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CNA938 Rewind - Stock take today: Japan, India tariff deals, small caps are big winners

CNA938 Rewind - Stock take today: Japan, India tariff deals, small caps are big winners

CNA2 days ago
CNA938 Rewind - Stock take today: Japan, India tariff deals, small caps are big winners
On the daily markets analysis on Open For Business, Andrea Heng and Hairianto Diman speak with Thomas Hayes, Chairman and Managing Member at Great Hill Capital.
12 mins
CNA938 Rewind - RTS Link to boost Johor, Singapore property markets
More than just a solution to daily commuting woes, the Johor Bahru-Singapore RTS Link is poised to reshape the property market – driving demand, boosting property values, and spurring broader economic growth for both countries. Andrea Heng and Hairianto Diman chat with Terence Fan, Assistant Professor of Strategy and Entrepreneurship at SMU. They assess the economic impact of the upcoming cross-border train service on Johor and Singapore.
11 mins
CNA938 Rewind - Media man Cheong Yip Seng's 'Ink & Influence'
In 'Made in SG', Melanie Oliveiro speaks with Cheong Yip Seng, media veteran and author of "Ink & Influence'. It comes more than a decade after 'OB Markers: My Straits Times Story', which covers the more than four decades he spent as a journalist in Singapore – warts and all. Its sequel, "Ink & Influence', contains more first-hand accounts from his storied career including interactions with some of Singapore's more standout political leaders including the nation's first Prime Minister Lee Kuan Yew, travels on the job, and what the future holds for Singapore's traditional media landscape.
36 mins
CNA938 Rewind - TalkBack: Will the RTS Link encourage you to take the train instead of driving across?
The Johor Bahru-Singapore RTS Link marked a key milestone with the unveiling of its first train. As this long-awaited cross-border rail project edges closer to reality, will it encourage you to take the train instead of driving across? Lance Alexander and Daniel Martin speak with transport analyst Terence Fan, Assistant Professor in Strategy and Entrepreneurship at Singapore Management University.
25 mins
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In labour-starved Japan, workers land another bumper pay hike
In labour-starved Japan, workers land another bumper pay hike

CNA

time4 hours ago

  • CNA

In labour-starved Japan, workers land another bumper pay hike

TOKYO :Japanese companies agreed to raise wages by an average 5.25 per cent this year, their biggest pay hike in 34 years and the third straight year of robust growth as they grapple with severe labour shortages and seek to shield workers from inflation. The final figure tallied on Thursday by the Rengo labour union group - Japan's largest with 7 million members - follows an increase of 5.10 per cent last year and 3.58 per cent the year before - a sharp contrast to prior decades of stagnant wages. Japan's biggest business lobby Keidanren also said on Thursday that the average summer bonus payment at major companies this year increased 4.37 per cent from the previous year to a record 990,848 yen ($6,889). Rapidly ageing Japan has developed an extreme labour crunch with shortages among non-manufacturers and small firms reaching historic levels, even pushing some into bankruptcy. A Reuters survey published in January showed that two-thirds of Japanese companies believe that labour shortfalls were seriously or fairly seriously affecting their businesses. Whereas workers around the world are unhappy about high levels of inflation, the Japanese now have much more bargaining power. "There is an emerging consensus among companies that a pay raise that exceeds inflation is a must," a government official said on condition of anonymity. "It's the new norm now." Inflation in Japan, as measured by the core consumer price index, which excludes volatile fresh food prices, is currently around 3.7 per cent. Fresh food prices have also risen steeply, causing much angst among consumers. Steady wage hikes are crucial for sustaining a consumption-led recovery - a prerequisite for the Bank of Japan to resume interest rate hikes. Mizuho Research & Technologies predicts wages will increase 4.7 per cent next year, assuming oil prices will weaken and help cushion the impact that U.S. tariffs are likely to have on corporate profits. "As wage hike momentum is likely to be confirmed in January-March, we expect the BOJ to start raising interest rates during that quarter," said Saisuke Sakai, chief Japan economist at Mizuho Research. That view is reasonably widespread with a slight majority of economists in a Reuters poll expecting the BOJ's next 25-basis-point increase to come in early 2026. Toru Suehiro, chief economist at Daiwa Securities, similarly predicts an average wage hike of 4.5 per cent to 4.9 per cent next year but notes that Japan's non-manufacturers will have to step up and take on a leading role in raising pay as manufacturers will be hit by U.S. tariffs. "Wage growth in recent years was led by manufacturers which benefited from a weak yen, but now it's going to have to work differently," he said. Trade talks between the U.S. and Japan have hit roadblocks and U.S. President Donald Trump has threatened to impose a tariff of 30 per cent or 35 per cent on Japanese imports, well above the 24 per cent rate he announced on April 2 and then paused until July 9.

Japan plans 'world first' deep-sea mineral extraction
Japan plans 'world first' deep-sea mineral extraction

CNA

time4 hours ago

  • CNA

Japan plans 'world first' deep-sea mineral extraction

TOKYO: Japan will from January attempt to extract rare earth minerals from the ocean floor in the deepest trial of its kind, the director of a government innovation programme said on Thursday (Jul 3). Earlier this week, the country pledged to work with the United States, India and Australia to ensure a stable supply of critical minerals, as concern grows over China's dominance in resources vital to new technologies. Rare earths - 17 metals difficult to extract from the Earth's crust - are used in everything from electric vehicles to hard drives, wind turbines and missiles. China accounts for almost two-thirds of rare earth mining production and 92 per cent of global refined output, according to the International Energy Agency. A Japanese deep-sea scientific drilling boat called the Chikyu will, from January, conduct a "test cruise" to retrieve ocean floor sediments that contain rare earth elements, said Shoichi Ishii, director of Japan's Cross-ministerial Strategic Innovation Promotion Programme. "The test to retrieve the sediments from 5,500m water depth is the first in the world," he told AFP. "Our goal ... of this cruise is to test the function of all mining equipment," so the amount of sediment extracted "doesn't matter at all", Ishii added. The Chikyu will drill in Japanese economic waters around the remote island of Minami Torishima in the Pacific - the easternmost point of Japan, also used as a military base. Japan's Nikkei business daily reported that the mission aims to extract 35 tonnes of mud from the sea floor over around three weeks. Each tonne is expected to contain around 2kg of rare earth minerals, which are often used to make magnets that are essential in modern electronics. Deep-sea mining has become a geopolitical flashpoint, with anxiety growing over a push by US President Donald Trump to fast-track the practice in international waters. Beijing has since April required licences to export rare earths from China, a move seen as retaliation for US curbs on the import of Chinese goods. Environmental campaigners warn that deep-sea mining threatens marine ecosystems and will disrupt the sea floor.

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