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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

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US Vice President Vance emerges as key figure in Iran peace efforts: Report

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US Vice President JD Vance has taken a leading role in Washington’s efforts to broker peace with Iran, nearly a month into the ongoing conflict, according to US media reports on Friday.

An Axios report says Vance has been actively engaged in behind-the-scenes diplomacy, holding multiple discussions with Israeli Prime Minister Benjamin Netanyahu and coordinating with Gulf allies, while maintaining indirect communication channels with Iranian officials.

The White House reportedly views Vance as a central negotiator due to his senior position and his skepticism toward prolonged military engagements, making him a suitable envoy for sensitive negotiations.

Vance’s efforts include coordination with countries such as the United Arab Emirates and Qatar, focusing on de-escalation, potential peace talks, and regional security.

US President Donald Trump formally confirmed Vance’s role on Thursday, noting that he is working alongside Middle East Envoy Steve Witkoff and Jared Kushner on ongoing negotiations and will brief officials on developments regarding Iran.

White House officials told Axios that Vance’s seniority and opposition to extended foreign conflicts make him a more appealing interlocutor for Iran than other envoys, with Witkoff recommending him as the lead negotiator. “If the Iranians can’t strike a deal with Vance, they don’t get a deal. He’s the best they’re gonna get,” a senior administration official said.

While Vance assumes a larger diplomatic role, Witkoff and Kushner continue handling negotiations. Reports of a confrontation between Vance and Netanyahu were dismissed by US and Israeli sources as inaccurate.

According to the report, Vance initially expressed skepticism about the war’s duration, objectives, and resource impact but supported a strategy of overwhelming force once Trump decided to proceed. Vance remains aligned with Israel while carefully navigating differences between US and Israeli objectives, advisers said.

“He has his own views, but he is going to work according to Trump’s instructions and try to achieve an outcome that the president likes,” a source close to Vance added.

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Trump signature to appear on US currency, ending 165-year tradition

The Treasury is still producing notes bearing the signatures of former President Joe Biden’s Treasury secretary, Janet ​Yellen, and former Treasurer Lynn Malerba.

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U.S. paper currency will bear ‌President Donald Trump’s signature starting this summer, the first time a sitting president has signed American money, the Treasury Department said on Thursday.

The redesigned notes, planned to mark the 250th anniversary of American independence, will also for the first time in 165 years drop the signature of the ​U.S. treasurer, who reports to the Treasury Secretary and oversees the Bureau of Engraving and Printing, the U.S. ​Mint and other Treasury functions, Reuters reported.

The first $100 bills with Trump’s signature and that of U.S. Treasury Secretary ⁠Scott Bessent will be printed in June, followed by other bills in subsequent months. The new bills may take several ​weeks to circulate through banks.

The Treasury is still producing notes bearing the signatures of former President Joe Biden’s Treasury secretary, Janet ​Yellen, and former Treasurer Lynn Malerba.

Malerba will be the last of an unbroken line of treasurers whose signatures have appeared on U.S. federal currency since 1861, when the U.S. government first issued it.

The signature change is the latest effort by the Trump administration and its allies to put the ​president’s name on buildings, institutions, government programs, warships and coins. A federal arts panel, whose members Trump appointed, approved last ​week the design for a commemorative gold coin with Trump’s image.

Bessent said in a statement that the move was appropriate for the U.S. 250th ‌anniversary, given ⁠strong U.S. economic growth and financial stability during Trump’s second term, read the report.

“There is no more powerful way to recognize the historic achievements of our great country and President Donald J. Trump than U.S. dollar bills bearing his name, and it is only appropriate that this historic currency be issued at the Semiquincentennial,” Bessent said.

An effort for a circulating $1 Trump coin was set back by ​laws prohibiting the depiction of ​living individuals on U.S. coins.

A ⁠statute governing the printing of Federal Reserve notes gives the Treasury broad discretion to change designs to guard against counterfeiting. The law requires keeping certain elements, including the words “In God We ​Trust,” and only allows portraits of deceased individuals.

The overall designs of bills will not change, ​except for Trump’s ⁠signature replacing the Treasurer’s, Treasury officials said. A mock-up of the $100 bill with Trump’s signature was not immediately available.

Malerba, the former treasurer, declined comment on the Trump administration’s move.

Her predecessor, Jovita Carranza, who served as treasurer in Trump’s first term, called the change “a powerful ⁠symbol of ​American resilience, the enduring strength of free enterprise and the promise of ​continued greatness.”

The current treasurer, Brandon Beach, whose name has not appeared on the currency, also issued a supportive statement, saying Trump was the architect of a “golden ​age economic revival.”

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Trump to hit Iran harder if Tehran does not accept defeat, White House says

Talks with Iran were still under way, Leavitt said. “Talks ‌continue. ⁠They are productive, as the president said on Monday, and they continue to be,” she added.

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President Donald Trump will hit Iran harder if Tehran fails to accept that ​the country has been “defeated militarily,” White House press secretary Karoline Leavitt said ‌on Wednesday.

“President Trump does not bluff and he is prepared to unleash hell. Iran should not miscalculate again,” Leavitt told reporters in a press briefing.

“If Iran fails to accept the reality ​of the current moment, if they fail to understand that they have ​been defeated militarily, and will continue to be, President Trump will ⁠ensure they are hit harder than they have ever been hit before,” she ​said.

As the joint U.S.-Israeli war on Iran entered its fourth week, there have ​been efforts by multiple countries such as Pakistan, Turkey and Egypt to mediate.

Iran is still reviewing a U.S. proposal to end the war, despite an initial response that was negative, ​a senior Iranian official told Reuters on Wednesday, indicating that Tehran had so ​far stopped short of rejecting it outright.

Talks with Iran were still under way, Leavitt said. “Talks ‌continue. ⁠They are productive, as the president said on Monday, and they continue to be,” she added.

Citing unnamed sources, media outlets on Tuesday reported that Washington sent Tehran a 15-point plan on ending the war. Leavitt said on Wednesday that elements of ​the reports were not ​fully accurate, but ⁠she did not provide specifics.

“The White House never confirmed that full plan. There are elements of truth to it, but some ​of the stories I read were not entirely factual, so ​I am ⁠not going to negotiate on behalf of the president here at the podium,” Leavitt said.

Global equity markets regained some ground while oil prices dipped on Wednesday after the ⁠reports ​about the plan, with investors hoping for an end ​to a war that has disrupted global energy supplies and raised inflation concerns.

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