[TODAY'S TOP STORIES] from [The Japan Times]
[NATIONAL NEWS]
Tuesday, June 30, 2009
Koizumi's candidate knocked out as mayor
Doubts emerge over son's plan to land Diet seat
YOKOSUKA, Kanagawa Pref. (Kyodo) A 33-year-old newcomer beat the incumbent backed by former Prime Minister Junichiro Koizumi in the Yokosuka mayoral election Sunday — a result seen as a blow to the prospects for Koizumi's son in the upcoming national election.
Former city assembly member Yuto Yoshida defeated Ryoichi Kabaya, 64, who sought re-election with Koizumi's all-out support, and lawyer Masahiko Goto, 49, to become the third-youngest mayor in Japan.
All of the candidates ran nominally as independents.
Known for hosting the largest U.S. naval base in the Pacific, Yokosuka is the major component of the Kanagawa No. 11 district, where Koizumi's 28-year-old son, Shinjiro, hopes to succeed to his father's seat in the Lower House election.
Yoshida apparently drew support from voters hoping for change after the campaign focused on criticism of bureaucratic meddling in politics. Kabaya, Yoshida's chief rival in the election, is a former national bureaucrat.
Yoshida garnered votes not only from supporters of the Democratic Party of Japan but from those backing the ruling Liberal Democratic Party. Voter turnout was 45.22 percent, up 5.03 percentage points from the previous election.
During the campaign, Yoshida vowed to file a request with the U.S. Navy to disclose information associated with the deployment of the nuclear-powered aircraft carrier George Washington in Yokosuka as its home port.
Born in Yokosuka, Yoshida won the most votes in both the two previous city assembly elections in 2003 and 2007, after working for an information technology business and studying at a Waseda University graduate school.
Kabaya failed to take advantage of organized support from local assembly members of the LDP, the DPJ and New Komeito, the LDP's coalition partner in national politics, plus major local businesses.
"Koizumi's popularity didn't work anymore," said a senior official in Kabaya's campaign office. "The political circus that the LDP is creating on the national level was surely one of the reasons for our defeat."
[BUSINESS NEWS]
Tuesday, June 30, 2009
Output rises 5.9% for third straight monthly increase
(Bloomberg) Industrial output rose for the third straight month in May as companies rebuilt inventories and the economy started to climb out of its deepest postwar recession, the government said Monday.
Production increased 5.9 percent from a month earlier, the Ministry of Economy, Trade and Industry said, matching a gain in April that was the fastest since 1953. A survey of economists predicted a 7 percent increase, and factories were still producing 29.5 percent less than in May last year.
Manufacturers forecast that output will advance in June and July, albeit at a slower pace, and economists expect the Bank of Japan's "tankan" survey this week to show that sentiment among large manufacturers rebounded from a record low. The figures provide the latest evidence that the world recession is moderating as central banks flood their economies with cash and governments spend $2.2 trillion to prop up demand.
"Today's data suggest companies are clearing inventories steadily and now the biggest focus is shifting to what happens after the inventory adjustment is completed," said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management Co. "We have yet to see a pickup in final demand, which is crucial for Japan's economy to sustain a recovery."
Production has risen for three months running, following a five-month losing streak that left about half of the country's factory capacity sitting idle as of April. The largest output increase on record was 7.9 percent in March 1953, near the end of the Korean War.
Gains in production will slow to 3.1 percent in June and 0.9 percent next month, METI said, indicating the inventory restocking may soon run its course. "Momentum is gradually fading," said Muto at Sumitomo Mitsui.
The Organization for Economic Cooperation and Development raised its forecast for its 30 member nations for the first time in two years last week, and reports showed the U.S. economy is pulling out of its slump.
Economists predict the tankan will show that the index of sentiment among large manufacturers will climb for the first time in a year to minus 43 from a record low of minus 58. A negative number means pessimists still outnumber optimists.
The economy is likely to grow at a 2.3 percent annual pace this quarter, according to a survey of economists, following the previous period's record 14.2 percent contraction.
China's 4 trillion yuan ($586 billion) in government spending is feeding demand for Japan's heavy equipment, autos and materials. China this year surpassed the U.S. as Japan's biggest export customer.
"The impact of China's infrastructure building has started to emerge," said Taizo Kayata, senior executive officer in charge of China operations at Komatsu Ltd., Japan's biggest maker of construction equipment. Kayata said Chinese sales probably grew between 10 percent and 20 percent in June.
Still, rising unemployment in the U.S. and Europe may limit the rebound for Japan's manufacturers. Nissan Motor Co. Chief Executive Officer Carlos Ghosn said last week that the U.S. market isn't recovering. The company, which is forecasting its second annual loss, cut domestic production by 36 percent in May from a year earlier.
Job and wage cuts will probably curtail spending by Japanese consumers, which makes up more than half of the economy. Reports Tuesday are expected to show the unemployment rate rose to 5.2 percent in May and wages slid for a 12th month, extending their longest losing streak in five years.
"Consumer spending will remain weak for a while as long as the deterioration in the job market and wages continues," said Noriaki Matsuoka, an economist at Daiwa Asset Management Co. "Japan's recovery will be very weak."
[BUSINESS NEWS]
Tuesday, June 30, 2009
Japan Post reappoints scandal-hit Nishikawa
(Kyodo News) As expected, shareholders agreed Monday to keep Yoshifumi Nishikawa at the helm of Japan Post Holdings Co., whose attempt to sell its Kampo no Yado resort inns for a fraction of their value was blocked by Kunio Hatoyama.
Nishikawa was appointed by Japan Post's board during a 20-minute general shareholders' meeting attended by a senior Finance Ministry official.
Hatoyama's successor as internal affairs and communications minister, Tsutomu Sato, handed Nishikawa a letter of authorization later in the day, effectively ending the brouhaha over his reappointment.
As internal affairs minister, Sato oversees the postal system, which is undergoing a 10-year privatization process that started in fall 2007. Japan Post is still owned 100 percent by the government.
Before Hatoyama was ousted, he had wanted to block Nishikawa's reappointment, saying Japan Post attempted to sell to Orix Corp. its nationwide inn network at fire-sale prices and in a murky bidding process.
When Prime Minister Taro Aso refused to agree, Hatoyama resigned June 12, dealing a further blow to the Cabinet's faltering approval rate.
With the daylong process, Nishikawa, the former head of Sumitomo Mitsui Financial Group Inc., will formally accept a fifth term as head of Japan Post.
Nishikawa submitted business improvement plans to the government last week, pledging to set up an advisory body including third-party experts who would notify local governments of any plans to sell off Japan Post properties.
It remains unclear if the improvement plan will strengthen the firm's corporate governance and restore people's trust.
At the shareholders' meeting, Japan Post reported its financial results for the year that ended March 31, backed Nishikawa's reappointment and called for the retention of other board members based on a panel's recommendation in May. Their renominations were approved.
Nishikawa had indicated his willingness to remain president of Japan Post.
The improvement plan handed to Sato last week included a 30 percent pay cut for Nishikawa for three months and tightened internal controls.
Japan Post hatched the plan last year to sell dozens of Kampo no Yado inns and other facilities as part of restructuring. Late in the year it chose Orix after what it claimed was competitive bidding. The price was announced at \10.9 billion, compared with the purchase cost of about \240 billion.
Hatoyama urged a review of the plan, arguing it was a done deal between Japan Post and Orix before the bidding. The deal was later canceled.
Japan Post Service Co., a unit under Japan Post, was slapped last December with a business improvement order over its slack controls in connection with alleged abuse of a mail discount system for disabled people.
[NATIONAL NEWS]
Tuesday, June 30, 2009
Koizumi's candidate knocked out as mayor
Doubts emerge over son's plan to land Diet seat
YOKOSUKA, Kanagawa Pref. (Kyodo) A 33-year-old newcomer beat the incumbent backed by former Prime Minister Junichiro Koizumi in the Yokosuka mayoral election Sunday — a result seen as a blow to the prospects for Koizumi's son in the upcoming national election.
Former city assembly member Yuto Yoshida defeated Ryoichi Kabaya, 64, who sought re-election with Koizumi's all-out support, and lawyer Masahiko Goto, 49, to become the third-youngest mayor in Japan.
All of the candidates ran nominally as independents.
Known for hosting the largest U.S. naval base in the Pacific, Yokosuka is the major component of the Kanagawa No. 11 district, where Koizumi's 28-year-old son, Shinjiro, hopes to succeed to his father's seat in the Lower House election.
Yoshida apparently drew support from voters hoping for change after the campaign focused on criticism of bureaucratic meddling in politics. Kabaya, Yoshida's chief rival in the election, is a former national bureaucrat.
Yoshida garnered votes not only from supporters of the Democratic Party of Japan but from those backing the ruling Liberal Democratic Party. Voter turnout was 45.22 percent, up 5.03 percentage points from the previous election.
During the campaign, Yoshida vowed to file a request with the U.S. Navy to disclose information associated with the deployment of the nuclear-powered aircraft carrier George Washington in Yokosuka as its home port.
Born in Yokosuka, Yoshida won the most votes in both the two previous city assembly elections in 2003 and 2007, after working for an information technology business and studying at a Waseda University graduate school.
Kabaya failed to take advantage of organized support from local assembly members of the LDP, the DPJ and New Komeito, the LDP's coalition partner in national politics, plus major local businesses.
"Koizumi's popularity didn't work anymore," said a senior official in Kabaya's campaign office. "The political circus that the LDP is creating on the national level was surely one of the reasons for our defeat."
[BUSINESS NEWS]
Tuesday, June 30, 2009
Output rises 5.9% for third straight monthly increase
(Bloomberg) Industrial output rose for the third straight month in May as companies rebuilt inventories and the economy started to climb out of its deepest postwar recession, the government said Monday.
Production increased 5.9 percent from a month earlier, the Ministry of Economy, Trade and Industry said, matching a gain in April that was the fastest since 1953. A survey of economists predicted a 7 percent increase, and factories were still producing 29.5 percent less than in May last year.
Manufacturers forecast that output will advance in June and July, albeit at a slower pace, and economists expect the Bank of Japan's "tankan" survey this week to show that sentiment among large manufacturers rebounded from a record low. The figures provide the latest evidence that the world recession is moderating as central banks flood their economies with cash and governments spend $2.2 trillion to prop up demand.
"Today's data suggest companies are clearing inventories steadily and now the biggest focus is shifting to what happens after the inventory adjustment is completed," said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management Co. "We have yet to see a pickup in final demand, which is crucial for Japan's economy to sustain a recovery."
Production has risen for three months running, following a five-month losing streak that left about half of the country's factory capacity sitting idle as of April. The largest output increase on record was 7.9 percent in March 1953, near the end of the Korean War.
Gains in production will slow to 3.1 percent in June and 0.9 percent next month, METI said, indicating the inventory restocking may soon run its course. "Momentum is gradually fading," said Muto at Sumitomo Mitsui.
The Organization for Economic Cooperation and Development raised its forecast for its 30 member nations for the first time in two years last week, and reports showed the U.S. economy is pulling out of its slump.
Economists predict the tankan will show that the index of sentiment among large manufacturers will climb for the first time in a year to minus 43 from a record low of minus 58. A negative number means pessimists still outnumber optimists.
The economy is likely to grow at a 2.3 percent annual pace this quarter, according to a survey of economists, following the previous period's record 14.2 percent contraction.
China's 4 trillion yuan ($586 billion) in government spending is feeding demand for Japan's heavy equipment, autos and materials. China this year surpassed the U.S. as Japan's biggest export customer.
"The impact of China's infrastructure building has started to emerge," said Taizo Kayata, senior executive officer in charge of China operations at Komatsu Ltd., Japan's biggest maker of construction equipment. Kayata said Chinese sales probably grew between 10 percent and 20 percent in June.
Still, rising unemployment in the U.S. and Europe may limit the rebound for Japan's manufacturers. Nissan Motor Co. Chief Executive Officer Carlos Ghosn said last week that the U.S. market isn't recovering. The company, which is forecasting its second annual loss, cut domestic production by 36 percent in May from a year earlier.
Job and wage cuts will probably curtail spending by Japanese consumers, which makes up more than half of the economy. Reports Tuesday are expected to show the unemployment rate rose to 5.2 percent in May and wages slid for a 12th month, extending their longest losing streak in five years.
"Consumer spending will remain weak for a while as long as the deterioration in the job market and wages continues," said Noriaki Matsuoka, an economist at Daiwa Asset Management Co. "Japan's recovery will be very weak."
[BUSINESS NEWS]
Tuesday, June 30, 2009
Japan Post reappoints scandal-hit Nishikawa
(Kyodo News) As expected, shareholders agreed Monday to keep Yoshifumi Nishikawa at the helm of Japan Post Holdings Co., whose attempt to sell its Kampo no Yado resort inns for a fraction of their value was blocked by Kunio Hatoyama.
Nishikawa was appointed by Japan Post's board during a 20-minute general shareholders' meeting attended by a senior Finance Ministry official.
Hatoyama's successor as internal affairs and communications minister, Tsutomu Sato, handed Nishikawa a letter of authorization later in the day, effectively ending the brouhaha over his reappointment.
As internal affairs minister, Sato oversees the postal system, which is undergoing a 10-year privatization process that started in fall 2007. Japan Post is still owned 100 percent by the government.
Before Hatoyama was ousted, he had wanted to block Nishikawa's reappointment, saying Japan Post attempted to sell to Orix Corp. its nationwide inn network at fire-sale prices and in a murky bidding process.
When Prime Minister Taro Aso refused to agree, Hatoyama resigned June 12, dealing a further blow to the Cabinet's faltering approval rate.
With the daylong process, Nishikawa, the former head of Sumitomo Mitsui Financial Group Inc., will formally accept a fifth term as head of Japan Post.
Nishikawa submitted business improvement plans to the government last week, pledging to set up an advisory body including third-party experts who would notify local governments of any plans to sell off Japan Post properties.
It remains unclear if the improvement plan will strengthen the firm's corporate governance and restore people's trust.
At the shareholders' meeting, Japan Post reported its financial results for the year that ended March 31, backed Nishikawa's reappointment and called for the retention of other board members based on a panel's recommendation in May. Their renominations were approved.
Nishikawa had indicated his willingness to remain president of Japan Post.
The improvement plan handed to Sato last week included a 30 percent pay cut for Nishikawa for three months and tightened internal controls.
Japan Post hatched the plan last year to sell dozens of Kampo no Yado inns and other facilities as part of restructuring. Late in the year it chose Orix after what it claimed was competitive bidding. The price was announced at \10.9 billion, compared with the purchase cost of about \240 billion.
Hatoyama urged a review of the plan, arguing it was a done deal between Japan Post and Orix before the bidding. The deal was later canceled.
Japan Post Service Co., a unit under Japan Post, was slapped last December with a business improvement order over its slack controls in connection with alleged abuse of a mail discount system for disabled people.
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