[TODAY'S TOP STORIES] from [The Japan Times]
[BUSINESS NEWS]
Wednesday, Jan. 27, 2010
S&P lowers Japan credit rating outlook
Huge deficits, lack of plan cited
Bloomberg
Standard & Poor's on Tuesday lowered Japan's sovereign credit rating outlook because of diminishing "flexibility" to cope with a swelling debt load and concern about the lack of a plan to rein in budget deficits.
The policies of Prime Minister Yukio Hatoyama's government "point to a slower pace of fiscal consolidation than we had previously expected," S&P said in a statement. Japan's rating could be lowered from the current AA, the third highest, if economic data "remain weak" and measures to buttress growth "are not forthcoming," the company said.
Any cut to Japan's local-currency rating would be the first since 2002, according to data compiled by Bloomberg.
Finance Minister Naoto Kan told a news conference he will work to uphold fiscal discipline and maintain the trust of bond investors.
S&P's move highlights concerns that the shrinking population and contracting gross domestic product will erode the pool of savings that has kept yields on its benchmark 10-year notes more than 2 percentage points lower than U.S. Treasuries.
"Should the change in outlook spur people to start seriously doubting Japan's fiscal health, yields on long-term government bonds will climb," said Hiroshi Morikawa, a senior strategist at MU Investments Co. "That will not only limit the government's fiscal-stimulus measures but will also boost borrowing costs, deterring companies from investment."
S&P reduced the outlook to "negative" from "stable," while reaffirming the AA long-term debt rating.
Bond yields rose Monday after the government said the nation's debt will probably swell to ¥973 trillion by the end of fiscal 2010, 8 percent more than the estimated ¥900 trillion for the year ending March 31.
Japanese bond risk rose after S&P's warning, according to traders of credit-default swaps.
The outlook cut is the latest blow to a prime minister whose ratings have fallen since the Democratic Party of Japan ousted the Liberal Democratic Party in September. Hatoyama had to replace his first finance minister, Hirohisa Fujii, due to illness, while Ichiro Ozawa, the No. 2 DPJ official, is being investigated for a land deal by his campaign finance organization that led to three arrests.
Hatoyama is planning to sell ¥44.3 trillion in bonds to fund his record budget proposal, an amount that could increase if the nation's recovery slows or tax receipts slide. He won elections in August pledging to bolster households' purchasing power.
S&P said it will monitor the government's medium-term fiscal plan due to be released in the first half of 2010. Further steps may also be unveiled after elections in July for the Upper House, the company said. Should the commitments "moderate the government's debt trajectory, the ratings could stabilize at the current levels," it said.
Because of Japan's international assets, including about $1 trillion of foreign exchange holdings, the yen's status as a "reserve currency" and the economy's "diversification," S&P said it expects the rating to remain in the AA category even if the grade is lowered a notch.
Moody's Investor Service rates Japan's debt at Aa2, also the third-highest investment grade, with a stable outlook. Fitch Ratings's outlook is one step lower, at AA-. An S&P cut to AA- would put Japan on par with Taiwan and Kuwait.
The replacement of the finance minister four months into the government increased concern about the commitment to contain the debt, Thomas Byrne, senior vice president of Moody's in Singapore, said this month.
[NATIONAL NEWS]
Wednesday, Jan. 27, 2010
Akihabara gets bank of security cameras
By MINORU MATSUTANI
Staff writer
A year and a half after a vicious attack left seven people dead in Tokyo's Akihabara district, a neighborhood association activated 16 outdoor surveillance cameras Tuesday in an effort to restore the neighborhood's reputation.
{{Keeping watch: A new security camera is activated Tuesday in the Akihabara district of Chiyoda Ward, Tokyo.}
KYODO PHOTO}
"Akiba," as the district is known to its fans, is a mecca of electronic gadgets and "otaku" (geek) culture.
"We hope the cameras will deter crimes. And we want to assure the public that Akihabara has become a safe place," Chiyoda Ward spokesman Kazuhisa Yamaguchi said.
The Kanda Suehiro association held a ribbon-cutting ceremony at Shohei Elementary School. Some of the cameras are installed on street lights around the school.
The video feeds will be monitored by members of the neighborhood association.
None of the 16 cameras covers the site of the rampage, which took place on one of Akihabara's main streets. Other neighborhood associations are planning to set up an additional 34 surveillance cameras by the end of March to monitor major streets, Yamaguchi said.
Tomohiro Kato, 25, stands accused of running down pedestrians with a truck on June 8, 2008, before getting out of the vehicle and stabbing people at a busy intersection, killing seven in total.
At the time of the attack, the streets were closed to vehicles to allow pedestrians free access. Since then, the streets have not been blocked off.
Kato's trial at the Tokyo District Court starts Thursday.
Chiyoda Ward and the Tokyo Metropolitan Government will share the cost ┄ about \30 million ┄ of the 50 surveillance cameras with neighborhood associations, Yamaguchi said.
[NATIONAL NEWS]
Wednesday, Jan. 27, 2010
Suicides top 30,000 for 12th year
Kyodo News
Suicides increased again in 2009 amid the economic doldrums, staying above 30,000 for the 12th straight year, the National Police Agency said Tuesday in a preliminary report.
The total came to 32,753, the fifth most on record and up 504 from 2008, when the number fell by 844 from the year before. It has remained above 30,000 since 1998.
Men accounted for 23,406 of the total and women 9,347.
The rise apparently reflected the economic slump as the number of monthly suicides topped 3,000 from March to May in line with the tendency of people with economic problems to commit suicide around the time the business year ends. Most companies close their books March 31.
The monthly breakdown has stayed high since a double-digit surge to above 3,000 in October 2008, following the collapse of U.S. investment bank Lehman Brothers Holdings Inc. that September and the subsequent global economic meltdown.
Last year, the monthly figure increased on a year-on-year basis until August but fell somewhat from September after the Aug. 30 election brought the Democratic Party of Japan to power for the first time.
Prime Minister Yukio Hatoyama's government has set up an emergency task force to address the high suicide rate. One of its measures has been to staff some of the Hello Work public job-placement offices with mental health professionals since November.
By prefecture, the annual total rose by more than 100 in Saitama and Chiba but dropped by that much in Osaka and Hokkaido, the NPA said.
[BUSINESS NEWS]
Wednesday, Jan. 27, 2010
S&P lowers Japan credit rating outlook
Huge deficits, lack of plan cited
Bloomberg
Standard & Poor's on Tuesday lowered Japan's sovereign credit rating outlook because of diminishing "flexibility" to cope with a swelling debt load and concern about the lack of a plan to rein in budget deficits.
The policies of Prime Minister Yukio Hatoyama's government "point to a slower pace of fiscal consolidation than we had previously expected," S&P said in a statement. Japan's rating could be lowered from the current AA, the third highest, if economic data "remain weak" and measures to buttress growth "are not forthcoming," the company said.
Any cut to Japan's local-currency rating would be the first since 2002, according to data compiled by Bloomberg.
Finance Minister Naoto Kan told a news conference he will work to uphold fiscal discipline and maintain the trust of bond investors.
S&P's move highlights concerns that the shrinking population and contracting gross domestic product will erode the pool of savings that has kept yields on its benchmark 10-year notes more than 2 percentage points lower than U.S. Treasuries.
"Should the change in outlook spur people to start seriously doubting Japan's fiscal health, yields on long-term government bonds will climb," said Hiroshi Morikawa, a senior strategist at MU Investments Co. "That will not only limit the government's fiscal-stimulus measures but will also boost borrowing costs, deterring companies from investment."
S&P reduced the outlook to "negative" from "stable," while reaffirming the AA long-term debt rating.
Bond yields rose Monday after the government said the nation's debt will probably swell to ¥973 trillion by the end of fiscal 2010, 8 percent more than the estimated ¥900 trillion for the year ending March 31.
Japanese bond risk rose after S&P's warning, according to traders of credit-default swaps.
The outlook cut is the latest blow to a prime minister whose ratings have fallen since the Democratic Party of Japan ousted the Liberal Democratic Party in September. Hatoyama had to replace his first finance minister, Hirohisa Fujii, due to illness, while Ichiro Ozawa, the No. 2 DPJ official, is being investigated for a land deal by his campaign finance organization that led to three arrests.
Hatoyama is planning to sell ¥44.3 trillion in bonds to fund his record budget proposal, an amount that could increase if the nation's recovery slows or tax receipts slide. He won elections in August pledging to bolster households' purchasing power.
S&P said it will monitor the government's medium-term fiscal plan due to be released in the first half of 2010. Further steps may also be unveiled after elections in July for the Upper House, the company said. Should the commitments "moderate the government's debt trajectory, the ratings could stabilize at the current levels," it said.
Because of Japan's international assets, including about $1 trillion of foreign exchange holdings, the yen's status as a "reserve currency" and the economy's "diversification," S&P said it expects the rating to remain in the AA category even if the grade is lowered a notch.
Moody's Investor Service rates Japan's debt at Aa2, also the third-highest investment grade, with a stable outlook. Fitch Ratings's outlook is one step lower, at AA-. An S&P cut to AA- would put Japan on par with Taiwan and Kuwait.
The replacement of the finance minister four months into the government increased concern about the commitment to contain the debt, Thomas Byrne, senior vice president of Moody's in Singapore, said this month.
[NATIONAL NEWS]
Wednesday, Jan. 27, 2010
Akihabara gets bank of security cameras
By MINORU MATSUTANI
Staff writer
A year and a half after a vicious attack left seven people dead in Tokyo's Akihabara district, a neighborhood association activated 16 outdoor surveillance cameras Tuesday in an effort to restore the neighborhood's reputation.
{{Keeping watch: A new security camera is activated Tuesday in the Akihabara district of Chiyoda Ward, Tokyo.}
KYODO PHOTO}
"Akiba," as the district is known to its fans, is a mecca of electronic gadgets and "otaku" (geek) culture.
"We hope the cameras will deter crimes. And we want to assure the public that Akihabara has become a safe place," Chiyoda Ward spokesman Kazuhisa Yamaguchi said.
The Kanda Suehiro association held a ribbon-cutting ceremony at Shohei Elementary School. Some of the cameras are installed on street lights around the school.
The video feeds will be monitored by members of the neighborhood association.
None of the 16 cameras covers the site of the rampage, which took place on one of Akihabara's main streets. Other neighborhood associations are planning to set up an additional 34 surveillance cameras by the end of March to monitor major streets, Yamaguchi said.
Tomohiro Kato, 25, stands accused of running down pedestrians with a truck on June 8, 2008, before getting out of the vehicle and stabbing people at a busy intersection, killing seven in total.
At the time of the attack, the streets were closed to vehicles to allow pedestrians free access. Since then, the streets have not been blocked off.
Kato's trial at the Tokyo District Court starts Thursday.
Chiyoda Ward and the Tokyo Metropolitan Government will share the cost ┄ about \30 million ┄ of the 50 surveillance cameras with neighborhood associations, Yamaguchi said.
[NATIONAL NEWS]
Wednesday, Jan. 27, 2010
Suicides top 30,000 for 12th year
Kyodo News
Suicides increased again in 2009 amid the economic doldrums, staying above 30,000 for the 12th straight year, the National Police Agency said Tuesday in a preliminary report.
The total came to 32,753, the fifth most on record and up 504 from 2008, when the number fell by 844 from the year before. It has remained above 30,000 since 1998.
Men accounted for 23,406 of the total and women 9,347.
The rise apparently reflected the economic slump as the number of monthly suicides topped 3,000 from March to May in line with the tendency of people with economic problems to commit suicide around the time the business year ends. Most companies close their books March 31.
The monthly breakdown has stayed high since a double-digit surge to above 3,000 in October 2008, following the collapse of U.S. investment bank Lehman Brothers Holdings Inc. that September and the subsequent global economic meltdown.
Last year, the monthly figure increased on a year-on-year basis until August but fell somewhat from September after the Aug. 30 election brought the Democratic Party of Japan to power for the first time.
Prime Minister Yukio Hatoyama's government has set up an emergency task force to address the high suicide rate. One of its measures has been to staff some of the Hello Work public job-placement offices with mental health professionals since November.
By prefecture, the annual total rose by more than 100 in Saitama and Chiba but dropped by that much in Osaka and Hokkaido, the NPA said.