Global upheaval after false data from steel giant

12 October, 2017, 11:35 | Author: Leticia Walters
  • Image Zoom             
                                                            |By Yuka Obayashi

On Wednesday, Kobe Steel added two more products to the list of affected materials: powdered steel, which is used to create molded steel products like gears, and "target material", a specialty mix of several kinds of metal used in the production of DVDs, television screens and other electronics equipment. The industry ministry has pressed Kobe Steel to work with its clients, spread over a wide range of industries, to conduct urgent safety analysis.

It was unclear what the impact would be on earnings, the company said in a statement.

The stock dived 22 percent on Tuesday to finish at 1,068 yen ($9.50), its maximum daily loss limit - wiping nearly one billion dollars off the firm's market value.

Steel maker Kobe Steel has apologised after finding problems dating back to 2011 including faked inspections data for metals used in many products, including cars, bullet trains, aircraft and appliances.

Mr Kawasaki told reporters on Thursday that Japan's trade ministry also wants Kobe Steel to provide reasons for the data fabrication and prevention measures within a month, Reuters said.

Kobe Steel said it discovered the violations during internal inspections and "emergency quality audits". "Kobe Steel's technology is not something easily substitutable by others, and existing customers have nowhere else to go", said Yasuo Sakuma, Chief Investment Officer at Libra Investments in Tokyo. It also found one case of falsified data on iron powder products - material used for vehicle parts such as gears - that were shipped to a customer.

In Japan and overseas, manufacturers that have used Kobe Steel materials have been racing to check that the safety of their own products has not been compromised.

There have been previous cases in Japan involving falsified data, including at Nissan Motor 7201.T , Mitsubishi Motors 7211.T and Takata, which filed for bankruptcy this year over faulty airbags that were blamed for 17 deaths and scores of injuries. In 2015, it was revealed that Toyo Tire & Rubber fabricated data to secure government approval for materials to absorb shocks from earthquakes.

The corrosive business practices have raised broader questions over corporate governance in Japan, and cast doubt on the integrity of a manufacturing industry once the envy of the world. Conglomerate Toshiba Corp is still battling the fallout of a scandal over reporting inflated profits.

Toyota also confirmed that the material has been used in hoods and rear doors of some of its vehicles.

Kobe Steel shares closed at the limit low after being untraded for the whole session, diving 22 percent to 1068 yen.

The latest discovery was of falsification of data on 140 tons of steel powder supplied to one customer between April 2016 and March 2017.

Kobe Steel was founded in 1905 and has been a pillar of Japan's manufacturing sector. The cost of insuring against default on Kobe Steel's debt has risen sharply this week as the scandal unfolded.


  • Local reactions to girls being allowed in Boy Scouts

    Local reactions to girls being allowed in Boy Scouts

    Carleen Campbell, co-area manager of the Gladwin Girl Scouts, agrees and says this shouldn't threaten Girl Scout membership. Cub Scouts dens will be broken into smaller groups, one just for girls and one just for boys.
    Vaughan's Andrew Wiggins signs $148M extension with Timberwolves

    Vaughan's Andrew Wiggins signs $148M extension with Timberwolves

    There are rules in place that protect agents and Duffy hinted at agent tampering right after being let go. It's not immediately clear if that's the deal that was signed.

    Advanced Micro Devices, Inc. (AMD) Under Analyst Spotlight

    Over the last three months, insiders sold 45,262,175 shares of company stock valued at $616,243,639. Mason Street Advisors Ltd Co owns 0.4% invested in Mastercard Inc (NYSE:MA) for 130,183 shares.
  • Razer may announce a phone on November 1

    Razer may announce a phone on November 1

    Razer has teased an upcoming launch event with an image of a man holding a smartphone-sized device. Razer could be developing a high-end smartphone catering to gamers.
    World Cup failure prompts calls for USA  soccer 'revolution'

    World Cup failure prompts calls for USA soccer 'revolution'

    Taylor Twellman scores the second goal against Panama during their world cup qualifying match on October of 2005. But that won't change the fact that the USA won't be in Russian Federation next summer.
    Harvey Weinstein Reported As Being Suicidal; Friend Denies Report

    Harvey Weinstein Reported As Being Suicidal; Friend Denies Report

    When Weinstein was convinced to go back inside, the LAPD and Remy's alarm company showed up at the scene around 10:30 a.m. "[The caller] said the subject was feeling suicidal and depressed ", the New York Daily News reported , citing a source.
  • Apple CEO Says No AR Glasses Soon

    Apple CEO Says No AR Glasses Soon

    The display technology required, as well as putting enough stuff around your face - there's huge challenges with that. Apple has the scale to stay ahead of its competition in both the short term and the long term.
    Dolphins hire DeGuglielmo as new O-line coach

    Dolphins hire DeGuglielmo as new O-line coach

    He's a good coach to us. "It's going to be a while before we can do this again." he says, "but I think about you when I do it". The Dolphins will rely heavily on DeGugliemo, whose National Football League coaching career 12 years to right the ship.
    3 new cases of West Nile virus reported in Mississippi

    3 new cases of West Nile virus reported in Mississippi

    It's evidence that the spraying, while effective, does not eliminate the risk of mosquito-borne illnesses, they said. The county said West Nile virus is most commonly spread to people by mosquito bites.
  • Credit Suisse Maintains Rating And Lowers Price Target On, Inc

    Riccio Daniel J. sold 11,949 shares worth $1.86 million. $3.42M worth of Coherent, Inc. (NASDAQ:COHR) was sold by AMBROSEO JOHN. Following the sale, the chief executive officer now directly owns 15,312 shares in the company, valued at $15,032,402.88.

    Express Scripts Holding Company (NASDAQ:ESRX) Shares Dip Under Moving Averages

    The stock of Express Scripts Holding Company (NASDAQ: ESRX ) earned "Outperform" rating by Leerink Swann on Monday, October 5. ESRX share have plunged by -15.42% in percentage terms since the start of the year - and retreated -8.62% in the last month.
    Jose Mourinho breaks silence after Man United star's injury setback

    Jose Mourinho breaks silence after Man United star's injury setback

    A scan later revealed that Fellaini had sprained his medial knee ligament and would be out for at least two weeks as a result. He's become an important part of Mourinho's plans, but the Portuguese isn't anxious about players missing through injury.


'White Widow' Sally-Anne Jones believed to be killed
Jones also encouraged people to carry out attacks in Britain, offering guidance on how to construct home-made bombs. A BRITISH jihadi bride known as the White Widow has been killed in a U.S. drone strike, it was claimed last night.

New Reliance Jio Dhan Dhana Dhan offer, 100% cashback
The vouchers come with a condition of use that allows only one voucher to be redeemed at a time and only after November 15. This offer starts from 12th October till 18th October and cashback will be in form of vouchers.

Institutional Investors Positive on Activision Blizzard Inc (NASDAQ:ATVI)
Sg Americas Securities Limited Company has invested 0% in Heico Corp (NYSE:HEI). (NASDAQ: ATVI ) that had a market cap of 45.85B. Out of 2 Wall Street analysts rating Bottomline Tech, 1 give it "Buy", 0 "Sell" rating, while 1 recommend "Hold".

Assassin's Creed Origins Season Pass Content Revealed
Ubisoft has announced plans to release new adaptations of Jeopardy! and Wheel of Fortune for the PS4 and Xbox One next month. The Season Pass will be available for $39.99, or it will be included in the Gold Edition of Assassin's Creed: Origins .

American Airlines Group Inc. (NASDAQ:AAL) Moves Higher 4.99% For The Week
It dropped, as 47 investors sold AAL shares while 194 reduced holdings. 65 funds opened positions while 154 raised stakes. Tennessee-based State Of Tennessee Treasury Department has invested 0.04% in American Airlines Group Inc (NASDAQ: AAL ).