- Uniqlo mother or father despatched huge sign with wage hike announcement
- Pay in Japan has been flat for many years
- Small companies have little room to lift wages
World
Japan Inc is finally giving raises, just not to everyone
TOKYO, Jan 18 (Reuters) – Japan’s high corporations are gearing as much as supply their largest wage will increase in many years, however there is no approach Hideki Kawada can afford raises for the 18 workers at his printing agency.
Prime Minister Fumio Kishida has known as on Japan Inc to extend pay and reverse many years of flat wages which have squeezed development on this planet’s third-largest financial system.
Quick Retailing Co Ltd (9983.T), which owns clothes large Uniqlo, stated it will enhance pay by as much as 40%, fuelling expectations huge producers will supply extra at annual wage talks with unions this spring.
But the small corporations that present most of Japan’s jobs typically cannot enhance pay, enterprise house owners, economists and officers say. Battered by the pandemic, small companies now battle to move on greater prices out of worry of shedding prospects.
That is dangerous information for each Kishida and the central financial institution, which needs to wind down years of stimulus. The dearth of broad wage development illustrates Japan’s battle to flee a deflationary spiral that has compelled households and companies to scrimp as an alternative of spend.
“Positive we may give raises, that is straightforward, however we would be out of enterprise in two years,” stated Kawada, whose Tokyo firm, Kowa, prints commercials and brochures.
The price of paper went up 3 times final yr and his capacity to lift costs is proscribed by competitors.
“The businesses that may maintain out and supply decrease costs, even briefly, get the work,” he stated. “Everybody’s shedding cash, so it is only a case of putting up with so long as you possibly can till the opposite guys exit of enterprise.”
Kawada has taken the corporate his father based into net manufacturing and video, however would not see sufficient of a future to move it all the way down to his son. He’s contemplating shutting it when he retires.
‘MONOZUKURI’
Japan’s largest labour group, Rengo, has known as for a 5% pay enhance at spring talks and massive companies are seen providing round 2.9%, the largest bump in 26 years.
Some members of Tokyo Union, which represents round 600 staff primarily at small corporations, will see “a little bit little bit of a increase, in the event that they actually demand it,” stated deputy chairman Tatsuya Sekiguchi.
Final yr some workplaces saved up with the price of dwelling and only a few acquired a little bit further, he stated. Many workplaces nonetheless have not recovered from the pandemic, he stated
Small and mid-size companies account for 99% of the businesses in Japan and nearly 70% of employment, in response to a 2016 authorities survey, the most recent obtainable.
They type the spine of producing, or “monozukuri”, constructed on tiers of suppliers from tiny subcontractors up. Toyota Motor Corp has some 60,000 suppliers.
Small corporations wish to increase wages however are on the mercy of shoppers, stated Takumi Tsunoda, a senior economist at Shinkin Central Financial institution Analysis Institute.
“Their largest fear is that prospects will shift to a different provider. They really feel they don’t have any selection however to place up with inconceivable calls for from huge corporations.”
Small and medium-sized companies are passing on simply 47% of upper prices to patrons, a September survey from the ministry of commerce and business confirmed. That was “not enough” and an indication suppliers had been shouldering lots of the burden, stated ministry official Hiroyuki Sameshima.
The pattern is most obvious in industries with many small suppliers. Trucking corporations, for instance, are capable of move on solely 19% of their value will increase, he stated.
The honest commerce watchdog final month named 13 huge corporations it stated refused to simply accept greater costs from suppliers. None had been accused of criminal activity, however the public shaming was seen as try to get them to pay extra.
UNPROFITABLE
Kazeya Ono, a 28-year-old clothes retailer employee, stated he cannot think about the wage scenario ever bettering.
“Our technology was born after Japan’s bubble burst. We’ve got by no means seen a booming financial system.”
In greenback phrases, Japan’s common annual pay totalled $39,711 in 2021, effectively under the OECD common of $51,607 and little modified from the early Nineteen Nineties. That is put stress on family consumption, which accounts for greater than half of Japan’s financial system.
Actual wages, which keep in mind inflation, have had their largest hit in eight years.
Sustained wage will increase will stay elusive so long as many unprofitable small corporations stay, stated Masaaki Kanno, chief economist at Sony Monetary Group and a former central financial institution official.
Weak corporations have been helped by authorities stimulus, particularly by way of the pandemic.
Low-wage staff cope by reducing again spending. Half-timers are sometimes housewives who do issues like concentrate on amassing loyalty factors to save cash, stated Keitaro Kawakami, analysis adviser at Shufu JOB Analysis Institute.
Kawada, the print store proprietor, hasn’t taken on a brand new graduate in practically 20 years – though they’re cheaper than mid-career hires. He cannot assure a job for all times for a youthful employee.
“If we exit of enterprise, it will not simply be an issue for me, however for the workers and their households,” he stated. “We’ve got to discover a strategy to survive as an organization and do our greatest collectively.”
($1 = 128.1300 yen)
Reporting by David Dolan and Daniel Leussink; Further reporting by Rocky Swift, Elaine Lies, Miho Uranaka and Sakura Murakami; Modifying by Kim Coghill
Our Requirements: The Thomson Reuters Belief Ideas.
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World
Israel keeping its ‘eyes open’ for Iranian attacks during Trump transition period, ambassador says
Israel’s U.N. Ambassador Danny Danon tells Fox News Digital that his country is keeping its “eyes open” for any potential aggression from Iran during the Trump transition period, adding it would be a “mistake” for the Islamic Republic to carry out an attack.
The comments come after Iranian Foreign Minister Abbas Araghchi vowed earlier this week that Iran would retaliate against Israel for the strategic airstrikes it carried out against Tehran on Oct. 26. Araghchi was quoted in Iranian media saying “we have not given up our right to react, and we will react in our time and in the way we see fit.”
“I would advise him not to challenge us. We have already shown our capabilities. We have proved that they are vulnerable. We can actually target any location in Iran. They know that,” Danon told Fox News Digital.
“So I would advise them not to make that mistake. If they think that now, because of the transition period, they can take advantage of it, they are wrong,” he added. “We are keeping our eyes open and we are ready for all scenarios.”
ICC REJECTS ISRAELI APPEALS, ISSUES ARREST WARRANTS FOR BENJAMIN NETANYAHU, YOAV GALLANT
Danon says he believes one of the most important challenges for the incoming Trump administration will be the way the U.S. deals with Iran.
“Regarding the new administration, I think the most important challenge will be the way you challenge Iran, the aggression, the threat of the Iranian regime. I believe that the U.S. will have to go back to a leading position on this issue,” he told Fox News Digital.
“We are fighting the same enemies, the enemies of the United States of America. When you look at the Iranians, the Houthis, Hezbollah, Hamas, all those bad actors that are coming against Israel… that is the enemy of the United States. So I think every American should support us and understand what we are doing now,” Danon also said.
IRAN HIDING MISSILE, DRONE PROGRAMS UNDER GUISE OF COMMERCIAL FRONT TO EVADE SANCTIONS
Danon spoke as the U.S. vetoed a draft resolution against Israel at the U.N. Security Council on Wednesday.
The resolution, which was overseen by Algeria, sought an “immediate, unconditional and permanent cease-fire” to be imposed on Israel. The resolution did not guarantee the release of the hostages still being held by Hamas within Gaza.
“It was a shameful resolution because… it didn’t have the linkage between the cease-fire and the call [for] the release of the hostages. And I want to thank the United States for taking a strong position and vetoing this resolution,” Danon said. “I think it sent a very clear message that the U.S. stands with its strongest ally with Israel. And, you know, it was shameful, too, to hear the voices of so many ambassadors speaking about a cease-fire but abandoning the 101 hostages. We will not forget them. We will never abandon them. We will continue to fight until we bring all of them back home.”
Fox News’ Benjamin Weinthal contributed to this report.
World
Fact-check: What do we know about Russia’s nuclear arsenal?
Moscow has lowered the bar for using nuclear weapons and fired a missile capable of carrying a nuclear warhead into Ukraine, heightening tensions with the West.
Russia’s nuclear arsenal is under fresh scrutiny after an intermediate-range ballistic missile capable of carrying an atomic warhead was fired into Ukrainian territory.
President Vladimir Putin says the unprecedented attack using the so-called “Oreshnik” missile is a direct response to Ukraine’s use of US and UK-made missiles to strike targets deep in Russian territory.
He has also warned that the military facilities of Western countries allowing Ukraine to use their weapons to strike Russia could become targets.
The escalation comes days after the Russian President approved small but significant changes to his country’s nuclear doctrine, which would allow a nuclear response to a conventional, non-nuclear attack on Russian territory.
While Western officials, including US defence secretary Lloyd Austin, have dismissed the notion that Moscow’s use of nuclear weapons is imminent, experts warn that recent developments could increase the possibility of nuclear weapons use.
Here’s what we know about Russia’s inventory of atomic weapons.
How big is Russia’s nuclear arsenal?
Russia holds more nuclear warheads than any other nation at an estimated 5,580, which amounts to 47% of global stockpiles, according to data from the Federation of American Scientists (FAS).
But only an estimated 1,710 of those weapons are deployed, a fraction more than the 1,670 deployed by the US.
Both nations have the necessary nuclear might to destroy each other several times over, and considerably more atomic warheads than the world’s seven other nuclear nations: China, France, India, Israel, North Korea, Pakistan and the United Kingdom.
Of Moscow’s deployed weapons, an estimated 870 are on land-based ballistic missiles, 640 on submarine-launched ballistic missiles, and potentially 200 at heavy bomber bases.
According to FAS, there are no signs Russia is significantly scaling up its nuclear arsenal, but the federation does warn of a potential surge in the future as the country replaces single-warhead missiles with those capable of carrying multiple warheads.
Russia is also steadily modernising its nuclear arsenal.
What could trigger a Russian nuclear response?
Moscow’s previous 2020 doctrine stated that its nuclear weapons could be used in response to an attack using nuclear or other weapons of mass destruction “when the very existence of the state is put under threat.”
Now, the conditions under which a nuclear response could be launched have changed in three crucial ways:
- Russia will consider using nuclear weapons in the case of a strike on its territory using conventional weapons, such as cruise missiles, drones and tactical aircraft.
- It could launch a nuclear attack in response to an aggression by a non-nuclear state acting “with the participation or support of a nuclear state”, as is the case for Ukraine.
- Moscow will also apply the same conditions to an attack on Belarus’ territory, in agreement with President Lukashenko.
Is there a rising nuclear threat?
The size of the world’s nuclear stockpiles has rapidly decreased amid the post-Cold War détente. The Soviet Union had some 40,000 warheads, and the US around 30,000, when stockpiles peaked during the 1960s and 70s.
But FAS warns that while the overall number is still in decline, operational warheads are on the rise once again. More countries are also upgrading their missiles to deploy multiple warheads.
“In nearly all of the nuclear-armed states there are either plans or a significant push to increase nuclear forces,” Hans M. Kristensen, Director of the Nuclear Information Project at the Federation of American Scientists (FAS), said in June this year.
Is the West reacting?
When Putin approved the updated nuclear protocol last week, many Western leaders dismissed it as sabre rattling.
German Foreign Minister Annalena Baerbock said Germany and its partners would “not be intimidated” and accused Putin of “playing with our fear.”
But since Russia used a hypersonic ballistic missile capable of carrying a nuclear warhead in an attack on Dnipro, European leaders have raised the alarm.
“The last few dozen hours have shown that the threat is serious and real when it comes to global conflict,” Polish Prime Minister Donald Tusk said on Friday.
According to Dutch media reports, NATO’s secretary-general Mark Rutte is in Florida to urgently meet President-elect Donald Trump, potentially to discuss the recent escalation.
NATO and Ukraine will hold an extraordinary meeting in Brussels next Tuesday to discuss the situation and the possible allied reaction, according to Euronews sources.
World
Rental home investors poised to benefit as mortgage rates, high home prices sideline buyers in 2025
LOS ANGELES (AP) — Rental homes will remain an attractive option next year to would-be homebuyers sidelined by high mortgage rates and rising home prices, analysts say.
American Homes 4 Rent and Invitation Homes are two big real estate investment trusts poised to benefit from the trend, say analysts at Mizuho Securities USA and Raymond James & Associates.
Their outlooks boil down to a simple thesis: Many Americans will continue to have a difficult time finding a single-family home that they can afford to buy, which will make renting a house an attractive alternative.
It starts with mortgage rates. While the average rate on a 30-year mortgage fell to a two-year low of 6.08% in late September, it’s been mostly rising since then, echoing moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
The yield, which has hovered around 4.4% this week, surged after the presidential election, reflecting expectations among investors that President-elect Donald Trump’s proposed economic policies may widen the federal deficit and crank up inflation.
Analysts at Raymond James and Associates say they see mortgage rates remaining “higher for longer,” given the outcome of the election. Last week, they reiterated their “Outperform” ratings on American Homes 4 Rent and Invitation Homes, noting “we are increasingly confident in the longer-term outlook for single-family rental fundamentals and the industry’s growth prospects.”
They also believe the two companies will continue to benefit from “outsized demographic demand for suburban homes,” and the monthly payment gap between renting and owning a home, which they estimate can be as much as 30% less to rent.
Analysts at Mizuho also expect that homeownership affordability hurdles will maintain “a supportive backdrop” and stoke demand for rental houses, helping American Homes 4 Rent and Invitation Homes to maintain their tenant retention rates.
The companies are averaging higher new and renewal tenant lease rates when compared to several of the largest U.S. apartment owners, including AvalonBay, Equity Residential and Camden Property Trust, according to Mizuho. It has an “Outperform” rating on American Homes 4 Rent and a “Neutral” rating on Invitation Homes.
Shares in Invitation Homes are down 1.2% so far this year, while American Homes 4 Rent is up 4.4%. That’s well below the S&P 500’s 24% gain in the same period.
While individual homeowners and mom-and-pop investors still account for the vast majority of single-family rental homes, homebuilders have stepped up construction of new houses planned for rental communities.
In the third quarter, builders broke ground on about 24,000 single-family homes slated to become rentals. That’s up from 17,000 a year earlier. In the second quarter, single-family rental starts climbed to 25,000, the highest quarterly total going back to at least 1990, according to an analysis of U.S. Census data by the National Association of Home Builders.
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