The average budget of Japanese consumers this Christmas stands at 16,329 yen ($105), down 27.7 percent from last year, as many look to save money, a Tokyo research company said Thursday.

"The rising cost of living is a factor that has made consumers keep a tight hold of their purse strings," said a representative of Intage, which surveyed 5,000 people aged between 15 and 79 online from Nov. 22 to 25.

In addition to Christmas Eve and Christmas Day falling on weekdays this year, consumers appear to be bracing for increased spending during the 9-day-holiday around New Year, according to the company.

First conducted in 2021, the surveys showed Christmas budgets increased for two consecutive years as the impact of the COVID-19 pandemic receded.
The average budget for New Year, polled separately, was mostly the same as last year, according to Intage.

In response to a multiple-choice question concerning plans for Christmas, "No plans" was the most selected response at 51.1 percent, up 1.2 percentage points from last year, while 27.4 percent chose "Buy a present (including one for myself)," down 2.3 percentage points.
 
 

The yen weakened against the dollar Thursday after the Bank of Japan kept borrowing costs unchanged, extending a retreat for the currency that came after the Federal Reserve forecast fewer rate cuts.

The BOJ said after a two-day policy meeting that it would hold rates at around 0.25 percent, pushing the yen cheaper. At 4 p.m., the dollar was at 156.09-14 yen, compared with 153.66 on Wednesday.

Although the bank said in its policy statement that "Japan's economy has recovered moderately" and "is likely to keep growing", it also pointed to risks ahead.

These include "developments in overseas economic activity and prices, developments in commodity prices, and domestic firms' wage- and price-setting behavior".

The Fed on Wednesday cut interest rates by a quarter point, its third straight reduction.

But it signaled a slower pace of cuts ahead as inflation remained sticky and uncertainty surrounds President-elect Donald Trump's economic plans.
Japanese businesses are also wary about the trade and investment environment, given Trump's pledge to impose tariffs on imports.

Tsuyoshi Ueno, senior economist at NLI Research Institute, told AFP ahead of Thursday's decision that one reason the BOJ did not hike was that "the picture of next year's wage increases will be clearer in January".
Political factors were another reason, according to Ueno.

"As the minority government is discussing budget and tax reforms involving the opposition... it would be bad timing for the BoJ to hike its rate" as that could cool the economy, he said.

The government recently passed an extra budget worth nearly 14 trillion yen to help pay for a massive economic stimulus package.

It includes handouts for low-income households, fuel and energy subsidies and assistance to small businesses.

Prime Minister Shigeru Ishiba is hoping the funds will lift the economy but also boost his popularity after the ruling coalition's worst election result in 15 years.

Ishiba has also promised to spend 10 trillion yen through 2030 to boost Japan's semiconductor and artificial intelligence sectors to help the nation regain its tech edge.
 
 

The Japan Business Federation, or Keidanren, plans to appoint Nippon Life Insurance Co. Chairman Yoshinobu Tsutsui as its next chairman to succeed Masakazu Tokura, whose term of office expires in May.

The country’s biggest business lobby is expected to finalize the appointment at a meeting of its chairman and vice chairs to be held early next year. Tsutsui will formally assume the position at a regular general meeting in May.

Traditionally, Keidanren’s top post has usually gone to one of its incumbent vice chairs who is from the manufacturing industry and is not affiliated with former “zaibatsu” conglomerates. Tsutsui will be the first head of a financial institution to lead the business group.

The 70-year-old has been serving as one of Keidanren’s vice chairs since 2023. He became the first chairperson of the GX (Green Transformation) Acceleration Agency, a core agency for Japan’s GX strategy that was established at the government’s behest in 2024 to help realize a decarbonized society.

At Nippon Life Insurance, Tsutsui was long involved in the planning of management strategies and became the company’s president in 2011.

He led the acquisition of Mitsui Life Insurance Co. (now Taiju Life Insurance Co.) in 2015 and enhanced the company’s revenue base in the domestic life insurance business. He has been the chairman of Nippon Life Insurance since April 2018.

Nippon Life Insurance is one of the country’s leading institutional investors and has stakes in many major companies in Japan. Keidanren apparently picked Tsutsui in the expectation that, as the head of this company, with deep connections to domestic business and outstanding knowledge of the global issue of decarbonization, he would be a very capable leader.

Tokura, 74, chairman of Sumitomo Chemical Co., took office as the president of Keidanren in June 2021 to replace Hiroaki Nakanishi, who stepped down before the end of his term for health reasons.

Regarding his successor, Tokura said at a press conference in May, “I believe we are no longer in an era where we must insist on someone from the manufacturing industry. I would like to look at various fields to pick the best person.”

“In order to prevent the “Lost Three Decades” from becoming the “Lost Four Decades,” we will have to maintain a reformist attitude,” Tsutsui said at a press conference held after he was appointed as a Keidanren vice chair in 2023.

In Japan, prices are continuing to rise, and the January inauguration of the administration of U.S. President-elect Donald Trump could trigger a dramatic change in the state of international relations. Tsutsui’s abilities to communicate and coordinate will be put to a test.

Tsutsui graduated from the Faculty of Economics at Kyoto University and joined Nippon Life Insurance in 1977. He became the company’s president in 2011 and chairman in 2018. He has served as a vice chair of Keidanren since 2023. He is from Hyogo Prefecture.
 
 

Japanese chipmaker Kioxia Holdings Corp. debuted on the Tokyo stock market Wednesday, with its opening price falling short of its initial offering price of 1,455 yen ($9) in one of Japan's biggest IPOs this year.

Shares of Kioxia opened at 1,440 yen on the first day of trading on the Tokyo Stock Exchange's top-tier Prime Market, giving the Japanese chipmaker a market capitalization of around 776 billion yen.

The listing marks the second-largest IPO in Japan this year after Tokyo Metro, which debuted in October.

Seeing the opening price below the initial offering price, Kazuyoshi Saito, a senior analyst at Iwai Cosmo Securities, said the debut "marked a calm start."
 
"As the performance of chips is highly dependent on market trends, many investors probably took a wait-and-see approach," Saito said.
 
The company, which was formerly Toshiba Corp.'s memory chip business, issued 21.56 million new shares in going public to secure about 29 billion yen.
 
Major shareholders Bain Capital, a U.S. private equity firm, and Toshiba also sold part of their stakes, with Bain's ownership falling from 56 percent to 51 percent and Toshiba's from 40 percent to 30 percent.
 
In 2018, Toshiba sold its former chip-making unit, Toshiba Memory Corp., to a consortium led by Bain Capital for around 2 trillion yen as part of its restructuring efforts. The chip company was later renamed Kioxia.
 
The company gained approval in 2020 to go public, but it repeatedly postponed its listing as heightened U.S.-China trade tensions clouded its business outlook. Its market capitalization at the time was estimated at over 1.5 trillion yen.
 

Japan's exports rose faster than expected in November, data showed on Wednesday, helped by a weaker yen and solid global demand although businesses worry protectionist U.S. trade policies will undermine future growth.

Total exports rose 3.8% year-on-year in November, more than a median market forecast for a 2.8% increase and following a 3.1% rise in October.
Strong chipmaking equipment exports to Taiwan and China, coupled with a weaker yen, boosted the overall value.

But volumes dipped 0.1%, suggesting growth in value largely reflected the boost from the yen's weakness.

"The results are not as great as they look," said Koki Akimoto, an economist at the Daiwa Institute of Research.

Looking ahead, exports are likely to stay flat, as strong demand for chipmaking equipment is offset by a moderate U.S. slowdown as well as risks from President-elect Donald Trump's trade policies, he said.

Exports to China, Japan's biggest trading partner, rose 4.1% in November from a year earlier, while those to the United States were down 8% due to a drop in automobile exports, the data showed.

Imports dropped 3.8% in November from a year earlier, compared with market forecasts for a 1% increase.

As a result, Japan ran a trade deficit of 117.6 billion yen ($766.17 million) in November, smaller than the forecast deficit of 688.9 billion yen.
The outlook for exports is increasingly uncertain.

Nearly three-quarters of Japanese companies expect Trump's next term as U.S. president to have a negative impact on their business environment, a Reuters survey showed.

 

Trump has threatened tariffs in excess of 60% on U.S. imports of Chinese goods, as well as levies of 25% on goods from Canada and Mexico, where several Japanese automakers have factories.

While uneven overseas demand ahead may undercut Japan's export engine, the Bank of Japan expects a consumption-led recovery to allow the bank to gradually raise interest rates from near-zero levels.

The BOJ announces its policy decision on Thursday. Sources have told Reuters the central bank is leaning toward keeping rates steady this week as policymakers prefer to spend more time scrutinising overseas risks.
($1 = 153.4900 yen)
 
 

 
A tie-up would help them better compete against Tesla and other electric vehicle makers, the Nikkei, the Financial Times and others said.

The two firms agreed in March to explore a strategic partnership on electric vehicles, a move analysts said was aimed at catching up with Chinese competitors.

A Honda spokesman said Wednesday that a potential merger was already among the possibilities being discussed.

“We are discussing possibilities for cooperation between Honda and Nissan in the future, in a wide range of fields and in various areas, and those possibilities include the latest reports, but there is nothing decided,“ the spokesman told AFP.

Nissan said: “The content of the report is not something that has been announced by either companies. As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths.

“If there are any updates, we will inform our stakeholders at the appropriate time.”

Nissan in particular has been struggling, announcing 9,000 job cuts last month and slashing its annual sales forecast.

Nissan shares rose more than 20 percent in early trade while Honda was off more than one percent. Mitsubishi Motors -- of which Nissan is the top shareholder -- gained 14 percent.

Honda and Nissan are looking to operate under a single holding company and will soon sign a memorandum of understanding for the new entity, the Nikkei and other outlets said, citing people familiar with the matter.

They said the firms would consider bringing Mitsubishi Motors under the holding company to create one of the world’s largest auto groups.

Honda and Nissan earlier issued almost identical statements in response, saying the details in the report had not been announced by either side.

Their statements said they were “exploring various possibilities for future collaboration, leveraging each other’s strengths”, as previously announced.
Honda is Japan’s number two automaker and Nissan is number three, with their rival Toyota in pole position.

China overtook Japan as the world’s biggest vehicle exporter in 2023, helped by its dominance in EVs, a sector where Japanese firms have lost ground by focusing on hybrid vehicles.

Honda announced plans in May to double investment in electric vehicles to $65 billion by 2030, part of its ambitious target set three years ago of achieving 100 percent EV sales by 2040.
Nissan has signalled similar ambitions.

It said in March that 16 of the 30 new models it plans to launch over the next three years would be “electrified”.

The world’s auto giants are increasingly prioritising electric and hybrid vehicles, with demand growing for less polluting models as concern about climate change grows.

At the same time, however, there has been a slowdown in the EV market on the back of consumer concern about high prices, reliability, range and a lack of charging points.

Hybrids that combine battery power and internal combustion engines have proved enduringly popular in Japan, accounting for 40 percent of sales in 2022.

Just 1.7 percent of cars sold in Japan in 2022 were electric -- compared with 15 percent in western Europe and 5.3 percent in the United States.
 
 

Japan’s industry ministry on Tuesday released a draft of a new basic energy plan, vowing to use as much renewable and nuclear energy as possible to promote decarbonization.

The draft says renewable energy will make up around 40-50 pct of the country’s power generation mix in fiscal 2040 and nuclear energy around 20 pct.

In the draft, the ministry deleted the description that the country would reduce its dependence on nuclear power as much as possible, which has been maintained since 2014, while newly including a plan to promote the rebuilding of aged reactors.

The government aims to meet anticipated growth in power demand by beefing up the supply capacity for noncarbon energy.

The draft signals that Japan would make a drastic shift from its current energy policy put in place after the March 2011 triple reactor meltdown at Tokyo Electric Power Company Holdings Inc.’s tsunami-hit Fukushima No. 1 nuclear power plant.

The draft basic policy was presented at the day’s meeting of an expert panel under the Advisory Committee for Natural Resources and Energy, which advises the industry minister. The new basic plan is expected to be approved at a cabinet meeting in February next year.

According to the draft, power generation in fiscal 2040 is estimated to grow to 1.1 trillion to 1.2 trillion kilowatt-hours from the current 1 trillion kilowatt-hours, reflecting construction of new data centers and semiconductor factories, and expansion of existing facilities.

In order to meet the growing demand, the ministry plans to raise the proportion of renewable energy in the power generation mix to around 40-50 pct from the fiscal 2030 target of 36-38 pct while lowering that of thermal and other energy sources to around 30-40 pct from 42 pct.

The share of nuclear energy, which had accounted for around 30 pct before the March 2011 accident at the TEPCO plant, will be maintained at around 20 pct.

While the nuclear energy share stood at only 8.5 pct in fiscal 2023 due to the lack of progress in the restart of idled nuclear reactors, the draft basic plan says that the country will utilize nuclear power on a necessary scale in a sustainable way.

A power company will be allowed to rebuild existing nuclear reactors within the grounds of other nuclear power stations owned by the firm, according to the draft. Currently, reactors can only be rebuilt within the premises of power plants with reactors for which decommissioning has been decided.

The draft also includes plans to develop next-generation nuclear power reactors.

The ministry aims to increase renewable power generation through the introduction of new technologies such as lightweight perovskite solar cells.
For thermal power generation, it will work on promoting the use of hydrogen and ammonia as fuel to reduce carbon dioxide emissions.

Amid soaring resources prices reflecting Russia’s invasion of Ukraine and increasing Middle East tensions, the draft says that Japan will aim for a well-balanced power generation mix that is not overdependent on a particular energy source or fuel.
 
 

 

• Study of approximately 12,000 respondents across nine markets highlights emerging travel habits, from price sensitivity to sustainable choices, shaping the future of APAC tourism
• 70% of Japanese travellers favor domestic trips, among the highest in the region, driven by perceived safety, affordability, and transportation options

Traveloka, Southeast Asia's leading travel platform, in partnership with YouGov, has released its latest study, "Travel Redefined: Understanding and Catering to the Diverse Needs of APAC Travellers".

Drawing on insights from nearly 12,000 respondents across nine countries⁽¹⁾, including more than 1,000 respondents from Japan, this study sheds light on evolving travel habits and preferences that are shaping the Asia-Pacific (APAC) tourism landscape and provides actionable insights to anticipate trends and create meaningful traveller experiences in 2025 and beyond."

APAC is bursting with opportunities, but its diversity demands creativity and nuance. Understanding the unique needs of this diverse market is critical for travel providers seeking to thrive in this dynamic travel landscape.

Success lies in weaving these insights into innovative strategies—bringing travellers closer to the experiences they seek," said Caesar Indra, President of Traveloka.

As APAC's travel landscape continues to evolve, Traveloka remains committed to empowering travellers and industry partners. By offering a comprehensive analysis of shifting behaviors, this white paper helps stakeholders uncover opportunities and navigate a fast-changing landscape. 

The full study, including a detailed country-by-country analysis, is available here.

Japan travellers: the culture and wellness seeker
32% of Japanese travellers said they travel to visit tourist attractions, followed by rest and recharge (21%), and try different types of cuisine (14%). The majority favor historical or cultural sites (62%) such as museums and castles, followed by natural attractions like mountain ranges (57%).

Wellness retreats (52%) are also a popular choice, underscoring a holistic approach to travel that blends cultural exploration with relaxation and rejuvenation.


Domestic travel takes the lead

An overwhelming 70% of Japanese travellers prefer to travel domestically. The top reasons for choosing domestic over international travel include perceived safety in their home country (65%), affordability (57%), and the ease of getting around with more modes of transportation (49%).


Price drives decision-making

Like the rest of APAC, Japanese travellers are price-sensitive. When choosing accommodation, 43% say price is an important factor, ahead of other factors such as room comfort.

When asked if they would visit a place usually not in their considerations, 35% of Japanese point to recommendations from family and friends as an important factor, followed closely by travel promotions and discounts (32%).


Sustainable travel gains ground

Sustainability is increasingly influencing travel. The majority of Japanese travellers (63%) would either look for sustainable options first or opt for them if they happen to be available.

However, 31% said they don't know where to look for sustainable options, while 22% say sustainable options are too expensive.


⁽¹⁾ About the study

In 2024, Traveloka commissioned a survey to investigate consumer travel preferences and motivations across nine APAC markets.

The data for this research was collected using YouGov Panels. A total of 11,467 respondents participated in the survey. The sample was meticulously designed to be representative of the population in each country, ensuring a broad and inclusive cross-section aligned with the survey's objectives and target demographic.

For more details, refer to the "Methodology" section of the research report, available for download here.
 
 

Asahi Shuzo Co., known for its sake Dassai, announced on Wednesday that it will attempt to brew sake in the Japanese Experiment Module Kibo on the International Space Station (ISS).

If successful, the company will sell just one 100-milliliter bottle for ¥100 million and donate the entire amount to domestic space development projects.

According to Asahi Shuzo, which is based in Iwakuni, Yamaguchi Prefecture, the company applied for and was approved in July to use Kibo.

The plan is that the raw materials for sake, such as rice, koji rice mold and yeast, will be fermented on Kibo to make 520 grams of moromi unrefined sake, which will be brought back to Earth in a frozen state to be made into sake. The brewing equipment to be brought to the station is currently under development.

The company plans to name the finished product “Dassai MOON – Uchu Jozo (brewed in space).”
 
 

The Indian-born head of one of Japan's most famous snack brands has warned that the country must change its mindset and admit more immigrants to get the economy back to the glory of its boom years.

Politicians have struggled for years to recover from the so-called lost decades as a range of differing programmes have failed to kickstart growth, including an ultra-loose monetary policy and trillions of dollars in stimulus measures.

And as the new government of Prime Minister Shigeru Ishiba eyes a fresh drive to bring back the heyday of its global tech domination Lekh Juneja, the head of rice cracker giant Kameda Seika, said he worries his adopted country has lost its edge.

"Forty years ago I came to Japan because it was close to number one in GDP... it was booming," the biotech scientist told AFP at Kameda's headquarters in Japan's rice heartland of Niigata.

 

But at some point "Japan thought 'we have everything now'. And I think that the hungry spirit to (have) the guts to go global started disappearing a bit".

Kameda's expansion mirrored Japan's postwar boom, increasing revenues tenfold between 1965 and 1974 and becoming synonymous with the nationally adored "senbei" crackers in the process.

But the country that gave the world the Sony Walkman, the bullet train and Super Mario is no longer setting the pace in technology, overtaken by Silicon Valley, South Korea and China.

In the late 1980s, Japanese firms dominated the world's top 10 companies by market capitalization. Today not one makes the list.

The population is aging and projected to drop by almost a third in the next 50 years, and firms are already having problems filling vacancies.
Although it has relaxed the rules in recent years, Japan has not turned in a big way to immigration as a solution.

 

The country "has no choice" but to allow in more immigrants, said Juneja, 72, who first came to Japan in 1984 and previously worked for a food ingredients maker and a pharmaceuticals firm.

"It's not only the numbers. It's also the mindset, the culture. We have to go global," he said.
According to a recent study, Japan needs to more than triple its number of foreign workers to 6.88 million by 2040. Currently it's on track to be almost a million short.

Since joining the firm Juneja has been trying to make Kameda more international as well as a "rice innovation company".

In the testing centre for new products the employees rolling out dough and trying out new recipes and flavors include an American and a Vietnamese.
Language "is a big barrier. You bring people to Niigata and they don't speak Japanese and it's very difficult for them", Juneja said.

"We need to change that. If we employ people who only speak and write Japanese, we have very limited resources, very limited choices," he warned.
Japan has very few foreign-born CEOs, and boardrooms are overwhelmingly male. There are 13 female CEOs in Japan's 1,600 top-listed firms, a Kyodo News survey showed in September.

 

"It's very rare for a foreigner)to become a CEO in a Japanese company," Juneja said. "But look at the U.S."

"There is Microsoft, there is Google, all these companies have Indian CEOs," he said. "I think Japan has to change... We are proud (in Japan) of our backgrounds. But I think flexibility and having people from overseas would be very critical for Japan."

Not all the non-Japanese CEOs have had a smooth ride. In November the German chief of Olympus resigned after allegedly buying illegal drugs.

 

And in 2018, Carlos Ghosn, the Franco-Lebanese-Brazilian chief of Nissan, was arrested on suspicion of financial misconduct. He then escaped, in part by hiding in an audio equipment box.

"He didn't generate a very good image for foreign CEOs here," Juneja said. "But the difference between him and me is that I have got a Japanese passport."
 
 

The Bank of Japan may hold off on a further interest rate hike at its Monetary Policy Meeting to be held on coming Wednesday and Thursday.

There is a growing view within the central bank that it is necessary to carefully assess results of the 2025 shunto spring wage negotiations before making another interest rate hike, although central bank policymakers think the economy and prices have moved in line with the bank’s projections.

The BOJ believes that achieving its 2% inflation target will require wage increases at a level similar to those seen in the 2024 shunto negotiations. In its view, the probability of achieving its target will increase if it can confirm wage increase trends before making a policy decision.

In the market, too, there is a growing view that the BOJ will hold off on raising interest rates at the December meeting. On Friday, the yen weakened against the dollar, briefly reaching the mid-¥153 range, as the foreign exchange market saw no significant change in the interest rate differential between Japan and the United States.

At its July meeting, the BOJ decided to raise its policy interest rate to around 0.25%. BOJ Gov. Kazuo Ueda said at the time, “If the economic and prices move in line with our projection, we will continue to raise interest rates.”

The BOJ’s Tankan quarterly economic survey for December, released on Friday, also showed that business sentiment was firm. The environment for an additional interest rate hike is gradually being established, but several senior BOJ officials argue that there is no need to rush to raise interest rates unless there is an acceleration in price rises.

On Tuesday and Wednesday, just prior to the BOJ making its decision on monetary policy, the U.S. Federal Reserve Board will hold a Federal Open Market Committee meeting.

Although the market is certain that the Fed will lower its policy rate by 0.25 points, the number of rate cuts expected for next year and beyond, as well as market movements, could also have an impact on the BOJ’s policy decision.
 
 

A rise in shareholder activism in Japan is poised to fuel a new wave of management buyouts by founding families, after the battle for 7-Eleven's parent company prompted a $58 billion takeover offer from the Ito dynasty that built the retail giant.

Seven & i Holdings Vice President Junro Ito swooped in last month with an offer to take private the company founded by his late father in what would be the largest ever management buyout (MBO).

Ito's "white knight" bid appears designed to keep Seven & i away from Canada's Alimentation Couche-Tard, which announced a takeover proposal in August. The Circle K owner raised its bid for Seven & i by about 22% to $47 billion in October after its initial offer was rejected.

The scramble for Seven & i gives a taste of how deals are likely to develop in the years to come, industry experts say, as changes in Japan Inc's corporate governance standards make delisting an increasingly compelling option.

A few years ago, companies could ignore unsolicited offers because they were protected by cross shareholdings - the practice of holding stakes in business partners to cement relationships.

But those holdings are now being sold off under a government push for better governance. Companies have also been told they should give serious consideration to credible buyout offers.

"Managers can no longer ignore shareholders as they could in the past. Cross shareholdings are being unwound all the time," said Travis Lundy of Quiddity Advisors who publishes on the Smartkarma platform.

"MBOs are going to be more common," Lundy said, adding the government's guidelines on giving consideration to buyout offers were "a game changer".


ALL IN THE FAMILY

Last year, Japanese deals where management took stakes, including MBOs, totaled $7.1 billion, the most in at least 36 years, LSEG data showed. The value has fallen from that peak this year, but remains at $1.7 billion.

Among recent deals, educational publisher and nursing home operator Benesse Holdings was taken private in an MBO by the founding Fukutake family and Swedish private equity firm EQT. Drugmaker Taisho Pharmaceutical was bought out by a member of its founding Uehara family.

MBOs are becoming an attractive option because the governance overhaul has created bigger burdens for listed firms, while being a public company no longer confers the status it once did, said Ulrike Schaede, a professor of Japanese business at the University of California San Diego.

Schaede gives the example of Germany, where MBOs have become a "new defense" against shareholder activism, adding that Japan could start to see a similar trend, especially given private equity's appetite for deals in the country.

Japan is hardly the only place where founding families hold stakes and sway after the founder dies - and Seven & i not the only global retailer in that position.

The family of Walmart founder Sam Walton holds 45.5% of the U.S. retailer, while the largest shareholders of Sweden's H&M are Stefan Persson, son of the founder, and his family.



SMALL STAKES

But Japan stands out because families are able to wield considerable power despite holding small stakes.

Ito-Kogyo, the company tied to Junro Ito that is bidding for Seven & i, holds only about 8.2% of the retailer.

Historically, family control of businesses in Japan has been "more persistent than the very low equity ownership by founding families would indicate", researchers from the University of Copenhagen, the University of Alberta School of Business and elsewhere wrote in a 2021 Journal of Financial Economics paper.

Some 10% to 30% of listed Japanese companies from the 1960s to 2010 were managed by founding family heirs with "little ownership to report", Morten Bennedsen, Vikas Mehrotra and their co-authors found.

They pointed to examples such as the Toyoda family at Toyota Motor Corp, the Suzukis of Suzuki Motor Corp and the Kashios at Casio Computer. Such families were able to retain control via what the researchers called "soft family assets", including their name and reputation.

"We certainly expect that the trend is continuing, there is no sign it is changing," Bennedsen told Reuters.

One Seven & i investor recalled attending a meeting with company executives including Junro Ito, who sat silent throughout. The extent to which the Ito family wielded influence and power within the company was "something of a mystery", said the investor, who asked not to be named due to company policy.

A Seven & i spokesperson declined to comment.

At many companies the founder's legacy still looms large. In recent years Seven & i resisted calls from foreign investors to hive off its Ito-Yokado supermarkets' business out of respect for founder Masatoshi Ito's vision, according to veteran Japan retail analyst Michael Causton.

"The Ito legacy, as in many Japanese companies with a charismatic founder, is an unwritten red line in the company known to all executives," Causton said, adding that amounted to preserving Seven & i as a conglomerate spanning supermarkets, general merchandise and convenience stores.

It remains to be seen whether the Ito family will manage to raise the funds needed for the deal - although it appears that domestic banks are lining up with them.

What is clear is that more such deals are likely to happen, something investors welcome.

"If the founding families in Japan really want to control and influence their companies, then they shouldn't be listed and instead taken private," the Seven & i investor said.
 
 

NHK has learned that Japan's government plans to deepen cooperation with the African Development Bank. The goal is to help Japanese companies boost their investments on the continent.

Africa is projected to grow into a major market with a population of 2.5 billion by 2050. The continent also has the potential to become a major supplier of mineral resources.

Sources say officials from Japan's economy and industry ministry will sign a memorandum with the African Development Bank. More than 80 African countries are members of the bank.

One initiative the ministry is considering involves NEXI, a government-affiliated trade insurer. It would underwrite loans taken out by Japanese businesses from the bank when they invest in the development of hydrogen, ammonia, mineral resources and the auto sector.

The ministry is also planning to set up a framework that would coordinate collaboration among major Japanese companies and African start-up firms. The aim is to bolster Japan's economic ties with the region.
 
 

Japanese big manufacturers’ sentiment improved slightly in the three months to December, a quarterly survey showed on Friday, boding well for the central bank’s plans to gradually raise interest rates from near-zero levels.

The data comes ahead of the Bank of Japan’s two-day policy meeting next week, when the board will debate whether to lift rates from the current 0.25%.

The headline index measuring big manufacturers’ business confidence stood at +14 in December, up from +13 three months ago and marking the highest reading since March 2022, the BOJ’s “tankan” quarterly survey showed on Friday. It compared with a median market forecast for +12.

Companies seem to be weathering headwinds from China’s economic weakness. This is good news for the BOJ and shows things are on track for the economy and prices, said Saisuke Sakai, chief economist at Mizuho Research & Technologies.

But the outlook is highly uncertain due partly to U.S. president-elect Donald Trump’s tariff policies, which could weigh on automakers’ profits ahead, he said.

An index gauging big manufacturers’ sentiment declined slightly to +33 from +34 in September, compared with a median market forecast for a reading of +32.

Big manufacturers and non-manufacturers expect conditions to worsen in the three months ahead, the survey showed.

Big companies expect to increase capital expenditure by 11.3% in the fiscal year ending in March, compared with a 10.6% gain projected in the previous survey in September. The increase was bigger than market forecasts for a 9.6% rise.

The BOJ ended negative interest rates in March and raised its short-term policy rate to 0.25% in July on the view Japan was making steady progress towards sustainably achieving its 2% inflation target.

BOJ Governor Kazuo Ueda has said the central bank will continue to raise rates if companies keep hiking prices and wages due to optimism over the outlook, and help keep inflation durably around its 2% target.

The tankan’s sentiment diffusion indexes are derived by subtracting the number of respondents who say conditions are poor from those who say they are good. A positive reading means optimists outnumber pessimists.
 
 

Nippon Steel on Wednesday slammed the "inappropriate" role of politics after Bloomberg News reported that President Joe Biden would block its planned takeover of U.S. Steel.

The deal worth $14.9 billion including debts is being reviewed by a body that audits foreign takeovers of U.S. firms, helmed by Treasury Secretary Janet Yellen.

Bloomberg cited people close to the matter as saying Biden planned to block the sale on national security grounds when the audit is finished later this month.

"It is inappropriate that politics continue to outweigh true national security interests -- especially with the indispensable alliance between the U.S. and Japan as the important foundation," a Nippon Steel statement said.

"We have engaged in good faith with all parties to underscore how the transaction will bolster American economic and national security by countering the threats posed by China," it added.

"Nippon Steel still has confidence in the justice and fairness of America and its legal system, and -- if necessary -- will work with U.S. Steel to consider and take all available measures to reach a fair conclusion."

Embattled U.S. Steel argues that it needs the Nippon deal to ensure sufficient investment in its Mon Valley plants in Pennsylvania, which it says it may have to shutter if the sale is blocked.

But Biden has previously expressed opposition to the takeover, which President-elect Donald Trump -- who will be inaugurated on January 20 -- has also said he would block.

"I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan," Trump wrote on his Truth Social platform earlier in December.

"Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening."

In reaction to the Bloomberg report, White House spokesperson Robyn Patterson said Biden would wait and see what the ongoing review of the deal by the Committee on Foreign Investment in the United States (CFIUS) yields.

"The president's position since the beginning is that it is vital for U.S. steel to be domestically owned and operated," Patterson said. "We have not received any CFIUS recommendation. The CFIUS process was and remains ongoing."

U.S. Steel shares closed down 9.7 percent Tuesday on Wall Street following the report. Nippon was down 0.1 percent in Tokyo on Wednesday.
 
 

The retailer will trial this new transportation method to fight dependence on truck deliveries due to a driver shortage.

7-Eleven Japan will trial trains for transporting goods across convenience stores as a new initiative amidst shortage in truck drivers.

According to a report by NHK, the company is teaming up with private rail operator Keio Corporation to deliver products along the Inokashira Line, which runs throughout the western suburbs of Tokyo. The items will be delivered to c-stores located inside rail stations.

With this implementation, 7-Eleven aims to try different solutions to the truck driver shortage that the local industry has been struggling with recently.

In addition, stores located inside train stations are often problematic for truck drivers, due to their lack of adequate parking and heavy traffic around the area.

Under this new system, most products will be delivered during regular operating hours, while perishable items such as sandwiches and meals will be transported during off-peak hours to ensure freshness. 

The rail operator’s personnel will unload goods at three stations as part of the trial phase. Additionally, 7-Eleven is exploring the possibility of expanding the initiative with other rail operators.
 
 

Roughly five years ago, Starbucks Japan switched from plastic straws to paper ones, in an effort to be more environmentally friendly. But while this change was made in order to make Mother Nature happy, customers have had more mixed feelings.

The common and consistent complaints have been that paper straws are flimsy and have a noticeably unpleasant taste, with the unwanted flavor tending to become even more pronounced as the straw’s material dissolves and deteriorates.

With Japanese consumers having especially high standards regarding how their food and beverages look and taste, as well as a general dislike for things that seem messy or dirty, Starbucks’ paper straws haven’t been particularly popular.

So there are now a lot of people happy to hear that Starbucks Japan is ready to get rid of paper straws, and very soon. They’re not backpedaling to petroleum-based plastics for their sipping apparatuses, though. Instead, Starbucks Japan’s new straws will be made out of plant-based biomass plastic.

Specifically, they’ll be using Osaka-based Kaneka Corporation’s Green Planet-branded bioplastic material. In doing so, Starbucks hopes to address customers’ dissatisfaction with paper straws while still utilizing a more ecologically responsible material than traditional plastic.

Straw material is an especially important matter for Starbucks branches in Japan. If you’ve spent much time on our site, you probably know that Japan loves Frappuccinos, and the chain is often seen here as much as an emporium for slushy dessert drinks as it is a coffeehouse.

So with Frappuccinos, which are drunk with a straw, being arguably Starbucks Japan’s most popular product, anything that makes them more enjoyable is a win-win for the chain and its customers.

The new biomass plastic straws are scheduled to be introduced first at Starbucks Japan branches in Okinawa Prefecture next month, and to expand to all of the approximately 2,000 Starbucks Japan locations across the county in March.
 
 

The signs at Nippon Steel read: “The world through steel,” underlining why Japan’s top steelmaker is pursuing its $15 billion bid to acquire U.S. Steel.

“We can’t expect demand in Japan to grow as the population is declining. We need to invest in production that leads to growth,” a company official, Masato Suzuki, said while giving reporters a look at a Nippon Steel plant in Ibaraki Prefecture, north of Tokyo.

Nippon Steel Corp. has its eyes on India, Southeast Asia and the U.S., Suzuki said. About 70% of the plant's output is exported.

The Tokyo-based company remains optimistic, although the deal is opposed by President-elect Donald Trump, President Joe Biden and American steelworkers.

During the tour, slabs of steel, glowing hot-orange at more than 1,000 degrees Celsius, rolled through the cavernous plant to become giant spools of super-thin steel.

Nippon Steel officials didn’t disclose details of the fine technology they said the planned acquisition would offer U.S. Steel.

Under the proposed deal, first announced in 2023, U.S. Steel would keep its name and its headquarters in Pittsburgh, Pennsylvania, becoming a subsidiary of Nippon Steel.

Nippon Steel already has manufacturing operations in the U.S. and Mexico, China and Southeast Asia. It supplies the world’s top automakers, including Toyota Motor Corp., and makes steel for railways, pipes, appliances and skyscrapers.

The American steel industry has waned as Chinese steelmakers have grown to dominate the market. Japan wants to leverage the decades-old U.S.-Japan security and political alliance to seal the acquisition, but the outlook is uncertain.

In September, an arbitration board jointly chosen by U.S. Steel and United Steelworkers decided the proposed acquisition could proceed.

But United Steelworkers union, which has 1.2 million members, have objected, citing worries about job losses and contract terms.

The union has questioned Nippon Steel’s plans to transfer production locations and concerns about national security and domestic supply chains.
When asked for comment, it referred to a recent letter to its members.

“As a union, our primary concern is the future of our jobs and the communities we live and work in — not just this year, but also for the foreseeable future.

We’ve seen job losses in the past, and we must do everything we can to avoid it in the future,” said the letter, co-signed by Mike Millsap, chairman of the negotiating committee, and its international president, David McCall.

“While Japan is a political ally, it is also an economic competitor, one that has proven time and again that it is willing to promote its steel industry at our expense,” the union said.

Nippon Steel is promising to “preserve the legacy” of U.S. Steel and protect jobs, pensions and benefits, pledging that there will be no layoffs or plant closures.

The deal is expected to produce an economic boost for the region equivalent to nearly $1 billion in the first two years, create up to 5,000 construction jobs and generate almost $40 million in state and local taxes, according to Nippon Steel.

William W. Grimes, professor of international relations and political science at Boston University, said Nippon Steel's commitment to keeping the U.S. Steel factories running would help preserve U.S.-based production of specialty steels. Nippon Steel also has also promised investments to make the factories more competitive.

There is no militarily sensitive technology Nippon Steel would be able to take from the U.S., and the U.S. relies on steel produced in allied countries, including Japan, Grimes said.

“If Japanese companies do draw a lesson, it should be to engage unions and local politicians early in the process,” he said.
 
 

Japan's bankruptcy filings this year are set to surpass 10,000 and hit the highest since 2013, private-sector data by Tokyo Shoko Research (TSR) showed on Monday, ahead of a closely watched central bank meeting next week.

In November, 841 Japanese companies went bankrupt, bringing the January-November tally to 9,164, already exceeding last year's total, data from the credit research agency showed.

The 2024 bankruptcy figure will likely exceed 10,000 for the first time since 2013, when 10,855 firms went bankrupt.

The Bank of Japan holds a rate review on Dec. 18-19 at which policymakers will scrutinise recent economic indicators to see if they are in line with forecasts. Market expectations for the next BOJ rate hike have fluctuated between December and January.
 

Japan's government on Monday submitted to parliament a draft supplementary budget for fiscal 2024 worth 13.9 trillion yen ($92.7 billion) to finance a new economic package aimed at easing inflation-driven financial pressures on households.

But it remains to be seen whether the spending plan will pass smoothly during the ongoing extraordinary Diet session through Dec. 21 as Prime Minister Shigeru Ishiba's Liberal Democratic Party and its coalition partner, the Komeito party, lost their majority in the House of Representatives in the general election in late October.

With the supplementary budget for the current fiscal year through March, Ishiba's administration seeks to implement the economic package totaling 39 trillion yen, featuring subsidies to curb higher energy costs and cash handouts to low-income households, as inflation continues to weigh on consumers.

"The swift enactment of the supplementary budget is needed so people can feel safe and secure," Finance Minister Katsunobu Kato said during a parliamentary speech.

The government plans to finance about half of the extra budget, or 6.7 trillion yen, through new bond issuances, raising fears that Japan's fiscal health, already the worst among major advanced economies, could deteriorate further.

The submission of the draft budget comes as consumer spending, which accounts for more than half of the nation's gross domestic product, may weaken again amid rising prices, with the yen's depreciation driving up import costs for resource-poor Japan.

Last week, government data showed Japan's inflation-adjusted wages -- a barometer of consumer purchasing power -- remained flat in October compared with a year earlier.

The government plans to allocate 3.4 trillion yen for inflation relief and 5.8 trillion yen on steps to stimulate the economy, including providing support for artificial intelligence, semiconductor and other growing industries.
As another key pillar of the package, 4.8 trillion yen is expected to be spent on ensuring public security and safety.

To secure support from opposition parties, the ruling bloc has agreed to a proposal by the small but increasingly influential Democratic Party for the People to increase the income tax exemption threshold, currently set at 1.03 million yen.

Meanwhile, the Constitutional Democratic Party of Japan, the largest opposition force, has called on the government to reduce the spending plan, arguing that the supplementary allocation includes nonurgent items better suited for the initial budget in the next fiscal year.
 
 

In Japan, you’ll come across a couple of different sub-classifications of restaurants. There are senmonten, “specialized shops” that focus on variations of a single dish, like beef bowls or ramen.

There are teishokuya, which serve a variety of set meals with a main dish accompanied by rice, vegetables, and miso soup. And then there are izakaya, pubs that offer a wide array of alcoholic beverages and sides such as skewers of grilled chicken, plates of sashimi, and bowls of edamame.

Because of the extensive variety of their offerings and how easily sharable their food is, izakaya are a popular choice for a couple of cold ones and a bite to eat…but the results of a recent study by Japan’s Teikoku Databank research firm shows that izakaya are in a shaky spot these days, with 2024 on pace for the largest number of izakaya bankruptcies in more than a decade.

According to Teikoku Databank’s findings, through November of this year 203 izakaya have declared bankruptcy (defined in the study as declarable with debts of over 10 million yen). That’s higher than any January-November period in the past 15 years, and up 7 percent compared to 2023.

What’s more, no year between 2010 and 2023 had more than 204 izakaya bankruptcies for the entire year, so once this December’s numbers are added in to the 2024 total, it’s almost certain to set a new record.

▼ The study’s figures, showing izakaya bankruptcies between 2010 and 2024 for the first 11 months of the year in blue, and for the entire year in gray.

Obviously, there was a spike in izakaya bankruptcies during the pandemic, with 189 in 2020. But while bankruptcies dipped in the latter half of the health crisis, a massive jump occurred in 2023 with 204, more than in any single year of the pandemic, and things are going to be bleaker still in 2024.
So what’s going on here? 

Teikoku Databank cites changes in consumer spending habits, as well as rising costs for alcoholic beverages, food, and labor, and those factors are likely feeding into one another in a vicious cycle.

Starting with the first part, izakaya have long benefited from having large groups of customers come in for company drinking parties, as well as smaller groups of coworkers stopping in for an informal round or two on their way home from the office. 

That practice got put on hold during the pandemic as work-from-home and social distancing became the norm, and it hasn’t made a 100-percent comeback, with a lot of Japanese workers now more acutely aware that they’d rather spend their time doing something other than drinking with coworkers after clocking out as a result of being freed from such obligations for a few years.

Meanwhile, a weakened yen is resulting in all sorts of rising prices in Japan. With the country experiencing its worst inflation in a generation, restaurants have been steadily increasing their prices in order to protect their profit margins.

However, it’s not just izakaya that are paying more for cooking ingredients, electricity, and delivery costs. Necessary living expenses like groceries, utilities, train fares, and gasoline are all rising for consumers too, and outpacing increases to workers’ wages.

In other words, izakaya are charging higher prices while potential customers have less money to spend, which is coinciding with an increased number of people having recently confirmed that they’d be OK with making fewer izakaya visits anyway.

That’s not a very reliable recipe for financial success, and until some of the contributing factors change, the izakaya bankruptcy situation might get worse before it gets better.
 
 

Sales of new energy vehicles (NEVs), which include electric vehicles and plug-in hybrids (PHVs), are growing rapidly in China.

According to Chinese media, China’s NEV output exceeded 10 million units for the first time this year and its annual output is expected to grow by 25% from the previous year. While Chinese automakers have been seeing growth in their NEV sales, Japanese and European auto brands are losing their presence in the Chinese market.

At the Auto Guangzhou 2024 trade show that kicked off Nov. 15 in Guangzhou, Guangdong Province, nearly 40% of the about 1,200 vehicles exhibited were NEVs. Chinese automakers in particular highlighted new NEV models, aiming to boost the vehicles’ promotion to visitors.

China’s leading EV maker BYD exhibited its high-end PHV minivan Xia. PHVs can be recharged from an external power source and by using engine can maintain the driving range in winter, when the driving range of EVs is reduced. BYD has been strengthening its PHV lineup, aiming to respond to demand in northeastern and inland China as well as foreign countries.

PHV sales are growing. BYD sold 440,000 EVs, up 3% year-on-year, for the July-September period, while the company’s PHV sales significantly increased by 76% year-on-year to 690,000 units.

EVs, where Chinese companies have a strong competitive edge, continue to be popular in the Chinese market. Xiaomi, a major Chinese smartphone maker that made its debut in the EV market this spring, caught the attention of visitors at the auto show for showcasing its electric sports car priced at 810,000 yuan (about ¥17 million.)

 

Few visitors at Japanese booths


Chinese booths at the auto show were popular with attendees while those of Japanese auto brands struggled. Dongfeng Honda Automobile Co., a joint venture between Honda Motor Co. and Dongfeng Motor Group Co., exhibited a total of 17 models at its booth.

Most of the vehicles were not NEVs, with the booth showcasing seven gasoline-powered vehicles, six hybrids and four EVs. Few attendees visited the booth.

Dongfeng Honda Automobile did not exhibit PHVs because the vehicles were out of stock, according to an official. A Chinese man who visited the auto show said, “The company’s models are lagging behind those of Chinese companies in terms of design and performance.”

On Nov. 14, China Central Television reported that the NEV output, including EVs and PHVs, has already exceeded 10 million units this year and is expected to reach over 12 million units annually. NEV production has rapidly expanded, exceeding 1 million units in 2018 and 5 million units in 2022.

NEVs accounted for about 40% of passenger cars sold from January to October this year, according to an industrial group.

In contrast with the growth of NEVs, the market share of Japanese automakers in the Chinese passenger car market has been declining.

According to MarkLines Co., Japanese vehicles accounted for 11.4% of all passenger cars sold in China from January to October, down 50% from five years ago.

Japanese automakers are trying to regain lost ground in the NEV market. For example, Nissan’s joint venture in China, Dongfeng Nissan, has locally hired Chinese engineers to develop EVs and PHVs. However, more than 100 companies are competing in the Chinese market. With price competition intensifying in the EV market, it appears that a rocky road lies ahead for Japanese automakers.
 
 

Japan's household spending in October fell a real 1.3 percent from a year earlier, dropping for the third straight month, as consumers reduced purchases of food amid rising prices and clothing due to warm temperatures, government data showed Friday.

Separate data showed the country's inflation-adjusted wages remained flat in October compared with a year earlier after declining over the previous two months, as the impact of higher prices eased due partly to government subsidies for utility bills.

Average spending by households of two or more people stood at 305,819 yen, the Ministry of Internal Affairs and Communications said.

Food expenditure, which accounts for around 30 percent of spending, fell 0.8 percent, as consumers saved by buying chicken instead of pork and beef, while staying away from chocolate due to rising prices.

Spending on clothing and shoes plunged 13.7 percent, affected by weak demand for winter apparel amid unusually warm temperatures in the reporting month, the ministry said.

Outlays on housing including renovations dropped 10.7 percent, while education expenditures, such as tuition fees, fell 14.0 percent.

Household spending is a key indicator of consumer spending, which accounts for more than half of Japan's gross domestic product.

Meanwhile, the country's real wages at workplaces with five or more employees failed to turn positive in October after briefly rising in June and July but falling in August and September, the Ministry of Health, Labor and Welfare said.

Nominal wages, the average total monthly cash earnings per worker including base and overtime pay, increased 2.6 percent to 293,401 yen, rising for the 34th straight month.

At workplaces with 30 people or more employees, real wages, a barometer of consumer purchasing power, increased 0.9 percent, rising for the second consecutive month.

Consumer prices, used to calculate the salary data, rose 2.6 percent in October, slowing from 2.9 percent in September.

"While winter bonuses will be reflected in the November data, whether real wages will turn positive depends on price developments," a labor ministry official said.

Excluding bonuses and nonscheduled payments, average wages climbed 2.7 percent to 265,537 yen, the biggest rise in nearly 32 years. Full-time workers' average wages grew 2.8 percent to 336,070 yen, marking the sharpest increase since comparable data became available in 1994.



© KYODO
 

 

Chikaranomoto Holdings Co., which operates the Ippudo ramen restaurants, will sell a limited quantity of low-sodium ramen for tasting with a salt-simulating spoon developed by Kirin Holdings Co.

The product, which contains 30% less salt than the Shiromaru classic served at Ippudo, will be offered at the Ippudo Hamamatsucho Stand in Minato Ward, Tokyo, for 1,000 yen per bowl on Dec.13, 14, 21 and 22.

When the saltiness of ramen is reduced, it is difficult to taste the umami flavor and feel satisfied with the product.

When tasted with an “Electric Salt Spoon,” developed by Kirin HD to use a weak electric current to amplify the salty taste and umami flavor, the low-sodium ramen can be enjoyed without worrying about having a high salt intake, according to the person in charge.

Reservations are required and can be made at https://ippudo-kirin2412.peatix.com from 10 a.m. on Wednesday.
 

 

Five years have passed since Makoto Uchida became president of Nissan Motor Co. The company has been forced to carry out major restructuring over those five years, as its share price has dropped nearly 50%.

Among the difficulties the company continues to face is a decline in sales due to a failure to launch models that appeal to customers. Nissan is also dealing with activist shareholders.

Rebuilding the company remains out of reach.

“We pushed ahead with a plan that had many hurdles, and our business performance declined rapidly. We created a culture where people were forced to say that they could do things that they could not,” Uchida said at his inaugural press conference as president in December 2019.

He emphasized that the company had broken away from the culture created by former Nissan President Hiroto Saikawa and former Nissan Chairman Carlos Ghosn, who represent the past 20 years of leadership at Nissan.

Ghosn, who was accused of criminal wrongdoing, jumped bail and fled to Lebanon in 2019.

However, Nissan’s consolidated financial results for the year ended March 2020 showed a loss of nearly ¥700 billion. The company also recorded a net loss of about ¥450 billion for the year ended March 2021 due in part to the COVID-19 pandemic.

The company’s performance seemed to have recovered when it marked a net profit of ¥400 billion for the year ended March 2024.

However, it reported only ¥19.2 billion in net profit last month in its midterm consolidated financial report for the first half of the fiscal year ending in September. That is a 90% decrease compared to the same period last year.

When asked about the reasons for the decline at a press conference, Uchida said, “In hindsight, the sales plan was too ambitious.”

The company’s global sales have fallen to 3.4 million units from about 5 million units at the start of Uchida’s tenure.

A senior official of a major bank said, “Nothing has changed [at Nissan] in the last five years.”

The opinions of market watchers are also harsh. Nissan’s stock price closed at ¥360 on Monday, marking a fall of nearly 50% since Uchida took up the post. In contrast, Toyota Motor Corp.’s shares rose by 70% over the same period.
 

 

Reduced production

According to a senior Nissan official, the cause of Nissan’s current predicament is that “there are no models that can sell.” The company has been unable to launch hybrid vehicles in the United States, where the cars are popular as an alternative to electric vehicles.

Nissan has also been squeezed by the aggressive tactics of Chinese car companies, which sell their models at low prices in China and Europe. Nissan has fallen into a vicious cycle of increasing sales incentives at dealerships in order to reduce its inventory.

In November, Nissan said that it would cut about 9,000 jobs worldwide as an emergency measure. It will also reduce its production capacity by 20% to 4 million units.

In addition to consolidating some of its production bases in Thailand, Nissan has cut production in the United States by about 20% compared to last year. Sales in Europe have also fallen sharply. The company decided to cut production at a plant in Britain by about 20%.

Some have pointed to a lack of transparency in the company’s operations.
Due to a deep-rooted corporate culture bred during the long period led by Ghosn, in which people wait for instructions from top officials, employees still cannot express their opinions to the president, a senior Nissan official said.

Nissan plans to revamp its management structure by spring.
According to a source close to Nissan, moves are underway to find a successor from the next generation, but that is proving difficult.

There are increasing concerns about the company’s immediate future. Nissan’s half-yearly report published in November revealed that an investment fund established by a former Murakami Fund employee had taken a large stake in Nissan. This may hamper Nissan’s efforts to form a partnership with Honda Motor Co.

At an extraordinary general meeting of shareholders held in February 2020 shortly after his appointment, Uchida said that if he fails to improve Nissan’s earnings, “Please fire me.”

Uchida now needs to take steps to regain the trust of the shareholders, but there is not much time left for him.
 
 

The Securities and Exchange Surveillance Commission is going to recommend that the Financial Services Agency impose a fine on general contractor Yamaura for releasing false financial statements, it was learned Tuesday.

In May 2023, the accounting auditor of the Komagane, Nagano Prefecture-based company listed on the Tokyo Stock Exchange's Prime section pointed to a difference of about ¥1 billion between the actual and booked balances of bank deposits by its Tokyo-based subsidiary, Yamaura Kikakukaihatsu.

The parent, in its consolidated earnings report for fiscal 2022 through March 2023, logged ¥1 billion in accounts receivable, which later proved to be a misstatement.

A third-party investigation panel found that Hiroyuki Murata, 64, who was in charge of preparing financial statements at Yamaura and accounting at the subsidiary in question, had illegally withdrawn more than ¥2.5 billion by 2023. In response, Yamaura revised financial results for the three years from fiscal 2021.

The securities watchdog decided to make the recommendation on the grounds that Yamaura's release of financial statements containing false information amounts to a violation of the financial instruments and exchange law, people familiar with the matter said.

Murata has been arrested and indicted on suspicion of embezzling about ¥900 million in total together with his 35-year-old son, Toshiki. The money is believed to have been used for credit card payments and loans to the operator of Rizin mixed martial arts events.
 
 

DMM Bitcoin, which suffered a private key hack in May that caused a loss of $320 million in Bitcoin, is ceasing efforts to revamp operations.

Japanese cryptocurrency exchange DMM Bitcoin is prepping to liquidate after losing $320 million in Bitcoin in a private key hack in May from which the company has failed to recover.

The crypto exchange is ceasing efforts to revamp operations and intends to transfer customer assets to SBI VC Trade, an exchange operator under SBI Group, around March, Nikkei Asia first reported on Dec. 2.

According to a translation of a statement released on Dec. 2, a basic agreement between the two companies has been made for SBI to accept the transfer of all accounts and deposit assets.

“Under this agreement, customer deposit assets (in Japanese yen and crypto assets) in accounts opened on DMM Bitcoin will be transferred to us as soon as March 2025,” it read. SBI VC Trade will also handle the transfer of crypto stocks held on DMM Bitcoin, it added.

 
$320 million stolen in May hack

DMM Bitcoin was compromised on May 30 in a server breach and private key hack, which the company referred to as an “unauthorized leak,” resulting in the loss of more than 4,500 Bitcoin BTC $95,170 from a single wallet. 

At the time, the firm said that all user deposits “will be fully guaranteed,” as it halted withdrawals, new account openings and trading. 

DMM exchange also told customers that it would “procure the equivalent amount of BTC” to make sure that all users were compensated, acquiring funds “with support from our group companies.”

DMM’s loss was the second-largest in the region, following the $530 million Coincheck hack in 2018. 

In July, blockchain sleuth ZachXBT reported that about $35 million of the stolen crypto had been laundered to the online marketplace and crypto scam hotbed Huione Guarantee. 

“It is suspected that Lazarus Group is behind the hack due to similarities in laundering techniques and offchain indicators,” he said at the time. 
DMM exchange was launched in January 2018 and is owned by the Japanese e-commerce conglomerate DMM Group.

In November, DMM Crypto announced that it was discontinuing its Seamoon Protocol. The Seamoon Portal was a Web3 gaming and content site that featured games and anime produced by the exchange’s parent firm, DMM.com.

DMM Crypto was working with the stablecoin platform Progmat to issue its own stablecoin to enhance the ecosystem.

However, according to a translation of a statement at the time, the firm cited “recent rapid changes in the business environment” that have created challenges for the project’s sustainability.

Centralized exchange hacks have been rife in 2024. The Indian WazirX exchange was hacked in July for $235 million, while the Singaporean BingX exchange was hacked for $52 million in September, and an exploit of the Turkish BtcTurk hot wallet resulted in losses of up to $55 million in June. 
 
 

Hopes are high for freight-only Shinkansen trains, which are being considered for introduction by East Japan Railway Co. (JR East), both as a means of expanding the transportation of goods and as a new source of revenue for the high-speed transportation service.

However, many issues related to railway facilities and operations still need to be resolved, delaying the realization of the freight-only trains.

Although the hurdles remain high, a growing labor shortage in the logistics industry is raising expectations for cargo-only trains.
Subhead: Attractive prospect

JR East President Yoichi Kise expressed his ambition to commercialize the high-speed transportation of goods using dedicated freight trains at a press conference. “If freight-only bullet trains are going to play a role in logistics, we’re going to consider developing them,” he said.

JR East is considering placing freight-only cars at the front of the train or making all the cars dedicated to carrying freight.

JR railway companies are already using unoccupied spaces on Shinkansen trains to transport goods, but the amount is limited.

Introducing freight-only trains will increase the amount of cargo transported and improve loading and unloading efficiency. The strengths of the service are its speed, which rivals air transport, and its minute-by-minute punctuality. JR East aims to handle a total of ¥10 billion of freight transportation in the future, it said.

Yasuyuki Watanuki, president of Hokkaido Railway Co. (JR Hokkaido), which is connected to JR East by the Hokkaido-Tohoku Shinkansen line, said the idea of a cargo-only bullet train is attractive.

If a bullet train could transport agricultural and seafood products from Hokkaido to the Tokyo metropolitan area, the benefits would be great.



Varying degrees of enthusiasm

Enthusiasm for the introduction of a freight-only bullet train varies between railway companies.

The Tokaido Shinkansen line of Central Japan Railway Co. (JR Tokai) currently has a very tight timetable, leaving little room for dedicated freight trains to be introduced.

All Tokaido Shinkansen trains are operated at a high frequency with a maximum speed of 285 kph. Introducing Shinkansen freight trains, which can be slowed down by heavy loads of cargo, could affect the overall timetable.

It is important to improve not just the train but also stations and other facilities to improve the efficiency with which cargo is unloaded.

“There is no demand more certain than passengers,” a JR Tokai official said.
Japan Freight Railway Co. (JR Freight) has expressed concerns about cargo-only Shinkansen services.

JR Freight was established when Japanese National Railways was privatized. Its current revenue is less than 10% of JR East’s revenue.

If the scramble for cargo transportation becomes fierce, JR Freight President Shin Inukai said, “There is a fear that the demand for logistics will shift to Shinkansen trains.”



Responding to manpower shortages

While there are still issues to be addressed, the introduction of freight-only bullet trains continues to attract attention against the backdrop of the difficulties plaguing the logistics industry.

The industry faces a serious labor shortage due to the so-called“2024 logistics problem,” in which overtime regulations for truck drivers have been tightened, affecting cargo transportation capacity.

The government plans to double the amount of freight transported by rail over approximately the next 10 years.

A study group at the Land, Infrastructure, Transport and Tourism Ministry proposed the idea of developing a cargo-only bullet train because only about 30% of space on JR Freight’s trains is available for extra cargo.

“Logistics will change completely if Shinkansen can transport cargo at high frequency,” a senior official of the ministry said.

Nomura Research Institute Ltd. has estimated the potential demand for freight delivered via Shinkansen trains throughout Japan to be about 900 tons per day. The firm expressed the view that the service would be a viable business.

“The key to success is whether the railway company can acquire enough cargo that makes the most of the characteristics of the Shinkansen to cover the development costs of the dedicated vehicles,” said Kazuyuki Kobayashi of Nomura Research Institute.
 
 

Prices on another 109 food and beverage items -- mainly processed foods -- will increase starting December in Japan, according to business intelligence firm Teikoku Databank Ltd.

The increases will bring the total number of items to see price hikes in 2024 to 12,520 -- the smallest number of increases in the past three years.
However, further increases for items like bread and alcoholic beverages are expected next year. The report warns, "The pace of price increases in 2025 could surpass that of 2024."

December price rises for 91 processed food items -- particularly packaged rice -- are being driven by surging rice prices. Other categories include 11 confectionery items and seven seasonings.

From January to April 2025, 3,933 items are scheduled for price increases. Bread products will see rises across the board, with 1,227 items increasing in January alone.

Alcoholic beverages, including canned beer, will add another 1,251 items in April. Processed foods, such as frozen meals and mochi rice cake, will account for 1,040 items.

As with this year, soaring raw material costs are the main reason for the projected price increases in 2025.

Higher logistics expenses, due to new truck driver work regulations, and rising labor costs stemming from minimum wage hikes are also significant contributors cited by many companies.
 
 

Mitsubishi UFJ Financial Group Inc. said Friday that it will acquire Japanese robo-advisory firm WealthNavi Inc. to reinforce its asset management services for individual customers.

MUFG Bank, a unit of Mitsubishi UFJ Financial, will launch a tender offer on Monday to buy WealthNavi shares at ¥1,950 per share. The acquisition is expected to cost about ¥99.6 billion.

On Friday, WealthNavi announced its support for the tender offer. The company is expected to be delisted as early as March next year. CEO Kazuhisa Shibayama is expected to stay on for the time being.

In March, MUFG Bank took a stake of over 15% in WealthNavi and made it an equity-method affiliate. It now plans to acquire all WealthNavi shares and make it a wholly owned subsidiary.

The Mitsubishi UFJ group plans to use WealthNavi to expand services that offer financial products via smartphone apps.

A robo-adviser provides automated investment recommendations tailored to specific customer needs.

As of the end of October, WealthNavi had ¥1,338.6 billion  in customer assets under management.
 
 

The Japanese company, Unitika, which was a leader in developing the nation's textile industry, is now withdrawing from the business altogether.

The firm's textile segment, mainly for clothing, has been losing money in recent years in the face of fierce competition from China and other overseas rivals.

Unitika President and CEO Ueno Shuji said: "We were unable to carry out drastic business reforms given the potential challenges, such as declining profitability and a rigid cost structure. As a result, loss-making operations continued."

Unitika expects a net loss of around 10 billion yen, or 68 million dollars, in the current fiscal year through March.

It says it plans to receive capital support from a public-private investment fund. The fund will become Unitika's largest shareholder, and all current executives will step down, in principle.

Unitika will now focus on its growing polymer business, which produces films for food packaging and semiconductor-related materials.

The Osaka-based company was founded in 1889 as Amagasaki Spinners. It contributed to the industry's modernization and the country's post-war economic boom through exports of chemical fiber.
 
 

The yen rallied Friday after forecast-busting inflation data out of Tokyo boosted talk of another Japanese interest rate cut next month, while equity markets were mixed as traders weigh the economic outlook during a second Trump administration.

With Wall Street closed for the Thanksgiving break, there were few catalysts to drive business heading into the weekend and at the end of a rollercoaster month dominated by uncertainty in the wake of Donald Trump's election victory.

Traders are tracking developments surrounding the tycoon as he builds a hawkish cabinet and outlines his plans, including a threat to hammer China, Canada and Mexico with hefty tariffs on his first day.

Eyes were also on Japan, where figures showed consumer prices in Tokyo -- seen as a bellwether for the country -- jumped to 2.6 percent in November, well up from October and much more than expected.

The news ignited speculation the central bank will hike rates for a third time this year.

Expectations for an increase in borrowing costs have picked up pace in recent weeks after Bank of Japan Governor Kazuo Ueda said officials would have to tighten policy if the economy continued to perform in line with forecasts.

Friday's price data came as separate figures showed the jobs market remained tight. Bets on a rate increase have risen to more than 60 percent, according to Bloomberg News.

The yen rallied Friday, hitting the upper 149 level to the dollar for the first time in a month.

The currency was also supported by forecasts that the Federal Reserve will lower U.S .rates at its December meeting -- narrowing the yield differential and making the Japanese unit more attractive to investors.

The report "will probably strengthen the BOJ's conviction that inflation momentum is building, with its two percent target looking (increasingly) secure", said Taro Kimura, an economist with Bloomberg Economics.

The BOJ hiked rates in March for the first time in 17 years as it looked to move away from a long-running ultra-loose monetary policy.

However, a second, surprise lift at the end of July sparked turmoil on markets and led to a major unwind of the so-called "yen carry trade" in which investors used the cheaper currency to purchase higher-yielding assets.

The stronger yen weighed Japanese exporters and pushed Tokyo stocks lower on Friday.

Other Asian markets fluctuated, with Sydney, Seoul, Singapore and Taipei in the red and Wellington and Manila slightly higher.

Hong Kong and Shanghai flitted between gains and losses.

The euro edged up but remained under pressure owing to uncertainty over budget cuts to reduce France's huge deficit, and as Prime Minister Michel Barnier's government struggles amid tough opposition from the right and left.

Economic weakness in Germany in particular has also dampened enthusiasm in Europe.

Oil prices diverged after the OPEC+ alliance postponed a weekend meeting to December 5, with analysts saying there were signs of disagreement among the group over plans to increase output.

Bitcoin was sitting at about $96,500, having suffered a big drop at the start of the week following its worst run since Trump's electoral success.

Still, it is widely tipped to top $100,000 on expectations the new president will ease restrictions on the digital currency market.
 
 

Core consumer inflation in Japan's capital accelerated in November and stayed above the central bank's 2% target, data showed on Friday, as price pressures broadened, keeping alive market expectations for a near-term interest rate hike.

The yen jumped after the data, as market players stepped up bets the Bank of Japan (BOJ) would raise short-term interest rates from the current 0.25% at its next policy meeting in December.

The Tokyo core consumer price index (CPI), which excludes volatile fresh food costs, rose 2.2% in November from a year earlier, exceeding a median market forecast for a 2.1% gain and accelerating from a 1.8% increase in October.

Another index that strips away both fresh food and fuel costs, which is closely watched by the BOJ as a better gauge of demand-driven inflation, rose 1.9% in November from a year earlier after a 1.8% increase in October.

"Prices are rising not just for food but services, which is positive news for the BOJ in normalising policy," said Masato Koike, senior economist at Sompo Institute Plus.

The dollar briefly fell 0.9% to 150.17 yen after the data, bringing its weekly loss to 3%. Traders now see a 60% chance the BOJ could hike rates again in December, having been undecided before the data.

 

TRUMP RISK LOOMS

The data for Tokyo, which is considered a leading indicator of nationwide price trends, showed households hit by rising rent, utility bills and food costs. Part of the increase in core CPI was due to a phase-out of utility subsidies from November.

But service-sector prices also rose 0.9% in November from a year earlier after a 0.8% gain in October, underscoring the BOJ's view that sustained wage gains are prodding firms to charge more for services.

Separate data released on Friday showed job availability edging up in October, highlighting Japan's tight labour market.

"Looking at domestic factors, there's nothing that prevents the BOJ from raising rates further," said Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities, who expects the central bank to hike rates in December.

The BOJ ended negative interest rates in March and raised its short-term policy rate to 0.25% in July on the view Japan was making steady progress towards durably achieving its 2% inflation target.

BOJ Governor Kazuo Ueda said last week the economy was progressing towards sustained wages-driven inflation, leaving open the chance of another rate hike as early as next month.

Just over half of economists polled by Reuters expect the BOJ to raise rates again at its Dec. 18-19 meeting.

External risks, however, may delay the BOJ's rate hike timing as threats of higher tariffs by U.S. president-elect Donald Trump cloud the outlook for the export-reliant economy.

Data released on Friday showed factory output rose 3.0% in October from the previous month, though manufacturers surveyed by the government expect production to fall in coming months.
 
 

The government and investors have expressed their high hopes for the Yomiuri Stock Index (Yomiuri 333), saying it will expand people’s investment options.

The Yomiuri Shimbun announced Thursday that it will establish the Yomiuri 333 in March next year to indicate the price movements in Japan’s stock market.

By providing a new benchmark for the Japanese economy, the nation’s leading daily newspaper hopes the index will encourage domestic and foreign investment in Japanese companies, promote corporate growth and return its fruits to the people.

The Wall Street Journal reported Wednesday (Thursday in Japan) that “[The] Yomiuri Shimbun, Japan’s largest newspaper by print circulation, said it plans to introduce a new stock index next March that it sees as an alternative to the widely followed Nikkei 225 index and Japan Exchange Group’s Topix index.”

Media outlets in Japan also immediately reported the news online.
The Yomiuri Stock Index will be composed of 333 listed companies that represent Japan.

The key feature of the new index is that it will use an equal-weighting method in calculating the index, which will equally reflect the price movements of the 333 companies.

The Nikkei Stock Average (Nikkei 225) and the Tokyo Stock Price Index (TOPIX) tend to be affected by the price movements of higher-priced stocks and companies with large market capitalization.

“The development of a new stock index, leading to the provision of new investment products, will expand the choices for investing in Japanese companies,” Chief Cabinet Secretary Yoshimasa Hayashi said at a press conference Thursday. “It is desirable in terms of helping the people to build their assets,” he said.

“The index is well-balanced, and will make it easier to understand the situation in the stock market,” one individual investor said.

“[With this index,] even companies with a small market capitalization that are making good efforts will be more likely to attract attention.

If financial products linked [to this index] are created, investors will be able to diversify their investments with a new perspective,” said Yukino Yamada of Daiwa Securities Co.
 
 

Marumiya Corp. announced that it will recall about 15,000 of its pre-packaged ingredient boxes for making kamameshi rice called “Tori Gobo Kamameshi no Moto.”

The recall comes after a foreign object that appeared to be a cockroach was found in one of the products.

The company said no health problems have been reported so far.
The products in question have a best-before date of Aug. 21 and Sept. 3 in 2025. The bag inside the product is marked “U4230N54.”
 


 

Trading house Itochu Corp is considering helping finance the potential buyout of Seven & i Holdings Co by its management, responding to a request from the founding family of the Japanese retail giant, sources close to the matter said Monday.

Itochu, the parent of convenience store chain operator FamilyMart Co, is apparently in the initial phase of the study, the sources said.

The move could complicate the around 7 trillion yen ($45 billion) buyout offer by Canada's Alimentation Couche-Tard Inc toward Seven & i.

The Seven & i founding family, which anticipates a management buyout worth 9 trillion yen, has also contacted some banks and investment funds, according to the sources.

Alimentation Couche-Tard, the operator of Circle K convenience stores, has raised its buyout offer from the initial offer of around 6 trillion yen.

With its possible participation, Itochu may expect some synergies between FamilyMart and Seven-Eleven, two of the leading convenience store chains in Japan.

But it could also cause antitrust issues because of their dominance in the industry, and Itochu may need to keep its investment ratio low, the sources said.
 

 

Japan's antitrust watchdog conducted an on-site investigation of the Japanese unit of Amazon.com Inc. on Tuesday for allegedly forcing retailers to cut prices of products sold on its online shopping website, sources close to the matter said.

Amazon Japan G.K. is alleged to have violated the antimonopoly law by forcing retailers to reduce prices in return for displaying their products in the most visible positions for users of its platform, with the involvement of its U.S. headquarters also suspected.

The move comes as U.S. and European antitrust authorities are reported to have ramped up their probes into the tech giant over suspicions of pressuring third-party sellers inappropriately by taking advantage of its dominant position.

The Amazon e-commerce site has a "marketplace" for outside retailers to sell their products in addition to selling its own goods. Vendors recommended by Amazon will be displayed in the designated area, which can be easily found by users.

Amazon requires retailers who wish to appear in the area to "sell products at competitive prices," and is suspected of threatening to withdraw their products if they refuse to lower prices below those of rival online shopping platforms, the sources said.

The Japan Fair Trade Commission considers such acts as breaching the antimonopoly law prohibiting companies from abusing their power based on their dominant bargaining position and conducting transactions with restrictive terms.

The watchdog is expected to seek information from retailers about their transactions with Amazon in the near future, the sources said.

Amazon Japan was also probed by the watchdog for violating the antitrust law in 2016 and 2018.
 

 

Marriott has strong growth momentum in Japan, and has just opened its 100th hotel in the country, under it Four Points Flex conversion brand.

​​Marriott International has opened its first Four Points Flex branded hotel in Asia Pacific, also marking the group’s 100th hotel in Japan.

Four Points Flex by Sheraton Osaka Umeda is the hotel that has marked the two milestones in the group’s international expansion across the region.

The hotel is the first of 14 Japanese properties that will convert to the brand, after Marriott signed an agreement with portfolio owner and global investor KKR.



Swift conversions to the Marriott family

By mid 2025, all of the hotels are expected to have converted, adding more than 3,600 rooms to Marriott’s offering in Japan. The Four Points Flex brand will pop up in key destination cities and towns across the country including Hakodate, Utsunomiya, Yokohama, Nagoya, Osaka, Kyoto, Kobe, and Hakata.

KKR acquired the hotels in 2023, after the company took over Japanese hospitality business Unizo, lifting it out of bankruptcy. KKR opted to add international branding to the assets, in a bid to improve their trading performance, and also to attract more international travellers as Japan’s tourism volume rebuilds strongly after the pandemic.

Four Points Flex by Sheraton was developed by Marriott as a brand designed for hotels that want to convert quickly and economically to the Marriott family.

Its lower conversion cost, and more flexible brand standards, make for swifter refurbishments, benefiting owners who can start to trade within the Marriott Convoy ecosystem without major downtime.

The brand is proving a hit internationally. In Europe, the first Four Points by Sheraton Flex was delivered in London, with owner Splendid Hospitality converting a 201 room property in the city’s Euston district. Early signings also included two hotels in Turkey, with commitments for conversions in Antalya and Bursa.

Building on this momentum, Marriott recently signed portfolio deals in Denmark and in the UK, immediately adding a strong presence.

An agreement with Danish operator Core Hospitality will see 14 hotels there switch from the Zleep brand over the coming months. And in the UK, new partner Resident Hotels will initially convert its four Sleeperz branded hotels to Flex, while looking for other opportunities to grow the relationship with Marriott in the UK.


A strong momentum in Japan

For Marriott, the Japanese additions build on a strong momentum the company already has in the country.

In an agreement with local company HMI Group, four of that company’s hotels are switching their branding to Marriott, with three more becoming Courtyard by Marriott properties.

Partnership agreements across Japan have also seen Marriott roll out a series of Fairfield by Marriott hotels across the country, designed to appeal to travellers visiting the country’s unique geography.

And the company has not forgotten its luxury brands. In 2025, it will open a 200 room JW Marriott hotel in Tokyo, underlining the breadth of the group’s hospitality offerings
 
 

At a press conference held after a Cabinet meeting Tuesday, Foreign Minister Takeshi Iwaya expressed his displeasure at the committee’s report that recommended the law be amended.

The reverberations from a U.N. committee’s recommendation that the Japanese government amend the Imperial House Law show no sign of abating.

The recommendation by the Committee on the Elimination of Discrimination against Women showed a clear lack of understanding about Japan’s Imperial system, and the government is concerned that this could spread the misperception that the law entails discrimination against women.

There is a growing view, both in Japan and overseas, that bias and other problems blight the way the United Nations deals with human rights issues.
At a press conference held after a Cabinet meeting Tuesday, Foreign Minister Takeshi Iwaya expressed his displeasure at the committee’s report that recommended the law be amended.

“It is not appropriate for the committee to raise this issue in relation to the Imperial House Law,” Iwaya said. “We will continue to request the deletion of the recommendation.” Iwaya added that the committee raising this issue was “unacceptable for Japan.”

In its report issued on Oct. 29, the committee recommended the law, which stipulates the Chrysanthemum Throne shall be “succeeded to by a male offspring in the male line belonging to the Imperial Lineage,” be amended to “guarantee equality of women and men in the succession to the throne.”

The committee did not accept Japanese government requests to have the reference to the law deleted. This refusal continues to rankle many government officials.

On Oct. 17, the committee held a meeting at the U.N. Office in Geneva to consider the report on Japan’s situation regarding efforts to tackle discrimination against women.

When a committee member asked about the possibility of amending the Imperial House Law, a representative of the Japanese delegation replied that succession to the throne was a “matter related to the foundation of the state” and that it was “not appropriate” for the committee to raise the issue.

However, the committee side did not budge from its position that it had a mandate to raise questions on “any aspects related to the issue of equal women’s rights.”

The committee spent a day discussing and examining issues including allowing married couples to choose to use different surnames, but this was the only exchange on the Imperial House Law.



Inclusion predetermined?

Before issuing recommendations, the committee sends questions to the governments of its member nations on the status of efforts to implement the Convention on the Elimination of All Forms of Discrimination against Women.

In addition to answers submitted by the government, the committee receives opinions and other information from nongovernmental organizations and other entities in various fields. The committee then conducts in-person meetings to examine the issues raised, before compiling and issuing its recommendations.

A committee member from Nepal played a central role in examining Japan’s situation. Japanese private organizations also submitted opinion papers that claimed the Imperial House Law discriminated against women.

However, there has been no announcement of what discussions took place internally, and it remains unclear to what extent the committee took Japan’s history and traditions into account when compiling its latest recommendation.

The committee also attempted to include a recommendation to change this law in the previous report in 2016. However, the Japanese government objected and the issue was ultimately deleted from the final draft.

“I got the impression that including that issue in the latest recommendation was partly predetermined,” a government source said.

Article 1 of Japan’s Constitution stipulates that the Emperor shall be the symbol “of the unity of the people,” and he derives his position “from the will of the people.”

The government’s position is that eligibility for succession to the throne is not a fundamental human right, so the limitation of eligibility to male offspring in the male line “does not constitute discrimination against women.”

“Succession to the throne through male offspring in the male line is a tradition of our nation’s Imperial household,” said Akira Momochi, a professor emeritus at Kokushikan University and an expert on the Imperial household system and constitutional law.

“It’s a mistake to link this to gender equality and women’s human rights. This interference by an international institution is intolerable.”

The committee was established in 1982 based on the convention, which the U.N. General Assembly adopted in 1979. Composed of 23 lawyers and human rights experts, the organization monitors implementation of the convention. A Spanish woman currently chairs the committee.

Asia University Prof. Hiroko Akizuki is a committee member, but she did not participate in the latest review of Japan.


‘Bias’ in activities

Dealing with human rights issues is a major pillar of U.N. activities. The committee’s recommendations are not legally binding, but content that is not based on facts also could become widely accepted in the international community as the “perception of the United Nations.”

In 1996, the U.N. Human Rights Commission (now the U.N. Human Rights Council) adopted the Coomaraswamy Report that erroneously claimed comfort women were “sex slaves” who had been forcibly taken away by the former Japanese military.

The Japanese government’s position was that documents indicating the women had been taken against their will could not be found, and it was forced to engage in efforts to widely share a correct historical understanding.

The Heritage Foundation, a U.S. think tank, has issued a report that suggested there was “bias” in the council’s activities and called for the entity to be reformed.

“It is possible that the United Nations is being manipulated by foreign countries and groups championing specific assertions,” a Foreign Ministry source told The Yomiuri Shimbun.

A review of Japan’s situation is conducted every few years. If the current situation remains as it is, a similar recommendation on the Imperial House Law could be brought up in the next review.


Money’s influence

Some observers have said that the neutrality and fairness of decisions and operations of U.N. bodies has been compromised in some cases. U.N.

funding relies on voluntary contributions that individual member states make at their own discretion, rather than on assessed contributions determined by factors such as the size of a nation’s economy.

Consequently, U.N. activities could possibly reflect the wishes of China and the United States, which provide significant voluntary contributions.

In 2015, UNESCO added documents relating to the 1937 Nanjing Incident, which China submitted as “Documents of Nanjing Massacre,” to its Memory of the World register.

These documents included inflated victim numbers far beyond the reality of what happened. Some observers have suggested China’s increased voluntary contributions to UNESCO and its dispatch of high-ranking officials to top posts influenced the decision to register these documents.
 
 

Japan's Nikkei share average ended higher on Monday as local investors found comfort from recent U.S. data that signalled strong business activity in the world's largest economy.

A measure of U.S. business activity raced to a 31-month high in November, boosted by hopes for lower interest rates and more business-friendly policies from President-elect Donald Trump's administration next year.

The Nikkei rose 1.3% to close at 38,780.14 on Monday. The index touched an intraday high of 39,053.64, crossing the 39,000 level for the first time since Nov. 15.

The broader Topix gained 0.71% to 2,715.6.

"Overseas factors are important for Japanese stocks now as we have not seen much market-moving catalysts within Japan," said Fumio Matsumoto, chief strategist at Okasan Securities.

Wall Street closed higher on Friday, with all three major indexes posting weekly gains, following the release of the business data.

"But the gains of the Nikkei were capped on concerns about the possible impact of the Republican President-elect Donald Trump's policy on Japanese exporters," Matsumoto said.

Uniqlo owner Fast Retailing jumped 3.5% to give the biggest boost to the Nikkei index.

Shares of chip-making equipment maker Tokyo Electron gained 3.9% and tech start-up investor SoftBank Group added 3.3%.

Keisei Electric Railway and Keikyu surged 13.83% and 11.07%, respectively, after local media reported an activist investor group was increasing its stakes in both railway operators.

Chip-testing equipment maker Advantest slipped 2.3% to weigh the most in the Nikkei. Phone company KDDI fell 1.35%.

Of the over 1,600 stocks on the Tokyo Stock Exchange's prime market, 45% rose, 50% fell and 4% were flat.

Of the 225 stocks in the Nikkei, 143 rose, 79 fell, and three were trading flat.
 
 

Mitsuoka Motor Co. has announced the launch of its M55 concept car with a limited run of just 100 units.

The Toyama-based automaker began accepting orders Friday. The new model is intended to attract middle-aged and older customers with its retro design that evokes the image of Japanese cars from the 1970s.

Based on the Civic made by Honda Motor Co., the M55 has a 1.5-liter engine and a 6-speed manual transmission. Its leather seats create a luxurious atmosphere. Mitsuoka Motor also plans to consider releasing a hybrid version.

The M55 was initially unveiled by Mitsuoka Motor as a concept car commemorating the 55th anniversary of its founding. As the car was well-received, the company decided to go ahead with production.

The model is priced at ¥8.08 million including tax. Orders will be accepted at about 30 dealerships nationwide until Jan. 19. The company plans to only take orders from 350 customers, after which buyers will be selected by lottery.

Mitsuoka Motor is also known as a coachbuilder that remodels the exteriors and interiors of vehicles made by other automakers and sells the revamped cars under its own name.
 
 

Japan has started devising a strategy to strengthen its defense industry and promote exports of equipment, hoping to lay out medium to long-term goals for a sector that has struggled with small market scale and other challenges, government sources said Friday.

The so-called national defense industry strategy may be compiled next year. The planning will involve not only the Defense Ministry but also others such as the Economy, Trade and Industry Ministry, making the process different from the strategy the Defense Ministry came up with in 2014 on defense production and technological bases.

The new strategy is expected to encourage collaboration among businesses, government and academia by showing the future direction of the necessary technology and production bases, according to the sources.

The move is in line with the 2022 National Security Strategy, which pledged to advance defense production and technology bases, describing them as "defense capabilities themselves."

In the document, which was updated amid the security challenges posed by China and North Korea, the government also said the transfer of defense equipment and technology is "a key policy instrument" to create a "desirable" security environment for Japan and to provide assistance to countries facing the fear of the use of force.

Based on long-term policy guidelines, Japan has gradually eased its strict rules on defense equipment transfers, which had been maintained under its war-renouncing Constitution.

The government's focus on reinvigorating the domestic defense industrial base is a boon for the sector, which has faced low profitability with sales channels limited to the Self-Defense Forces as well as a series of withdrawals from smaller companies.

To forge the new national defense industry strategy, the government also plans to set up a panel of experts to look into issues such as which industrial fields and technologies should be maintained and strengthened, and resilient supply chains should be built, according to the sources.

The strategy is expected to be revised every five years.

Major global powers have renewed their awareness of the importance of the resilience of their defense industries amid Russia's prolonged full-scale invasion of Ukraine, which has underscored the importance of weapons and ammunition supplies.

In January, the United States released its first Defense Industrial Strategy, which laid out long-term priorities to shore up its industrial base amid the military buildup seen by its adversaries.

The European Union also announced in March its first-ever defense industrial strategy, setting goals such as procuring at least 40 percent of its necessary defense equipment in a "collaborative manner" by 2030.
 
 

YOTEL debuts in Japan with its Tokyo Ginza hotel, blending smart design, tech-driven features, and modern luxury in the heart of Tokyo’s iconic district.

YOTEL Tokyo Ginza is set to debut this December, marking the brand’s first entry into Japan and further strengthening its presence in Asia.

Strategically located in the heart of Ginza, the flagship hotel is just a 15-minute stroll from Tokyo Station, a major transportation hub offering bullet train connections to cities across Japan, as well as direct links to Narita International Airport.

The hotel boasts a variety of rooms, each featuring YOTEL’s signature amenities, including SmartBeds, high-speed Wi-Fi, wireless charging, rain showers, and floor-to-ceiling windows with sweeping views of Tokyo.

Guests can enjoy modern conveniences such as three self-service kiosks, a 24-hour gym, and dining at Komyuniti, an all-day restaurant concept.

Adding to the futuristic experience, a robotic team will handle tasks like delivering water and towels to rooms. The hotel’s public areas will also showcase artwork by local talent Mio Fukukawa.

This opening marks YOTEL’s third location in Asia, as well as its first venture into Japan.

Founded by Simon Woodroffe OBE, the visionary behind the YO! brand, YOTEL was inspired by the luxury and efficiency of first-class travel, offering compact yet thoughtfully designed spaces that redefine urban hospitality.
 
 

The Japan External Trade Organization, or JETRO, along with the Japanese government and others, has drawn up guidelines on how to apply for wagyu beef made in Japan to be labeled as “wagyu” in the United States, Jiji Press has learned.

U.S. food labeling rules require applications to label beef and other brands. Unaware of the rules, Japanese operators exported wagyu-labeled products, only to be ordered by U.S. authorities to remove the label in 2022. Since then, exports of beef labeled as such from Japan have been suspended.

The JETRO move comes as wagyu beef is not necessarily recognized as being of Japanese origin in the United States, where such beef produced domestically and in Australia is spreading.

According to the organization, 55 pct of wagyu-labeled beef sold in the United States in 2020 was produced domestically, and 40 pct was imported from Australia. Such beef from Japan accounted for only 5%.

Meanwhile, high-end wagyu products from Japan are sold at prices about 2.5 times those of U.S. and Australian wagyu, according to Japan’s Agriculture and Livestock Industries Corp.

While restaurant operators in the United States are allowed to offer unlabeled Japanese beef as wagyu from the Asian country, a JETRO official stressed, “Labeling leads to credibility.”
 

 

Mori Building Co Ltd, Japan's leading urban landscape developer, announced Friday that its U.S. subsidiary Mori Building (U.S.A.) LLC has acquired a stake in the One Vanderbilt from SL Green Realty Corp, New York City’s largest office landlord.

 One Vanderbilt opened in 2020 as a striking addition to the Manhattan skyline. Its prime location at the intersection of 42nd Street and Vanderbilt Avenue is in the heart of the Midtown business district, the epicenter of the city's economic and cultural activity and home to numerous international financial institutions.

The building is directly connected to Grand Central Terminal, a major transportation hub in New York City.

 The 59-story, 430-meter tower was designed by Kohn Pedersen Fox Associates (KPF), the renowned architectural firm that designed Tokyo’s iconic Roppongi Hills Mori Tower and other notable structures.

With a total rental floor area of 142,000 m2, One Vanderbilt combines office, commercial and dining space, including a Michelin-starred restaurant.

A standout feature is the glass-and-mirrored SUMMIT One Vanderbilt observation deck, which attracts a steady stream of tourists with its breathtaking views of the city.
 
 

  
 
Japan’s minority government was expected Friday to approve a $140-billion stimulus drive aimed at putting more money in consumers’ pockets after the ruling party’s worst election result in 15 years.

The October 27 contest saw voters -- angry over corruption in the Liberal Democratic Party (LDP) and inflation -- deprive new Prime Minister Shigeru Ishiba’s coalition of a majority in parliament’s lower house.
 
Before a cabinet meeting on Friday morning, Ishiba was quoted by local media as saying the package would be approved later in the day.

The 22-trillion-yen stimulus bundle includes energy and fuel subsidies as well as cash handouts for low-income households in the world’s fourth-biggest economy, according to the media.

The overall impact of the package, set to go before parliament at a later date, is projected to be worth 39 trillion yen when including loans and private-sector investment, the reports said.

Ishiba’s cabinet plans to formalise the measures on Friday and push a supplementary budget to pay for them through parliament by the end of the year, Kyodo News said.

To win enough lawmakers’ support, Ishiba agreed to include the lifting of an income tax threshold pushed by the opposition Democratic Party for the People (DPP).

The smaller party says this will ease labour shortages and boost consumer spending by encouraging part-time staff to work longer hours and earn more.

But critics worry that this will reduce tax revenues by trillions of yen, leaving major holes in the national and local budgets.

Japan already has one of the world’s biggest ratios of national debt to output, with state spending predicted to balloon as its population ages and it struggles to find workers.


- ‘Quiet emergency’ -

Tax cuts “must be accompanied by a permanent source of revenue to fill the gap”, said SMBC Nikko Securities economist Yoshimasa Maruyama.
“Excessive” loosening of fiscal discipline would lead to higher interest rates in the financial markets, Maruyama said in a research note.

The package comes a year after Ishiba’s predecessor Fumio Kishida, who resigned earlier this year, announced a stimulus package worth 17 trillion yen ($113 billion at the time).

Ishiba, 67, has promised to revitalise depressed rural regions and to address the “quiet emergency” of Japan’s shrinking population with measures to support families such as flexible working hours.

Going forward, businesses worry that the need to curry favour with opposition parties means Ishiba will avoid reforms needed to improve Japan’s competitiveness.

There are also concerns that the government may pressure the Bank of Japan to go slow on raising interest rates, even if this leads to a weaker yen.

The BoJ ditched negative interest rates in March, lifting borrowing costs for the first time since 2007 and then again in July. Another hike may come next month.

Government data showed Friday that inflation in Japan slowed slightly in October, with prices excluding volatile fresh food rising 2.3 percent year-on-year.

Rice prices rocketed nearly 60 percent, with lower harvests caused by hot weather and water shortages, as well as increased demand after a warning of a “megaquake” in August led to empty shelves in some areas.

Separately, Ishiba has promised to spend 10 trillion yen through 2030 to boost Japan’s semiconductor and artificial intelligence sectors and help the nation regain its tech edge.

The new stimulus package may include plans for the government to buy a 200-billion-yen stake in next-generation chip venture Rapidus, according to media reports.

After dominating tech in the 1980s, “Japan had a quite a long period of almost just sitting back and observing a lot of this innovation, particularly when it comes to artificial intelligence”, said Kelly Forbes at the AI Asia Pacific Institute.

“What we have seen in the last maybe two to three years is Japan really waking up to the potential” of such developments, she told AFP.
 
 

Japan's core consumer prices in October climbed 2.3 percent from a year earlier, increasing at a slower pace for the second straight month as government subsidies curbed a rise in energy bills, government data showed Friday.

The increase in the nationwide core consumer price index, excluding volatile fresh food, followed a 2.4 percent rise in September and 2.8 percent increase in August.

The inflation rate has remained at or above the Bank of Japan's 2 percent target since April 2022.

The core-core CPI, which strips away both energy and fresh food and shows underlying price trends, was up 2.3 percent, accelerating from a 2.1 percent gain in the previous month, data from the Ministry of Internal Affairs and Communications showed.

"Excluding the effects of the government subsidies, the data likely suggest underlying inflation is persistent," said Koichi Fujishiro, senior economist at the Dai-ichi Life Research Institute, adding that the latest data will encourage the Bank of Japan to raise interest rates when the time is right.

BOJ Governor Kazuo Ueda has said the central bank will hike its policy rate from the current around 0.25 percent if prices and the economy grow in line with its expectations.

Energy prices gained 2.3 percent, down from a 6.0 percent expansion in September, according to the ministry data.

Among other major items, prices for food climbed 3.8 percent, accelerating from a 3.1 percent rise in the previous month following a historic increase in rice prices.

The price of rice surged 58.9 percent, the biggest increase since comparable data became available in 1971, after last year's unusually hot summer reduced the previous season's harvest and farmers passed on increased costs to consumers for new rice.

The overall rise in consumer prices also came as many companies raised their prices in October, the start of the second half of the fiscal year in Japan.

Chocolate prices rose 19.3 percent, while prices of earthquake and fire insurances saw a 7.0 percent increase.

Service prices, one of the indicators the BOJ is closely monitoring in deciding its monetary policy as it often reflects a rise in wages, rose 1.5 percent, up from 1.3 percent growth in September.
 

 

A Joint Venture, which comprises Tokyo Metro Co., Sumitomo Corp. and a major U.K. passenger transport provider, will be entrusted to operate the Elizabeth line from May 2025, Transport for London announced on Tuesday.

It will be the first time Tokyo Metro takes on the operation of a line outside its own network. The contract will be for seven years and may be extended a further two.

Named after Queen Elizabeth, the Elizabeth line began its service in May 2022.

The line crosses the city of London from east to west, connecting Heathrow Airport with the city center and carrying more than 700,000 passengers every day.
 
 

Forty years after its founding, Japanese clothing retailer Uniqlo has more than 2,500 stores worldwide. Sales at its parent company, Fast Retailing Co, recently topped 3 trillion yen annually for the first time.

The name Uniqlo comes from joining the words for “unique” and “clothing.” The chain’s basic concept is “LifeWear,” or everyday clothing. Uniqlo parent Fast Retailing Co Chief Executive Tadashi Yanai, ranked by Forbes as Japan’s richest man and estimated to be worth $48 billion, spoke recently to The Associated Press at the company’s Tokyo headquarters.

The interview has been edited for length and clarity.


What were the biggest challenges over the past 40 years?

Actually 40 years, upon reflection, went by so fast they feel more like three years. You know what they say in Japan: Time flies like an arrow. I started a regional business, then expanded nationwide.

When we became No. 2 or No. 3 in Japan’s casual wear, and being No. 1 was right within reach, we became a listed company in 1994. That was followed by our fleece boom, which doubled our revenue in one year to 400 billion yen.

I’d been thinking about going global when our revenue reached 300 billion yen so we opened 50 stores in Great Britain, hoping to be a winner there just like we had conquered Japan.

Instead, we got totally knocked out.

We opened 21 outlets in a year and a half, but had to close 16 of them, leaving just five. We didn’t succeed as we had hoped. This is not an easy job. It’s very tough.

But these days, our sales are strongest in London, and also Paris. We made progress gradually.


What are some of the sustainability and other key issues you have faced over the years?

We make clothes that last a long time. Not just clothes that last for one season.

The cashmere sweater I’m wearing today is $99. But please don’t say “cheap.” Please call it “reasonable.” We sell quality products at reasonable prices.

We’ve done various sustainability efforts, and we talk only about what we have really achieved.

Sustainability is crucial to our operations. And we’ve done just about everything — recycling, employing the disabled, support for refugees.

The prices may be cheaper at Wal-Mart, but our products offer real quality for the price. We take the greatest care and time, and involve a lot of people. Our rivals are more careless.


What is behind Uniqlo’s success and what resonated with global buyers?

When we say Uniqlo is “made for all,” one might imagine products for the masses, like what’s at a Wal-Mart or a Target.

But what we mean is a high-quality product that appeals to all people, including the extremely rich, not only those with sophisticated taste and intelligence, but also people who don’t know that much about clothes, and the design is fine-tuned, the material fine quality, and sustainability concerns have been addressed.

We were first a retailer, then a manufacturer-cum-retailer. Now we are a digital consumer retailer. That is why we are successful. If we had stayed the same, then we can’t hope to succeed.

Being a digital consumer retail company means we utilize information at a high level to shape the way we do our work. We gain information about our customers, the workers at the store, the market, all that information.

Changing daily is the only way we can hope for stable growth. The world is changing every day.


Are you confident you can keep it up another 40 years?

Of course. We’ve been preparing to reach 3 trillion yen revenue all these years. And we are finally starting to be known. But we still have a long way to go.

We are just getting started, and we are going to keep growing. There is more potential for growth in Europe and the U.S., as well as China and India, given the 1.4 billion population in each country. Clothing is a necessity, so population size is key.
 
 

Indonesia and Japan have agreed to push the ratification of the Protocol to Amend the Indonesia–Japan Economic Partnership Agreement (IJEPA) so that it can be implemented in 2025.

This was discussed during a bilateral meeting between Indonesian Trade Minister Budi Santoso and Minister of Economy, Trade, and Industry of Japan, Yoji Muto, on the sidelines of the APEC Economic Leaders' Week 2024 in Peru on Thursday.

"At this bilateral meeting, both countries agreed to push for the completion of the ratification of the IJEPA amendment protocol. The ratification process is currently underway in both countries with an implementation target of 2025," Santoso informed in a statement issued on Friday.

The Protocol to Amend the IJEPA is an amendment and enhancement of the IJEPA commitment that has been in effect since 2008.

The Protocol to Amend the IJEPA includes chapters on Trade in Goods, Trade in Services, Trade Through Electronic Systems (E-Commerce), Movement of Natural Persons (MNP), Cooperation, Intellectual Property, and Government's Goods and Services Procurement.

"Indonesia is hoping for good cooperation and collaboration with Japan for the co-chairmanship of RCEP (Regional Comprehensive Economic Partnership) in 2025," he said.

He noted that the RCEP Support Unit (RSU) at the ASEAN Secretariat, Jakarta, will be inaugurated on December 9, 2024.

He expressed the hope that the implementation of RCEP can be made more effective and efficient to contribute to economic integration in the region.

Next year, Japan will hold the World Expo 2025 Osaka. Santoso said that Indonesia welcomes the implementation of the Osaka expo and will participate in it through the Indonesian Pavilion.

He also called upon all APEC economies to support multilateral trade and ensure its inclusiveness.