Besides the economic damage, the global financial crisis has dangerous strategic implications for Japan.
Since 1945, the world has been organized along U.S.-centric lines. By providing security guarantees to its allies, Washington has supplied an international public good to the entire planet. Even countries not aligned with the United States, such as China or Russia, benefit from this U.S.-led regime which generally keeps the peace in key regions of the globe.
10/14/08, The Russians are coming — loaded with cash»»
MOSCOW — Russia's government is sitting on a giant pile of cash that it plans to invest in foreign assets. The glimpse of its economic muscle was revealed when the prime minister of Iceland announced that Russia may come with about $5 billion to save its troubled economy. Who could have thought that, given the chaotic Russia of the 1990s, only 10 years later it would be in the position to bail out a developed country? Even more surprising is the fact that the helping hand for Iceland comes at a time when the domestic stock market is in a free fall and trading on the Moscow stock exchange is routinely halted.
The Kremlin thinks that now is the time to buy assets cheaply, using the current...
Seven years after coalition forces invaded Afghanistan and drove the Taliban from power, the war slogs on. The initial euphoria from the "victory" has dissipated. Officials are increasingly concerned about the Taliban's resurgence and the durability of the government of President Hamid Karzai. The North Atlantic Treaty Organization has recognized the need for a new approach. Its leaders have agreed to begin to target Afghanistan's opium trade, a move that could deprive the Taliban of the funds it uses to finance its forces. Just as important, the coalition now looks set to adopt the lessons of Iraq and reach out to those elements of the opposition with whom they can craft a political...
OSAKA (Kyodo) A lawsuit was filed Friday by 24 former students of the failed language school chain Nova Corp., demanding that former management and two audit companies pay a combined ¥16 million in compensation to cover prepaid tuition.
It was the first time former Nova students have filed a joint suit since the company went bankrupt last year, lawyers for the plaintiffs said after the filing with the Osaka District Court.
10/14/08, Blood thinner prasugrel still on track, drugmakers say»»
Drugmaker Daiichi Sankyo Co. and U.S. partner Eli Lilly & Co. sought to reassure investors Friday that a highly anticipated blood thinner remains on track for approval, despite escalating concerns of further delays by federal health regulators.
Wall Street has big hopes for the potential blockbuster medication, called prasugrel, but its enthusiasm was dampened in late September, when the the Food and Drug Administration postponed its decision for a second time. Recent media reports speculate that additional FDA meetings may push back the ruling until March.
10/14/08, Aomori nuke site said at risk of magnitude 7 quakes»»
An earthquake with a magnitude of around 7 may have hit the construction site of a nuclear power plant in Aomori Prefecture twice in the past 6,000 to 7,000 years, researchers said Friday.
The researchers urged the government and Electric Power Development Co., commonly known as J-Power, which is building the Oma Nuclear Power Plant on the Shimokita Peninsula, to review their safety procedures for ensuring the plant's quake resistance, because they did not take into account the possibility of such a strong temblor striking the plant site.
10/14/08, Lawyer has 'proof' Miura not a suicide»»
LOS ANGELES (Kyodo) California lawyer Mark Geragos said Thursday he has proof that his client, Japanese businessman Kazuyoshi Miura, did not commit suicide in a Los Angeles police cell last weekend, as authorities have claimed.
Miura apparently hanged himself after arriving from Saipan to face trial over the fatal 1981 shooting of his then wife.
10/14/08, Couple conquer national, religious divide»»
Before Tetsuya Kato met Widya of Indonesia, an international marriage would probably have seemed highly unlikely to him. He only speaks Japanese and the farthest place he has ever been to is Hokkaido.
Widya Sulistyorini, 31, is from a family who may consider international marriages unorthodox, as neither her parents nor three sisters had ever left Indonesia before she married Kato in 2006.
10/14/08, Noda denies Amway gave funds for favors»»
Seiko Noda, the state minister in charge of consumer affairs, said Friday that networking marketer Amway Japan Ltd. bought eight tickets for her fundraising party for ¥160,000 from 2002 to April this year.
Noda, however, ruled out stepping down over the issue, telling reporters that Amway's financial contribution to her had nothing to do with comments she made 12 years ago in favor of the industry.
10/14/08, Economy chiefs in bind over new measures»»
The government is in a quandary over how to finance additional economic measures aimed at shielding livelihoods and businesses from the negative impact of the global financial crisis, Finance Minister Shoichi Nakagawa said Friday.
"We will try to avoid pork-barrel spending and prepare necessary resources to carry out truly necessary policy measures. The easiest way will be issuing deficit-covering bonds, but the prime minister has given the order to make that a last resort measure," Nakagawa said at a press conference.
A hole 1 mm in diameter has been found in the package of frozen green beans imported from China that sickened a Tokyo woman earlier this week, the Metropolitan Police Department said Friday.
The hole was found in a piece of the package that was ripped off near its edge when it was opened by the 56-year-old woman in the suburb of Hachioji, Tokyo, police said, adding they are investigating whether the hole is related to the vegetable's contamination with the insecticide dichlorvos.
Three senior vice ministers, two parliamentary secretaries and one special adviser to Prime Minister Taro Aso were among 48 lawmakers who paid a group visit Friday to the war-linked Yasukuni Shrine to attend its autumn festival.
No Cabinet ministers visited the shrine.
Despite opposition from media organizations, the Finance Ministry displayed the Hinomaru flag in its press briefing room Friday under orders from Finance Minister Shoichi Nakagawa.
In other nations, displaying the national flag in a government press briefing room may be normal. But in Japan, the Hinomaru, which officially became the national flag in 1999, remains contentious due to its association with the country's past militarism.
10/14/08, LDP said eyeing pre-emptive capital injections for banks»»
The Liberal Democratic Party is planning to force banks of all sizes to accept public capital injections, a senior LDP lawmaker said Friday.
"We are considering paving the way for pre-emptive capital injections into megabanks, depending on developments," said Hakuo Yanagisawa, chairman of the ruling party's task force on responding to the global financial crisis.
10/14/08, 'Hanko' photo stamped top prize at photo contest for diplomats»»
An exhibition of photographs taken by foreign diplomats and spouses in Japan will open Monday in Tokyo, showcasing a variety of work imbued with humor, wit and curiosity about the country.
About 70 works by 54 diplomats and spouses representing 37 countries and the European Commission were selected from about 500 submissions that freely interpreted the theme "Interacting Japan" for the annual show, which is known as "Japan through Diplomats' Eyes."
10/14/08, Aso pushes for MSDF Indian Ocean mission as Diet debate begins»»
Prime Minister Taro Aso pressed the case Friday for continuing Japan's controversial refueling mission in the Indian Ocean next year as full debate on the issue began in the Diet.
"It is necessary to continue the refueling mission for Japan's benefit. I cannot assume that only Japan will withdraw" from the U.S.-led antiterrorism operations in and around Afghanistan, Aso said at a House of Representatives committee session.
Taisei Corp., Japan's fifth-largest contractor, won an order from Japan Post Group to redevelop the former main post office next to Tokyo Station.
The order is worth ¥87.6 billion, Taisei spokesman Yasukiyo Saito said Friday, confirming an earlier report by the Nikkei newspaper. A 38-story office building is scheduled for completion on the site, in the center of the financial district, by fiscal 2011.
U.S. sales of Nintendo Co.'s Wii video-game console rose 37 percent in September as the industry overall — including hardware and games — shrank for the first time in more than two years.
Consumers purchased 687,000 Wii players, Port Washington, N.Y.-based NPD Group Inc. said Thursday in an e-mailed statement, an increase from 501,000 a year earlier. Total industry sales fell 7 percent to $1.27 billion, NPD said.
10/14/08, Toyota plans bigger, better Prius in 2010»»
Toyota Motor Corp., the world's largest seller of hybrid-electric cars, said a version of its Prius hatchback due next year will be roomier and more fuel-efficient.
Images posted Wednesday on the Internet offer views of the 2010-model Prius, confirmed Allison Takahashi, a spokeswoman for the automaker's sales unit in the United States, in an interview.
TSU, Mie Pref. (Kyodo) A man was arrested Friday on suspicion of holding a 16-year-old female high school student captive in his home in Kihoku, Mie Prefecture, police said.
Hajime Ichikawa, 63, allegedly confined the girl in his home from Thursday afternoon to Friday, and called her family from her mobile phone to demand ransom, according to the investigation.
10/14/08, Cigarette price of Â¥1,000 a pack would save 190,000 lives, health studies say»»
Cigarettes should cost at least ¥1,000 to discourage young people from smoking — a price that would also help sharply reduce deaths caused by the public nuisance, according to two research groups funded by the health ministry.
The reports, released earlier this month, came as a group of lawmakers discuss a tobacco tax hike that would more than double cigarette prices to above ¥600 a pack. A pack usually sells for about ¥300.
OSAKA (Kyodo) A 46-year-old man accused of starting a fire at a video-viewing establishment in Osaka on Oct. 1 has been determined mentally competent at the time of the incident after a preliminary mental examination by prosecutors, sources said Friday.
Kazuhiro Ogawa, who was arrested on suspicion of arson and murder after the predawn fire that killed 16 people, "was capable of reasonably conducting himself," the mental test determined, the sources said.
Trading house Itochu Corp. and the nation's top five steelmakers jointly plan to seek iron ore mining rights in Brazil, sources said Friday.
South Korean steelmaker Posco is also expected to join the Japanese firms to submit a bid for shares in iron ore mining firm Namisa that are being sold by Brazilian steelmaker CSN, according to the sources.
Treasury Secretary Henry Paulson's plan to inject capital into U.S. banks won't provide them with the liquidity they need and most will fail, said Kenichi Ohmae, president of Business Breakthrough Inc.
"Paulson is on the road to kill all these banks." said Ohmae, nicknamed "Mr. Strategy" during his 23 years as a McKinsey & Co. partner. "They're talking about a $25 billion injection in each of the top banks. That won't do the liquidity magic."
10/14/08, Demand for services falls 1.4%, adding to gloom»»
Demand for services fell in August, reinforcing the view that consumer spending is unlikely to support the ailing economy.
The tertiary index, a gauge of money households and businesses spend on phone calls, power and transportation, slid 1.4 percent from July, the trade ministry said Friday in Tokyo. The median estimate of 31 economists surveyed by Bloomberg News was for a 0.9 percent decline.
10/14/08, Japan orders review of accounting rules»»
Japan should change its mark-to-market accounting regulations if it is found that the current rules pose a "systemic risk" to the markets, the finance minister said Friday, urging regulators to quickly launch a review.
"I am very interested in this issue, and I want to reach a conclusion as soon as possible," Shoichi Nakagawa said at a regular press briefing in Tokyo.
10/14/08, Sony Ericsson Mobile reports quarterly loss»»
Sony Ericsson Mobile Communications Ltd., the mobile phone venture of Sony Corp. and Ericsson AB, reported its first quarterly loss in five years on costs to cut jobs and a loss of market share to rivals, including Apple Inc.
A net loss of 25 million euro, or $33.8 million, was logged, compared with a profit of 267 million euro a year earlier, the London-based company said in a statement Friday. Sales fell 9.7 percent to 2.81 billion euro, as Sony Ericsson's unit sales fell to 25.7 million euro from 25.9 million euro a year earlier.
Japan's economy is facing rising "downside risks" as the global financial crisis intensifies, Bank of Japan Gov. Masaaki Shirakawa said Friday.
Economic growth will remain "sluggish for the time being," Shirakawa told an annual meeting of credit cooperatives in Tokyo.
10/14/08, Filipino bar hostess visa scam snags top official»»
Senior Vice Minister of Internal Affairs and Communications Masatoshi Kurata was embroiled in a scandal Friday over his alleged role in arranging visas for Filipino women to enter Japan and perform at "charity concerts," but who in fact ended up working as bar hostesses.
If the alleged scheme is confirmed, it will likely prompt further international criticism of Japan for its lack of efforts to eradicate trafficking of Asian women in the sex and adult entertainment industries.
10/14/08, Kyoto governor champions 'green' automobile ordinance»»
KYOTO (Kyodo) Kyoto Gov. Keiji Yamada announced Friday that the prefecture will submit an ordinance to the assembly to promote use of environmentally cleaner next-generation cars.
The first such prefectural ordinance of its kind will be designed to reduce carbon dioxide emissions and promote related industries in Kyoto, the governor said. It could be submitted as early as February.
