Business Week: Japan

Showing posts with label Japan. Show all posts

Monday, January 9

Japan Nuke Chief tops list 2011 CEO screwups

11:54 PM Chief, Japan, screwups No Comments

A man-made of disaster triggered the worst of last year's Forbes CEO screwups list, when BP chief Tony Hayward committed a series of public gaffes in the wake of the April 2010 Gulf oil spill, and then resigned the following October.

This year, forces of nature created the backdrop for the boss behavior we Deen the worst: Masataka Shimizu, head of the Tokyo Electric Power Co., known as Tepco, largely disappeared from public view after the devastating March 11 earthquake and tsunami set off the worst radiation release since Chernobyl. Subsequently, reports surfaced that senior Tepco engineers had known for years that five of the company's ten nuclear reactors in Fukushima prefecture had a dangerous design flaw. But the company failed to make upgrades, dooming the reactors to a series of meltdowns and explosions when the 45-foot tsunami hit. Following the disaster, Shimizu made few public appearances, checking himself into a hospital for a week. He resigned in May.

To put together our list, we coeliac two professors at Kellogg School of management, Daniel cardboard Meier and Harry Kraemer; Yale School of management professor Jeffrey Sonnenfeld; a list provided by Sydney Finkelstein, who teaches management at the Tuck School of business at Dartmouth; and Richard Levick, who runs Levick strategic communications, a crisis communications firm in Washington, D.C.

Finkelstein calls William Weldon, the CEO of Johnson & Johnson, the "Tony Hayward of 2011," for presiding over a two-year string of product recalls which Finkelstein maintains are "a direct result of Weldon's emphasis on cost-cutting." International consumer and environmental groups have been pressing J & J to remove two potentially cancer-causing chemicals from baby products, including Johnson's baby shampoo. Though the chemicals have been eliminated from products in several other countries, including the UK and South Africa, J & J has yet to old its baby products in the U.S., saying it would reduce or remove the chemicals over the next two years. "(Weldon) seems to talk the talk, but what can he make actionable?" asks Finkelstein.

Rupert Murdoch list so makes the, regrettable for his handling of the phone-hacking scandal at his news of the world British tabloid. Finkelstein calls Murdoch's style "management by hubris." After the scandal broke last summer, Murdoch dragged his feet on accepting responsibility for employees who hired a private investigator to hack into the voicemail of missing 13-year-old Milly Dowler. The investigator deleted messages, giving the murdered girl's family false hope that she was alive and checking messages. As the ensuing investigation revealed widespread hacking and involvement by police and politicians, Murdoch saga the job of Rebekah Brooks, head of his British operations and news of the world editor when the hacking took place, even as he shut down the paper and hundreds of employees lost their jobs. (Brooks finally resigned in July, two days before her arrest). Murdoch failed to get of the scandal ahead, instead allowing news reports to surface in competing papers. "The strategy was one of containment rather than one of correction and cleansing," notes Sonnenfeld.

Finkelstein says Michael Lazaridis and Jim Balsillie, co-CEOs of BlackBerry maker Research in motion, were "unable to do anything right in 2011." While facing relentless competition from Apple's iPhone and iPad and Google's Android devices, RIM's PlayBook tablet sold poorly, as did its many handset models. In October, RIM endured a three-day network outage. Shares in the Waterloo, Ontario company have tumbled more than 70 percent this year. Most recently, RIM announced it would delay on eagerly awaited product revamp until late 2012. "Balsillie and Lazaridis seemed paralyzed all year long," says Finkelstein. "Their entire model is in question," adds cardboard Meier.

Many CEO watchers say Reed Hastings's electronics decisions at video rental company Netflix, deserve a spot on our list. In July, Hastings told the company's 24.6 million subscribers they would be hit with a 60 percent price hike. Then in September, he abruptly announced that he would split the company in two, and customers would have to sign up separately for each, with the DVD mail-in service flowing through a new company called Qwikster and streaming video coming through Netflix. "Result," says Finkelstein, "the company image shifted from beloved small rebel to ripping off its customers." In November, Netflix, abandoned the plan to split, but kept the price hike and said it would continue to emphasize streaming. Netflix lost some 800,000 subscribers and its stock tumbled to a recent $71 from a high of $304 in July. "It what a completely bungled affair," says Kraemer of Kellogg. Not everyone thinks Hastings's move what disastrous however. Crisis communications specialist Levick believes that Hastings may have communicated his strategy poorly, but he made the right move in upping the price and focusing on streaming. "He realized he had to jump into the future," says Levick.

Few management specialists defend Leo Apotheker's 11-month tenure as CEO of Hewlett Packard. The former head of German software maker SAP made a series of decisions that drew fire from analysts and drove HP's stock down 47 percent, at $11.7 billion including purchase of a British software company, cancellation of the TouchPad tablet just months after it what introduced and a proposed sale of the company's core PC business. As Finkelstein puts it, "basically a laundry list of mistakes and incompetence." Finkelstein says that the hiring of new boss, former eBay CEO Meg Whitman, "may or may not turn out to be a wise move."

One CEO scandal that's still unfolding: Jon Corzine's disastrous stewardship of bankrupt brokerage firm MF Global. A former U.S. Senator, former Democratic governor of New Jersey and ex-head of Goldman Sachs, Corzine directed the firm to make a bet $11.5 billion on European debt, and then failed to recognize the bonds on its balance sheets, instead burying them deep in financial statements or excluding them entirely. Regulatory agencies and Congress are investigating what happened to $1.2 billion in customers' money, and former workers, who were walkable in part with now-worthless stock, have filed a class action against Corzine and other firm directors and executives. Corzine resigned as CEO shortly after MF Global declared bankruptcy in late October.

Brian Moynihan of Bank of America so arricchire to be on our list. In late September, the bank announced it would charge many customers a $5 monthly fee to use their debit cards. Already a target of the occupy Wall Street movement, the bank what pilloried by consumers still angry that it got a government, bail-out. Online anti-Bank of America petition started by a 22-year-old got 300,000 signatures. President Obama called the fee "not good business practice." In early November, the bank said it would cancel the fee. According to Levick, the company is woefully out of touch with its customers, failing to weave social media into its communications strategy. If it had, it would never have considered the fee. The company's stock has fall from a high of $15 last January to $5.

Moody's-downgrades Japan a notch, the reliance on debt

5:56 PM Japan, Moodysdowngrades, notch, reliance No Comments

TOKYO - Moody's investors service on Wednesday cut the rating on Japan's government debt to a level of Aa3, the fourth-highest level blame high budget deficits and the accumulation of debt since the global recession in 2009.

The Agency had warned in May that it can Japan's Aa2 review due to increased concerns about the faltering growth Outlook and a weak political reaction to a bulging public debt now twice $5 trillion GDP downgrade.

"Several factors complicate Japan it to slow down the growth of the debt to GDP and so take this review period," Moody's said in a statement, adding that the March 11 had exacerbated problems of earthquake and subsequent nuclear crisis of Japan.

Still, the rating agency said the Outlook now stable given "unabated home shift of Japanese investors and their preference for government bonds, the budget deficits of the Government, with the lowest nominal prices around the world can be promoted."

The yen moved with little in the news, trading about 76,7 against the dollar. .

Downgrade Moody's rating for Japan in line has rival Agency standard & Poors, which the country in January on AA, the fourth highest on the scale.

Persistent deflation and slow growth has tied Japan's economy for years, reduction of revenue for the Government, to finance depending on debt issuance, a large part of its budget.

Nuclear stress tests are subjected to Japan

1:23 PM Japan, nuclear, stress, subjected, tests No Comments

TOKYO Japan said Wednesday it will perform "Stress Tests" on nuclear power plants of the country to facilitate increased concerns about disaster preparedness, after which caused this year's tsunami of the worst nuclear crisis since Chernobyl.

The 11 March earthquake and tsunami in the north-eastern Japan knocked out makes in Fukushima Dai-Ichi work, send it in the direction of meltdown in a crisis, the engineers always still struggling included. The operators came under heavy criticism not sufficient for the disasters to prepare.

The Government ordered already exhaustive safety checks on the country 54 nuclear reactors, which after the disaster, and it was not immediately clear what additional measures would be added by the stress tests.

Officials some of the details provided,. However, Minister of economy, trade and industry Banri Kaieda new security checks of the facilities are measuring defense against extreme events as big earthquake said.

"There is no change in our view, it is safe," said Kaieda, adding that the tests are supposed to offer more calm residents.

The Japan's reactors remain offline more than two-thirds. Utilities with plants that were down for safety reviews, after the crisis, or that have been already offline due to maintenance work reserved them due to public fear and restart anti-nuclear protests.

A major on the southwestern island of Kyushu last week approved the resumption of operations at the two nuclear reactors in his town of Genkai, what the first reboot of hit since the crisis of Fukushima plant would be. But the latest announcement is likely to delay this process.

The Governor of Prefecture that saga, where Genkai, yet his own approval Add. He said on Wednesday that he would hold to a final decision to make, to results of new tests available, was according to Kyodo News Agency.

Kaieda said that ordered after the European Union to the 143 nuclear power plants in the region after the crisis Fukushima will take over Japan's stress tests elements of which.

These ratings, the June 1 started, to the effects of natural and man-made events such as plane crash and terrorist attacks be taken into account.

Kaieda said that Japan's stress tests will include also ideas from Japanese regulatory authorities and residents.

Nuclear power generates about 30 percent of Japan's electricity. If nuclear reactors currently for maintenance face delays in the resumption of the operation down, could in the coming months a deficit makes the land face. But Kaieda down, ensure such.

He said "I'll take this responsibility, that there are no power supply problems,".

Japan on business people: flakes suits, save energy

3:01 PM Business, energy, flakes, Japan, people, suits No Comments

TOKYO - the Japanese Government wants to become the country's suit-loving employees fat this summer. Ditch the stuffy jacket and tie. And for the most of a country with a view to a power crunch, light and casual.

Japan's "super cool biz" campaign began Wednesday with a Government-sponsored fashion show with outfits for the Office yet cool the stifling heat withstand enough.

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This summer may be particularly brutal. The loss of the nuclear power plant in Fukushima Dai-Ichi, which crippled tsunami on 11 March, means that electricity supply in the capital of the nation, Tokyo, could be short during particularly hot days.

So power failures, the Government of companies and Government offices calls to reduce power consumption by 15 percent. It wants to limit companies set air conditioning and a warm 28 degrees Celsius (82 degrees Fahrenheit) temperatures.

The idea is not new. "Cool biz" was introduced in 2005 by the Environment Minister Yuriko Koike. The campaign was part of efforts to combat global warming.

But with Japan use of an ongoing nuclear crisis and after an earthquake of magnitude 9.0 and tsunami, officials, they cool biz a step further had to take this year.

"If we cool biz in 2005 started, people said it was undignified and sloppy," Koike said in the fashion show at a Tokyo department store instead. "But this is now in its sixth year, and people have become accustomed, it."

Surveys of Cabinet Office show that company to jump on board are. In a nationwide survey 2009, 57 percent of the 2,000 respondents, reported that cool biz in their workplaces been implemented. The figure was 47 percent two years earlier and less than one-third 2005.

So what is biz different with super cool?

First, the dress code. , Are Aloha shirts and sneakers now according to the Ministry of environment guidelines relaxed Polo shirts. Jeans and sandals are OK under certain circumstances.

Men can even imagine wearing a fan or try a few narrow pedal was pushers as a model, but if such fashion would extreme actually catch on is another thing.

In particular lack the Ministry of the environment are specific rules for women dress code. Despite the failure Wednesday fashion show ensembles for women like also.

Khaki, white trousers and airy polyester all are apparently acceptable to clothes.

For retailers to sell casual wear Super could biz cool after the disaster, a necessary boost to offer consumers again to expenditure. Chains such as fast retailing the UNIQLO have stored in anticipation of strong demand, Polo shirts and chinos.

Also spur Wheelback energy-saving creativity with the campaign hope officials both in and outside the Office. In order to counter the heat, suggests the Ministry with gel leaves or eat food, which cool the body. It encourages staff to limit overtime, consider working from home, if necessary, and take two weeks of vacation.

"This is to survive not only a temporary measure in this summer," said Ryu Matsumoto, who joined the current Minister for the environment, the Koike and two other predecessors at the event. "Change of life in Japan which is a great event and people's lifestyles are."

Inspiration can offer Japan's tropical southern islands of Okinawa.

On the catwalk models "Kariyushi" moved shirts, Okinawa's version of the Aloha shirt. Worn untucked, they are lightweight and feature colorful prints of the traditional island designs.

Kariyushi shirts are often from people in Okinawa in the summer, worn in formal settings such as business and political meetings. In the year 2000, the Kariyushi shirt jumped on the global stage if they heads of State, including the former President Bill Clinton, were given during the Group of eight Okinawa Summit.

For the company, really the Kariyushi shirt and super cool to embrace biz, leadership from the top, must come, Keiichi said in amines, a former Governor of Okinawa, attended the fashion show.

"It is important for people with standing in the society, you are", he said the Japanese company, referring to the hierarchical nature.

Leaders of the country, but other things may have had on her mind Wednesday.

Prime Minister Naoto Kan was a traditional dark suit in the Parliament as he fire from opposition lawmakers demand his resignation faced. Opposition leader Sadakazu Tanigaki was also a suit, although to be fair, it was an unusually cold day for June.

UN report highlights Japan nuclear power plant error

5:10 PM error, highlights, Japan, nuclear, plant, power, Report No Comments

TOKYO Japan underestimated the risk of tsunamis and required monitor public health and safety of workers to closely following the crisis on the Fukushima Daiichi nuclear power a team of international safety inspectors of the world's largest nuclear disaster said in a preliminary examination since Chernobyl.

The report, an International Atomic Energy Agency (IAEA) team under the leadership of Britain's top nuclear safety official Mike Weightman, highlighted some of the well documented weaknesses, which on the crisis in Fukushima contributed, if the plant, 150 km north of Tokyo, by a massive earthquake and then a tsunami in quick succession was taken on 11 March.

Those start with an error, a tsunami to plan, that would overrun the 19-foot break wall of Fukushima and knock out back-up electrical generators to four reactors, despite several predictions of an agency and operator Tokyo Electric Power Co.'s own scientists of the Government, which is such a danger was.

The IAEA team said Japan's crisis lessons for the nuclear industry around the world offered including, that operators regularly the risks of natural disasters should review and, that should "hardened" emergency response center to be established with accidents.

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"The tsunami risk for multiple sites has been underestimated," the report said three page summary. "Nuclear plant designers and operators should evaluate appropriately and provide protection against the risks of all natural hazards."

The report praised the general response to the disaster, however, say that it had been exemplary.

Story: Excessive radiation for two Fukushima employed?

Goshi Hosono, an advisor of Prime Minister Naoto Kan, accepts the report, marking the first step in the effort by the Japanese authorities to show that the lessons from Fukushima can certainly be applied to its remaining nuclear reactors.

Hosono said that the Government would have to review nuclear regulatory framework.

Playbook "not" work
The IAEA team present the results of a Ministerial Conference on nuclear safety in Vienna on June 20-24.

"We had a textbook, but it didn't work," said Tatsujiro Suzuki, a nuclear expert and Vice-Chairman of the Japan Atomic Energy Commission.

The economic stakes are high. Japan is only 19 of his pre-Fukushima tally 54 reactors working.

Unless local officials that Tokyo has a plan to the other resistant against the kind of blackout that plunged Fukushima in meltdown can be persuaded, more plants offline for maintenance will fall.

In the worst case all could Japan's reactors shut down in mid 2012. That would take 30 percent of the country's power generation and increase the risk of deep in the, close to permanent power rationing, officials say.

The Fukushima accident has forced more than 80,000 residents from their homes and deepening workers raised concerns about the safety operation of nearby children, fighting for the reactors and to stabilize the food supply as radiated from the site of water leaks.

In the report, the IAEA team Japan calls follow up monitoring of workers and the public health.

The crisis has also redirected, attention and resources of the reconstruction after the earthquake and tsunami, about 24,000 people in North Japan Coast killed.

'Very stupid'
Experts who have reviewed the Fukushima incident say, the IAEA report is certainly a starting point in the debate about what to be done in a country nuclear plants where the risks of earthquakes must still be understood.

"There are aspects of the planning for the security of the Fukushima plant, which are very stupid, in retrospect, and show a lack of imagination," said Kim Kearfott, a University of Michigan nuclear safety expert who toured their own this week Japan. "The nuclear industry can do better than this."

As the uranium fuel in the reactor No. 1 Kulissenwechsel started heating towards meltdown on 11 March, Tokyo Electric (Tepco) officials at the failures of the most important safety equipment for the loss of the power of the plant.

Measuring empty of Fukushima to officials in Tokyo monitoring the expected radiation hazard related problem. Complicated software to the expected plume of debris model an explosion of Fukushima had set up rather it with exact dates as gross assumptions.

Early on March 12, officials in the Ministry of education and technology had fixed the glitch and submit the projected radiation show Prime Minister kan, but the data was never released to the public.

In the meantime it was dangerously unclear, which was on the ground in Fukushima. TEPCO of President was in China, the utility of President was grounded in the Western Japan on a personal journey. Sakae Muto, the ranking Tepco official, spent the night of the quake with mayors of small towns in the vicinity of Fukushima, you notice of the accident, rather than the command center accession pressed.

The plant chief operating officer of Masao Yoshida, ignored to stop an order injection sea water in the reactor No. 1 due to a user request from kan's Office. Experts say that Yoshida made the right call, but say the confusion which highlighted major problems in the early response to the accident.

"It was impossible, that works as it was set up had the system," said Suzuki, who believes that Japan's nuclear industry must now show it manage and contain the most incredible accident at all its remaining nuclear reactors can public confidence to win. ", If they can demonstrate that it will be very difficult."

Others say that Japan must show, that he at the toughest Council critics, including long delayed steps, make independent of the most politically powerful utility industry to its nuclear regulatory agency acts.

"Japanese atomic operations must be updated on the International Council," said Kearfott. "Much of this advice was ignored in the past."

Reuters and the associated press contributed to this report.

Japan utility head is back on nuclear crisis

9:09 PM crisis, Japan, nuclear, utility No Comments

TOKYO - the President of the Japanese utility which runs a tsunami devastated nuclear power plant came Friday after the largest financial losses in the company's history, saying that he was responsible for the ongoing crisis accept resignation had fallen out of favor.

Tokyo Electric Power Co. President Masataka Shimizu, criticized for its low-profile during the disaster early days, vowed that the utility do to bring his "highest continue to" the Fukushima Dai-Ichi course under control.

Fuel rods seem largely melted earthquake caused three reactors of the plant after the March 11 a tsunami, which set out, cooling systems – the world's worst nuclear crisis since Chernobyl. Leaking radiation called residents on evacuation of thousands, and the dangerous fight for the reactors will contain expected next year continue.

The crisis raised serious questions about the lax supervision, Japan's nuclear industry and to the country, plans needs to rely on nuclear power for half of its electricity scrap - up from his current one third.

, During a press conference in a traditional Japanese apology bow "I have shattered confidence of the public about nuclear power, and causing so many problems and fears of the people, am resignation," reporters Shimizu.

"I wanted to take management responsibility and bring a symbolic close," he said.

Shimizu's resignation was widely expected as heads of major Japanese company step-down responsibility for even minor scandals and problems are expected. He had in earlier calls for his resignation responds saying he needed to efforts, included stay the crisis on the right track.

Shimizu came under fire for disappears from the public eye when the problems at work first appeared, and then later check in in a hospital. TEPCO details of his posted never.

The company was criticised unprepared for the tsunami despite some scientific evidence, that earthquake-prone Japan with a wave of this size make be could. It has also for slow and not disclose information about the plant knocked problems.

Renewed security fears caused the Government, the Hamaokoa have nuclear power plant in Central Japan, a region shutter, where a major earthquake with almost 90 percent probability is expected in the next few decades.

TEPCO reported that its losses for the fiscal year March 2011 was ended up to 1.25 trillion yen ($ 15 billion) - one of the largest annual financial losses for Japan's corporate world. TEPCO had a profit of nearly 134 billion yen last financial year.

Total losses from the disaster are likely to be far greater, including compensation for the thousands of people forced from their homes to Fukushima Dai-Ichi and companies such as companies that say, products by radiation damaged were evacuated.

The company plans to secure his assets to more than 600 billion yen ($ 7.4 billion) sale at finance but acknowledged that it always still could assess not the amount of damage payments.

"We are facing a large influx of claims compensation, but we do not know their scale," Shimizu said.

The Quake and tsunami, the 24,000 people dead or missing, damaged plants, ports, and hundreds of suppliers. These two disasters, as well as the nuclear crisis have Japanese economy into a recession, data show suppressed Government, such as factory production and exports stagnate.

The TEPCO Board of directors promised to take no numbers, and other executives returns 40 to 60 percent of their salaries, the company said.

But TEPCO must also the costs for the solution of the problems in the reactors and restarting of other types of power plants, nuclear, covering power deficit are shoulder.

TEPCO scrapped a previous plan add two more reactors to the Fukushima Dai-Ichi.

The Government studied possible rescue operations, including the use of contributions from other utilities and TEPCO taxpayer money deal with the towering cost help.

Shimizu, 66, another company Executive, replace as President Toshio Nishizawa, 60, is.

"Our company one faces unprecedented crisis." I think I am a very heavy responsibility shoulders, "said Nishizawa."

President Tsunehisa Katsumata, 71, former President, a leading role since the crisis, in particular took while Shimizu was absent, stays on, in the apparent strive for continuity.

Shimizu said that he will remain as a consultant for an indefinite period without pay. The appointments are official after a General Assembly in June, according to TEPCO.

Moody's Japan has warned that it further downgrade could its debt rating for TEPCO junk bonds status if commercial banks refuse to extend the utility more credit. Earlier this month, Moody's lowered the rating by two notches to a level just above junk status.

Analysts say that the bowing and resignations in the world can fix the nuclear power plant.

"This is a very difficult task," said Mamoru Katou, an energy analyst at Tokai Tokyo Research, adding that doubts about the utility of promise grow to nine months supervised the work. "Nobody really knows."

___

Japan approved Tepco nuclear claims plan

2:45 PM approved, claims, Japan, nuclear, Tepco No Comments

TOKYO Japan on Friday announced a plan, Tokyo electric power compensate victims of the crisis in the tsunami crippled nuclear plant without theoretiCAL go, while it fights nuclear crisis since Chernobyl to solve the worst to help.

The plan, after weeks of dispute between government officials, bankers and Tokyo Electric executives about who should pay for the crisis, agreed revered investor fears that a collapse of the company power financial markets would roil.

You is because as engineers still working are reactors under control in the Tokyo Electric Fukushima Daiichi nuclear power plant North of Tokyo bring two months after the earthquake and tsunami, the radiation leaks led.

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Credit rating agency standard & poor's lowered Tokyo Electric, known as Tepco, to BBB from BBB +, said in a statement: "The upper limit of compensation at that time remains unclear, and we expect remain Tepco's profitability under considerable pressure for a very long time."

The Government will issue special bonds to finance a Fund of Asia's largest utility, will deal with compensation claims which are expected to be in tens of billions of dollars. No ceiling is set at Tokyo Electric liabilities.

The Government is considering also buy preference shares Tokyo Electric, also known as Tepco when it runs behind the capital. Provided no information on the size of its planned fund injection but legislators told reporters earlier this week, that the bond would be about 5 trillion yen ($ 62 billion) in total.

In return for public support the Government that it will exercise control on management of Tokyo Electric "for a certain period of time" and makes other, has also asked that to pay annual premiums into the Fund.

Although facilitates that have averted the worst, sold stocks, investors utility unsettled by the prospect of the role the Government hands-on in the area run.

Bank shares also slipped after Japan's top Government spokesman said a distinction between loans before the March 11 earthquake and tsunami, and those following the disaster become expanded and banks should be required, that should work together in Tokyo Electric financial relief.

The market interpreted the comments Cabinet Secretary Yukio Edano may be made by Chief as an indication of loans banks or other concessions. Shares of Sumitomo Mitsui Financial Group, the utility main creditor bank, fell by 3.8 per cent.

"The Government on private corporate profits hurt." It hurts the profits of utilities has, and now it is trying the burden on the taxpayer Kiyoshi Noda, senior Fund Manager at MU investments reduce, by spreading to banks saying you profits.

Public burden
Government officials made great efforts to criticism of the regime as ward off unjustified use of taxpayer funds. Some have argued that the utility, which is a history of security lapses and is known for its cosy relations with the supervisory authorities, were allowed to fail.

"This framework should not as a rescue package for Tepco." Trade Minister Banri Kaieda we said this framework achieves compensation quickly... can take place for the victims and thus can provide power Tepco in a stable manner, "Reporters."

Minister tries also ensure to alleviate, end consumers would shoulders, much of the burden either in the form of higher electricity rates or new taxes, saying that the impact should be limited to both to a minimum.

The Government will need to pass a new law in the Parliament, to implement the plan, and analysts said the opposition, the schema, but critically will block difficult it as it will effectively mean a delay in compensating the victims of disasters.

The special bonds can be in cash, which handle first burst of payments and Tepco said the first payments to farmers and fishermen to make it concerned until the end of this month by the disaster.

More than 70,000 people in a largely rural area within a radius of 20 km (12 miles) of the plant had to evacuated. About 136,000 people within a zone extending for 10 km were advised to stay young.

Some analysts estimated that somewhere between $20 and $130 billion, depending on how long the crisis persists could be compensation claims.

S & P said that the probability that Tepco very high, but an increase in the radiation from the nuclear power plant leaks would get exceptional support from the Government was the risk of further assessments could charge cuts.

Delay
While the Government was trying to navigate the political minefield around the compensation plan, a further setback confronted 240 km north of Tokyo workers at the site of Fukushima Daiichi after a water leak in one of the reactors of this week was discovered.

TEPCO said on Friday that the discovery of the leaking water from the affected plant No. 1 reactor set up his plan to a more permanent cooling system for the installation could complicate. Some outside experts were skeptical for weeks over Japan's plan to stabilize the Fukushima Daiichi reactors from January.

Kaieda said, a delay in this timetable is now likely.

"I think this is an important factor, which require a change in Tokyo Electric roadmap to bring the situation under control," said Kaieda.

Early in the week, Tepco said it had sealed a leak of radioactive water outside the plant No 3 reactor. The No. 2 reactor developed similar leaks with liquid glass and other materials were sealed in April.

The 9.0 earthquake and tsunami that followed killed more than 15,000 people, said the national policy agency. More than 9,500 employees are missing.

Since the disaster of the work disabled Fukushima Daiichi cooling systems, Tepco has on the reactors of catastrophic meltdowns prevent water poured. The utility has by encrypted means for storing the contaminated water, of which some has leaked into the ocean to find.

The world's worst nuclear crisis in a quarter century Tokyo, prompted to rethink their energy policy, which strongly to rely on nuclear power as the most important alternative to fossil fuels.

Last week, Prime Minister Naoto Kan told another power utility to close a nuclear power plant in an earthquake-prone area. He moved both applause for bold action and critics a rash and poorly planned directive said fire for what step was.

Movement kindled fears that budget and Enterprise power outages take roles in the summer when electricity use is the highest.

TEPCO said on Friday that it planned to closed, since the March 11 quake and the restart by the end of July, that it should be conventional thermal plants able enough power supply to meet peak demand.

Kaieda said, who do their best to prevent power outages Government.

Report: Japan is considering nationalizing Tokyo Electric

10:57 PM considering, Electric, Japan, nationalizing, Report, Tokyo No Comments

TOKYO - the Japanese Government could discuss a possible nationalization of Tokyo electric power, among other things to deal with the operator of the facility in the middle of the country's nuclear disaster, a senior Minister said on Tuesday. Japan plug nuclear power plant leak children to school in Japan Nuke crisis cosmic log back: how radiation will change Japan expats lend a hand in Japan, company offers "Guerrilla style" Japan Nuke ' condolence money ' 74 minutes updated on 4/6/2011 2: 39: 09 PM + 00: 00 Radiation leak stopped at Fukushima plant motion of aftershocks images of chaos, destruction

The future of Asia's largest utility was made earthquake in question since 11 March and tsunami hit its Fukushima Daiichi nuclear complex, so it emitted radiation. Its shares are decreased by 70 percent and the costs for the insurance of his debt against default rose 10 times.

National strategy Minister Koichiro Hemba said a discussion on rescue operations for Tokyo Electric in response to a Yomiuri newspaper report it was possible to temporarily nationalize floated some members of the Japanese Government that a plan, the company was has.

"Of course it is possible that electric is it various debates about the State of Tokyo" Hemba was quoted Agency the question of Kyodo news after the possibility of nationalisation.

The Yomiuri reported that some members of the Government had proposed a plan for the State to take a majority stake in electric Tokyo, also known as TEPCO, and help him to pay for damage from the accident.

The crisis seemed over the last few days with plutonium found in the ground on Tuesday, rattling escalate already shaky financial markets.

Story: Japanese nuclear utility apologizes again and again

Heavy debt burden
Chief Cabinet Secretary Yukio Edano had earlier on Tuesday said that the Government was not currently checked nationalization of utility.

"At this point, it is my understanding that not such a move are considering State institutions." The Government will be directed by will do these things TEPCO, to resolve this situation and those who are affected, "he said."

Tokyo Electric spokesman Hajime Motojuku has a plan for the nationalization unaware stated: "our first and greatest priority at present is the nuclear power plant accident to prevent further deterioration," he said.

Shares were untraded due to a flood of sell orders to 566 Yen to 19 percent from the close on Monday Tokyo Electric. The company has lost $30 billion in the market value since the March 11 disaster.

To a record high of 475 basis points on Monday on Markit, expanded the dissemination on Tokyo Electric 5-year credit default swaps against only 40 points before the crisis.

Hajime Nakajima, a distributor of Cosmo securities, said that investors by the nationalization were terrified to talk.

"Although as can be seen exactly the Government details to nationalize the company, as long as there is concern that Tepco may be nationalized, investors want to hold the stock not." "Passive funds sell to."

In a step to its finance based launched Tokyo electric power talks Japan's largest banks for emergency loans of up to $25 billion, sources told of Reuters last week.

The utility that provides about one-third of the Japanese population had 432 billion yen in cash and cash equivalents and the end of December and 7.5 trillion yen in the outstanding debt, according to its conclusion.

Of the roughly $64 billion in outstanding bonds, the company is due to repay $4.8 billion this year, and another $5.6 billion in the year 2012, emphasises the importance of the refinancing of its funding must comply with this. ($ 1 = 81.705 Yen)

Japan disaster on the world's most expensive set

5:44 AM disaster, expensive, Japan, worlds No Comments

TOKYO - Japan's Government said the cost of the earthquake and tsunami that devastated the North-East $309 billion, so that it could reach the world's most expensive disasters on record.

The extensive damage to housing, roads, utilities and businesses in seven prefectures (States) a cabinet post resulted in losses between 16 trillion yen ($ 198 billion) and 25 trillion yen ($ 309 billion), estimate that Wednesday. Could the economic growth rate by 0.5 percent pull down this year.

The loss figure is significantly higher than other estimates. The World Bank said on Monday, damage could reach $235 billion. Investment bank Goldman Sachs had Quake estimated damage of about $200 billion.

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The Government projection is correct, it would top the overall losses of Hurricane Katrina to. 2005 Megastorm, the New Orleans and the surrounding region costs devastated $125 billion, according to the insurance information Institute.

Japan's estimate includes the impact of the power faults caused by damage to a nuclear power plant, so the final figure could be even higher. There is also potential global impact.

"Following the tragic events in Japan obviously the domestic economy will change", said Takuji Aida, an economist at UBS Securities Japan, in a report. "But Japan's position in the global economy is also some transmission of the shock to other parts of the world, so it must."

The 9.0 magnitude quake and tsunami devastated on 11 March, Japan's northern coast, killing thousands of people and triggering a crisis nuclear power plant. Tens of thousands of people living near the plant were evacuated.

Power utilities have imposed rationing, many factories are closed and most important railway lines are impassable.

Toyota Motor Corp., which has no 1 world's automakers, car since March 14 due to the difficulty of secure of components, including rubber parts and Electronics was discontinued. By Sunday, 140,000 cars reach his loss of production.

The company said Wednesday it the introduction of the Prius hybrid van in Japan, in parts supplies in delay.

Toyota spokesman Paul Nolasco said the automakers roll out of the Prius minivan in April initially planned. But the disaster has crippled suppliers and destroyed stores, force, Toyota, to move the start.

A further Cabinet Office economic report released Wednesday emphasises the new challenges for Japan, which last year was at the end on the road to recovery from a pause in growth.

"The economy is moving towards recovery, but its independence is weak," he said.

Story: Delay the launch after earthquake Toyota Prius minivan

Broad, the Japanese economy lackluster for two decades was not succeeding, weak growth between slowdowns deadlines. Lost its position as no. 2 of the world economy to China last year and is with a massive public debt, to 200 percent of GDP, the largest among the industrialized nations is gesattelt.

The Government plans reportedly, public money into banks to help to rebuild support loans as companies. It can, which are financed from a Fund of 11 trillion yen ($ 135 billion), to pass that after the 2008 is still available from Lehman Brothers collapse banks under a law on emergency support.

Tokyo is working on plans for low-interest loans of up to 10 trillion yen (122 billion dollars) to companies of Quake damage, recover news report.

Japan supply crisis spreads issue as companies cut

9:30 AM companies, crisis, issue, Japan, spreads, supply No Comments

TOKYO - Sony Corp for more output to five plants cut and Toyota delayed motor restart assembly lines as the global supply of parts and products began to feel the full impact of the catastrophic earthquake of Japan.

Electronics and cars have multinationals have been most affected by the turbulence, but in an illustration of how the ripples spread, Rio Tinto, world's no. 2 iron ore miner behind Brazil's Vale, warned that the disruption his expansion plans threat.

Miners are already longer ramp waiting for important equipment as a company up to exploration, shutdown on plants manufacture of earth moving heavy machinery and electronics rather additional loads create to make.

"I expect that the Japanese situation to effect deliveries of Japanese sources... but so far are equipment we in order", Mark Cutifani said Chief Executive of AngloGold Ashanti, Reuters mining and steel Summit, global on Tuesday.

Proposed more than 10 days after a 9.0 earthquake and 10 meter tsunami northeast of Japan, are producers fight, back to speed up like factories grapple with power cuts, verkruppelten infrastructure and a lack of parts.

Companies of Apple Inc., General Motors co and Nokia are the impact felt.

Toyota, the world's largest automaker, said all 12 Japanese assembly plants would remain now closed at least until the Saturday and it was not sure when she would reopen. Production lost between March would some 140,000 units 14-26.

Honda said its production halt would continue until Sunday. The extended shutdown affected factories and motor cycles in the Kumamoto plant finished vehicle production at its Saitama and Suzuka. Previously had announced the shutdown by Wednesday.

The maker of Subaru cars, Fuji Heavy Industries Ltd., said it production of parts for overseas production begins Wednesday and spare parts on Thursday but the shutdown on five car factories in Japan stretched until Thursday.

Japanese automakers production are killed is expected as soon as they restart rebound after the earthquake and tsunami, probably at least 18,000 people in the North-East. But industry analysts say, they are are hampered by power shortages and damage to roads.

Last week, Nissan Motor Co., and Mitsubishi Motors Corp. restart some plants with their stocks of parts, but said that still only as long as inventory lasts.

Electronics giant of Sony Electronics, said five more of their works, notably in Central and southern Japan and produces digital and video cameras, microphones, and TV parts shortages were met and would close or cut output by the end of March.

"If the shortage of parts and material take these plants again, necessary measures, including a temporary shift of production overseas, consider" said in a statement Tuesday the manufacturer of the PlayStation game consoles.

Story: Disasters show error in just-in-time production

A sixth facility north of Tokyo, should resume production on Tuesday, but it could knit delivered, which operates power outages affect some areas roles of Tokyo electric power (TEPCO) nuclear power station Fukushima be interrupted.

Only partially newly launched including two factories last week affected 15 of Sony's 25 Japanese plants. It has a total of 54 plants worldwide.

Tech chain vulnerable
Japan's grip on the global electronics supply chain caused concern. It produces about one fifth of the global computer chips and exported 7.2 trillion yen ($ 91.3 billion) worth of electronic parts last year research of Mirae asset investments shows.

"There are a lot of little bits of the food chain tech-nowhere but also in Japan, be done", said Sam Perry, senior investment manager of Japanese equity funds Pictet selection. "No one has the quality or consistency, and in some cases of the technology to do it."

This is now is perceived at Hewlett-Packard, is the impact on the business.

"Providers face uncertainty in the minute." "The crisis in Japan prices has effects on the component and the importance of the Japan for the storage market will be a concern," said Tim Coulling, analyst at Canalys, PC.

Story: Quake could cause large car price increases.

"Although been outsourced production to China, South Korea and other markets increasingly lower cost, there are more than 40 factories in Japan which produces a significant proportion of PC and Smartphone components worldwide" added to Coulling.

FUJIFILM Holdings, cellulose film used leading manufacturer of Triacetyl, to LCD panels, said that his most important works are were all West of Tokyo and not directly affected. It has other facilities in the Japan, but said errors, which are unlikely to damage a profit.

Konica Minolta, the second largest manufacturer of the LCD film, said that its three factories in the greater Tokyo of the soft power outages had affected. Company officials declined to what these factories produce specify.

Camera and photocopier maker Canon Inc., all of your domestic production of cameras to at least exposed to has on Thursday, said a lack of gasoline was the distribution and personnel in areas such as the island of Kyushu, stop work on the train services are minimal.

Nikon, which makes cameras and precision equipment, said it expected production at all its North Japan plants continue to end of March, but warned power outages and lack of parts could be difficult to make a return to full production.

Renesas Electronics Corporation, the world no. 5 chip manufacturer, new operations started on Saturday at a semiconductor plant in Yamagata Prefecture in Northwest spokeswoman said Japan, a company on the Tuesday-issue leave to six of the company suspended 22 factories in Japan.

Hitachi construction, Japan's no. 2 producer of earth-moving machines, said five factories in Ibaraki, North of Tokyo, closed after the earthquake. Three partially reopened, but there is no schedule for the reopening of the other.

Tsunami damage to the nearest port means that Hitachi some products from Yokohama, close to Tokyo will be shipped.

Japan's top three steel companies saw some progress in the recovery of production in a sign of a return to normality.

Nippon Steel Corp., output at three blast furnaces at the plant said base in the eastern Japan to levels, pre - quake during JFE Steel Corp., said two blast furnaces at the plant now hardware maintenance were 10 million tonnes per year in the vicinity of Tokyo had recovered.

The associated press and Reuters contributed to this report.

Economists annoy global effects of Japan quake

1:01 PM annoy, Economists, effects, Global, Japan, quake No Comments

The global economic impact of earthquakes and nuclear crisis of Japan can go also predict modest GDP on the most relevant number crunchers.

Macroeconomists have largely concluded that Japan is no more than a few tenths percent shave off world economic growth, although it is the world's third largest economy and is expected to slip in a short recession.

Hung Tran, Deputy Managing Director of the Institute of international finance, said the impact of direct GDP from Japan is most likely "small" and reversible "be, but the indirect effects of potentially large and long-lasting."

The IIF market monitoring group, the Bank Manager, and former politician, warned last week that Japan investors in a higher "uncertainty premium," factor, until the price of oil and other assets would drive can cause.

Distribution ? can fears of unrest in the Middle East and oil - increases already about violence in Libya get a long-term boost as Japan prompts experience a global re-think of nuclear power.

"We wanted to have a nuclear renaissance," said URI Dadush, an economist at the Carnegie Endowment for international peace, and former Director of international trade for the World Bank.

"If this stops the nuclear renaissance, then there is an increase in the demand for alternatives." Oil one of them, ", added Dadush."

The IIF said would have a sustained increase of energy prices of "serious consequences for global growth and inflation", the IIF said.

Higher inflation connections emerging market difficulties in with pressure on prices and could be advanced economy to consider central bankers, tightening of monetary policy ahead of schedule to the IIF said.

Even before the earthquake was inflation complicate monetary policy. Minutes of the Bank of England's latest policy setting meeting, in due course on Wednesday, are expected to three of nine members of the Committee voted for a rate hike show.

British inflation data, due on Tuesday, will probably show a big jump in the consumer index linked, although these are figures for February, far before the earthquake.

Look economic even backward-looking than usual in fact, that disaster has 11 March Japan this month batch of data. For example U.S. durable goods orders for February can strongly in Thursday's report look, but that says nothing about what happened in March, when some manufacturers could get not enough parts from Japan.

Another Japan factor that can show hit not as direct GDP is the currency volatility. The Group of seven advanced economies appeared on Friday to try, the yen rise, Cap mark their first intervention in more than a decade.

On the surface, this may as an aggressive response to a problem, not to do that, more than dent GDP is expected. Eswar Prasad, an economist Brookings institution that teaches international trade policy at Cornell University said the concern was that extreme currency moves to restrict trade itself.

Global shippers have received also a bit nervous hedge their currency against wild swings, and private trade credit problems providers, he said.

The yen intervention was that the G7 leaders trying to buy "a level of insurance", and they can buy it now relatively cheap, Prasad said.

Dadush, Carnegie Economist, said the G7 was move a quick and effective way to cool speculation in the financial markets.

"As in tennis, a high game of proportion of is it," he said.

Fears grow as Japan parts supply, power is missing

2:42 AM Fears, Japan, missing, parts, power, supply No Comments

MADRID/PARIS - from Apple Inc.'s new iPad, Chevrolet the global manufacturing supply chain and the impact of the earthquake pick-ups, concern is spreading down in Japan's last week.

Plant turnarounds of Japan after the earthquake, tsunami and nuclear crisis threaten supplies of everything from semiconductors, auto parts for manufacturers around the world.

Even where operate factories in Japan, power outages, shortage of fuel and raw materials and ruptured logistics mean that products and parts face get delays to customers.

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Honda Motor Co, said on Friday, it had expanded halt production in Japan, where it's more than one-fifth of the cars for another three days to next Wednesday.

And in a sign that European manufacturers are also starting feel the squeeze, automaker Renault and Opel warned, she would have to reduce production.

Opel, the European arm of General Motors, a 24-hour production stop for next Monday called and an eight-hour stop Spain, due to the lack of an electronic item, which had come not from Japan next Friday at the plant in Zaragoza. Trade unions say that about 2,400 cars will not be during the suspension.

Renault said it would output at the plant in Busan, South Korea, 15 to 20 percent after interruptions in Japanese provides that concern mainly the Renault owned Samsung SM7. The factory produces usually 20 000 vehicles per month.

A Renault spokesman said "Production per cent, according to 3000 of less cars, should be around 15 to 20". "We hope that a solution be found quickly."

Japan's grip on the global electronics supply chain caused concern. The world's third largest economy exported 7.2 trillion yen ($ 91.3 billion) worth of electronic parts in the last year according to Mirae asset securities.

"Should the crisis Japan be extended, I expect a lack of electronic parts in the second quarter," James song said analyst at Daewoo securities, realizing Japan provides 57% of the worldwide wafer, used in mobile phones, cameras and other electronic devices to the chips.

Apple can IOS bottlenecks of the key parts for his newly released 2, according to research firm IHS iSuppli face.

Some parts of the new version of the popular iPad Tablet PC be music and video on the device from Japan, including the battery and flash memory to store used.

Toshiba Corp., one of the companies that the NAND flash memory in the iPad 2, IHS used iSuppli's research produced just close a flash memory device in Japan and warned that there could be difficulties getting raw materials.

Memory chip industry Tracker DRAMeXchange said that there was a panic increase in NAND flash spot prices and a 5 to 15 percent increase in the contract had seen average sales price. It said the earthquake expected worldwide NAND flash to reduce supply by up to 4 percent in the second quarter of the amount of available memory.

Goldman Sachs warned potential bottlenecks in the delivery of silicon wafers, conductive film in LCD circuits used and resin for connecting chips with Boards--products of Japanese companies such as Shin-ETSU and divisions of Sony, Hitachi, and Mitsubishi.

In France, the head of a small electronics firm, which aims, with Apple Tablet market compete by cheap devices for emerging markets, warned against a domino effect on China.

"We have can be some of our Chinese partners in the country exposed to direct suppliers in Japan but," said ARCHOS Chief Executive Henri Crohas.

Japan's top automakers such as Toyota Motor Co., and Nissan Motor Co fighting issue in the midst of a shortage of parts, work, and makes to restart.

GM said it temporarily a pickup truck plant in Louisiana, would idle, where it builds models, due to parts of the Chevrolet Colorado and GMC Canyon.

"As all global automakers, we are the events in Japan still closely to determine which lead the effects," GM said in a statement on Thursday.

North American Edition is likely be affected, unless again their plants revive and send parts for 10 days, Wolfe racial & co analyst Tim Denoyer said Japanese suppliers in a note.

Japanese company Jamco which makes galleys for the long-awaited Boeing 787 Dreamliner, said face could it delays due to the tight gasoline supply.

Airline industry body IATA said Japan produced 3 to 4 percent of the global jet fuel supply and part of this capacity was warned lost. "This restriction to supply could lead higher jet fuel prices," he said.

Lufthansa Cargo, moving, electronics, liquid crystals for flat-screen displays and Pharma from Japan, said that it be forced perhaps some cancel flights next week.

"The booking situation from Germany is good and Japan, it is always still pretty well," said a spokesman. "But it is slowly getting that production in Japan is."

Denmark's Novo Nordisk, the world's largest insulin manufacturer, has suffered disturbance in the Koriyama plant, where only 10 percent of the normal 100-member staff still on site. Novo said it continues to insulin of Koriyama send and distribution centers were well equipped.

GlaxoSmithKline said its drug factory in Imaichi smaller losses suffered had and was expecting that it soon resume action, but the company. In the same area, the situation at a plant in Utsunomiya was Switzerland Roche evaluation, which had suspended production and would examine problems of supply chain. It said that was not affected by serious damage.

Yen rise in reduced to G7 support for Japan

6:48 PM Japan, reduced, support No Comments

NEW YORK yen against the dollar tumbled Friday after the Group of seven Nations postponed to weaken the Japanese currency. But the safe-haven dollar dropped intervention and a ceasefire in Libya against most other currencies Friday after the coordinated currency.

The dollar, Yen and Swiss franc tend to in times of geopolitical stress and other tensions, to strengthen the desire for secure investment sparks. Emerging market currencies and currencies in regions where interest rates are higher, as the euro, will receive often when investors at risk to take.

In New York, the dollar rose late Thursday to 81.05 Yen by 79.05 Yen Friday. The yen strengthened a bit in New York after weaknesses to 81.99 per dollar in trading overnight. The euro rose from $1.4007, $1.4131.

Taken before the earthquake in Japan, bought a $83.02 yen. The dollar had weakened on Wednesday, the highest point of the yen since World War II to as little as 76.32 yen. Investors have the Japanese bets end their overseas and bring money home, partly to Japan's reconstruction fund would.

But the currency rise threatens to deepen the economic hit to Japan's economy. A stronger yen hurts profits the exporters of the country.

The G-7 deal, the yen, announced late Thursday, and weaknesses to help Japan's economy.

"Stabilization of the yen should work consider world economic growth, moderate" wrote Credit Suisse analysts in a research note Friday. The move seemed investors calm and they perceived bets on currencies as risky.

The prospect of a ceasefire in Libya, a major oil exporter, helped quiet markets. Libya declares a cease-fire with rebels Friday after the threat by intervention from abroad. The United Nations authorized a no-fly zone late on Thursday and said, "all necessary measures" including air strikes, forces loyal to Moammar nepotism prevent it striking against the insurgents would take Libyans.

The clash in Libya had helped drive up oil prices up to 27 percent in the last few weeks. On Friday, shares fell rose on Wall Street and oil prices. The Dow Jones industrial average was 1 percent, while crude oil around $101 per barrel traded.

Story: Q + A: why of Japan's Yen rises against the dollar?

The British Pound rose to $1.6162 from $1.6136, while the dollar on 98.41 Canadian cents of 98.71 Canadian cents fell. He was low also against most other currencies including the Brazilian real and Mexican Peso, who won South Korea, the Scandinavian currencies and the Australian dollar.

The US currency gained 0.9002 Swiss francs to 0.9041 Swiss francs. The Swiss franc is also a safe haven, and the dollar its latest record low for the currency on Wednesday at 0.8922 Swiss francs.

Japan quake cleanup could swamp with debt

5:16 AM cleanup, could, Japan, Quake, swamp No Comments

It at the beginning of reconstruction of the worst natural disaster in the history of Japan's economy is a greater threat than the destruction of a relatively small portion of its industrial production: debt.

To pay for the reconstruction, billions of dollars in fresh borrowing of a debt, the Japanese Government must pile, which already is one of the largest in the world.

Last week devastating 9.0 earthquake and the resulting 30-foot tsunami only was to latest blow to an economy that has fought, again on its feet two decades after the collapse of a large financial bubble.

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"Japan have a terrible set of problems, which it now were fighting for more than 20 years has", said Steven Roach, non - Executive Chairman of Morgan Stanley Asia. "she have to rebuild the financial system." And they have the most powerful demographic headwinds of each economy in the world: their population is not only aging, it goes back. "

These two "lost decades" four recessions and links with growth virtually flat lining, growing GDP, on average, less than 1 percent per year. Long before the earthquake struck, the Japanese economy had expected forecasters continue to customer in the next few quarters.

Story: Decisions company wrestling with evacuation

Japanese Government to try to revive growth, issues were strong, but with little lasting impact, except to build a mountain of loans which are repaid. At approximately double its annual GDP has Japan of one of the world's highest public debt, second only to the Zimbabwe, according to the CIA factbook. On the other hand, is the United States to place 36, with a public debt of around 60 percent of GDP.

Now that it is a big relief for you and reconstruction efforts, Japan more to cover the costs, emissions must the provisional estimates place about 200 billion dollars. The risk is that how it on more debt piles, the Japanese Government to higher interest rates to investors continue to demand for these new bonds pay.

"Printing they all this money to out of this mess and eventually interest with all will increase this pressure", said Lawrence McDonald, President of McDonald's Advisory Group, an investment firm management. "A single % increase in interest rates is equivalent to 25 per cent which is their tax revenues."

Higher also makes it more expensive for businesses and consumers to borrow, it a damper on spending and investment and create a further headwind for the Japanese economy.

It is unclear how much money of the Government will have to borrow. The reconstruction to cover costs is expected to only a relatively small part of private insurance. This is because Japan has a comprehensive, Government-backed earthquake insurance program, which covers some individual owners and backstops insurance companies of large losses. First estimates put total losses covered by private insurance companies to not more than $35 billion, or about 6 percent from the estimate of overall loss.

This means that some of the cut the cost of reconstruction out of the Pocket, back in profits and consumer spending have to pay are companies and consumers.

Japan's economy takes a hit from the industrial production of damage Quake to factories closed. There were imminent for parts and components, especially for the electronics and auto isolated reports of shortages.

But Japan is a large diversified economy and the disaster area is a relatively small portion of the country's GDP. Economists also note that the devastating loss of any major natural disaster, especially in a developed country such as Japan, usually heavy expenditure and investment in the reconstruction, all follows that helps to promote growth.

"I not attempts to say, there are no problems," said Steven Wieting, Citigroup Director of the economic and market analysis. "But also radiological disaster, Chernobyl, three mile Iceland, what happened with the deepwater horizon in the last year, it is a lot of emotion and concern." "But none of the events, including the earthquake in Kobe, all these natural disasters not long-term, lasting economic impact."

As for the global economy, despite isolated parts lack of Japanese suppliers the Japan earthquake is "Not likely to global trade be significant" and the impact on the Japanese economy will likely "be, localized" according to FedEx CEO fed Smith.

"" You put this way: If we unfortunately one terrific tragedy in Arizona "or saying"Oregon art on the periphery of the country had, it would be terrible,".""But the rest of the United States in all probability would continue operation."

Yen rises
The value of the yen is a potentially larger problem of the recent increase in Japan. The quake induced surge is the result of the various forces, according to currency market observers. Japanese insurance companies and other companies and investors are believed, have sold other currencies loud, cash back home to increase on foreign assets. The scramble to buy Yen has forced its value.

Forex traders have increased movement, by you betting on the rise. That a coordinated effort, the first since the year prompted the central banks of the seven largest industrial countries Thursday, 2000, to agree to hold to the value of the yen in check.

A rising Yen could be with a larger problem than what the Japanese Government may be relatively small damage to its industrial base. Verteuert pay a higher Yen Japan products for everyone in the rest of the world for them with a different currency. That makes Japan's exports less competitive in the global market and offers international companies one more reason to look for other suppliers.

The latest round of government borrowing presents a conundrum for Japan's central bankers, who have fought for years to keep economy with a policy (also more recently by the US Federal Reserve) called "quantitative easing." low interest rates the policy to by dramatically expand the money supply, Keeping interest rates low to stimulate borrowing and revive growth.

It did not work in Japan. Now, as the Japanese Government market with new debt floods, the Central Bank must continue to purchase the bonds if private investors on the plate and help finance of the country's reconstruction efforts intensify not.

Japan's malaise could be eerily familiar in some US officials. The Fed is in his second over, about $600 billion buy bond in June, a response to the collapse of the much younger American financial bubble. As now with its large debt burden Japan, could learn U.S. policy makers from Japan's experience, according to Roach, much.

"Twenty years later, the post-bubble experience the Japan all must give US pause to think, above all those of us in the United States, who believe that it could never happen us", he said. "These are very devastating events and there are lessons in Japan, I think, many of us have not learn."

Litany of failures in Japan nuclear industry

9:07 AM failures, industry, Japan, Litany, nuclear No Comments

TOKYO - behind Japan's escalating nuclear crisis sits a scandal-ridden energy industry in a comfy relationship with government regulators often willing to overlook safety lapses.

Leaks of radioactive steam and workers contaminated with radiation are just part of the disturbing catalog of accidents that have occurred over the years and been belatedly reported to the public, if at all.

In one case, workers hand-mixed uranium in stainless steel buckets, instead of processing by machines, so the fuel could be reused, exposing hundreds of workers to radiation. Two later died.

"Everything is a secret," said Kei Sugaoka, a former nuclear power plant engineer in Japan who now lives in California. "There's not enough transparency in the industry."

Sugaoka worked at the same utility that runs the Fukushima Dai-ichi nuclear plant where workers are racing to prevent a full meltdown following Friday's 9.0 magnitude quake and tsunami.

In 1989 Sugaoka received an order that horrified him: edit out footage showing cracks in steam pipes in video being submitted to regulators is planning. Sugaoka alerted his superiors in the Tokyo Electric Power Co., but nothing happened - for years. He decided to go public in 2000. Three Tepco executives lost their jobs.

The legacy of scandals and cover-ups over Japan's half-century reliance on nuclear power has strained its credibility with the public. Mistrust has been renewed this past week with the crisis at the Fukushima Dai-Ichi plant that. No. evidence has emerged of officials hiding information in this catastrophe. But the vagueness and scarcity of details offered by the government and Tepco - and news that seems to grow worse each day - are fueling public anger and employment frustration.

Story: A crisis in confidence at world's atomic watchdog

"We don't know what is true." "That makes US worried," said Taku Harada, chief executive of the Tokyo-based Internet startup Orinoco. Harada said his many American friends are being urged to leave the capital while the Japanese government says the area is safe, probably to avoid triggering panic.

The difference is unsettling, he said. He has rented an office in Osaka 250 miles (400 kilometers) to the southwest to give his 12 employees the option of leaving Tokyo.

"We still do not know the long-term effects of radiation," he said. "That's a big question."

Tokyo Electric Power Co. official Takeshi Makigami says experts are doing their utmost to get the reactors under control.

"We are doing all that is possible," he told reporters.

Worried that over dependence on imported oil could undermine Japan's humming economy, the government threw its support into nuclear power, and the industry boomed in the profile and influence. The country has 54 nuclear plants, which provide 30 percent of the nation's energy needs, is building two more and studying proposals for 12 more plants.

Before Friday's earthquake and tsunami that triggered the Fukushima crisis and sent the economy reeling, Japan's 11 utility companies, many of them nuclear plant operators, were worth $139 billion on the stock market.

Tepco - the utility that supplies power for Japan's capital and biggest city - accounted for nearly a third of that market capitalization, though its shares have been Europe since the disasters, falling 65 percent over the past week to 759 yen ($9.6) Thursday. Last month, it got a boost from the government, which renewed authorization for Tepco to operate Fukushima's 40-year-old unit 1 reactor for another 10 years.

With such strong government support and a culture that ordinarily frowns upon dissent, regulators tend not to push for rigorous safety, said Amory Lovins, an expert on energy policy and founder of the Rocky Mountain Institute.

"You add all that up and it's a recipe for people to cut corners in operation and regulation," Lovins said.

Story: Donations to Japan start at slow pace

The United States, Japan's close ally, has also raised questions about the coziness between Japanese regulators and industry and implicitly questioned Tokyo's forthrightness over the Fukushima crisis. The director of the U.S. Nuclear Regulatory Commission and the U.S. ambassador this week issued a bleaker assessments about the dangers at the plans than the Japanese government or Tepco.

Competence and transparency issues aside, some say it's just too dangerous to build nuclear plants in Japan like in earthquake-prone nation, where land can liquefy during a major temblor.

"You're building on a heap of tofu," said Philip white of Tokyo-based citizens' nuclear information center, a group of scientists and activists who have opposed nuclear power since 1975.

"There is absolutely no reason to trust them," he said of those that run Japan's nuclear power plants.

Japan is haunted by memories of past nuclear accidents:

In 1999, fuel-reprocessing workers were reported to be using stainless steel buckets to hand-mix uranium in flagrant violation of safety standards at the Tokaimura plant. Two workers later died in what was the deadliest accident in the Japanese industry's history.At least 37 workers were exposed to low doses of radiation at a 1997 fire and explosion at a nuclear reprocessing plant operated in Tokaimura, northeast of Tokyo. The operator, Donen, later acknowledged it had initially suppressed information about the fire.Hundreds of people were exposed to radiation and thousands evacuated in the more serious 1999 Tokaimura accident involving JCO co. The government assigned the accident a level 4 rating on the international nuclear event scale ranging from 1 to 7, with 7 being most serious.In 2007, a powerful earthquake ripped into Japan's northwest coast, killing at least eight people and causing malfunctions at the Kashiwazaki Kariwa nuclear power plant, including radioactive water ex, burst pipes and fires. Radiation did not leak from the facility.

Tepco has safety violations that stretch back decades. In 1978, control rods at one Fukushima reactor dislodged but the accident was not reported because utilities were not required to notify the government of such accidents. In 2006, is Tepco reported a planning negligible amount of radioactive steam seeped from the Fukushima - and blew beyond the compound.

Now with the public on edge over safety, Tatsumi Tanaka, head of risk hedge and a crisis management expert, believes the government would find it difficult to approve new plants in the immediate future.

Tanaka says that, true to Japan's wipe nuclear power record, officials bungled the latest crisis, failing to set up a special crisis team and appoint credible outside experts.

Tokyo Electric Power Co., regulators and the government spokesman have been holding nationally televised news conferences, sometimes several a day, on the latest developments at planning the Fukushima.

But the reactors have been volatile, changing by the hour, with multiple explosions, fires and leaks of radiation. The utility, regulators and government spokesmen often send conflicting information, adding to the confusion and the perception they aren't being forthright, says Tanaka.

"They are only making people's fears worse," he said. "The onset what are the possible scenarios that might happen they need to study at in about five stages and then figure out what the response should be."

Cost for Japan Quake seen up to $200 billion

11:58 AM billion, Japan, Quake No Comments

TOKYO - Japan's devastating earthquake and deepening nuclear crisis could lead to losses of up to $200 billion for the third-largest economy in the world, however, the global impact remains difficult to assess smash five days after a massive tsunami in the North-East Coast.

As Japanese officials, encrypted to 240 km (150 miles) North of the capital Tokyo avert a catastrophic meltdown of a nuclear power plant, assessment of the damage to buildings, production and consumer activity moved economists.

The disaster is expected, to Japanese Edition strongly in the coming months beat, but economists warned that it could lead to a deeper slowdown, if makes deficiency prove significant and persistent, delay, or even the "V shaped" recovery, that the earthquake of Kobe 1995 followed scotching.

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Most believe that the direct economic results between 10-16 trillion yen ($ 5.125$ 200 billion), which is total to a decline in gross domestic product (GDP) in the second quarter, but a sharp rebound in the second half of 2011 as reconstruction investment growth increases.

"The economic costs of the disaster will be great," said economists at JP Morgan. "There are significant loss to economic resources and economic activity damage (such as power outages) will be hampered by infrastructure in the weeks or months."

Their suffered Japanese shares worst two-day rout since the crash in 1987 on Monday and Tuesday, a whopping $ 626 billion lose value before 5.7 percent recovered fell on Wednesday as hedge funds to cover short positions.

But traders remained shy, influenced by each of the new development of the affected Fukushima and warning sign was substantial foreign assets to sell and funds to cover the costs of the nuclear crisis Japanese companies and insurers, Quake and tsunami to repatriate.

High-yield bonds and U.S. treasuries of health care jobs top the list of endangered assets the triple disaster of earthquake, tsunami and nuclear breakdown prompt Japanese investors to overseas funds should say back home, analysts.

Although the damage to the infrastructure is more difficult, some of the biggest risks for the economy can dating indirect market effects of the disaster, such as a rise in the yen.

The yen Fund rose to an all-time high against the dollar after the Kobe earthquake in 1995 during Japanese companies home drawn. The dollar has 3 percent against the yen since the disaster and is now close to the low pressures you to Kobe.

The direction of the yen would have a major impact on Japanese automakers such as Toyota Motor Co., Nissan Motor and Honda Motor, that between 22 and 38 percent of their cars at home build.

HSBC Chief Economist Stephen King said it was too early, put numbers on the economic cost, since the scale of the disaster was not yet clear.

Area of the Japan produces about 4.1% of GDP of the country affected by the tsunami, he said suggesting that first round economic impact could be limited. But the fate of the Fukushima nuclear reactors Japan can have not felt still unclear, the full force of the disaster still.

"At this time, it is too early to come up with reasonable estimates of the overall impact of the terrible events in Japan," wrote note King in a research.

He noted "knee-jerk economic and reactions to shocks and disasters often wide of the mark fall," on faulty predictions a US recession following the attacks of September 11, 2001 and a hit from the Asian tsunami in 2004.

The disaster is already by the global production chain, technology companies as output particularly hard meets Japan accounts for one-fifth of the worldwide semiconductor disturbed.

However, the Fed made no mention of Japan in a statement given the high degree of uncertainty about the global economic impact of the disaster, after its policy meeting on Tuesday.

Story: quake insurance industry well shielded from Japan

The European Central Bank, which earlier this month that it could hike prices in April, also appears warned, in wait-and-see mode as financial markets reduce their expectations for the tightening of monetary policy this year.

Fitch Ratings said that it justifies currently view action, the economic effects as sufficiently serious negative rating on Japan's well diversified economy and sovereign finance show flexibility.

The size of its $5.3 trillion is debt of Japan's economy, the highest proportion of all major developed countries in the world twice. But in contrast to other highly owed countries as Greece, only five percent debt is held of Japan by the foreign investors, so the risks of a financial crisis are limited.

Still, said in a sign that the European Heads of State and Government nervous may it a meeting of G7 Finance Ministers and central bankers to deal with the crisis, had called on their dissemination to Japan debt crisis after the disaster, France, where possible purchases of Japanese debt.

Credit rating agency of Moody's warned earlier this week, that she quake, tsunami and resulting nuclear crisis increased confidence in Japan's finances to lose the chance of investors and eventually calls for higher rates on government bonds.

Now the Government is using 200 billion yen in the emergency reserves to pay for anti-crisis efforts. The fast-developing disaster has prevented that Government officials from working on an emergency could be budget in the range of 5-10 trillion yen.

Some ruling party legislators have to pay a special tax proposed for disaster relief, but Finance Minister Yoshihiko Noda allies said that he is considering not tax increases.

In a bid, reassure investors who not uncontrolled spin be fiscal conditions, Japan has limited sales at 44 trillion yen in the last years new bond, but this ceiling should now be scrapped.

"Basically, the Government must cap, scrap the 44 trillion yen", said Seiji Adachi, an economist at Deutsche securities in Tokyo. "It is an emergency necessary budget as soon as possible, at least in the next one to two months to compile."

Large fund injections of the Bank of Japan keep as far as borrowing costs low and there are no signs of strains in Japan's financial system.

Sources said Reuters, which probably was last purchases the Central Bank, which makes it easy monetary policy by a doubling of funds for asset to 10 trillion yen on Monday, further steps as soon as next month.

Donations to Japan start at slow pace

1:15 PM Donations, Japan, start No Comments

Last year, when an earthquake hit Haiti, one of the world's poorest hastened companies and non-profit organisations to support the country.

The first answer has more Japan than the much wealthier nation involved themselves with so far has left a devastating earthquake and tsunami, the 4,000 dead and at least 7,000 missing, was to all mention of an ongoing nuclear crisis is muted.

At least, was a total give lower than in other recent disasters so far to support the relief efforts in Japan. According to the Chronicle of Philanthropy charity raised, more than $47 million in the first four days after the disaster in Japan. On the other hand the earthquake in Haiti had increased to four days more than US$ 150 million last year.

The difference with notions of Japan's wealth and readiness for a major disaster, compared to the resources of an underdeveloped country like Haiti, handle can have to do, say experts.

In Japan, some can large U.S. businesses feel more forced, aid donations, because they have great customers or other business interests.

"You have company, the operations in Japan, have employees in Japan," said Catherine Rosqueta, the Managing Director for the Center for high impact Philanthropy at the University of Pennsylvania.

Related: Japan earthquake: how we help

But others have held back to be - at least in the beginning - because they not think first of all, they were needed.

"There is a large government in place - a large, strong Government, which has to do so," said Anup Malani, Professor has studied at the University of Chicago law school, corporate philanthropy.

Some organizations are not also ask for money. Nicole Wallace, a senior writer for the Chronicle of philanthropy, said 14 aid agencies the publication spoke with raising funds were not active, because they focus only on the developing countries, or because they operate were if they were needed from,.

The Chamber of Commerce said Wednesday that company had donated so far 137 million US dollars in bar or donations in kind. This tally is probably higher than organizations that have received total cash, donations so far largely because it contains non-cash contributions such as food, shoes or even software.

Vary giving efforts
Just a day after the earthquake in Haiti in January, giant pre-packaged retail Wal-Mart announced a donation of $500,000 and said that it was food kits worth $100,000. Overall the company and its foundations gave more than $1 million to Haiti relief efforts.

In Japan, where 414 operates Wal-Mart stores, an initial response focused the company on the supply of more as a means of payment, as the company organizations, water and other supplies worked with Government and relief food to needy people. Then said on Wednesday it would it $5 million in bar and donations in kind, including 95 tons of water and emergency supplies such as tents, portable toilets, clothing and cover make.

It is not surprising, a company with local operations trying to help this infrastructure, use in a crisis, Rosqueta said.

"they may to local knowledge, local knowledge and deploy of resources in a way, that you not if you (not) in a country," she said.

Other companies also on how they can use their own resources, to help people in the country - focused to mixed results.

Soon after the disaster struck, search launched a person Finder application, engine giant Google that helps people connect, looking for each other. The company, which is also a donation of $250,000 made has drawn kudos for the trouble.

Bing, the search engine operation run by tech rivals Microsoft, citing Twitter where it to donate $1 for every time someone a semi-promotional legend retweeted pledged launched. According to which quickly traced Seattle times the company and promised $ 100,000 donations, after some Bing criticising its occurs, the earthquake as a marketing opportunity to use.

Overall, Microsoft, said that it about 2 million USD aid, including $250,000 in bar and the rest in kind such as software pledge was.

The software giant donated $1.25 million in bar and in-kind donations to the Haiti disaster.

(Msnbc.com is a joint venture of Microsoft and NBC.)

Boeing Co., whose key customers are Japanese airlines, such as all-Nippon, announced on Tuesday that the company and its employees have a 2 million US-dollar donation to recovery efforts in Japan would make. Boeing has over 200 employees and some important business partners in that country.

About two weeks after the earthquake in Haiti, Boeing announced that employees about had donated $910,000 in the direction of relief efforts, and that the company would meet all employees gifts up to $1 million.

Starbucks, the coffee shops in Japan 15 years operated said this week it would donate $1.2 million toward relief efforts.

If the Haiti earthquake struck, the company's Foundation donated $1 million towards relief efforts and accepted donations for the Red Cross in your branches.

Not surprisingly, Japanese companies have been fast and generous in their response to the disaster.

Japanese automaker Toyota has donated US $ 3.75 million relief and recovery in his country of origin. The car manufacturers donated $500,000 to the relief operation in Haiti. Video game companies have also generously given.

If a company to donate said Rosqueta closely they look how they can donate should be used in an effective way, that actually helps with the work, rather than only for the company, decide.

"The first question is not, as a company, what can I donate?" she said.

Instead, she said the company should questions "what are the requirements on the ground?" Once you understand that then is the question, "is there a way that I can meet these requirements?" "

Isolated from Japan Quake insurance industry

2:18 PM industry, insurance, Isolated, Japan, Quake No Comments

Japan's massive earthquake, tsunami and nuclear disaster should not, likely, the most expensive natural catastrophe on the files, but the impact on the private insurance industry that Hurricane Katrina will exceed in 2005.

This is partly because Japanese House and apartment owners and companies heavily leave insurance system, rather than private insurance on a State-funded earthquake. As a result, only about 14 to 17 percent of the Japanese houses private earthquake have insurance, estimates the reinsurance Association of America.

The Japanese system is also a cap on total damage by the Government and private insurers paid. If total claims about above, are $60 billion payments pro-rata which means that House and apartment owners and companies would have to for a partial coverage of their losses to settle.

This is a relatively small payment for the private insurance industry, and it is distributed to more than one player.

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Nevertheless, be the total cost of the last week 9.0 magnitude quake and resulting tsunami astronomical. Estimates put total losses at $180 billion private bank, a figure which could later when leaks from a crippled nuclear power plant further damage, radiation

The figure on the files would - making Japan the most expensive natural catastrophe earthquake greater than Hurricane Katrina, the losses created $125 billion and some 1,300 people killed in the year 2005. Losses were about half of Katrina's insurance, which covers the insurance industry, in a $66 billion.

Story: Quake economic hit from Japan up to $200 billion seen

Thanks to the limits of liability and a longtime financial attack by the Japanese Government, the cost of the quake of Sendai, the private insurance industry will be probably far lower. Most cited widely estimates of insured damage comes from AIR worldwide, insurance consultant, who provides these losses in the range of $ 15 billion to $35 billion. This figure, the tsunami damage not cover could increase according to Jayanta Guin, AIR worldwide head of research and modelling.

"It is too early in the episode;" We hundreds all geophysical data and simulation of ground motion and estimate damage based run computer simulations using this simulation, "he said." "We are working out the details to see whether we can further customize it."

Insurance premiums rose after Katrina, but are unlikely this time around say to do analysts

The insurance impacts from the Sendai Quake likely above all of the Japanese domestic non-life insurance and life insurance industries "with a healthy portion of the community together global reinsurance" absorbed, said Robert Hartwig, President of the insurance information Institute, an industry group.

The biggest wild card estimates is damage the threat to life and property by the crippled Fukushima Dai-Ichi nuclear plant, which was leaking radiation. These potential costs are recognized, but the private insurance industry is fully shielded from the financial effects.

After the Japanese nuclear Act of 1961 operators of nuclear plants for any damages liable as a result of a "severe disaster of an exceptional nature," according to the reinsurance Association. Tokyo electric power, the plant operator, has its own private property insurance for the work, but analyst at Swiss Bank Vontobel is excluded from the directive according to Stefan Schurmann damages due to earthquakes and tsunamis.

He said "These disasters by the property and casualty insurance policies are excluded,".

If insurance companies Quake purchases of large natural disasters such as the Japan and tsunami face, they are based generally on the other, larger insurers - so called "reinsurers", which serve as a backstop, when losses get too large. After raising the reinsurance industry keeps premiums after the large losses from Katrina, currently surplus capital from $50 to $70 billion, according to investment bank Credit Suisse.

Story: Japan crisis could squeeze car world production

The financial hit in the reinsurance industry will be tempered by payouts on private insurers by the Japanese Government, provides a separate earthquake reinsurance attack to the Japanese insurance industry. All of this global reinsurers can be well positioned to handle what could be the most expensive natural disaster in history.

Could contribute to, another round of increases as the moderate, which followed the huge payouts from Hurricane Katrina.

Insurance premiums cause usually in cycles, increases in so-called "hard" markets, if heavy losses insurers premiums to enforce, and fall into the "soft" markets, if large cash spark competition to new customers and discount discounts pillows.

Although the cost of the coverage of the earthquake Japan can be manageable, a string of losses, the more than $50 billion, including the large payouts on damage from the recent earthquake in Chile and New Zealand and floods in Australia have total results. So even before the earthquake of Japan, the cycle was swinging again created by surpluses of accumulated post-Katrina from the "soft" market.

But while premiums rise in Japan is expected, analysts say consumers anywhere else in the world probably not see large increases - if and as long as a more major disaster hits.

Japan Quake economy will already come

4:38 PM already, economy, Japan, Quake No Comments

TOKYO Japan's central bank on Monday rushed to bolster markets in the wake of the country's worst disaster since World War II, and although the authorities said it was too early to put a figure on the damage, critics said a stronger initial response had been needed.

Global stock markets swooned at the shock of an 8.9 magnitude earthquake and a tsunami that may have killed more than 10,000 and has left millions of people without power, water or homes.

Japan's Nikkei stock average closed Monday down 6.18 percent, losing over 600 points and registering its biggest single-day decline since October 2008. The sell-off on the Tokyo Stock Exchange wiped some 23.5 trillion yen ($287 billion) off the market's value.

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At the same time, engineers were battling to prevent a nuclear meltdown at the Fukushima Daiichi complex owned by Tokyo Electric Power Co (TEPCO), where three reactors threatened to overheat in the worst atomic power accident since Chernobyl in 1986.

Investment bank Credit Suisse put economic losses from the quake at no less than $171 billion, although Finance Minister Yoshihiko Noda said it was too early to put together a firm figure to compile a supplementary budget.

Insurance companies are looking at billions in losses from the earthquake and tsunami, with one early estimate placing the figure as high as $60 billion, which would make the disaster the most expensive ever behind Hurricane Katrina.

"Given the enormity of the earthquake that struck Japan ... it is still in the very early aftermath of the event," said Jayanta Guin, senior vice president of research and modeling at AIR Worldwide, which has put early estimates for insurance costs at $15-35 billion.

"Search and rescue efforts are still underway and damage assessment has only just begun, while considerable uncertainty still remains in the seismic parameters that define the event," added.

A Credit Suisse report suggested initial insurance cost estimates ranging from $10 billion to $50 billion.

Barrie Cornes, an insurance analyst at Panmure Gordon & Co. in London, warned that with the tsunami bill added in, the cost to the global insurance industry could rise above $60 billion dollars.

The Bank of Japan doubled its asset buying scheme to 10 trillion yen ($122 billion) Monday and held interest rates at 0-0.1 percent after it earlier said it would pump a record 15 trillion yen into the banking system, though some economists said it could have done more.

A swathe of high profile Japanese manufacturers, including Sony Corp, Toyota Motor Co and Panasonic have shuttered production lines, with restart efforts hampered by quake aftershocks.

About a fifth of the country's nuclear power generation capacity has been shut down by the disaster. Thermal plants also shut down, forcing the world's third-biggest economy to instigate rolling blackouts to conserve energy.

"The tremors will likely continue for one to two months, experts say, and are continuing now, so there's an immense amount of uncertainty and unclear points." said Masayuki Kubota, a senior fund manager at Daiwa SB Investments.

Economists said that the triple blow of quake, tsunami and nuclear accident is set to damage the already struggling economy harder and longer that initially expected.

Analysts have grown increasingly cautious about forecasting a quick economic rebound similar to that after the Kobe earthquake in 1995, thanks in part to Japan's indebtedness which at twice the size of gross domestic product means the government has less room for maneuver.

Some say a recession is possible.

"Power supply is a critical factor," said Michala Marcussen, head of global economics at Societe Generale. "If power production output is damaged in a sustainable fashion, that could have a durable impact on the economy.

Monumental task
TEPCO, the biggest power company in Japan, said on Sunday rolling blackouts would affect 3 million customers, including large factories and buildings from Monday onwards. It aims to end the blackouts by the end of April.

Policymakers face a monumental task reviving the economy, not only because of the scale of the disaster but because of their limited options.

After the Kobe earthquake, the government adopted an extra budget worth around 3 trillion yen.

"This time, the government can't afford to spend as much as after the 1995 quake given Japan's dire fiscal situation," said Takuji Okubo, chief economist at Societe General in Tokyo, who reckons a more realistic figure to expect is 1 trillion yen.

The Bank of Japan (BOJ) had little room to move on rates, thanks to the legacy of the global financial crisis and years of economic stagnation, in stark contrast to New Zealand, where the central bank last week slashed interest rates by half a percentage point to 2.5 percent to support an economy hit by a 6.3 magnitude earthquake on February 22.

"My initial impression is that the BOJ could have done more. Its traditionally reserved stance on policy easing remains in place even after the massive earthquake," said Masamichi Adachi, senior economist at JPMorgan Securities Japan.

"The BOJ also kept its economic assessment unchanged. The bank thus seems to be not fully taking account of strong uncertainty shrouding Japan."

Stock shock
The benchmark Nikkei stock average fell Monday amid concerns about rolling power blackouts hit the value of auto and electronics firms and the yen slid against the dollar.

Electronics giant Sony, maker of the Playstation gaming console, dropped 9.1 percent by the close of trade. The firm has suspended production at eight plants. Carmaker Nissan Motor Corp fell more than 9.5 percent after it shut down all four of its auto assembly plants in Japan.

"It will take quite some time until investors' confidence in Japanese manufacturers returns. When we look back at the Kobe earthquake, it took about a week to get an overall picture of magnitude of the damage," said Toshihiko Matsuno, senior strategist at SMBC Friend Securities.

The prospects of a massive recovery effort boosted contractor companies. Kajima Corp jumped more than 22 percent and Hazama Homes more than 19 percent.

The market impact of the disaster will be felt far beyond Japan. Companies that trade with Japan face a loss of business and worries that governments will look at nuclear power less favorably.

Story: Japan accident dims odds of U.S. nuclear revival

Almost 2 million households are without power in the freezing north and about 1.4 million lack running water.

Kyodo news agency said 80,000 people have been evacuated from a 20-km (13 mile) radius around the stricken Fukushima nuclear plant, adding to 450,000 evacuees from the quake and tsunami.

An explosion rocked the number 3 reactor on Monday although Jiji news agency said the core container was intact. TEPCO shares were untraded as sell orders outnumbered bids 200 times.

The complex was rocked by a first explosion on Saturday, which blew the roof off a reactor building. The government had said further blasts would not necessarily damage the reactor vessels.

TEPCO said on Monday it had reported a rise in radiation levels at the complex to the government.

Authorities had been pouring sea water to keep the fuel rods in the reactors cool. Nuclear experts said it was probably the first time in the industry's 57-year history that sea water has been used in this way, a sign of how close Japan may be to a major accident.

"Injection of sea water into a core is an extreme measure," Mark Hibbs of the Carnegie Endowment for International Peace. "This is not according to the book."

The Associated Press and Reuters contributed to this report.

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