Protectionist Trade Policies, Trade Frictions, and Geopolitical Risks

「中東情勢をはじめとする地政学的リスクや通商政策の不確実性などにより、先行き不透明な状況が続いております。」

「During the interim consolidated fiscal period, the Japanese economy recovered moderately as personal consumption picked up against a backdrop of improved employment and income conditions and corporate earnings remained firm, despite the impact of high energy and raw-material costs, price increases caused by the weak yen and US trade policy. Meanwhile, although the global economy maintained a moderate recovery trend, the outlook remained uncertain due to geopolitical risks, including the situation in the Middle East, and uncertainty over trade policy.」

「一方で、中東情勢の緊迫化をはじめとする地政学的リスクや、円安基調の継続に伴う原材料・エネルギーコストの高騰に加え、国内における物価高の定着など、依然として先行き不透明な状況が続きました。」

「During the consolidated fiscal year, the Japanese economy followed a moderate recovery trend, supported by improvements in employment and income conditions and increased inbound demand, although real wage growth remained sluggish amid sustained price increases and high raw-material and logistics costs continued to pressure corporate earnings. The global economy remained firm in the United States, supported by solid personal consumption, but recovery varied by region, with economic stagnation in Europe and a prolonged adjustment in China's property market. The outlook remained uncertain due to the effects of global monetary tightening and heightened geopolitical risks, among other factors.」

「自動車産業では、ＥＶ（電気自動車）市場の減速や米国の関税政策による影響など、予断を許さない状況が続いております。」

「However, looking at the global economy, prolonged inflation concerns and volatility in financial markets, together with protectionist moves including US tariff policies, have caused disruption to international supply chains, and the outlook has remained uncertain.」

「Meanwhile, concerns about a downside to the economy have emerged due to geopolitical risks including the situation in Ukraine, soaring crude-oil and raw-material prices, tariff policies under the Trump administration in the United States, and US-China trade tensions, leaving the outlook uncertain.」

「Meanwhile, the global economy has continued to face an uncertain outlook, with concerns about a downside to the economy due to high interest-rate levels in the United States and Europe, an economic downturn in China, and continued soaring energy and raw-material prices.」

「During the consolidated fiscal year, energy and raw-material prices remained high, partly due to the prolonged situation involving Russia and Ukraine and heightened tensions in the Middle East, while the advance of global inflation led to tighter monetary policy. In China, economic stagnation continued, originating in the property-market downturn, among other factors, leaving persistent concerns about downside risks to the economy and an uncertain outlook.」

「During the first nine months of the current consolidated fiscal year, the global and Japanese economies continued to face an uncertain outlook due to geopolitical risks, including the prolonged Russian invasion of Ukraine and political instability in the Middle East, as well as other factors. Energy prices remained high, and personal consumption remained weak due to rising prices. In China, personal consumption has stagnated against a backdrop of the impact of US-led restrictions on semiconductor exports to China and deterioration in the property market, leaving the global situation uncertain.」

「However, personal consumption in China has stagnated and the economy has slowed against a backdrop of deterioration in the property market. In addition, the outlook remains uncertain due to continued monetary tightening centered in the United States and Europe and the impact of US-led restrictions on semiconductor exports to China, among other factors.」

「However, the outlook remains uncertain due to the continued monetary tightening centered in the United States and Europe and the impact of US-led restrictions on semiconductor exports to China, among other factors.」

「During the consolidated fiscal year, the global and Japanese economies continued to face an uncertain outlook, despite progress toward normalizing overall social and economic activity, due to material shortages and soaring energy and raw-material prices associated with heightened geopolitical risks, including the situation in Ukraine, and monetary policy tightening resulting from worldwide inflation.」

「During the first nine months of the current consolidated fiscal year, the global and Japanese economies showed signs of an overall recovery in economic activity, but the outlook remained uncertain due to material shortages and soaring raw-material prices resulting from the emergence of geopolitical risks, including the situation in Ukraine; worldwide inflation driven by US monetary policy and other factors; and a resurgence of COVID-19 infections in China following the easing of restrictions. There were concerns about the impact on future appetite for capital investment.」

「Meanwhile, the outlook remains uncertain due to the effects of geopolitical risks among major powers, including the situation in Ukraine; worldwide price increases for energy resources, raw materials and consumer goods; concerns about recessions in the United States and other countries resulting from US monetary policy; and factory shutdowns caused by lockdowns in various parts of China.」

「Meanwhile, the outlook remains uncertain due to issues involving shortages of resource supplies resulting from the situation in Ukraine and a record depreciation of the yen caused by US interest-rate hikes to curb inflation.」

「However, concerns remain about a downside to the economy due to stagnant economic activity resulting from heightened geopolitical risks, including Russia's invasion of Ukraine and tensions between the United States and China, while the risk of COVID-19 spreading also remains.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」

「During the consolidated fiscal year, the global economy saw a worldwide trend toward restraining capital investment due to stagnant economic activity associated with the spread of COVID-19 and prolonged tensions between the United States and China, among other factors.」

「The Group's overseas sales also faced difficulties, although capital investment in automation and labor-saving equipment continued against a backdrop of rising labor costs, due to the impact of US-China trade tensions and slower growth in the overall smartphone market.」

「During the third quarter of the current consolidated cumulative period, uncertainty about the outlook for the global economy increased, including due to the slowdown in the Chinese economy resulting from prolonged US-China trade tensions, and the overall economy continued to slow. In Japan, private consumption remained solid, but exports were sluggish due to the global economic slowdown, and growth remained weak as companies became more cautious about capital investment.」

「During the six-month period of the current consolidated fiscal year, the global economy continued to slow as the impact of the Chinese economic slowdown, caused by prolonged US-China trade friction, expanded. The Japanese economy was also affected by the global slowdown, with sluggish exports and increasingly cautious capital investment, among other factors, and showed stronger signs of slowing.」

「The economy has continued to slow moderately due to escalating US-China trade tensions and the issue of the UK's withdrawal from the EU, among other factors.」

「Although capital investment in automation and labor-saving equipment continued in overseas markets against a backdrop of rising labor costs, sales faced difficulties from the second half of the fiscal year due to the impact of US-China trade tensions and slower growth in the overall smartphone market.」

「During the cumulative third quarter of the current fiscal year, the U.S. economy, which had remained strong, showed increasing signs of a slowdown due to the continuation of the Trump administration’s protectionist trade policies and the Federal Reserve’s monetary tightening, among other factors. In Europe, protracted negotiations over the United Kingdom’s withdrawal from the EU made the outlook for external demand within the EU uncertain. The Chinese economy was also heavily affected by U.S.-China trade frictions, creating conditions that could lead to a slowdown in the global economy as a whole.」

「During the cumulative second quarter of the current fiscal year, the global economy was viewed with concern over a slowdown caused by the United States’ protectionist trade policies. However, the United States and Europe performed well against a backdrop of stable labor markets, while China, which had been viewed as the greatest concern, remained broadly firm.」

「In Japan, capital investment by export-related companies, led by the automotive industry, which had been viewed with concern because of a slowdown in growth caused by trade frictions originating in the United States, remained firm. Despite underlying concerns such as trade frictions and geopolitical risks, the domestic economy as a whole continued to recover gradually.」