DIRS.INFO The most relevant business & tech news

☆ Japanese junior coalition party calls for debate on income tax cuts
▼ + stars: | 2023-11-07 | by ( Takaya Yamaguchi | ) www.reuters.com time to read: +1 min

TOKYO, Nov 7 (Reuters) - The head of the tax panel for the Japanese political party Komeito, a junior coalition partner with the ruling Liberal Democratic Party (LDP), said on Tuesday a thorough debate is needed on a controversial plan to cut income tax next year. Makoto Nishida, Komeito's tax panel head, said that policymakers should not have a preset mind to limit the tax break to just a year, signalling a possibility to extend it beyond 2024. Prime Minister Fumio Kishiida of the LDP plans to adopt income tax cuts for the next fiscal year as part of a broader economic package to boost household incomes and consumption. Opposition lawmakers have criticized the income tax cuts as politically motivated and ineffective as it takes time to implement and it could end up adding to the Japan's debt burden, the industrial world's largest. Additional reporting by Tetsushi Kajimoto; Editing by Christian SchmollingerOur Standards: The Thomson Reuters Trust Principles.

Persons: Makoto Nishida, Nishida, Fumio Kishiida, Tetsushi Kajimoto, Christian Schmollinger Organizations: Liberal Democratic Party, Thomson Locations: TOKYO

Details of how Japan is paring back military procurement due to currency fluctuations have not been previously reported. China, which has not ruled out using military force to bring Taiwan under its control, has expressed concern about Japan's military spending plans, accusing it of displaying a "Cold War mentality." In December, defence ministry officials discussed an order for 34 twin-rotor Chinook transport helicopters at roughly 15 billion yen per aircraft, two of the sources said. She declined to comment on whether the defence ministry had dropped an order for the seaplane. A ministry spokesperson confirmed the companies delivered a letter on Oct 25 to Defence Minister Minoru Kihara urging the government to proceed with the defence procurement as planned.

Persons: Tomohiro, Fumio Kishida, Christopher Johnstone, Johnstone, Biden, Kishida, outlays, spender, Nancy Pelosi's, Yoji Koda, Lockheed Martin, Minoru Kihara, Kevin Maher, Nobuhiro Kubo, Takaya Yamaguchi, Tim Kelly, Yoshifumi Takemoto, Katerina Ang Organizations: Defense Force, East Fuji Maneuver, REUTERS Acquire, Rights, Reuters, Bank of Japan, Center for Strategic, International Studies, National Security, East, Japan's Ministry of Defence, Embassy, Pentagon, Russian, Kawasaki Heavy Industries, Boeing Co, Kawasaki, Industries, Maritime Self Defense Force, Raytheon, Lockheed, Japan Business Federation, NMV Consulting, U.S . State Department's Office, Japan Affairs, Thomson Locations: Japan, Gotemba, Shizuoka, Taiwan, Tokyo, Washington, Beijing, East Asia, U.S, East China, Ukraine, China, U.S .

☆ Japan on standby to deal with 'one-sided' yen moves - top FX diplomat
▼ + stars: | 2023-10-31 | by ( Takaya Yamaguchi | ) www.reuters.com time to read: +2 min

REUTERS/Issei Kato Acquire Licensing RightsTOKYO, Nov 1 (Reuters) - Japan's top currency diplomat Masato Kanda said on Wednesday authorities were on standby to respond to recent "one-sided, sharp" moves in the yen, escalating his warning to investors against pushing down the currency too much. "Speculative trading seems to be the biggest factor behind recent currency moves," Kanda, vice finance minister for international affairs, told reporters on the yen's declines. The situation surrounding yen moves has become "more tense" than before, he said, adding that authorities will "respond appropriately without ruling out any options". After sliding to 151.715 against the dollar overnight on Tuesday, the yen stood at 151.350 in Asia on Wednesday. It intervened again in October 2022 after the yen plunged to a 32-year low of 151.94.

Persons: Masato Kanda, Issei Kato, Kanda, Takaya Yamaguchi, Satoshi Sugiyama, Leika Kihara, Sam Holmes Organizations: Reuters, Finance Ministry, REUTERS, Rights, Bank of Japan, Thomson Locations: Tokyo, Japan, Asia

A woman looks at items at a shop in Tokyo, Japan, March 24, 2023. The spending plan, to be formally decided by Prime Minister Fumio Kishida's cabinet on Nov. 2, also features payouts to low-income households, the officials said, confirming a report by the Nikkei newspaper. Tax revenue has grown this year, and Murai said the prime minister wanted to find a way to return some of that to the public to support households. "The prime minister will give formal and specific instruction at a meeting tomorrow between officials of the government and the ruling bloc, which will shape up through the ruling party's tax panel debate," Murai said. Kishida is due to discuss wage hikes, among other issues, with auto industry officials when he visits the Japan Mobility Show on Thursday, Murai said.

Persons: Androniki, Fumio Kishida's, Hideki Murai, Murai, Kishida, Takaya Yamaguchi, Yoshifumi Takemoto, Leika Kihara, Shri Navaratnam, Sonali Paul Organizations: REUTERS, Rights, Reuters, Nikkei, Japan, Thomson Locations: Tokyo, Japan, COVID

A man walks in front of the headquarters of Bank of Japan in Tokyo, Japan, January 18, 2023. For years, the government has kept borrowing costs, as measured by assumed interest rates, low, effectively allowing the Bank of Japan (BOJ) to bankroll debt. That is up from 25.25 trillion yen this year, the sources said, requesting anonymity as they were not authorised to speak publicly. For the current fiscal year, the annual budget hit a record 114 trillion yen, boosted by steps to cope with COVID. Social security accounts for nearly one-third of budget spending, making it the lion's share of the overall budget, followed by debt-servicing costs, which make up more than a fifth of the budget.

Persons: Issei Kato, Izuru Kato, Tetsushi Kajimoto, Takaya Yamaguchi, Sam Holmes, Alex Richardson Organizations: Bank of Japan, REUTERS, Rights, Totan, Thomson Locations: Tokyo, Japan, China, North Korea

☆ Insight: BOJ makes bold shift as yen risks grow too big to ignore
▼ + stars: | 2023-08-03 | by ( Leika Kihara | ) www.reuters.com time to read: +9 min

The BOJ's decision shook markets on Friday and contrasted sharply with Ueda's more cautious comments in recent months about the dangers of retreating too quickly from accommodative Kuroda-era policies. "There's also a small but probable risk of inflation overshooting in Japan, which gave the BOJ reason to act." NEW PRIORITIESThe BOJ's policy decision last week signalled to investors that it would now allow the 10-year government bond yield to move closer to 1% before it intervenes. 'BIT BY BIT'The shift in thinking gained momentum at the BOJ's June policy meeting, but not enough to turn the tide. It was a test case, or a preliminary exercise, toward future policy normalisation," said former BOJ board member Takahide Kiuchi.

Persons: Issei Kato, Kazuo Ueda, Haruhiko Kuroda, Fumio, accommodative Kuroda, Ueda, YCC, There's, Hirokazu Matsuno, Seiji Adachi, Asahi Noguchi, Ryozo Himino, Shinichi Uchida, Uchida, Masato Kanda, Kanda, Takahide, Leika Kihara, Takaya Yamaguchi, Takahiko Wada, Kentaro Sugiyama, Yoshifumi, Sam Holmes Organizations: Bank of Japan, REUTERS, TOKYO, Bank, Ueda, Reuters, BIT, Asahi, Nikkei, Thomson Locations: Tokyo, Japan

☆ BOJ to keep ultra-low rates, may debate fine-tuning yield cap
▼ + stars: | 2023-07-27 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

At the two-day meeting ending on Friday, the BOJ is expected to maintain its yield curve control (YCC) targets at -0.1% for short-term interest rates and 0% for the 10-year bond yield. With the BOJ set to keep short-term rates negative, a tweak to the yield cap or allowance band is unlikely to trigger a spike in borrowing costs that would severely hurt the economy. There is no consensus within the board on how soon the BOJ should dial back stimulus. Former BOJ board member Takahide Kiuchi expects the central bank to eventually modify YCC, but stand pat on Friday. "I don't think the BOJ sees an imminent need to act, as markets aren't attacking its yield cap this time."

Persons: Ueda, Kazuo Ueda, Takahide Kiuchi, Leika Kihara, Takahiko Wada, Tetsushi, Takaya Yamaguchi, Yoshifumi, Kentaro Sugiyama, Sam Holmes Organizations: Bank of Japan's, Monetary Fund, Thomson Locations: TOKYO, YCC

As of end-March, the three banks had total credit exposure of about $64 billion to China, or roughly 1% of their total assets, according to their financial statements. The FSA's request to look into China-related geopolitical risk was made in May, said two other sources. At a meeting last month, one of the banks was asked by the FSA how it is assessing risk related to China operations, one of them said. China claims democratically governed Taiwan as its territory and has never renounced the use of force to bring it under its control. Dealing with China sanctions would be extremely complex, the executive added.

Persons: Banks, SMFG, Antony Blinken, Wang Yi, Takaya Yamaguchi, Makiko Yamazaki, Sumeet Chatterjee, Jamie Freed Organizations: Financial Services, Mitsubishi UFJ Financial, Sumitomo Mitsui Financial Group, Mizuho Financial Group, Mizuho, American Chamber of Commerce, Reuters, Thomson Locations: China, TOKYO, Ukraine, Russia, United States, China . U.S, Beijing, West, Taiwan, U.S, Tokyo, New York

The package, which Kishida is likely to explain at a press conference, may help his party appeal to the public with promises of payouts. Kishida has said he hopes to double child care spending, now about 4.7 trillion yen ($33.7 billion), by the early 2030s. Under the plan, the government is likely to earmark about 3.5 trillion yen annually for the next three years for child care allowances and support for those taking child care leave. Analysts, however, doubt whether the package will do much to stem a chronic decline in the birthrate and Japan's rapidly ageing population. ($1=139.4600 yen)Reporting by Takaya Yamaguchi and Tetsushi Kajimoto; Editing by Leika Kihara and Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.

Persons: Fumio Kishida, Kishida, Toru Suehiro, Japan's birthrate, Takaya Yamaguchi, Leika Kihara, Clarence Fernandez Organizations: Reuters, Analysts, Daiwa Securities, Thomson Locations: TOKYO

☆ Japan to push child care, labour reforms to stem falling births
▼ + stars: | 2023-06-08 | by ( Takaya Yamaguchi | ) www.reuters.com time to read: +2 min

Kishida is set to unveil a final version of his child care policy at a news conference on June 13. The new plan also aims for those who engage in care or undergo fertility treatment to hold down jobs. The draft plan seeks to further rectify long working hours so that both parents can share household chores without throwing an unfair burden on mothers. Men working long hours have traditionally formed the bulk of the workforce at many Japanese firms, but reform proponents say this forces women to shoulder a disproportionate share of domestic chores. Writing by Tetsushi Kajimoto; Editing by Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.

Persons: Fumio Kishida, Tetsushi Kajimoto, Clarence Fernandez Organizations: Reuters, Thomson Locations: TOKYO, Japan

TOKYO, June 7 (Reuters) - Japan is committed to mobilise all policy options available while putting the economy before fiscal reform, according to a draft of the government's mid-year policy framework reviewed by Reuters on Wednesday, signalling its will to keep the fiscal spigot wide open before looming elections. Kishida, who is seen as a fiscal hawk, also hopes to strike a delicate balance between fiscal stimulus and the unwinding of it, with the framework calling for normalisation from crisis-mode fiscal largesse. "We have not abandoned the flag of fiscal reform," the framework said, in a tacit reference to Kishida's aim of bringing a primary budget surplus, excluding new bond sales and debt servicing costs, by the fiscal year ending in March 2026. The target was originally set to be met in the early 2010s but has pushed back four times. Reporting by Tetsushi Kajimoto; Editing by Christian SchmollingerOur Standards: The Thomson Reuters Trust Principles.

Persons: Fumio, Kishida, Tetsushi Kajimoto, Christian Schmollinger Organizations: Reuters, Liberal Democratic Party, Thomson Locations: TOKYO, Japan, Ukraine

While the communique made no mention of the U.S. debt ceiling stalemate, it figured constantly in discussions. "We need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook," they added in the communique after the meeting. G7 central bank chiefs vowed to combat "elevated" inflation and ensure expectations on future price moves remained well-anchored, a sign many of them will not let their guard down against stubbornly high inflation. CHINA AND SUPPLY CHAINSSeeking to reassure investors after recent U.S. bank failures, the G7 finance chiefs retained an April assessment that the global financial system was "resilient". In the communique, the finance leaders set a year-end deadline for launching a new scheme to diversify global supply chains.

Summary Biden warns of U.S. recession unless ceiling raised quicklyChina's slowing inflation adds to global recession fearsG7 finance leaders kick off meeting in Niigata, JapanNIIGATA, Japan, May 11 (Reuters) - A standoff over raising the U.S. debt ceiling overshadowed a meeting of Group of Seven (G7) finance leaders set to begin on Thursday, heightening U.S. recession fears as central banks seek a soft landing for the global economy. The U.S. debt crisis is a headache for Japan, which is this year's G7 chair and the world's biggest holder of U.S. debt. Japan's top financial diplomat, Masato Kanda, said on Tuesday the G7 finance leaders might discuss the U.S. debt ceiling but likely would not explicitly mention it in a joint statement at the end of the meeting on Saturday. Past U.S. debt ceiling fights have typically ended with a hastily arranged agreement in the final hours of negotiations, avoiding an unprecedented default. Back then, the G7 finance leaders said in a statement that they were "committed to addressing the tensions stemming from the current challenges on our fiscal deficits, debt and growth."

The U.S. debt crisis is a headache for Japan, which is this year's G7 chair and the world's biggest holder of U.S. debt. Five more countries were invited to the outreach including Brazil, India and Indonesia - but not China - although emerging nations' debt problems will feature high on the agenda. On the other hand, Tokyo is courting China to join a creditor nations' meeting it initiated to resolve Sri Lanka's debt. "The agenda of talks show how G7 is becoming increasingly politicized in nature, with an emphasis on countering China." The International Monetary Fund last month trimmed its 2023 global growth outlook and warned a severe flare-up of financial system turmoil could slash output to near recessionary levels.

January's rise was the fastest since September 1981, when fuel costs spiked due to a Middle East oil crisis and hit Japan's import-reliant economy. Core consumer inflation has now exceeded the Bank of Japan's 2% target for nine straight months, mostly reflecting persistent rises in fuel and raw material costs, the data showed. "But there are questions as to whether the rise in inflation will be sustainable, as it is still driven largely by food and fuel costs," he said. At Ueda's debut policy meeting on April 28, the BOJ will release for the first time its inflation forecasts extending to fiscal 2025. Japan's economy averted recession in the fourth quarter of last year but rebounded much less than expected as business investment slumped.

Kazuo Ueda, a 71-year-old university professor who has kept a low profile despite strong credentials as a monetary policy expert, ticked some important boxes. While he was not even on the list of dark horse candidates floated by the media, Ueda was well known in global central bank circles. The bank's preferred choices were incumbent deputy governor Amamiya, as well as former deputies Hiroshi Nakaso and Hirohide Yamaguchi, given their deep knowledge on monetary policy. Matsuno said he hoped the BOJ works closely with the government and guides monetary policy flexibly, when asked whether Ueda's appointment could lead to a retreat from Abenomics. While he warned of the rising cost of the BOJ's yield control policy, Ueda has called for the need to keep monetary policy loose to ensure Japan stably achieves the bank's 2% inflation target.

TOKYO, Jan 19 (Reuters) - The Bank of Japan may raise a cap set around its 10-year bond yield target to 0.75% or double it to 1.0% by around mid-year if inflation overshoots its expectations, Columbia University academic Takatoshi Ito said on Thursday. Depending on inflation and wage developments, the central bank may also abandon negative rates by raising its short-term interest rate target from -0.1% by the end of this year, Ito told Reuters in an interview. Ito, who is a close associate of BOJ Governor Haruhiko Kuroda's, is considered by some analysts as a candidate to join the central bank's leadership when the terms of Kuroda and his two deputies end in the coming months. Kuroda's term is up in April, while those of his two deputies expire in March. Reporting by Leika Kihara and Takaya Yamaguchi Editing by Chang-Ran KimOur Standards: The Thomson Reuters Trust Principles.

The budget - endorsed by Prime Minister Fumio Kishida's cabinet on Friday - features record military and welfare spending as it confronts regional security challenges from an ever-assertive China and an unpredictable North Korea. Reuters GraphicsRECORD MILITARY, WELFARE SPENDINGThe need for more military spending comes at a time of intensifying economic challenges as the Ukraine war, soaring inflation and rising rates worldwide push the global economy to the brink of recession. For fiscal 2023, the defence spending will rise to 6.8 trillion yen, up 1.4 trillion yen from this year. The government also set aside 3.4 trillion yen to help finance its five-year defence build-up plan. On the brighter side, tax revenue is estimated at a record 69.4 trillion yen thanks in part to recovery in corporate profits, allowing the government to reduce new bond sales by 1.3 trillion yen to 35.6 trillion yen.

Tokyo aims to achieve a primary budget surplus, excluding new bond sales and debt servicing costs, by the fiscal year ending March 2026. The budget's size at 114.4 trillion yen marks a big jump from the current fiscal year's initial figures at 107.6 trillion yen. For fiscal 2023, the defence spending amounts to 6.8 trillion yen, up 1.4 trillion yen from this year. The government would also set aside 3.4 trillion yen to help finance its five-year defence build-up plan. On the brighter side, tax revenue is seen hitting a record 69.4 trillion thanks in part to recovery in corporate profits, allowing the government to reduce new bond sales by 1.3 trillion yen to 35.6 trillion yen.

☆ Analysis: Kuroda's abrupt policy tweak opens door for bigger shift next year
▼ + stars: | 2022-12-21 | by ( Leika Kihara | ) www.reuters.com time to read: +6 min

Waiting until next year would have forced the BOJ to combat intensifying market speculation of a near-term policy shift, or act when a deep U.S. recession could hit Japan's economy, they say. "When uncertainty is so high over the outlook for U.S. monetary policy, it probably wants to have a free hand on when next to act." POLITICS KEY TRIGGERThe abrupt timing of Tuesday's move also reflects growing political pressure for the BOJ to shift away from a policy narrowly focused on its 2% inflation target, the sources say. Hours before he met Kishida, Kuroda explained in parliament a framework on how the BOJ could exit ultra-easy policy in the future. Another dovish board member, Asahi Noguchi, also said earlier this month it "won't be surprising" for the BOJ to shift monetary policy.

Summary FY2023/24 budget likely hit record amount for 11th yearGovt to curb new JGB issuanceTax revenue seen hitting record above 69 trln yenTOKYO, Dec 20 (Reuters) - Japan will issue around 35.5 trillion yen ($258.52 billion) in new government bonds for the fiscal 2023/24 annual budget, government sources told Reuters on Tuesday, adding to the industrial world's heaviest public debt. The new borrowing is less than the 36.9 trillion yen last year, marking the second straight year of declines as authorities seek to curb borrowing costs, the sources said. Still, Japan's overall budget proposal for the 2023-24 fiscal year would likely top 114 trillion yen ($831.27 billion) extending a record amount for the 11th straight year. Several rounds of heavy stimulus have bloated fiscal spending by 1.4 times the amount of an initial budget spending plan in the past three years. That has likely made it even more difficult to achieve a primary budget balance excluding new bond sales and debt servicing costs by the fiscal year through March 2026.

TOKYO, Dec 20 (Reuters) - Japan is arranging the issue of new government bonds of around 35.5 trillion yen ($258.52 billion) for the fiscal 2023/24 annual budget, sources told Reuters on Tuesday, adding to the industrial world's heaviest public debt. Japan's budget spending plan for the fiscal year starting from April could be as high as 114 trillion yen, largely financed with bond issuance and record tax revenues, the Nikkei newspaper reported earlier on Tuesday. Japan is saddled with a debt burden of more than twice the size of its $5 trillion economy, the world's third largest. Several rounds of coronavirus stimulus spending measures have bloated fiscal spending by 1.4 times the amount of an initial budget spending plan. That has jeopardised the goal of achieving a primary budget balance excluding new bond sales and debt servicing by the fiscal year through March 2026.

The draft annual tax-code revision seen by Reuters is expected to be approved by Kishida's cabinet on Friday. read moreUnder his flagship initiative aimed at redistributing income, Prime Minister Fumio Kishida has sought to shift Japan's 2,000 trillion yen ($14.52 trillion) in household assets away from savings and into investment. As part of this initiative, the government will make permanent a programme that offers tax breaks for households' stock investments. "It will be implemented at "an appropriate time" from 2024 onwards," LDP tax panel head Yoichi Miyazawa told reporters on Thursday. Tobacco tax will be also raised in stages by 3 yen per cigarette, the draft showed.

TOKYO, Dec 2 (Reuters) - Japan is set to earmark 40 trillion to 45 trillion yen ($295 billion-$333 billion) for defence spending over five years starting in the next fiscal year, which begins in April, three sources with knowledge of the matter told Reuters on Friday. That would be a jump from the current five-year defence plan for spending 27.5 trillion yen, stoking worry about worsening one of the industrial world's worst debt burdens, which amounts to twice the size of Japan's annual economic output. Prime Minister Fumio Kishida told key ministers on Monday to work on a plan to lift defence spending to an amount equivalent to 2% of gross domestic product within five years, from 1% now, as Japan faces an increasingly assertive China. The key ministers - Finance Minister Shunichi Suzuki and Defence Minister Yasukazu Hamada - are expected to meet again with Kishida this month to iron out differences over the spending plan. Defence authorities had informally floated an idea of spending in the upper range of 40 trillion yen over five years, while finance bureaucrats had sought spending along the lines of the current five-year plan.

Search resuls for: "Takaya Yamaguchi"

25 mentions found