QUOTE AND NEWS
Reuters  Jul 11  Comment 
General Electric and Mitsubishi Corporation are forming a joint venture with a Bangladesh private power firm to set up a 2,400 megawatt (MW) thermal power plant and related oil and LNG terminals in an investment of $3 billion, the companies said...
Wall Street Journal  Jul 10  Comment 
The stakes are high for the long-delayed Mitsubishi Regional Jet, with Boeing entering the regional-plane market and analysts forecasting a huge wave of plane orders in coming years.
Financial Times  Jul 8  Comment 
Owner Carlos Ghosn seeks to cement Franco-Japanese alliance
Flightglobal  Jul 6  Comment 
Mitsubishi Aircraft started flying the MRJ90 in November 2015. For 31 months, the test fleet has performed standard trials, mostly out of public view. In public, the MRJ90 test fleet has been shown parked in a static display of a major air show.
Wall Street Journal  Jul 6  Comment 
Mitsubishi Motors is trying a novel approach to get more American car owners interested in sharing driving data with auto insurers: $10 off an oil change. The Japanese car maker has debuted a rewards-linked smartphone app.
Channel News Asia  Jun 22  Comment 
Renault SA absorbing Nissan Motor Co. and Mitsubishi Motors Corp is not an option as the carmakers look to strengthen their partnership while retaining their autonomy, alliance chairman Carlos Ghosn said on Friday.
Flightglobal  Jun 13  Comment 
Japan has set up an expert panel to look into regulations governing aircraft type certificate holders, ahead of Mitsubishi Aircraft s plan to enter the MRJ regional jet into service in 2020.
Channel News Asia  Jun 11  Comment 
Japan's Mitsubishi Materials Corp on Monday announced a top management reshuffle after the maker of metals and other products for the first time explicitly accepted responsibility over a data tampering scandal dating back to last year.




 

Mitsubishi UFJ Financial Group (NYSE:MTU) (also known as MUFG) is the world's largest bank holding company by total assets.[1] Despite having the most assets, the Japanese bank holding company is smaller in terms of market capitalization than other large money-center banks, like Wells Fargo (WFC), J P Morgan Chase (JPM), and Bank of America (BAC). The market's lower valuation stems from Mitsubishi's historically low return on assets (ROA).[2]

The Japanese bank runs a conservative book compared to industry peers, with a loan-to-capital ratio of 68%.[2] While this has limited ROA/earnings, it has kept the bank from having capital issues as European and American competitors, such as Lehman Brothers (LEH), UBS AG (UBS), and Citigroup (C).[3] Mitsubishi uses bank deposits and short-term borrowings to originate loans to corporations, governments, and individuals. MUFG also invests in Equities and bonds.

While the company is Japanese, its ADR is publicly traded (NYSE: MTU).[4] Not only does Mitsubishi's financial health and outlook affect the share price, but also the Yen/USD exchange rate. The company records earnings and assets in its local currency, so an appreciation of the Yen benefits the ADR price and increases the nominal value of dividends on its ADR shares, as it earns more in terms of US dollars.[5] A bit suprriesd it seems to simple and yet useful.

Umm, are you really just giving this info out for notinhg?

Key Trends and Forces

Yen/USD Relationship

The value of the Yen compared to the US dollar impacts the value of ADR shares of MUFG and its business operations. Mitsubishi's stock is listed on the NYSE. An increase in the value of the Yen translates to higher share price and dividend payments in the ADR shares all else constant. An appreciating Yen can purchase more US dollars. However, on the flipside, a strengthening Yen adversely impacts parts of MUFG's business. Not all foreign borrowers hedge currency, so if they took a loan out in term of Yen dollars, and the Japanese currency appreciates, this increases the payment burden on the borrower. The pressure increases borrower defaults.[5] Further, if MUFG does not hedge its foreign loans, currency movements impact earnings.

Competition

Wonderful explanation of facts aviaallbe here.

I really couldn't ask for more from this atricle.

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