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TOKYO, Nov 17 (Reuters) - Warren Buffett's vote of confidence in Japanese trading houses is helping Mitsubishi Corp (8058.T) overcome long-held investor wariness about its complex global business that covers everything from sausages to natural gas, a top executive said. "Until fairly recently, being an industrial conglomerate had negative connotations," Kobayashi said in an interview. Appointed as the trading house's first chief stakeholder engagement officer in April, Kobayashi is now focused on wooing investors who focus on growth, not just value. Berkshire first announced roughly 5% stakes in August 2020, with Buffett saying the trading houses "have many joint ventures throughout the world and are likely to have more". read moreStill, Mitsubishi is trading at a price-to-book ratio of just a little over 1, or at almost no premium to the value of its assets.
Persons: Warren Buffett's, wariness, Berkshire Hathaway, Kenji Kobayashi, Kobayashi, Itochu, outperforming, Buffett, Benjamin Graham, that's, Anton Bridge, Miho Uranaka, David Dolan, Miral Organizations: Mitsubishi Corp, Berkshire, Reuters, Mitsubishi, Mitsui, Sumitomo, Tokyo Stock Exchange, Nikkei, Columbia University, Thomson Locations: TOKYO, Berkshire, Japan
“It was awfully easy money,” Charlie Munger, Buffett’s longtime lieutenant and vice chair of Berkshire Hathaway (BRKA), said in an interview with the Acquired podcast released this week. The firms backed by Berkshire — Itochu, Marubeni, Mitsubishi Corporation, Mitsui & Co., and Sumitomo — are known as “sogo shosha” or general trading companies in Japan. “These trading companies were really entrenched, old companies, and they had all these cheap copper mines and rubber plantations, and so you could borrow [easily],” Munger added. Buffett’s decision to invest in Japan has buoyed optimism about prospects in the world’s third largest economy. The legendary investor has previously cheered “the future of Japan,” casting more attention to the country from other foreign backers.
Persons: Hong Kong CNN — Warren, Charlie Munger, Buffett’s, Berkshire Hathaway, Berkshire —, Munger, Warren Buffett, , ” Munger, , Wang Chuanfu, Omaha ”, China’s Organizations: Hong Kong CNN, Japan’s Nikkei, Berkshire, Berkshire — Itochu, Mitsubishi Corporation, Mitsui & Co, Sumitomo, BYD, Hyundai, Apple Locations: Hong Kong, Japan, Berkshire, United States, , Munger, Asia, South, TSMC, Omaha, Taiwan, China
REUTERS/Kim Kyung-Hoon/File Photo Acquire Licensing RightsTOKYO, Oct 17 (Reuters) - Mitsubishi Corp (8058.T) is considering bidding for Fujitsu's (6702.T) chip packaging unit Shinko Electric Industries (6967.T), two sources said, as Japan's top trading house weighs an entry into semiconductor manufacturing. Fujitsu has put its 50% stake in Shinko Electric, worth around $2.6 billion at current market prices, on sale, other sources said. A Mitsubishi spokesperson said the trading house had set up a division in June dealing with chips and materials that was looking into various opportunities. A Shinko spokesperson declined to comment. Still, semiconductor packaging remains an area of strength for Japan with Shinko, Ibiden (4062.T) and Toppan Holdings (7911.T) all major players in the global chip supply chain.
Persons: Kim Kyung, Warren Buffett's Berkshire Hathaway, Makiko Yamazaki, Maki Shiraki, Miho Uranaka, David Dolan, Muralikumar Organizations: Mitsubishi Corp, REUTERS, Rights, Electric Industries, Mitsubishi, Fujitsu, Bain Capital, KKR, Apollo Global Management, Japan Investment Corp, Intel, Devices, Toppan Holdings, Taiwan Semiconductor Manufacturing, Samsung Electronics, Reuters, Thomson Locations: Tokyo, Japan, Kyushu, Chitose . Japan
[1/2] Honda's electric vehicle (EV) e:NP2 is displayed at the Auto Shanghai show, in Shanghai, China April 18, 2023. REUTERS/Aly Song/File Photo Acquire Licensing RightsTOKYO, Oct 12 (Reuters) - Japanese automaker Honda Motor (7267.T) and trading house Mitsubishi Corp (8058.T) have signed a pact to explore new businesses using electric vehicle (EV) batteries, the companies said on Thursday. "Honda will not only sell EVs, but take a proactive approach to energy management, where EV batteries will be utilised as an energy source," its chief executive, Toshihiro Mibe, said in a statement. Honda will begin sales of the EV model in Japan in 2024. The deal would eventually pay off in lower electricity bills for customers and better use of battery material, the companies said.
Persons: Aly, Honda, Toshihiro Mibe, Satoshi Sugiyama, Clarence Fernandez Organizations: Auto, REUTERS, Rights, Honda, Mitsubishi Corp, EV, Thomson Locations: Auto Shanghai, Shanghai, China, Japan, EVs
Factbox: China's incumbent and upcoming LNG traders
  + stars: | 2023-08-21 | by ( Chen Aizhu | ) www.reuters.com   time to read: +5 min
A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. Below is a list of China's main gas traders and their operations globally, according to information from company sources and traders. In May, PCI became the first Chinese firm to gain long-term access to gas storage at a European gas terminal. CNOOC also plans to create a London desk in the coming year or two, following PCI and Unipec. Sumitomo Corp (8053.T), which has a desk to trade piped gas in London is considering expanding into LNG trading, said a company spokesperson.
Persons: Issei Kato, Keith Martin, Wang Bingsi, CNOOC, Norinco, ENN, Chen Aizhu, Yuka Obayashi, Florence Tan, Tom Hogue Organizations: REUTERS, Rights, PetroChina International, PCI, London, Gazprom, China National Offshore Oil Company, Gas Co, ENN, LNG, Beijing Gas, Zhejiang Energy, Zhejiang Energy Zhejiang Energy, Exxon Mobil, Mexico, China Gas Holding, China Gas, JOVO Energy, Privately, SOUTH, Mitsubishi Corp, Marubeni Corp, Tokyo Gas, Korea's SK E, Sumitomo Corp, Thomson Locations: Futtsu, Tokyo, Japan, London, Singapore, Beijing, Dubai, Houston, Sinopec, China, Jiangsu province, ENN, U.S, Hebei, Shenzhen, CNOOC, Zhejiang Energy Zhejiang, Zhejiang, Ningbo, Wenzhou, Zhejiang province, HK, Guangxi province, Yantai, Shandong province, Guangdong, Guangzhou, JAPAN, SOUTH KOREA, Asia
[1/2] The logo of Mitsubishi Motors Corp is seen at a showroom of the company's headquarters in Tokyo, Japan November 26, 2018. REUTERS/Toru HanaiBEIJING/SHANGHAI, July 13 (Reuters) - Mitsubishi Motors' (7211.T) joint venture with China's Guangzhou Automobile Group (GAC) (601238.SS) on Thursday said it would cut staff costs to try to revive its fortunes after sharp sales declines for sport utility vehicles (SUV) such as the Outlander. The joint venture, known as GAC Mitsubishi Motors, was launched by GAC, Mitsubishi Motors and trading house Mitsubishi Corp (8058.T) in 2012, focusing on SUV sales in China. The announcement follows mounting pressure on the joint venture that makes Mitsubishi's Outlander model. Mitsubishi's sales in China peaked in 2018, when it recorded sales of over 141,000 vehicles, according to industry data.
Persons: Toru Hanai, Mitsubishi, AlixPartners, Kevin Krolicki, Shri Navaratnam, Mark Potter Organizations: Mitsubishi Motors Corp, REUTERS, Mitsubishi Motors, China's Guangzhou Automobile Group, GAC, GAC Mitsubishi Motors, Mitsubishi Corp, Mitsubishi, Hyundai, Beijing, Thomson Locations: Tokyo, Japan, Toru Hanai BEIJING, SHANGHAI, ., China
Berkshire Hathaway adds to Japan trading company holdings
  + stars: | 2023-06-19 | by ( ) www.reuters.com   time to read: +2 min
[1/4] The logo of Marubeni Corp is seen at the company headquarters in Tokyo, Japan, May 10, 2016. Berkshire said its ownership now averages more than 8.5% at the companies and the aggregate value of the investments is the largest of any Berkshire-held public stocks outside the U.S. Known as "sogo shosha," Japanese trading houses trade in a variety of materials, products and food, often serving as intermediaries, and provide logistical support. Nikkei futures slightly pared some losses after the Berkshire announcement. Reporting by Lavanya Ahire in Bengaluru and Tom Westbrook in Singapore; Editing by Kim Coghill and Christopher CushingOur Standards: The Thomson Reuters Trust Principles.
Persons: Toru Hanai, Warren Buffett's Berkshire Hathaway, Lavanya, Tom Westbrook, Kim Coghill, Christopher Cushing Organizations: Marubeni, REUTERS, Berkshire, Nikkei, Billionaire, Mitsubishi Corp, Mitsui & Co, Sumitomo, Thomson Locations: Tokyo, Japan, Itochu, Berkshire, Bengaluru, Singapore
Warren Buffett pours more money into Japan’s stock market
  + stars: | 2023-06-19 | by ( ) edition.cnn.com   time to read: +2 min
Billionaire investor Warren Buffett’s Berkshire Hathaway (BRKA) has added to its holdings in Japan’s five biggest trading houses, likely underpinning strong momentum propelling the nation’s stock market to multi-year highs. Berkshire said Monday its stakes in Itochu (ITOCF), Marubeni (MARUY), Mitsubishi Corp, Mitsui & Co (MITSY), and Sumitomo now average more than 8.5%. “The tailwinds for Japanese equities continue to multiply,” said Charu Chanana, market strategist at broker Saxo Markets in Singapore. Known as “sogo shosha,” Japanese trading houses deal in a variety of materials, products and food, often serving as intermediaries, and provide logistical support. The trading firms’ regulatory filings of June 12 showed Berkshire holding 7.4% of Itochu’s stock, 8.3% of Marubeni and Mitsubishi’s stock, 8.1% of Mitsui’s stock and 8.2% of Sumitomo’s stock.
Persons: Warren Buffett’s Berkshire Hathaway, Monday’s, , Charu Organizations: Berkshire, Mitsubishi Corp, Mitsui & Co, Sumitomo, Nikkei, Saxo Markets, America Berkshire Locations: Singapore, Berkshire, United States
AMSTERDAM, June 7 (Reuters) - Dutch energy company Eneco said on Wednesday it would build a 50 megawatt (MW) battery energy storage project in Belgium using Tesla battery packs, its largest such project to date. The project in Ville-sur-Haine will consist of 53 "Megapack" battery units from Tesla, able to deliver power for 4 hours or 200 megawatt-hours in all. Such storage projects are expected to become increasingly important in coming years as increasing amounts of electricity is being generated from renewable sources such as solar and wind. Eneco is controlled by Japan's Mitsubishi Corp. (8058.T)Reporting by Toby Sterling; editing by Jason NeelyOur Standards: The Thomson Reuters Trust Principles.
Persons: Eneco, Toby Sterling, Jason Neely Organizations: Japan's Mitsubishi Corp, Thomson Locations: AMSTERDAM, Belgium, Ville
Since then, Japanese equities have rallied. Even so, Strategas Securities' Chris Verrone has remained optimistic on Japanese equities, saying this week that the rally is not yet overbought. Meanwhile, JPMorgan chief market strategist Marko Kolanovic said in a note, also on Tuesday, that the rally in Japan still has "staying power." For international investors, those remarks signaled that Japanese companies may be more transparent with shareholders in the future. Investors can also take a company-specific approach, according to Diamond Hill's Mohanraj, who favors Japanese companies that boast differentiated products.
Asia-Pacific markets fell on Wednesday as investors look ahead to U.S. inflation figures for clues on the path ahead for inflation and by extension, the U.S. Federal Reserve's moves. Economists polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year. In Australia, the S&P/ASX 200 fell 0.31%, after the country delivered its budget Tuesday night. Mitsubishi Corp recorded record earnings for a second-straight year, with net profit coming in above 1 trillion yen for the first time at 1.18 trillion yen ($8.72 billion)South Korea's Kospi inched down 0.14%, while the Kospi bucked the wider downtrend and gained 0.3%. Hong Kong's Hang Seng index looks set to extend its Tuesday losses, with futures tied to the Hang Seng trading at 19,850 compared with its last close of 19,867.58.
OMAHA, Nebraska, May 6 (Reuters) - Warren Buffet on Saturday said he is more comfortable with Berkshire Hathaway Inc (BRKa.N) deploying capital in Japan than Taiwan, reflecting the growing tensions between the United States and China. The billionaire investor contrasted Berkshire's recently increased investments in five Japanese trading houses with its recent U-turn on a multi-billion dollar investment in Taiwan Semiconductor Manufacturing Co, or TSMC (2330.TW). "It's a marvelous company," Buffett said at Berkshire’s annual meeting, referring to Taiwan Semiconductor. But "I would feel better about capital that we've got deployed in Japan than in Taiwan.... That's the reality." Tensions between the U.S. and China have simmered in recent months, with some investors worried that China might invade Taiwan.
But Warren Buffett added a spark in April when he visited Japan to announce that Berkshire Hathaway boosted its investment in Japanese trading houses to 7.4%. Buffett said the five — Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui, and Sumitomo Corp. — are comparable to Berkshire itself. Samurai roots for Buffett's Japanese stocks The five trading firms that Berkshire has invested in are the biggest of Japan's so-called sogo-shosha, or general trading companies. Today, Japan's trading companies derive most of their revenue from non-trade activities. Shosha: The Big Five Mitsubishi The largest of Japan's trading companies is Mitsubishi Corp. , set up in 1954.
Warren Buffett 's Berkshire Hathaway raised its stakes in five Japan stocks — a good sign for investors in Japan, according to Credit Suisse. "This, together with Berkshire Hathaway's recent issuance of JPY bonds, has put the spotlight on value and quality investment opportunities in Japan," Credit Suisse said in a April 14 note. In light of those developments, Credit Suisse analysts said in the note that they've screened for stocks in Japan that are "Buffett-style picks" — that is, they have characteristics typical of Buffett's holdings. Value: Stocks with earnings yield in the top 25% of stocks the bank screened. They should also have above-median dividend yield, as well as above-median five-year dividend growth and next 12-month dividend growth.
Berkshire Hathaway's stakes in all five trading houses is now 7.4%. Buffett's trip is a "stamp of approval" — especially for domestic investors in Japan, according to Monex Group's Jesper Koll. He emphasized Buffett's trip has the potential to boost confidence among Japanese investors as the nation continues to grapple with low consumption. "The real focus is confidence for Japanese investors, and that's where Warren Buffett's visit was very, very important," Koll said. The trading houses have helped grow the Japanese economy and contributed to the globalization of its business.
Buffet breaks out of Japan’s value trap
  + stars: | 2023-04-12 | by ( ) www.reuters.com   time to read: +2 min
HONG KONG, April 12 (Reuters Breakingviews) - Berkshire Hathaway (BRKa.N) has upped its stake in iconic Japanese trading houses, according to an interview boss Warren Buffett gave the Nikkei newspaper on Tuesday. Worries that the nonagenarian was walking into Japan’s infamous “value trap” now look overwrought. The rise in global interest rates and the popping of the tech bubble have pushed funds back into the boring nuts and bolts companies Buffett loves. Given that the trading houses are themselves Berkshire-like investors, Buffett says he is open to doing deals with them, and investing more in Japan. The hedge funds and activist investors who have been banging their heads against Japan Inc might watch what Buffett does next.
TOKYO, April 11 (Reuters) - Berkshire Hathaway Inc's (BRKa.N) Warren Buffett is considering additional investment in Japanese stocks and said he holds a 7.4% stake in each of five Japanese trading houses, including Itochu Corp (8001.T), the Nikkei reported on Tuesday. In an interview with the newspaper, Buffett also said he would visit Japanese trading houses and Tungaloy Corp offices during his stay in Japan this time. Berkshire Hathaway had more than a 6% stake in each of those five trading houses, according to regulatory filings made in November last year. read moreThe other trading houses are Mitsubishi Corp (8058.T), Mitsui & Co(8031.T), Sumitomo Corp(8053.T) and Marubeni (8002.T). Reporting by Elaine Lies; Editing by Christopher Cushing and Kim CoghillOur Standards: The Thomson Reuters Trust Principles.
Warren Buffett has grown even fonder of his favorite Japanese trading houses, hiking his already-large investments and teasing of more to come. Berkshire Hathaway raised its stakes in five Japanese trading houses — Mitsubishi Corp. , Mitsui & Co ., Itochu Corp. , Marubeni and Sumitomo — all to 7.4%. Buffett will appear live from Japan on CNBC's "Squawk Box" on Wednesday from 6 a.m. to 9 a.m. The five trading houses — roughly akin to a conglomerate structure, just like Berkshire— seem to check every box of Buffett's stock-picking criteria. In light of expectations for tighter policy, BlackRock , the world's largest asset manager, last month cut Japanese stocks to "underweight."
Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., in Iwaki City, Fukushima Prefecture, Japan in 2011. Shares of Japanese trading houses rose in Tuesday afternoon trade after Warren Buffett, chairman and CEO of Berkshire Hathaway , said he plans to increase his holdings. In an interview with Nikkei, Buffett said he is considering additional investment in five major Japanese trading houses, adding that he was "very proud" of his existing investments in them. Shares of Mitsubishi Corp. rose 2.7% in Japan's afternoon trade, Mitsui & Co. gained 2.6%, Itochu Corp climbed 2.5% and Marubeni Corp. advanced 3.7%. Buffett told Nikkei that he is planning to meet with the companies later in the week "to really just have a discussion around their businesses and emphasize our support," according to the report.
TOKYO, April 10 (Reuters) - Japan's Mitsubishi Corp (8058.T) on Monday said that it and other shareholders of the Monsoon wind power project in Laos have raised $692 million in financing for the wind farm. Mitsubishi, Thai renewable energy firm BCPG Pcl, and other stakeholders secured the financing package from the Asian Development Bank, Japan International Cooperation Agency, Sumitomo Mitsui Banking Corporation and other lenders, the Japanese firm said. The project, which is set to sell power to Vietnam under a 25-year deal, will have 600 megawatts of installed capacity and should be launched in 2025. Its total costs stand at $950 million, according to Monsoon's website. Reporting by Katya Golubkova; Editing by Varun H KOur Standards: The Thomson Reuters Trust Principles.
Factbox: Warren Buffett's investments in financial firms
  + stars: | 2023-03-23 | by ( ) www.reuters.com   time to read: +3 min
[1/2] Warren Buffett, CEO of Berkshire Hathaway Inc, pauses while playing bridge as part of the company annual meeting weekend in Omaha, Nebraska U.S. May 6, 2018. Here is history on Buffett's involvement with banks and current holdings in his investment portfolio. The investment gave Berkshire preferred stock that paid a 10% along with warrants to pay $5 billion for 43.5 million Goldman shares at $115 each. Berkshire has financial services investments in other countries. Reporting by Jonathan Stempel in New York Editing by Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.
LIMA, Feb 16 (Reuters) - Peru's top copper mines are starting to see activity hit harder by protests and blockades in the country's southern Andes, power data reviewed by Reuters shows, with Chinese-owned Las Bambas and Glencore PLC's Antapaccay currently worst affected. Those are MMG's (1208.HK) Las Bambas, Peru's third largest copper mine, and Glencore's (GLEN.L) Antapaccay, which have both been hit by blockades on a key mining corridor highway. The data backs this up, suggesting that mines are at times getting some supplies through the blockades, with Las Bambas in recent days see-sawing between full and half power use. Reuters GraphicsRepresentatives from Las Bambas, Antapaccay and Constancia were not immediately available to comment on whether they were receiving inputs for their operations or sending their concentrates in the two-day window with the blockades eased. "Anecdotal reports and high frequency data suggest that ongoing civil unrest in Peru is beginning to choke off activity at key copper mines.
[1/3] The logo of Mitsubishi Motors Corp is seen at a showroom of the company's headquarters in Tokyo, Japan November 20, 2018. REUTERS/Toru HanaiFeb 8 (Reuters) - Japan's Mitsubishi Corp (8058.T) said on Wednesday it has agreed to jointly study the prospect of producing clean ammonia with South Korea's Lotte Chemical Corp (011170.KS) and German energy firm RWE (RWEG.DE) in the U.S. state of Texas. RWE, Lotte and Mitsubishi have signed a joint study agreement for clean ammonia production and export project in Port of Corpus Christi in Texas, part of the alliance to develop green and blue ammonia supply chains in Asia, Europe and the United States, the Japanese trading company said in a statement. First production is targeted by 2030 and to be gradually increased to up to 10 million tonnes of clean ammonia per year at multiple production units, the statement added. Reporting by Katya Golubkova; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.
[1/4] LNG Canada site construction activities are held, in Kitimat, Canada, September 2022. LNG Canada, in which Japan's Mitsubishi Corp (8058.T) owns a 15% stake, is set to be Canada's first liquefied natural gas (LNG) export terminal. LNG Canada has previously described this approach as only one of the options it was considering. LNG Canada has full environmental permits from both governments to use natural gas turbines for Phase 2, making it unclear what leverage governments have to force electrification. But buyers may pay more for LNG produced with lower emissions, Klein said, noting that some buyers already purchase carbon offsets for LNG cargoes.
The company has developed technology to help create green hydrogen more efficiently and safely. A startup helping others make hydrogen more efficiently and safely just raised $26 million in a Series B funding round. The process is a chemical reaction that splits water into oxygen and hydrogen; hydrogen created this way is known as green hydrogen, in order to differentiate from other production methods. There is strong momentum for green hydrogen from both politicians and the public, Hystar CEO Fredrik Mowill told Insider. "Almost all of the losses in electrolyzers are a result of that resistance across that membrane," Mowill said.
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