financial Officer Matt Bilunas said in his own statement that the company is “excited about the momentum in our business.” But he added that company leaders “expect to continue to navigate a mixed macro environment.”
Shares jumped more than 10% in premarket trading.
Here’s how the retailer did for the fiscal fourth quarter compared with what Wall Street was expecting, according to a survey of analysts by LSEG:
- Earnings per share: $2.61 adjusted vs. $2.47 expected
- Revenue: $13.81 billion vs. $13.88 billion expected
In the three-month period that ended Jan. 31, Best Buy’s net income jumped to $541 million, or $2.56 per share, from $117 million, or 54 cents per share, in the year-ago quarter. Excluding one-time expenses, including charges for its health business, Best Buy reported adjusted earnings per share of $2.61.
Revenue decreased from $13.95 billion in the year-ago quarter. Yet on an annual basis, revenue rose to $41.69 billion from $41.53 billion in the prior fiscal year. Best Buy’s annual revenue declined in the three previous fiscal years.
For about four years, Best Buy has pinned its slower sales on more price-sensitive U.S. consumers, a slower housing market and less tech innovation. All of those factors have caused some shoppers to delay tech purchases, particularly big-ticket items like new refrigerators. Higher tariffs have also added costs for Best Buy, since many consumer electronics are imported.
Comparable sales dropped 0.8% in the fourth quarter as the company saw softer sales of appliances and home theaters. Those declines were partially offset by sales growth in computing and mobile phones, the company said.
Best Buy has leaned into more profitable businesses, including selling ads and offering more merchandise through its third-party marketplace, which launched in August. Barry said in the company’s news release that Best Buy’s advertising partners nearly doubled compared to the prior year and she said the retailer has significantly increased the number of available products on the marketplace.
The company has a scheduled earnings call at 9 a.m. ET.
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