Global economic instability caused by the trade war

「The global economy during the consolidated fiscal year under review remained uncertain due to concerns over an economic slowdown resulting from U.S. tariff policy, soaring crude oil prices resulting from the prolonged situation in the Middle East and deterioration in the situation involving Iran, and continuing uncertainty in China due to economic stagnation and accelerating inflation.」

「Although the impact of U.S. trade policy is expected to ease, concerns remain over a prolonged surge in crude oil prices resulting from the situation in Iran, and the outlook for the economy is expected to remain uncertain.」

「During the interim consolidated accounting period, uncertainty over the outlook spread rapidly across the global economy as a result of the higher tariffs imposed by the United States. Although the US economy appeared stable on the surface, conditions remained unpredictable as tariff policy and inflationary pressures increased the burden on personal consumption. In China, exports to the United States declined substantially, while the real estate market remained sluggish.」

「In China, the slowdown continued due to the prolonged slump in the property market and sluggish personal consumption, and uncertainty about the outlook persisted.」

「During the consolidated fiscal year, the outlook remained uncertain due to monetary tightening and surging resource and raw-material prices in Europe and the United States, continuing tensions involving Ukraine and the Middle East, and concerns about a slowdown in the Chinese economy.」

「During the cumulative third-quarter period, normalization of economic activity supported a gradual recovery, but uncertainty continued due to the prolonged Russian invasion of Ukraine, heightened tensions in the Middle East, persistently high resource and energy prices, continued monetary tightening and the slowdown in the Chinese economy.」

「During the cumulative second-quarter period, signs of a global economic slowdown became increasingly pronounced due to persistently high raw-material and energy prices and interest-rate hikes by central banks amid high inflation. In China in particular, the pace of economic recovery slowed and concerns about recession continued.」

「During the cumulative first-quarter period, the global economy remained uncertain due to the prolonged Russian invasion of Ukraine, energy issues and financial instability caused by interest-rate hikes by central banks, although the US economy remained firm in employment and personal consumption and economic activity in China began to normalize following the lifting of its zero-COVID policy.」

「Looking ahead, economic conditions are expected to recover as restrictions associated with COVID-19 are further eased, but difficult conditions are expected to continue due to the unstable global situation stemming from Russia's invasion of Ukraine, surging raw-material prices and energy costs, and the impact of inflation-control measures in the United States and elsewhere.」

「Meanwhile, the outlook remained uncertain due to higher resource prices resulting from the prolonged situation in Ukraine and the yen's rapid depreciation accompanying substantial interest rate hikes in the United States.」

「During the cumulative first-quarter period, the global economy had been recovering from the COVID-19 pandemic as economic activity resumed, but the pace of recovery slowed due to factors including the Russia-Ukraine issue, surging resource prices, supply-chain disruptions and global inflation. Interest-rate hikes to contain inflation also intensified concerns about an economic recession.」

「Looking ahead, resource prices have surged in Europe and the United States due to Russia's invasion of Ukraine and economic sanctions imposed on Russia by Western countries, further intensifying inflationary pressure. In China, the cooling property market triggered by credit concerns at Evergrande Group and lockdowns, including in Shanghai, under the zero-COVID policy are slowing economic growth.」

「No new business or other risks arose during the nine months ended 31 December. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the first half of the current consolidated fiscal year. In addition, no material changes have occurred in the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「Looking ahead, economic conditions are expected to recover as COVID-19 vaccinations progress in Europe and the United States, but the US-China confrontation over the East China Sea could affect trade and financial markets.」

「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「During the consolidated fiscal year, the global economy had been slowing, particularly in manufacturing, against the backdrop of prolonged US-China trade friction. Economic activity was severely restricted by the global spread of COVID-19, causing a rapid deterioration in economic conditions.」

「During the cumulative third-quarter period, the global economy continued to slow due to factors including prolonged US-China trade friction, the slowdown in the Chinese economy and heightened tensions in the Middle East, and the outlook remained uncertain. The Japanese economy remained lacking in strength. Although domestic demand drove continued improvement in employment and income conditions, the economy was affected by the backlash from the consumption tax increase, natural disasters and sluggish external demand against the backdrop of the global economic slowdown. Against this economic backdrop, the group's product sales in China and exports declined, in part due to the impact of US-China trade friction. Revenue was ¥9.071 billion, down ¥569 million, or 5.9%, year on year.」

「During the cumulative second-quarter period, the global economy showed increasingly pronounced signs of slowing against the backdrop of prolonged US-China trade friction. Uncertainty also increased as the United States and Europe implemented monetary-easing policies to support their economies. The Japanese economy remained supported by firm domestic demand, including continued improvement in employment and income conditions, but the outlook remained uncertain due to the prolonged US-China trade friction and the impact of slowing economies in China and Europe. Against this economic backdrop, domestic demand for the group's products, including those for paints and construction materials, remained firm. However, sales of products in China declined as the Chinese economy slowed, and sales of products for electronic components also decreased. As a result, revenue was ¥6.041 billion, down ¥211 million, or 3.4%, year on year.」

「During the cumulative first-quarter period, the global economy lacked strength, with signs of a change in direction emerging even in the US economy, which had been driving the recovery. The outlook remained uncertain due to the prolonged US-China trade friction and growing concerns about a further slowdown in the Chinese economy.」

「During the consolidated fiscal year, the global economy generally remained on a recovery track, led by the strong US economy, but the outlook remained uncertain as the impact of US-China trade friction, the slowdown in the Chinese economy and signs of a slowdown in the European economy persisted, with the issue of the UK's withdrawal from the EU also deferred. In the second half of the fiscal year, negative effects from factors including US protectionist policies and the slowdown in the Chinese economy became apparent.」

「During the cumulative third-quarter period (1 April 2018 to 31 December 2018), the global economy remained unstable. Although foreign exchange markets were relatively stable, the widening trade friction between the United States and China weighed on the global economy as a whole. The slowdown in the Chinese economy became more pronounced due to factors including cuts in excess production capacity and declining exports caused by US-China trade friction.」

「The Chinese economy has also shown increasingly clear signs of slowing as a result of the trade war with the United States. Funds have been withdrawn from emerging-market economies due to the impact of US interest-rate hikes, and some countries have fallen into currency depreciation and negative growth.」

「The trade war initiated by the Trump administration has become a source of instability for the global economy.」