For San Francisco readers keeping up-to-date on world news, we are pleased to present this story from The BBC.

Japan posted a trade deficit of $2.5bn (£1.7bn) in November as exports fell at their fastest-ever rate, the ministry of finance has said.

Exports were down 26.7% from a year earlier, the ministry said, as a strong yen and the global economic downturn blunt demand for Japanese goods.

Japan typically runs a trade surplus due to strong demand for its products.

Japanese media are speculating that car maker Toyota may be about to announce its first operating loss in 71 years.

Output slashed

Japanese exports fell sharply to all areas but those to the US were worst-hit, plunging 33.8% – also a record drop.

Shipments to the European Union were down 30.8% while those to China fell 24.5%, the biggest fall since 1995, said Reuters news agency.

Exports to the rest of Asia declined 26.7%.

Imports were also down – 14.4% overall – due in part to lower oil prices.

Car makers such as Honda and Toyota have cut their output and their profit forecasts in an effort to cope with the decline in demand.

Toyota is due to announce its next profit forecast on Monday.

Some Japanese media have been speculating that the firm could be about to announce its first operating loss in 71 years. Other media say it may post a small profit.

Japan’s economy – the world’s second-largest after the US – has slipped into its first recession in seven years after two quarters of negative growth in a row.

The government has forecast zero growth in the year ending March 2010

This article is from the BBC News website. © British Broadcasting Corporation

[Thank you for reading SFLuxe.com. This article was published today by The BBC. We hope you enjoyed it!]