Global thirst for matcha strains Japan's tea industry
With consumer demand exploding and overseas rivals emerging, matcha tea producers face pressure to protect tradition and deliver quality. From farm automation to quiet tea rooms, NHK World's John LaDue looks into how they're responding.
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NHK
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Japan surprises with plan for bigger cut to superlong bond issuance
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"The ministry publicized its revised plan sooner than anticipated to ward off the risk of a failed 20-year bond auction on June 24 and to avert the market volatility seen in May,' said Shoki Omori, chief strategist at Mizuho Securities. "In light of these announcements, superlong-term auctions are poised to regain a measure of stability.' Under the latest plan, total issuance of 20-year bonds will decrease by ¥1.8 trillion to ¥10.2 trillion over the fiscal year. Meanwhile, the supply of 30- and 40-year bonds is expected to be reduced by ¥900 billion and ¥500 billion, respectively. The ministry is also planning to cut offerings in liquidity-enhancing auctions for 15.5- to 39-year maturities by ¥100 billion per auction. A Finance Ministry official briefing reporters Friday said that the plan will likely become officially approved on Monday or Tuesday. He added that the last time the bond issuance plan was changed during the fiscal year for a reason unrelated to budgets was in 2009. 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Parties are preparing to unveil costly proposals aimed at securing voter support. The ruling Liberal Democratic Party is planning yet another round of cash handouts to households. The Democratic Party for the People, a key opposition force, has called for cutting the national sales tax to 5% across the board, a more expensive choice, with additional bond issuance floated as a possible funding source. Against this backdrop, investors are in need of reassurance that the balance of supply and demand in the JGB market will be restored without yields rocketing.
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GCAP industry partners launch joint venture for trilateral fighter project
Japan's plans to develop a next-generation fighter jet alongside Britain and Italy have taken a significant step forward, with the three core companies involved in the Global Combat Air Program (GCAP) launching a joint venture on Friday that will be in charge of delivering the aircraft. Named Edgewing , the new firm — which brings together Britain's BAE Systems, Italy's Leonardo and the Japan Aircraft Industrial Enhancement Co. (JAIEC) — will be responsible for the fighter's design and development and will remain the design authority for the life of the product, which is expected to be in service beyond 2070. JAIEC is a joint venture launched last July between the Society of Japanese Aerospace Companies and Mitsubishi Heavy Industries. Edgewing will be headquartered in the English town of Reading to ensure maximum alignment and collaboration with the GCAP International Government Organization (GIGO) set up last year at the same location to manage the multibillion-dollar project, but will also feature joint teams working in each of the partner nations. Each of the three core firms hold an equal 33.3% shareholding in Edgewing. The future sixth-generation aircraft, which marks the first time that Japan is cooperating with countries other than the United States to meet a major defense requirement, is intended to replace aging Air Self-Defense Force F-2 jets, as well as British and Italian Eurofighters, with the first units expected to enter service by 2035. The twin-engine fighter, which is also intended for export, is set to function as a flying command center capable of controlling and coordinating other — likely autonomous — assets, with the aircraft viewed as 'the centerpiece of a wider combat air system that will function across multiple domains.' 'The newly formed entity will play a central role in achieving the program's ambitious goals — including the in-service date of 2035 — while setting a new benchmark for trilateral industrial partnership across Europe and Asia,' the new company said in a statement. Italian Marco Zoff, formerly managing director of Leonardo's aircraft division, will be Edgewing's first CEO. 'By uniting the strengths of our talented people in the U.K., Italy and Japan, we are not only delivering the next-generation combat air system, we aim to set a new global standard for partnership, innovation and trust,' Zoff said. Speaking to The Japan Times at the DSEI Japan defense exhibition in May, BAE Systems' Herman Claesen, who will be first chair of Edgewing's board of directors, said the joint venture expects to receive its first contract from the GIGO by the end of the year. It will then subcontract the manufacturing and final assembly of the aircraft to the three core companies and then the wider supply chain. With the aircraft's conceptual design stage complete, the project is now set to advance to the detailed design and development phases. Building fighter jets involves a complex supply chain, meaning that GCAP will comprise more than one industry construct. This means that several other companies are also set to come together as lead subsystem integrators in three broad domains. One such industrial construct — in charge of propulsion systems — will comprise Rolls-Royce, IHI and Avio Aero, while another featuring MBDA U.K., MBDA Italy and Mitsubishi Electric will join forces to develop the aircraft's future weapon systems. Last but not least, Leonardo Electronics Italy, Leonardo U.K., Mitsubishi Electric and ELT Group will work together on developing integrated communications as well as a fully integrated sensing and nonkinetic effects capability that will help provide a more comprehensive situational awareness picture in order to maximize survivability. GCAP is being designed to 'maximize and grow' the industrial capability in each of the nations, with design, development, manufacturing and production elements set to be evenly distributed. At the same time the partners hope that through 'effective knowledge and technology transfer' the project will also help grow and build resilient supply chains and deliver sovereign combat air capability in each nation for generations to come. At the same time, the three partner governments are considering whether to invite other countries to join, particularly Saudi Arabia. Riyadh has shown an interest in the multinational program, but there are also unconfirmed reports that Australia, Canada and India might be looking to participate. No official information has emerged on future partnership plans, including which additional countries are being formally considered or what their exact role or contribution to GCAP would be.
