Sakihito Ozawa News
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Japan’s Ministry of Finance is back.
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Japanese Prime Minister Naoto Kan is facing a backlash from ruling party lawmakers over plans to raise taxes to pay for earthquake reconstruction, adding to concern he will be unable to contain the world’s largest debt.
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Japan’s parliament passed two pieces of legislation that Prime Minister Naoto Kan said were conditions for him to resign as early today, setting up a succession battle that will play out by early next week.
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Japan’s Prime Minister Naoto Kan will face his first parliamentary no-confidence vote as early as next week, reflecting mounting discord over his handling of the worst nuclear crisis in 25 years.
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Japan may drop a reference to a target of cutting greenhouse gas emissions by 25 percent by 2020 in a revised climate-change bill under deliberation in parliament, Kyodo News reported yesterday.
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Japan and South Korea agreed to exchange information on a proposed emissions-trading mechanism, the Japanese environment ministry said today in a statement.
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Japan’s sovereign-rating outlook was cut to “negative” by Standard & Poor’s as the nation’s reconstruction needs following last month’s earthquake will likely add to what’s already the world’s biggest debt load.
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A cross-party group of senior Japanese lawmakers said Prime Minister Naoto Kan shouldn’t raise taxes to pay for rebuilding from last month’s earthquake, and called on the central bank to buy more government bonds instead.
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Japan’s 10-year bond yields were less than two basis points from a six-month low as signs Europe’s sovereign debt crisis is worsening boosted demand for safer assets.
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Japan’s Finance Minister Yoshihiko Noda joined former Foreign Minister Seiji Maehara in vying to become the next prime minister, as the downgrade of the country’s credit rating adds pressure on the country’s next leader to deal with the world’s largest public debt burden.
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