TOKYO SKY TREE
Weekly News from Tokyo
DITP TOKYO (2013 April13 – April19)
5 Dec. 2014 ~ 11 Dec. 2014 (No.201448)
December 05, 2014 8:42 pm,
Farms on high alert for bird flu outbreak
The nation’s poultry farms and relevant ministries are on high
alert over bird flu, with farmers busy inspecting and
disinfecting chicken coops.
The tension is due to a series of cases in which highly
pathogenic avian influenza viruses have been detected in
migratory birds. No such viruses were detected in the three previous seasons, but four cases
have already been reported since November this year. A season is defined as October to May
of the following year.
In some Asian nations that serve as stopovers for migratory birds, the viruses have been
spreading throughout poultry plants and other facilities.
The H5 and H7 strains are among the highly toxic varieties of bird flu. Although it does not
usually infect people, some rare cases of human infection have been reported in China and
other countries.
Poultry farms nervous: “There’s nothing we can do to stop migratory birds from coming,”
said a 35-year-old female employee of a poultry farm in Saitama Prefecture. “I’m concerned
that birds carrying the virus could enter the poultry housing.” The farm’s chicken facilities,
which are home to about 7,000 birds, are covered with netting to prevent the intrusion of
wild birds. These nets are checked often and mended immediately if any tears are
discovered. Access to the housing is restricted to staff only, and workers’ boots are sanitized
regularly to prevent the transmission of viruses.
A farming center of the Tokyo Development Foundation for Agriculture, Forestry and
Fisheries, in Ome, Tokyo, raises an original breed of silky fowl known as Tokyo Ukokkei and
sells chicks to poultry farmers. The center has been keeping anyone who is not a staff
member away from the chicken coop, and employees must put on special work clothes before
entering the facility.
“If an outbreak were to occur at the center, the Tokyo Ukokkei would be extinguished,” said
one worker.
2011 pandemic revisited: This season’s first highly pathogenic flu virus in a migrating bird
was found in Yasugi, Shimane Prefecture, on Nov. 13. It was followed by additional cases in
the town of Nagara in Chiba Prefecture and Tottori. In the first case, the H5N8 subtype was
detected in the droppings of migratory Bewick’s swans. On Nov. 29, the virus was found in a
debilitated white-naped crane in Izumi, Kagoshima Prefecture, the nation’s largest
wintering spot for cranes.
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TOKYO SKY TREE
Weekly News from Tokyo
DITP TOKYO (2013 April13 – April19)
5 Dec. 2014 ~ 11 Dec. 2014 (No.201448)
The previous time that a highly pathogenic virus was detected in migratory birds in the
nation was in May 2011. During that season, the number of confirmed infections reached 60.
As the infections spread to poultry farms, about 1.85 million birds had to be slaughtered in
nine prefectures, including Miyazaki, Aichi and Chiba.
In April this year, bird flu was confirmed at a poultry house in Kumamoto Prefecture,
though the case’s relation to migratory birds is not clear. About 110,000 specimens were
culled.
“Avian flu viruses have been confirmed one after another since late autumn, and the
situation looks similar to the pandemic four years ago,” said an Environment Ministry
official.
Outbreak in Asia: There is also growing concern about bird flu due to the spread of
infections in Asian nations that serve as stopover spots or breeding sites for migratory birds
that fly to and from Japan.
South Korea has experienced continuous epidemics over the past year since last season,
according to the Agriculture, Forestry and Fisheries Ministry. The number of domestic
chickens infected with flu viruses reached a record high of 245 after January, and at least 14
million birds were slaughtered. In China, about 50 cases of highly pathogenic flu viruses
have been detected since September.
In response, the Environment Ministry has tightened monitoring by raising the nationwide
bird flu alert level from 2 to 3, the highest level, and increasing the frequency of virus tests.
The agriculture ministry issued a statement to prefectures across the nation requesting
thorough measures to prevent infection, stating that any poultry farm can fall victim to an
outbreak of bird flu, and emphasizing the heightened alert. (The Yomiuri Shimbun)
December 6, 2014 5:00 am JST
Weak yen broadening rift between large and small, rich and poor
Photo: Even in Tokyo, the yen is trading for about 120 to the
dollar. © Reuters
TOKYO -- The yen's incessant slide is widening the gap
between large corporations, which benefit from a soft
currency, and smaller businesses and households that will
see their finances squeezed.
Strong U.S. employment figures for November, released Friday, caused the yen to sink
against the greenback for a fifth straight day after hitting an 88-month low. Rates dropped
to the mid-121 yen range to the dollar overseas at one point that day.
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TOKYO SKY TREE
Weekly News from Tokyo
DITP TOKYO (2013 April13 – April19)
5 Dec. 2014 ~ 11 Dec. 2014 (No.201448)
"It's true that smaller businesses are struggling from the weak yen," Prime Minister
Shinzo Abe said in a campaign speech Thursday in Hokkaido. "But should we put the
Democratic Party of Japan back in charge? All business would disappear if the yen becomes
too strong."
The soft yen mainly boosts profits for larger corporations. Exports account for 24% of
sales at large manufacturers, while imports only make up 10% of the cost of goods sold,
according to the Mitsubishi Research Institute. But for smaller manufacturers, exports are
only 3.5% of sales while imports account for 5% of costs, suggesting that rising material
costs from a softer yen could hurt them.
The effects of the yen's recent swoon also differ by industry. The industrial production
index for electronic parts and devices, which have high export ratios, climbed 1.6% in
October. On the other hand, the index for the textile industry, which relies heavily on
imported materials, sank by 1.6%.
Companies could suffer from such a rapid decline in the yen's value, since they have a
hard time quickly revising sales prices and other business plans. "Nonfinancial companies
expect exchange rates to only fluctuate by a yen or two, and can't deal when the yen
weakens so dramatically," said Mari Iwashita, chief market economist at SMBC Friend
Securities. Smaller businesses could see their profits shrink even more if they fall behind on
price negotiations.
Japan also imports some of its food and clothing, which means prices of these goods will
likely be pushed up by the weak yen. This could spell trouble for many households, already
on edge over rising prices since the consumption tax hike in April.
The consumer price index for clothing ticked up 2.8% on the year in October, the steepest
rise in nearly 17 years. And the index for frequently purchased goods, such as bread, jumped
4.1%.
Plunging crude oil prices have helped ease the pain. The retail price for regular gasoline
has dropped for 20 straight weeks, and is currently about 12 yen cheaper per liter than it
was four and a half months ago. Kerosene, used widely for heating during the winter, is
expected to fall as well.
And foreign-currency-denominated assets held by households have increased nearly 7
trillion yen since the end of last year. The weak currency has also led to higher stock prices.
But the impact of the recent exchange rates will be overwhelmingly negative for
lower-income households, who hold less assets and spend a large portion of their income on
food and clothing.
The weak yen is thought to be a positive factor for the Japanese economy as a whole. A
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TOKYO SKY TREE
Weekly News from Tokyo
DITP TOKYO (2013 April13 – April19)
5 Dec. 2014 ~ 11 Dec. 2014 (No.201448)
10% drop in the yen's value would boost nominal gross domestic product by 0.18% the
following year, according to calculations by the Cabinet Office. A 20% drop in crude prices
could boost the figure by 0.54%.
Crude prices so far have sunk over 30% since the end of last year. And the number of
foreign visitors to Japan is expected to top records this year at about 13 million, which could
also boost consumer spending in certain regions. (Nikkei)
December 9, 2014 3:31 am JST
Investment cap going up to 1.2 million yen
TOKYO -- Japan's government is moving to raise the annual limit for contributing to
investment accounts that let individuals accrue capital gains tax-free for five years.
Under a proposal now being considered, the ceiling would rise from 1 million yen
($8,100) to 1.2 million yen in 2016.
In a new feature, adults would be able to create and contribute to accounts for their
children or grandchildren, to the tune of up to 800,000 yen a year.
Japan's individual savings account program, dubbed NISA, began in January. Calls for
raising the investment cap have been coming from the finance industry and other areas.
Since 1.2 million yen divides evenly into 12 monthly installments, account holders would
have an easier time contributing the maximum amount.
With the addition of the newly available accounts for minors, a couple with two children
would be able to contribute up to 4 million yen a year, in effect doubling their current limit.
Some 22 million minors would qualify to hold a NISA account. Unlike the standard
account, the junior version would impose restrictions on withdrawals: youngsters would be
able to collect their capital gains tax-free only after they have reached age 18.
Proponents say expanding eligibility to minors would help transfer assets from older to
younger generations. The majority of Japan's roughly 1,600 trillion yen in individual
financial assets is held by people age 60 and older. Of the 1.56 trillion yen that had been
contributed to NISA accounts as of the end of June, 80% came from people 50 or older.
Investments by 20- and 30-somethings made up less than a tenth of the whole.
A few improvements to the program are already coming next year. Individuals are now
roped into investing with the same financial institution where they opened their account for
four years. Starting in 2015, they will be free to change annually, broadening their
investment options. They will also be able to start a new account the year after they close
their previous one, instead of having to wait up to four years.
The NISA program is set to end in a decade. But many want it to be made permanent to
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TOKYO SKY TREE
Weekly News from Tokyo
DITP TOKYO (2013 April13 – April19)
5 Dec. 2014 ~ 11 Dec. 2014 (No.201448)
sustain the stream of money flowing from savings to investment. Britain's Individual
Savings Account program, which served as a model for the Japanese version, started off as a
limited-time scheme that was later made permanent. (Nikkei)
December 9, 2014 7:34 am JST
Japan revises down July-Sept GDP, but signs of growth seen this quarter
TOKYO -- Japan's real gross domestic product shrank 0.5% in the July-September quarter,
compared with the previous three months, but signs point to positive growth in the current
quarter with production and exports both looking up.
In an announcement Monday, the Cabinet Office revised the annualized GDP growth
rate for July-September to negative 1.9%, a 0.3-percentage-point larger contraction than the
preliminary figure. This marks the second straight quarter of negative growth since the
consumption tax hike in April, which has squeezed both consumer spending and capital
investment.
The reduction of inventory weighed down real economic growth by 0.6 percentage point.
But less inventory also means that companies are getting ready to start producing more.
The average forecast of about 40 private-sector institutions sees October-December GDP
climbing an annualized 3.25% from the previous quarter. With the yen now in the 121 range
to the dollar, the export volume index calculated by the Cabinet Office jumped 2.1% in
October.
The industrial production index could also increase 2.3% in November and 0.4% in
December, according to forecasts by the Ministry of Economy, Trade and Industry. This
would mean four straight months of gains after the economy bottomed out in August.
While large corporations, which benefit from the weak yen, are expected to lead the
recovery of the Japanese economy, sluggish consumption continues to be a cause for concern.
The November Economy Watchers Survey of people with jobs sensitive to economic
conditions, also released by the Cabinet Office on Monday, showed that the diffusion index
for current conditions sank 2.5 points from October to 41.5. It fell short of the 50-point mark,
which would indicate no perceivable changes in the economy, for the fourth straight month.
The index for the two- to three-month outlook also dropped 2.6 points to 44.
The issue is that consumers think current prices are too high. While inflation is slowing
compared with last year, many in the country's northern regions are feeling the weight of
hiked electricity prices or swelling heating costs. Smaller businesses are also suffering from
rising costs to import materials due to the soft yen.
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TOKYO SKY TREE
Weekly News from Tokyo
DITP TOKYO (2013 April13 – April19)
5 Dec. 2014 ~ 11 Dec. 2014 (No.201448)
Year-end winter bonuses are likely to go up this year, especially for employees of large
corporations. Isetan Mitsukoshi Holdings saw sales at its department stores around Tokyo
increase 5% this past weekend compared with the first weekend after bonuses were paid last
year. Other department stores and large electronics retailers are also doing about the same,
if not slightly better, as last year. Sales of big-ticket items, such as watches and jewelry, are
recovering in big cities.
But the situation remains dire in small-town Japan. For the economy to make a
sustainable comeback, the wage hikes at large businesses must also spread to regional
employees and part-time workers.
Labor unions will be demanding an increase in base wages next spring, and some
business leaders agree a hike is necessary. It is crucial that companies transfer wealth from
higher profits to employees, which in turn would boost consumer spending. (Nikkei)
December 10, 2014 1:00 pm JST
Eager foreign shoppers propping up Japan firms
TOKYO -- The ballooning number of foreign visitors to Japan is
helping to boost the revenues and stock prices of home appliance
retailers and other companies here.
Photo: Thai tourists shop at a 100-yen store in Tokyo's Shinjuku Ward.
Overturning its image of high prices, Japan appears to have
become a shopper's paradise as a result of the prolonged deflation and
the yen's weakening.
According to a survey conducted by the Japan Tourism Agency, foreign visitors spent
158,257 yen ($1,297), on average, during their time in the country from July through
September, up 13% from a year earlier.
Data released by the Japan National Tourism Organization shows that nearly 11 million
foreign travelers entered Japan in the 10 months through October, up 27.1% on the year.
The government has set a goal of 20 million annual foreign visitors to Japan by 2020, when
Japan will host the Olympic Games in Tokyo. Japanese companies will have to find the best
way to meet the hefty demand of foreign travelers. (NQN)
December 10, 2014 12:30 pm JST
Japan Nov. wholesale prices minus tax effect fall 1st time since 2013
TOKYO(Kyodo) -- Japan's wholesale prices, excluding the impact of a consumption tax
increase, declined for the first time in 20 months in November with a 0.2 percent fall from a
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TOKYO SKY TREE
Weekly News from Tokyo
DITP TOKYO (2013 April13 – April19)
5 Dec. 2014 ~ 11 Dec. 2014 (No.201448)
year earlier, the Bank of Japan said Wednesday.
Lower prices of chemical products stemming from sluggish demand in Asia, falling
petroleum and coal product prices amid the downturn in the oil market and a drop in rice
prices led to the first drop since March 2013, a BOJ official said.
The index of corporate goods prices, excluding the effect of the consumption tax hike in
April to 8 percent from 5 percent, stood at 102.3 in the month against the 2010 base of 100,
the central bank said in a preliminary report.
Price trend is a key indicator for Prime Minister Shinzo Abe's bid to move Japan's
economy out of its long deflationary malaise.
Including the tax impact, the wholesale prices rose 2.7 percent in the month from a year
earlier for the 20th straight month of increase, driven by higher prices of iron and steel,
metal products and nonferrous metals, the BOJ said.
The pace of increase was slower than a 2.9 percent rise in October and 3.6 percent
growth in September, reflecting the recent downturn in the oil market.
On a month-on-month basis, prices were down 0.2 percent from October, falling for the
second consecutive month.
Import prices rose 5.1 percent year-on-year and export prices gained 7.4 percent, both in yen
terms.
December 11, 2014 7:25 am JST
Foreign ministry to set up centers in cities worldwide
TOKYO -- The foreign ministry is planning a network of facilities for promoting Japanese
culture abroad, beginning with three it hopes to open in Los Angeles, London and Sao Paulo
during fiscal 2016.
The privately run Japan Houses will aim to familiarize locals with the country. They will
include cafes, restaurants and shops offering items from a variety of its regions. The
ministry hopes that such existing institutions as the Japan Foundation, which promotes
international exchanges, will set up shop to provide one-stop service.
Hong Kong, Jakarta and Istanbul are also under consideration.
Each site will offer localized content about Japan. London's Japan House will focus on
economics, while the Los Angeles center will play up entertainment and the Sao Paulo site
will highlight relations with the Japanese-Brazilian community.
The ministry has requested roughly 50 billion yen ($415 million) in the fiscal 2015
budget for projects to promote Japanese culture abroad, including the Japan Houses.
(Nikkei)
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TOKYO SKY TREE
Weekly News from Tokyo
DITP TOKYO (2013 April13 – April19)
5 Dec. 2014 ~ 11 Dec. 2014 (No.201448)
December 12, 2014 3:59 am JST
LDP on course to claim over 300 parliamentary seats
Photo: Voters cast absentee ballots at a polling station in Tokyo.© Kyodo
TOKYO -- Prime Minister Shinzo Abe's Liberal
Democratic
Party
has
maintained
momentum
throughout its campaign for Sunday's general election,
with the ruling coalition looking likely to capture a
supermajority in the lower house, according to a new
Nikkei poll.
Nikkei conducted its first survey Dec. 3, the day after campaigning kicked off. For the
second poll, taken from Tuesday to Thursday, it polled voters in 70 single-seat districts with
tight races and made projections for all 475 seats up for grabs by combining the survey
results with its own research.
The first survey showed that LDP had a chance of winning 300 seats -- up from 295
before the chamber was dissolved, and that has not changed. The latest survey puts LDP
candidates ahead in nearly 70% of hotly contested districts. The party appears to have a
solid grip in the mid-210s on single-seat constituencies, slightly more than in the first survey,
so it has a chance of winning in 250 districts.
Of seats filled through proportional representation, the LDP could win more than 70 but
is unlikely to surpass the record 77 it took in 2005. Still, the party is on track to exceed the
total of 296 it won nine years ago and could top the record 308 seats snagged in 2009 by the
opposition Democratic Party of Japan.
Junior coalition partner Komeito is also expected to do well. The party has a solid grip on
nine single-seat districts and seeks to add seats in proportional representation. Komeito is
expected to end up with more than the 31 seats it held before the lower house was dissolved.
Together, the two coalition partners will likely secure at least the two-thirds
supermajority of 317 seats needed to override the upper house in passing legislation.
The DPJ continues to trail in most districts, although the new poll shows that it has
taken the lead in some. Certain and likely victories number in the 20s, about as many as in
the first survey. With solid proportional representation wins projected in the mid-30s, the
party might not exceed the 62 total seats it held earlier unless it wins in some tight races.
The Japan Innovation Party has been unable to gain momentum. While it is faring
better now in some single-seat districts, the party faces a tough battle overall. Seen winning
fewer than 30 seats through proportional representation, the party will likely fall short of
the 42 seats it held before.
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TOKYO SKY TREE
Weekly News from Tokyo
DITP TOKYO (2013 April13 – April19)
5 Dec. 2014 ~ 11 Dec. 2014 (No.201448)
The Japanese Communist Party appears to have a solid grip on 15 proportional
representation seats and may end up with more. It also has a chance of winning one
single-seat district.
The Party for Future Generations could now win a seat through proportional
representation, the latest survey shows, but is sure to fall well below its earlier total of 20.
The People's Life Party will likely win just three seats or fewer in all. The Social
Democratic Party is seen taking just one or two. The New Renaissance Party has no
prospects of winning any seats.
But a significant number of voters still have not made up their minds. Of those polled,
26% said they are undecided on single-seat districts and 20% said they have not yet picked a
party for the proportional representation voting.
The latest survey targeted roughly 46,000 people via random-digit dialing, with roughly
29,000, or 63.5%, providing valid responses. (Nikkei)
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