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Japan’s Prime Minister Kishida to resign, paving way for new leader

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Japan’s Prime Minister Fumio Kishida said on Wednesday he would step down next month, succumbing to public disaffection over political scandals and rising living costs that marred his three-year term, and setting off a scramble to replace him.

“Politics cannot function without public trust,” he told a press conference to reveal his decision not to seek re-election as the leader of the ruling Liberal Democratic Party (LDP).

“I made this heavy decision thinking of the public, with the strong will to push political reform forward.”

The LDP will hold a contest in September to replace him as president of the party, and, by extension, as prime minister.

Kishida’s ratings dipped after he took office in 2021 following revelations about the LDP’s ties to the controversial Unification Church.

His popularity took another hit when a slush fund of unrecorded political donations made at LDP fundraising events came to light.

He also faced public discontent as wages failed to keep pace with rising living costs as Japan finally shook off years of deflationary pressure.

“An LDP incumbent prime minister cannot run in the presidential race unless he’s assured of a victory,” said Koichi Nakano, a professor of political science at Sophia University.

“It’s like the grand champion yokozunas of sumo. You don’t just win, but you need to win with grace.”

His successor as LDP leader will face the task of restoring the public’s confidence in the party and tackle the rising cost of living, escalating geopolitical tensions with China, and the potential return of Donald Trump as U.S. president next year.

U.S. President Joe Biden called Kishida’s tenure “nothing short of historic” and praised his new national security strategy, support for Ukraine, and steps to usher in a new era of U.S.-South Korea-Japan cooperation.

“Prime Minister Kishida’s courageous leadership will be remembered on both sides of the Pacific for decades to come, and I will always be grateful to call him my friend,” Biden said in a statement.

U.S. State Department spokesperson Vedant Patel told a regular briefing he had no doubt that whoever took over from Kishida “we will continue to deepen our alliance and partnership with Japan.”

Through his stint as Japan’s eighth-longest serving post-war leader, Kishida broke from previous economic policy by eschewing corporate profit-driven trickledown economics to set his sights on boosting household income, including wage hikes and promoting share ownership.

He led Japan out of the COVID-19 pandemic with massive stimulus spending and also appointed academic Kazuo Ueda as head of the Bank of Japan to guide the country out of his predecessor’s radical monetary stimulus.

In July, the BOJ unexpectedly raised interest rates as inflation took hold, contributing to stock market instability and sending the yen sharply higher.

Kishida’s departure could mean tighter fiscal and monetary conditions, depending on the candidate, said Shoki Omori, chief Japan desk strategist at Mizuho Securities in Tokyo.

“In short, risk-assets, particularly equities, will likely be hit the most,” he said.

Kishida’s premiership was also marked by a changing security environment that spurred Japan to revisit its traditionally pacifist policy.

He unveiled Japan’s biggest military buildup since World War Two with a commitment to double defence spending aimed at deterring neighbouring China from pursuing its territorial ambitions in East Asia through military force.

At Washington’s prodding, Kishida also mended Japan’s strained ties with South Korea, enabling the two and their mutual ally, the United States, to pursue deeper security co-operation against the threat from North Korea’s missile and nuclear weapons programs.

“Personally, I wish he continued a little bit more as prime minister,” said Naoya Okamoto, a 22-year-old office worker in Tokyo, the capital.

“Maybe he was stressed (with the low ratings), and with all the circumstances around him, I guess he has no choice but to step down.”

Former defence minister Shigeru Ishiba has already thrown his hat in the ring as a prospective replacement for Kishida, saying he would like to “fulfil his duty” if he gained enough support, public broadcaster NHK said.

Other names floated as potential contenders include Foreign Minister Yoko Kamikawa, Digital Minister Taro Kono, and former Environment Minister Shinjiro Koizumi.

Experts say the LDP will have to pick a fresh face that breaks from the scandals if it is to survive a general election due by the third quarter of 2025.

“If the LDP picks its next leader in a way that disregards public criticism against political funding scandals, the party could suffer a crushing defeat,” said political analyst Atsuo Ito.

“The party must choose someone young who has no ties with the present administration and thus can present a new LDP.” – Reuters

World

Hamas quietly reasserts control in Gaza as post-war talks grind on

A new Gaza government can be formed once the United Nations approves Trump’s plan, the spokesperson said, adding that progress has been made towards forming the multinational force.

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From regulating the price of chicken to levying fees on cigarettes, Hamas is seeking to widen control over Gaza as U.S. plans for its future slowly take shape, Gazans say, adding to rivals’ doubts over whether it will cede authority as promised, Reuters reported.

After a ceasefire began last month, Hamas swiftly reestablished its hold over areas from which Israel withdrew, killing dozens of Palestinians it accused of collaborating with Israel, theft or other crimes. Foreign powers demand the group disarm and leave government but have yet to agree who will replace them.

Now, a dozen Gazans say they are increasingly feeling Hamas control in other ways. Authorities monitor everything coming into areas of Gaza held by Hamas, levying fees on some privately imported goods including fuel as well as cigarettes and fining merchants seen to be overcharging for goods, according to 10 of the Gazans, three of them merchants with direct knowledge.

Ismail Al-Thawabta, head of the media office of the Hamas government, said accounts of Hamas taxing cigarettes and fuel were inaccurate, denying the government was raising any taxes.

The authorities were only carrying out urgent humanitarian and administrative tasks whilst making “strenuous efforts” to control prices, Thawabta said. He reiterated Hamas’ readiness to hand over to a new technocratic administration, saying it aimed to avoid chaos in Gaza: “Our goal is for the transition to proceed smoothly”.

Hatem Abu Dalal, owner of a Gaza mall, said prices were high because not enough goods were coming into Gaza. Government representatives were trying to bring order to the economy – touring around, checking goods and setting prices, he said.

Mohammed Khalifa, shopping in central Gaza’s Nuseirat area, said prices were constantly changing despite attempts to regulate them. “It’s like a stock exchange,” he said.

“The prices are high. There’s no income, circumstances are difficult, life is hard, and winter is coming,” he said.

U.S. President Donald Trump’s Gaza plan secured a ceasefire on October 10 and the release of the last living hostages seized during the Hamas-led October 7, 2023 attacks on Israel.

The plan calls for the establishment of a transitional authority, the deployment of a multinational security force, Hamas’ disarmament, and the start of reconstruction.

But Reuters, citing multiple sources, reported this week that Gaza’s de facto partition appeared increasingly likely, with Israeli forces still deployed in more than half the territory and efforts to advance the plan faltering.

Nearly all of Gaza’s 2 million people live in areas controlled by Hamas, which seized control of the territory from President Mahmoud Abbas’ Palestinian Authority (PA) and his Fatah Movement in 2007.

Ghaith al-Omari, a senior fellow at the Washington Institute think-tank, said Hamas’ actions aimed to show Gazans and foreign powers alike that it cannot be bypassed.

“The longer that the international community waits, the more entrenched Hamas becomes,” Omari said.

Asked for comment on Gazans’ accounts of Hamas levying fees on some goods, among other reported activities, a U.S. State Department spokesperson said: “This is why Hamas cannot and will not govern in Gaza”.

A new Gaza government can be formed once the United Nations approves Trump’s plan, the spokesperson said, adding that progress has been made towards forming the multinational force, Reuters reported.

The PA is pressing for a say in Gaza’s new government, though Israel rejects the idea of it running Gaza again. Fatah and Hamas are at odds over how the new governing body should be formed.

Munther al-Hayek, a Fatah spokesperson in Gaza, said Hamas actions “give a clear indication that Hamas wants to continue to govern”.

In the areas held by Israel, small Palestinian groups that oppose Hamas have a foothold, a lingering challenge to it.

Gazans continue to endure dire conditions, though more aid has entered since the ceasefire.

A senior Gazan food importer said Hamas hadn’t returned to a full taxation policy, but they “see and record everything”.

They monitor everything that enters, with checkpoints along routes, and stop trucks and question drivers, he said, declining to be identified. Price manipulators are fined, which helps reduce some prices, but they are still much higher than before the war began and people complain they have no money.

Hamas’ Gaza government employed up to 50,000 people, including policemen, before the war. Thawabta said that thousands of them were killed, and those remaining were ready to continue working under a new administration.

Hamas authorities continued paying them salaries during the war, though it cut the highest, standardizing wages to 1,500 shekels ($470) a month, Hamas sources and economists familiar with the matter said. It is believed that Hamas drew on stockpiled cash to pay the wages, a diplomat said.

The Hamas government replaced four regional governors who were killed, sources close to Hamas said. A Hamas official said the group also replaced 11 members of its Gaza politburo who died.

Gaza City activist and commentator Mustafa Ibrahim said Hamas was exploiting delays in the Trump plan “to bolster its rule”. “Will it be allowed to continue doing so? I think it will continue until an alternative government is in place,” he said.

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Trump says he is considering F-35 fighter jet deal with Saudis

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U.S. President Donald Trump said on Friday that he is considering agreeing to a deal to supply Saudi Arabia with F-35 stealth fighter jets, which are made by Lockheed Martin.

“They wanna buy a lot of jets,” Trump told reporters aboard Air Force One, Reuters reported.

“I’m looking at that. They’ve asked me to look at it. They want to buy a lot of ’35’ – but they want to buy actually more than that, fighter jets.”

The potential sale comes as Trump plans to host Saudi Crown Prince Mohammed bin Salman at the White House next week, when they are expected to sign economic and defense agreements.

Asked about the talks, Trump told reporters it was “more than meeting, we’re honoring” Saudi Arabia.

He repeated that he hoped Saudi would soon join the Abraham Accords, which have normalized relations between Israel and Muslim-majority nations. Riyadh has resisted such a step absent agreement on a roadmap to Palestinian statehood.

A Pentagon intelligence report has raised concerns over the potential F-35 deal, warning that China could acquire the aircraft’s technology if the sale proceeds, the New York Times reported on Thursday, citing people familiar with the assessment.

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BBC apologises to Trump over speech edit but rejects defamation claim

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The British Broadcasting Corporation sent a personal apology to U.S. President Donald Trump on Thursday but said there was no legal basis for him to sue the public broadcaster over a documentary his lawyers called defamatory.

The documentary, which aired on the BBC’s “Panorama” news programme just before the U.S. presidential election in 2024, spliced together three parts of Trump’s speech on January 6, 2021, when his supporters stormed the Capitol. The edit created the impression he had called for violence, Reuters reported.

“While the BBC sincerely regrets the manner in which the video clip was edited, we strongly disagree there is a basis for a defamation claim,” the broadcaster said in a statement.

Lawyers for the U.S. president threatened on Sunday to sue the BBC for damages of up to $1 billion unless it withdrew the documentary, apologised to the president and compensated him for “financial and reputational harm.”

By asserting that Trump’s defamation case lacks merit, the BBC effectively signaled that it believes his claim for financial damages is equally untenable. But the broadcaster did not directly address Trump’s financial demand.

In its statement, the BBC said Chair Samir Shah on Thursday “sent a personal letter to the White House making clear that he and the corporation were sorry for the edit.” Shah earlier in the week apologised to a British parliamentary oversight committee and said the edit was “an error of judgement.”

In the Thursday statement, the BBC added that it has no plans to rebroadcast the documentary on any of its platforms.

Earlier on Thursday, the BBC said it was looking into fresh allegations, published in The Telegraph newspaper, over the editing by another of its programmes, “Newsnight,” of the same speech.

The BBC has been thrown into its biggest crisis in decades after two senior executives resigned amid allegations of bias, including about the edit of Trump’s speech. The claims came to light because of a leaked report by a BBC standards official.

Founded in 1922 and funded largely by a licence fee paid by TV-watching Britons, the BBC is without a permanent leader as the government weighs how it should be funded in the future.

It is a vital instrument of Britain’s “soft power” globally, and Prime Minister Keir Starmer said he believed in a “strong and independent” BBC on Wednesday.

 

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