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Switzerland Newsletter Issue 30 September 2011 Switzerland Newsletter Japan’s current economic situation As difficulties related to 280,046 yen per house- Special points of interest: the supply of goods have hold in July from a month • While supply-side constraints have been mostly resolved, Ja- earlier. The consumer con- been mostly resolved, Japan’s indus- pan’s economy continues fidence index also in- trial production was up for the fourth to recover, returning to a creased in July for the straight month in July 2011 to 93; it almost recovered to February pre- production almost similar third consecutive month, earthquake levels of 97.9. to pre-earthquake levels. but remained stable in Whereas exports remain August at 37.0 (see • “Otsuka will soon bring on the mar- ket a compound that will target multi at a slightly lower level graph). In addition, the -drug resistant tuberculosis (MDR- than last year (-3.4% in unemployment rate was TB) – one of the most deadly and July), they rose sharply in 4.7% in July, up from 4.6% complicated forms of TB to treat”, both May and June and in June but down from Dr. Carlevaro stated. marginally in June (+0.1%) 4.0% in July 2010. • “BoJ is unlikely to take a decision to ¥5,781 billion. Exports As a result of the recovery similar to SNB’s one. The yen is the to the United States of foreign and domestic third most traded currency, after the US dollar and the euro, accounting (+3.8%), China (+2.8%) demands, Japan’s indus- for 9.5% of the foreign exchange and the European Union Some indices reflecting Ja- trial production was up for market, whereas the Swiss franc (+1.6%) increased in July pan’s economic situation the fourth straight month represents 3.2% (Bank for Interna- from previous month. Source: Cabinet Office, Minis- in July 2011 to 93. It al- tional Settlements). Moreover, the try of Economy, Trade and government of Japan would probably Imports rose 9.9% in July most recovered to Febru- Industry be reluctant to take a decision that year-on-year. Imports of ary production levels of could lead to negative reactions of foodstuffs, which soared 4.3% in July month-on- 97.9. The leading index of its trading partners”, Manabu Eto, after the earthquake dis- month. business conditions also JETRO Geneva Director General, said. aster due to demand for The domestic demand rose in July for the third substitutes, declined 6.0% also slightly recovered. straight months to 106.0 in July from previous The average of monthly (2005=100), marking an month. However, imports consumption expendi- increase by 2.6% from of raw materials increased tures rose 5.4% to previous month. Inside this issue: Japan’s current economic 1 situation Otsuka’s office in Geneva 1 & 2 Otsuka’s office in Geneva promotes global health policies promotes global health poli- Founded in 1964 Otsuka creased 5.8% in FY 2010, rate social responsibility cies Pharmaceutical Co., Ltd. ending March 2011, from initiatives. It also ap- Coordinated banking action 2 (“Otsuka”) is the second ¥ 440.4 billion to ¥ 465.8 pointed Dr. Patrizia Carle- to protect EU banks largest Japanese research (see graph on next page). varo as the managing di- -based pharmaceutical In May 2011, it estab- rector of this Swiss sub- Japanese yen against weaker 3 currencies group. Otsuka Group has lished a subsidiary in Ge- sidiary. diversified businesses neva to promote the com- 2011 Month of Japanese 4 operations in 23 countries pany’s global tuberculosis (Continued on page 2) Culture will benefit to victims and regions around the program among other world. Its net sales in- public health and corpo- Page 2 JETRO Switzerland Newsletter Otsuka’s office in Geneva promotes global health policies 500 80 (Continued from page 1) disease, ophthalmology 465.8 75 73.6 and dermatology. 450 440.4 70 Dr. Carlevaro has exten- Tuberculosis affects about 413.3 65.2 400 65 sive experience working 9 million people around 380.8 60 with international organi- the world and is responsi- 57.3 350 55 zations, having served the ble for the death of 1.7 50 UN Children’s Fund million people per year. So 300 48.9 45 (UNICEF) and the UN In- far, its medical treatment dustrial Development Or- requires a cocktail of drugs 250 40 FY 2007 FY 2008 FY 2009 FY 2010 ganization. She was also that patients have to take Net sales (billion yen) Operating income (billion yen) the Head of the Interna- for a six-month to two-year Financial situation of Otsuka tional Aid Unit at Lilly, a period. Failure to take the Pharmaceutical Co., Ltd. US-based pharmaceutical drugs correctly or adhere group. to this strict regimen has Dr. Patrizia Carlevaro, led to the spread of multi- International platform in Managing Director, Otsuka SA drug resistant forms of tu- Geneva berculosis (MDR-TB). generating increased pub- In addition, the disease is “Otsuka wants to build an lic awareness of TB diag- spreading in some devel- international platform to nosis and treatment oping countries, especially promote the company’s around the world and cre- among people who have global tuberculosis pro- ating partnership alliances HIV/AIDS. It has appeared gram and others. As an with NGOs, academics, again in some developed international and cosmo- scientists and many oth- countries, like Italy and the politan city, hosting a ers”, she further explained. United Kingdom. large number of interna- Otsuka just joined in June Tuberculosis is a neglected tional organizations, in- 2011 the International disease. Whereas few com- cluding the World Health Federation of Pharmaceu- panies carry out significant Organization, World Trade tical Manufacturers and research on this disease, Organization and a num- Associations (IFPMA). Otsuka has made research ber of Non-Governmental on tuberculosis a priority Organizations (NGOs), it Otsuka’s new drug against for over 30 years. It is to- makes sense to open the tuberculosis day recognized as the main office in Geneva”, Dr. Car- private funder of tuberculo- levaro said. Otsuka researches, devel- sis drug development. “Our objective is to help ops, manufactures and As a result, “Otsuka will develop a strategy for the sells pharmaceutical and soon bring on the market a promotion of Otsuka’s nutritional products. It fo- compound that will target global tuberculosis pro- cuses on the fields of the multi-drug resistant tuber- gram. This includes central nervous system culosis (MDR-TB) – one of launching public health (CNS), oncology, cardiovas- the most deadly and com- programs that will be sup- cular, digestive and respi- plicated forms of TB to ported by the company, ratory systems, infectious treat”, Dr. Carlevaro stated. Coordinated banking action to protect EU banks Exactly three years after and to avoid fears of credit lions of US dollars into the Lehman Brothers col- crunch in the euro zone. European monetary sys- lapse, five central banks Bank of Japan, Swiss Na- tem. They will provide US- decided a coordinated tional Bank, European dollar loans at fixed inter- action to restore confi- Central Bank, Bank of Eng- ests in three auctions, first dence in the ability of EU land and US Federal Re- one taking place on Octo- banks to provide loans, serve will inject jointly bil- ber 12. Issue 30 Page 3 Japanese yen against weaker currencies Whereas Swiss National tary Fund). However, as have to keep in Japan their Exchange rates between global major Bank has set on Septem- Japanese public bonds core businesses, for exam- currencies ber 6 a minimum Swiss are mainly held by domes- ple their R&D department. 120 franc exchange rate to tic institutions and indi- limit its appreciation viduals, investors remain How to tackle this issue? 110 against the euro, the Japa- confident. For instance, nese yen continues to fluc- decision of rating agency BoJ is unlikely to take a 100 tuate and to appreciate. Moody’s to downgrade decision similar to SNB’s Founded in 1871 to re- Japan’s government rating one. The yen is the third 90 place the Ryo, the value of from Aa2 to Aa3 on Au- most traded currency, af- the yen against the dollar gust 24, 2011, had little ter the US dollar and the 80 was fixed after the Second impact on financial mar- euro, accounting for 9.5% World War until 1973. De- kets. of the foreign exchange 70 spite several interventions market, whereas the Swiss of the Bank of Japan’s Challenges for Japan’s franc represents 3.2% (BoJ) and low interest economy (Bank for International 60 economy Jul Jul 11 Apr - Oct Apr - - Oct Jan Jan Jun Jun Aug Aug Aug Feb Feb Nov Nov Sep Sep Dec Sep Dec - Mar - Mar - - Mar - May - - - May - - - - - - - - - - - - - - - - 6 - 5 8 2 3 8 2 20 27 27 13 13 19 22 17 16 31 Sep 10 24 14 15 29 22 16 30 11 25 rates, yen’s value rose in Settlements). Moreover, - Sep 2010 Sep - 28 the 1970s and 1990s, As Japan is an exporting the government of Japan 1 reaching a peak under 80 economy too, the low would probably be reluc- yen per dollar in April value of foreign curren- tant to take a decision that YEN/EUR YEN/CHF YEN/USD YEN/1000WON 1995. cies, especially ones of its could lead to negative re- Sources: Bank of Japan, Euro- main competing econo- actions of its trading part- pean Central Bank, Swiss Na- Against weaker currencies mies (Korea and China), is ners. tional Bank and Bank of Korea a serious issue for Japa- BoJ decided on August 29, In a context of sovereign nese exporters.
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