“Hitachi is seeking to reverse a multi-decade strategy of expanding into everything from televisions to vacuum cleaners and nuclear reactors after reporting a record loss for a Japanese manufacturer last fiscal year. The company plans to reduce about 200 units, merge its unprofitable chip subsidiary with a rival and relocate workers in its plasma-display and automotive units to cut 260 billion yen in costs this year.”
This is evidence of capitulation in Japan…a large corporation finally actually cutting capacity.
Also, Double Dip Alert In Japan notes that
“It is very striking how Japanese industrial activity is weakening just as the rest of Asia is surging. Even if Japan’s exports fell at the slowest pace in a year in October as government spending across the globe boosted demand, shipments abroad were still down 23.2 percent – a vast improvement, it should be noted, when compared with the 30.6 percent decline seen in September.”