Shaw Capital Management World News: First Case of Drop Shipping in Japan

http://world.shawcapitalmanagementfinancialnews.com/2012/03/23/shaw-capital-management-world-news-first-case-of-drop-shipping-in-japan/

Japanese metropolitan police apprehended the previous president of a drop shipping business in Tokyo this week for not declaring the truth about the profitability of their drop shipping system — the first of its kind of case in Japan.

Yoshida Minoru, the former company president of Saito located in the Taito ward was arrested on fraud charges. Others were also under investigation. His company is suspected to have obtained no more than 410 million yen from over 400 people since June 2008.

Drop shipping is a scheme where products are sent directly to contractual individuals by wholesalers. Then, the individual retailer who has entered into a contract with the company that gives out the products will set the item prices and earn revenue on the markup.

Results of investigations show that Yoshida’s firms are telling its clients that their system will enable them to gain back the fees they have paid to join in just 2-3 months, but it was never proven to be true. The company has reportedly taken money from those who register in form of fees for setting up sites that retailers would then use to sell their products.

According to authorities, the firm was created in 2007 and got individual retailers by web ads and pamphlet marketing. The primary fees when using their service ranges from 850,000 up to 3 million yen. The company promised to give products such as food items, video game programs and TV sets that the individual retailers will sell with their own prices.

The company reportedly tells people that their revenue will come from what’s left from the wholesale prices minus the set retail prices. However, there are a number of cases where the products’ prices sold to clients are way above the market price and the firm does not offer marketing to aid in selling the products contrary to what they claim. Most users could not even sell one item.

Other organizations along with the consumer affairs agency have received more than 100 complaints connected to the firm, most of which deals with the firm not responding to clients that would like to terminate contracts. In May 2010, the Metropolitan Police Department searched several company-owned locations due to suspicions of fraud reports.

Shaw Capital Management: Moody’s warns UK credit status at risk if growth stalls

http://shawcapitalmanagementfinancialnews.com/2012/01/20/shaw-capital-management-moodys-warns-uk-credit-status-at-risk-if-growth-stalls/

A leading status agency has informed the collapse in economic growth, an escalation in the euro zone debt crisis, or perhaps a wobble by George Osborne over his austerity ideas would cost the UK its prized AAA credit status. Moody’s, which recently cut Belgium by two notches and is monitoring France, reaffirmed the UK’s sovereign status but said the country’s large budget deficit, slow growth and euro area visibility have reduced its “ability to absorb further shocks without rating implications”. On the Shaw Capital Management, Demonstrating how prone the UK to a downgrade, Moody’s based its prognosis on growth in 2012 of 0.7pc – in line with the official forecast, but more upbeat than both the Organization for Economic Co-operation & Development’s conjecture of 0.5pc and the shrinkage expected by a swelling group of City forecasters. Deutsche Bank on Tuesday put into the sense of doom by reducing its outlook for growth next year to “zero” and warning of a “modest technical recession”. Preserving Britain’s gold-plated rating has been central to Mr. Osborne’s technique. The Chancellor has staked his reputation on it, claiming that market credibility has helped keep borrowing costs down for the Government, businesses and households.

Moody’s heightened the Chancellor’s hand. “The currently stable outlook on the UK status depends in part on the assumption that the Government will always be on course with its fiscal consolidation programme,” it said. In part of the Shaw Capital Management, Sarah Carlson, a senior analyst, added that the decision was partly based on the UK’s “very strong record of reversing increases in debt”.”If that record was not maintained, it will have an insinuation for the outlook, if not the rating itself,” she said. However, the Government now appears cornered. Moody’s informed that weak growth “will likely slow the pace of fiscal consolidation” and that the legacy of debt left by Labour “has eroded and being able to absorb the further macroeconomic or fiscal shocks”.”Risks emanating from the euro area” are further complicating matters. However, the “competitive” economy, strong institutions such as the Bank of England, and capacity to control monetary policy all set the UK apart from the Continent. From the Shaw Capital Management, A Treasury spokesman said: “As Moody’s points out, the UK is not resistant to the down sides facing our trading partners in the euro area… it is important that the euro area continues to take decisive action to fix their problems.”