Japan PM Ishiba faces uncertain future after historic election loss
The Liberal Democratic Party (LDP) and coalition partner Komeito secured 47 seats, short of the 50 seats it needed to ensure a majority in the 248-seat Upper House.
It is the first time the LDP has lost a majority in both houses of parliament. Follow live updates:
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Business Times
an hour ago
- Business Times
Japan expects only 1% to 2% of $550 billion US fund to be investment
[TOKYO] Japan expects only 1 to 2 per cent of its recently agreed upon US$550 billion US fund to be in the form of actual investment, with the bulk of it being loans, according to the nation's top chief negotiator Ryosei Akazawa. At the same time, Tokyo would save roughly 10 trillion yen (S$87 billion) through lower tariff rates in its deal with America, he said. The US$550 billion investment framework will be a combination of investments, loans and loan guarantees provided by financial institutions backed by the Japanese government, Akazawa said on public broadcaster NHK on Saturday (Jul 26) night. Of the total, investment would be worth 1 per cent or 2 per cent and the US and Japan would split the profits of that investment at a ratio of 90-10, he said. Japan had originally proposed a 50-50 ratio, he added. The fund is a centrepiece of the deal announced by the two sides that will impose 15 per cent tariffs on Japanese cars and other goods. But the details given by Akazawa suggest the Japanese may end up giving up much less than at first glance. The comments come as officials from countries with deals with the US sift through the terms to explain to the public what they entail. 'It's not that US$550 billion in cash will be sent to the US,' Akazawa said. 'By letting the US have 90 per cent of the profits rather than 50 per cent, I think Japan's loss will be at most a couple of tens of billions of yen. People are saying various things, such as 'You sold out Japan', but they are wrong.' For the loans provided through the programme, Japan will simply be collecting the interest payments, and for the loan guarantees, if nothing happens, Japan will also be just collecting fees, Akazawa said. 'For that part, Japan's just making money,' he said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Akazawa also clarified that the investment programme will not be only supporting Japanese and US firms. As a potential example, he cited a Taiwanese semiconductor firm building a factory in the US. 'We'd like to put the US$550 billion in place during President Trump's term,' Akazawa added. Further details of the implementation of the US-Japan deal remain unclear, including when the new tariff rates would take effect and when the new investment vehicle would kick off. There's been no joint document signed by both sides for the deal, although the White House has published a fact sheet. 'If you say something like, 'Let's create a joint document,' they will say, 'We will lower tariffs after the document is created,'' Akazawa said. In order not to lose time, 'we will demand that they issue an executive order to lower tariffs as soon as possible, regardless of a document'. Last week, Akazawa said that he expects universal tariffs on Japan's shipments to be lowered to 15 per cent on Aug 1, while he said he wanted the car tariffs to be cut to 15 per cent as soon as possible without specifying a date. The Trump administration has touted the deal with Japan as a potential model for others. On Sunday, the US and European Union agreed on a deal that will see the bloc face 15 per cent tariffs on most of its exports, with the EU pledging to invest US$600 billion in the US. BLOOMBERG
CNA
3 hours ago
- CNA
Powerful sister of North Korean leader Kim rejects outreach by South's new president
SEOUL: North Korea has no interest in any policy or proposals for reconciliation from South Korea, the powerful sister of its leader Kim Jong Un said on Monday (Jul 28) in the first response to South Korean liberal President Lee Jae-myung's peace overtures. Kim Yo Jong, who is a senior North Korean ruling party official and is believed to speak for the country's leader, said Lee's pledge of commitment to South Korea-United States security alliance shows he is no different from his hostile predecessor. "If South Korea expects to reverse all the consequences of (its actions) with a few sentimental words, there could be no greater miscalculation than that," Kim said in comments carried by official KCNA news agency. Lee, who took office on Jun 4 after winning a snap election called after the removal of hardline conservative Yoon Suk Yeol over a failed attempt at martial law, has vowed to improve ties with Pyongyang that had reached the worst level in years. As gestures aimed at easing tensions, Lee suspended loudspeaker broadcasts blasting anti-North propaganda across the border and banned the flying of leaflets by activists that had angered Pyongyang. Kim, the North Korean official, said those moves are merely a reversal of ill-intentioned activities by South Korea that should never have been initiated in the first place. "In other words, it's not even something worth our assessment," she said. "We again make clear the official position that whatever policy is established in Seoul or proposal is made, we are not interested, and we will not be sitting down with South Korea and there is nothing to discuss." South Korea's Unification Ministry said Kim Yo Jong's comments "show the wall of distrust between the South and the North is very high as a result of hostile and confrontational policy over the past few years". South Korea will continue to make efforts for reconciliation and cooperation with the North, ministry spokesperson Koo Byoung-sam told a briefing. There has been cautious optimism in the South that the North may respond positively and may even show willingness to re-engage in dialogue, particularly after Pyongyang also shut off its loudspeakers, a move Lee said was quicker than expected. Still, Lee, whose government is in the midst of tough negotiations with Washington to avert punishing tariffs that US President Donald Trump has threatened against a string of major trading partners, has said a US alliance is the pillar of South Korea's diplomacy. Lee said on the anniversary of the Korean War armistice on Sunday Seoul would make efforts in all areas to "strengthen the South Korea-US alliance that was sealed in blood". North Korea also marked the anniversary which it calls victory day with events including a parade in Pyongyang, although state media reports indicated it was at a relatively lesser scale compared to some previous years. Columns of soldiers marched holding portraits of commanders, including state founder Kim Il Sun,g with spectators and frail veterans in historic army uniforms in attendance in state media photos, which did not show major weapons as part of the parade. A formation of military jets flew over the Pyongyang Gymnasium square in the night sky, trailing streaks of flares and fireworks. State media made no mention of leader Kim Jong Un's attendance.
Business Times
5 hours ago
- Business Times
Japan PM Ishiba signals intent to stay on despite calls to quit
[TOKYO] Japanese Prime Minister Shigeru Ishiba signalled he intends to stay in office despite a growing number of calls within the ruling party for him to step down after an election setback last week. 'I intend to devote myself to the people and the future of the country,' Ishiba said in an interview with national broadcaster NHK. He added he must take responsibility for implementing the recently announced US-Japan trade deal, and that the real work on it starts now. He is set to speak at a meeting of Liberal Democratic Party (LDP) lawmakers on Monday (Jul 28). Party members have been calling on someone to take responsibility for the Jul 20 elections that saw the LDP lose its majority in Japan's upper house elections. It marks the first time since 1955 that a leader from the storied Japanese party will govern the country without a majority in at least one of the legislative bodies. Former foreign minister Toshimitsu Motegi called for a leadership change within the LDP on his YouTube channel over the weekend. The party needs a 'fresh start with a new leader', he said. Local media reported last week that Ishiba was set to resign, but the prime minister denied the news shortly afterwards. Asked by NHK if he had second thoughts about his decision to continue in office, Ishiba said no. While pressure mounted on Ishiba last week, a relatively favourable trade deal for Japan was announced with the US, including the lowering of across-the-board tariffs to 15 per cent from 25 per cent. The deal could offer Ishiba a mark of success that he can leverage to shore up his leadership. A Mainichi newspaper opinion poll conducted Jul 26 to 27 after the election defeat showed support for Ishiba's Cabinet rose five percentage points to 29 per cent, compared with a month ago. The most number of respondents also ranked Ishiba as the most suitable person to be prime minister, citing the US tariff issues. BLOOMBERG
