Japan's economy expanded by an annualized 1.6% in Q1 2022, beating expectations for a 0.7% increase and marking the first expansion in three quarters. The rebound was driven by a surge in consumption as the country reopened from the pandemic, but the economy is facing headwinds from slowing growth among other major economies. Uncertainty over the outlook is also complicating the issue of how soon the Japanese central bank can start phasing out its stimulus program. However, capital expenditures were up more than expected, offsetting some of the drag from external demand.
A stem cell study led by a team at the state-backed Chinese Academy of Sciences (CAS) and published in the journal Nature last year did not receive the required ethical approval, according to the CAS ethics committee office. The researcher involved falsified paperwork during the process of publishing the paper to show the study had ethical approval when it did not, said Yang Weiping, director of the CAS office. The study converted human pluripotent stem cells into eight-cell totipotent embryo-like cells before injecting them into the uterus of mice to develop further. The researcher concerned received a warning, suspension as a postgraduate supervisor for a year, and a cut in some research funding.
China has strengthened ethics oversight on scientific research involving humans in recent years, after Shenzhen scientist He Jiankui announced in 2018 that he had produced the first gene-edited babies. He was handed a three-year jail term for “illegal medical practices”. New bioethics guidelines on human-related research were introduced in March. The study published last month in Chinese journal Science Bulletin, led by Yang of the CAS office, found that failure to obtain approval to conduct research from ethics committees is the main reason scientific papers are retracted worldwide, with 77% of retractions globally and 58% in China made for this reason.
Ear acupuncture has been found to aid weight loss by a significant amount, according to a study conducted on obese Japanese men. Participants had tiny metal beads attached to six points on their ear, following which they were asked to keep food diaries and halve their total food intake over three months. Average weight and body fat loss over the period was found to be 10.4% and 4%, respectively, while Body Mass Index (BMI) fell by three points. However, the study was criticised by some obesity experts for failing to show that acupuncture was the major reasons for the participants' success.
A US nuclear-powered ballistic missile submarine is expected to make a port call in South Korea for the first time since 1981. The visit was agreed upon by US President Joe Biden and South Korean President Yoon Suk Yeol as part of the Washington Declaration to enhance the "regular visibility" of strategic assets in the Korean peninsula.
Japan has entered a period of recovery following Covid, creating an exit from its technical recession. While the recovery has caused stocks in the country to skyrocket, it is primarily driven by tourism and consumers spending. However, economists warn that exports and manufacturing in Japan are still weak, not to mention the global economy's substantial risks in a post-Covid world. Despite a modest recovery, there is still a cautious optimism that Japan has reached an inflection point whereby wages and higher spending could loom on the horizon, which has driven the foreign investment that fueled the country's post-Covid recovery.
From January to March, Gross Domestic Product (GDP) in Japan grew at an annualized rate of 1.6%, well above economists’ forecast of 0.7%. Q1 data indicates that household spending has increased, which accounts for over half of Japan’s GDP, boosted by domestic tourism after the Japanese government repositioned Covid similarly to seasonal flu. Business investment has also increased, rising to a bigger than expected 0.9%. However, goods and services’ export fell 4.2%, the first drop in six quarters influenced by the global underproduction of semiconductors.
The expectation is for a modest recovery for Japan, with economists and investors closely watching the impact of a global economic slowdown or any future Covid-related measures that may present themselves. Yet, solid performance in consumer spending and tourism validates that there are still bullish signs of life in the Japanese market, which is the largest in Asia.
Uncertainty over the US debt ceiling is set to continue as traders brace for April inflation data for the eurozone, with European markets predicted to open lower. UBS Group AG is poised to release its financial statement detailing the $17bn hit it took from the takeover of Credit Suisse Group AG. Meanwhile, BlackRock is requesting its staff return to the office at least four days a week as pandemic restrictions are lifted globally. The recession in Japan has lifted as the country rebounds post-pandemic to offset global economic challenges, while Warren Buffett increased his influence in Capital One Financial Corp.
The Council of Europe (CoE) has approved a “Register of Damage” to identify financial compensation owed for damage in Ukraine caused by Russian forces. Marija Pejcinovic Buric, Council head, called the register an “urgent, necessary, first step.” The US, Canada, and Japan, as well as over 40 countries, backed the register. German Chancellor Olaf Scholz said it would be important in punishing “war crimes of Russian occupiers” while supporting potential future legal proceedings. The Dutch Prime Minister Mark Rutte and the British Prime Minister Rishi Sunak also pledged to provide a coalition giving Ukraine combat air capabilities.
China is to host an in-person summit of central Asian leaders this week, a bid to firm up its links with smaller former Soviet states, widely seen as Russia's backyard. China's president, Xi Jinping, is expected to discuss deepening economic and security links with the leaders of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, a region which analysts say has been seeking alternative investment as Moscow concentrates on the Ukraine. The inaugural, virtual China-Central Asia leaders' summit was held in 2020, and China's trade with the five central Asia states has multiplied a hundred-fold since the establishment of diplomatic ties three decades ago.
US President Joe Biden cancelled his planned visit to Australia, following a decision to reduce the length of his Asia trip in order to focus on negotiations with the Republican party over raising the federal debt ceiling. His decision forced the cancellation of the Quad leaders summit, scheduled for 20 October in Sydney. The meeting would have brought together presidents Biden and Fumio Kishida of Japan, Australian Prime Minister Anthony Albanese and India's Prime Minister Narendra Modi to discuss regional security and other issues.
Japan welcomed nearly two million visitors in April, the post-pandemic high, due to a relaxation of travel in China. The number of foreign visitors, for both business and leisure, climbed to 1.95 million in April, up from 1.82 million in March. However, the number of arrivals is still down by 33% from April 2019 due to the pandemic. Traveller numbers towards Japan increased significantly from October 2021 when the country resumed visa-free travel for many nations. The number of international flights from China is expected to keep increasing in the coming months.
Biden to leave Wednesday for shortened overseas trip to Japan
CNN
23-05-17 09:07
US President Joe Biden’s trip to Asia has been cut short due to the impasse over raising the US debt ceiling, which has the potential to cause an unprecedented first-ever default if it is not resolved by November. The debt issue contrasts with Biden’s plan to strengthen American alliances, tackle China’s influence, and show his stamina for another term in office. Biden is heading to Japan, but will miss out on the pre-planned second half of his trip, which included visiting Australia and Papua New Guinea. Meanwhile, a summit of the Quad leaders scheduled to take place in Sydney has been cancelled as Biden will not be attending. There remain concerns of a global economic meltdown if the borrowing limit stalemate is not resolved. Additionally, it could go against the functional democracy kind of image that Biden has sought to present to the world in his attempt to counter the rise of authoritarian regimes.
The Chinese embassy in London has warned that Britain risks "serious consequences" after former PM Liz Truss's high-profile visit to Taiwan. Truss is the first former British leader to visit the island since Margaret Thatcher in 1996. Truss urged the UK to use “hard power” to deter China and to "get real" about military cooperation with Taiwan. Beijing called it a “dangerous political show”. Britain amended its foreign and defence policy in March to describe China as a “epoch-defining challenge”.
Heavy rainfall in northern Italy's Emilia-Romagna region has caused widespread flooding, leaving at least eight dead and thousands evacuated. The Formula One Emilia Romagna Grand Prix scheduled for Sunday was cancelled due to the flooding. Some areas experienced 50% of their average annual rainfall in 36 hours, causing rivers to burst their banks and submerging thousands of hectares of farmland. At least 50,000 people are without electricity, while some road and rail links have been blocked.
British actor, writer and musician Allan Mustafa, known to friends as Seapa, has spoken about his unusual path in the country’s comedy scene. Mustafa is part of People Just Do Nothing, a Bafta-winning cult British show about working-class characters running a pirate radio station. Mustafa, whose father was Kurdish-Iraqi and mother Czech, said he was an anomaly among a mostly middle-class scene and that his parents were keen he did not follow a path into a creative industry after they fled Saddam Hussein’s regime in the early 1980s. “Immigrant parents have taken a big risk to come here, they don’t want you taking another risk,” he said. Mustafa said he struggled academically and was fired from several jobs. The 35-year-old discovered his potential outlet in early 2000s music in the UK garage scene.
Discussions are taking place to renew the Black Sea grain deal that allows wartime exports of Ukrainian grain. The deal ends on Thursday, and Russia is requesting more support for its own sales of fertilisers and food. However, a Turkish source claimed to see a high probability that the grain deal would be extended. Meanwhile, leaders of the Group of Seven nations intend to further tighten sanctions on Russia at their summit this week. In addition, fighting continues between Russian forces and Ukrainian rebels.
Northern Italy has been hit by floods which have forced 5,000 people to evacuate and left 50,000 without electricity and 100,000 without cell phone or landline use. 24 towns in the Emilia-Romagna region of the country were evacuated, and flooding prompted the cancellation of the Emilia Romagna Grand Prix this weekend. Several people have died, several more are missing, roads and routes have been flooded making rescue operations difficult, and a state of emergency has been announced in the Balkans, where the Una River has swollen and landslides have been reported in Slovenia.
US President Joe Biden and Republican Speaker of the House of Representatives Kevin McCarthy have expressed optimism that a deal can be reached to avoid a potentially catastrophic default on the country’s $31.4tn debt commitments. The outcome remains uncertain, however, as the Treasury has warned the government could run out of money to pay its bills as soon as 1 June. The size of the US debt ceiling is self-imposed, with the government spending more money than it raises in taxes. Any agreement to raise it would need to be reached before the US reaches the limit of its borrowing capacity.
Japan Aerospace Exploration Agency (Jaxa) has expressed interest in using Spaceport Cornwall as a base for its launches. Several other players keen to employ the British facilities were also revealed by Science Minister George Freeman; among them is SaxaVord Spaceport, which is hoping to secure a launch licence from the Civil Aviation Authority over the next three months. The Shetland-based spaceport plans to start launch rehearsals this summer, with 30 launches a year initially, that could eventually rise to 50. The Shetland site, alongside the Cornwall project, represents a step towards enabling the UK to enter the "premier league" of space powers, according to Frank Strang, CEO of SaxaVord Spaceport.
US President Joe Biden believes that a potential US debt default can be avoided by making a deal with Congress. Biden shared that his recent meeting with Kevin McCarthy, Republican Speaker, was “civil and respectful". He said that all parties understood the “consequences of the failure to pay our bills”. Janet Yellen, Treasury Secretary, has already warned that a default could happen as early as 1 June if Congress did not take any action to increase the borrowing limit. The fiscal stand-off had become a critical threat to the global economy and finance systems. Biden shortened his international trip to Japan to work on the debt limit negotiations in Washington. The White House and Republicans in Congress are discussing a fiscal deal with limits to discretionary spending over the next several years. Republicans are putting pressure on adding new work requirements for the government's large anti-poverty schemes.
Stellantis has become the first carmaker to urge the UK to renegotiate the terms of its Brexit deal. The parent company of car brands including Alpha Romeo, Peugeot, Vauxhall and Chrysler has called for a delay to beefed-up European Union (EU) “rules of origin”, saying that these could lead to it having to close its Ellesmere Port factory. The factory could be forced into closure as electric vans produced there, which comprise over 70% imported components, face a 10% tariff when they are exported to the EU from next year. Stellantis warned rising costs of raw materials, supply chains and the conflict in Ukraine had prevented it from meeting its planned content standards when announcing the expansion of the Cheshire plant in 2021. Car manufacturers across the UK and continental Europe have echoed its concerns over the rules of origin, which they claim will raise costs for EV drivers and reduce uptake.
