Investment banking fees fall 8 percent in weakest first quarter since 2012

(GNN) - Global investment banking fees fell 8 percent to $20 billion in the first quarter, the poorest start to the year since 2012, hurt by weak deal activity in Europe, Asia Pacific and Japan.

Fees for deals done fell 28 percent in Japan, 14 percent in Europe and 18 percent in Asia Pacific, according to data compiled by Thomson Reuters and Freeman Consulting.

The North American investment banking market remained stable, with fees little changed at $11.5 billion.

JPMorgan Chase & Co topped the global investment banking league table in the quarter with $1.49 billion in fees. Goldman Sachs Group Inc was second with $1.48 billion.

Morgan Stanley and Citigroup Inc were the biggest gainers among the top 10 banks in fees earned, while Credit Suisse Group AG's fees dropped 23 percent.

Investment banking activity in the financial, healthcare, and energy and power sectors generated 54 percent of the global fee pool during the quarter.

Fees from deal making in the healthcare sector jumped 24 percent, with Goldman commanding 14 percent of all fees booked in the sector.

Equity capital markets underwriting fees fell 2 percent to $5.3 billion, dragged down by a 36 percent drop in fees from initial public offerings.

Fees from debt capital markets underwriting rose 4 percent to $6.3 billion, while mergers and acquisition advisory fees fell slightly to $5.5 billion.

Investment banking fees generated by financial sponsors and their portfolio companies dropped 30 percent to $2.5 billion. Blackstone Group LP's investment banking fees rose 79 percent to $168 million.

(Reuters)(Reporting by Amrutha Gayathri in Bengaluru; Editing by Saumyadeb Chakrabarty)

Australia signals approval of China-based AIIB; Japan divided

(GNN) - Australia said on Friday there was a lot of merit in the China-led Asian Infrastructure Investment Bank (AIIB) while Japan's finance minister signalled cautious approval of the institution that the United States has warned against.

However, other top officials in Tokyo were more sceptical, reflecting a split in the government of Prime Minister Shinzo Abe over

whether joining an institution launched by Japan's main rival would help or hinder its interests.

The Sydney Morning Herald newspaper reported that Canberra could formally decide to sign up to the AIIB when the full cabinet meets on Monday.

Japan, Australia and the South Korea, all major U.S. allies, are the notable regional absentees from the AIIB. The United States, worried about China's growing diplomatic clout, has questioned whether the AIIB will have sufficient standards of governance and environmental and social safeguards.

But the opposition to the AIIB began crumbling after Britain said earlier this month that it would join the institution, maintaining it was in its national interest. France, Germany and Italy swiftly followed suit.

Australia now appears close to joining, although no formal decision has been made, and Beijing said Japan and South Korea were also considering the possibility.

China's Finance Minister Lou Jiwei said the bank would be set up by the end of the year and would complement rather than compete with other institutions, including the World Bank and the Asian Development Bank (ADB), the Manila-based multilateral institution dominated by Japan and the United States.

"All parties will by the middle of this year complete talks and sign the charter for the AIIB, and by year-end will make the charter effective and officially establish the AIIB," Lou said in an interview with state media, adding that Beijing was "maintaining communication" with the United States and Japan.

Asked about Australia, South Korea and Japan joining the bank, China's Foreign Ministry said it was "open" to it.

"They have all already expressed that they are contemplating the issue at hand," ministry spokesman Hong Lei told a daily briefing. "We are open to them making the relevant decision."

Japanese Finance Minister Taro Aso said Tokyo could consider joining the China-led bank if it could guarantee a credible mechanism for providing loans.

"We have been asking to ensure debt sustainability taking into account its impact on environment and society," he told reporters after a cabinet meeting.

"We could (consider to participate) if these issues are guaranteed. There could be a chance that we would go inside and discuss. But so far we have not heard any responses."

Other officials were more leery, reflecting Tokyo's concern over China-led lending practices, its relations with major ally Washington and the AIIB's potential rivalry with the ADB.

"We have a cautious position about participation," said top government spokesman Yoshihide Suga.

But a source familiar with Japan's policy-making said Tokyo should get involved to help ensure best practices and to avoid being left out. "Now it has become awkward as Europe joins but the U.S. and Japan stay out," the source said.

According to one senior official in the ruling coalition, the result of the differences is that Japan's participation "is not going to happen under the Abe administration".

OUR NEIGHBOURHOOD

Australian Treasurer Joe Hockey said no final decision had been made on Australia's involvement but the matter had been under careful consideration.

"More than 30 countries have already signed up. This is going to operate in our region, in our neighbourhood," he told a radio station in Brisbane.

"There is a lot of merit in it, but we want to make sure there are proper governance procedures. That there's transparency, that no one country is able to control the entity."

The Sydney Morning Herald said Canberra could invest as much as A$3 billion ($2.3 billion) in the bank and that the National Security Committee has cleared the way for the investment.

South Korean government officials denied a newspaper report that Seoul had decided to join in exchange for a five percent stake in the AIIB and the position of deputy chief.

The finance ministry said in a statement South Korea will make a decision on whether to join the bank "through close consultation with major countries and after considering various factors such as economic advantages and disadvantages".

Hockey said joining the AIIB would not affect Australia's close relationship with the United States and also referred to the gains that Australian companies could reap.

"The United States understands that this is a bank that's going to be operating in our region. It's going to be using contractors in our region. We want Australian contractors involved, we want work for Australians out of this bank," he said.

"And because it's operating in our region, in our neighbourhood, it is important that Australia fully understand and look at participating in this Bank."

($1 = 1.3067 Australian dollars)

(Reuters)(Additional reporting by Leika Kihara, Yuko Yoshikawa and Kaori Kaneko in TOKYO and Megha Rajagopalan and Michael Martina in BEIJING, Editing by Raju Gopalakrishnan)

Japan split on joining AIIB bank, caught between US, China

(GNN) - Japan is split over joining a China-led development bank, concerned about missing out on the rapidly coalescing global movement for the institution while also worried about alienating ally United States and helping bolster rival China, officials said.

Finance Minister Taro Aso signaled for the first time on Friday that Tokyo could be part of the Asian Infrastructure Investment Bank (AIIB) if it can guarantee a credible mechanism for providing loans.

But other top officials took a more skeptical stance, reflecting a split in the government of Prime Minister Shinzo Abe over whether the AIIB would help or hinder Japan's interests.

"We have a cautious position about participation," said top government spokesman Yoshihide Suga.

Around 30 countries, including Britain and Germany, have decided to participate in Beijing's flagship economic outreach project, but Washington, Japan's main ally, has urged countries to think twice before joining, citing worries about governance and environmental safeguards.

"Views are split within the Japanese government on whether to join the AIIB," said a person with close knowledge of Japan's financial policy-making.

The result of the standoff within the government, said a senior official in the ruling coalition, is that Japan's participation "is not going to happen under the Abe administration."

Japan is hesitant to join out of concern over China-led lending practices, over its relations with Washington and over the AIIB's potential rivalry with the Asian Development Bank (ADB), the Manila-based multilateral institution dominated by Japan and the United States, officials said.

By custom, the ADB is headed by a former senior official from the Bank of Japan or the country's finance ministry.

But the source familiar with Japan's policy-making said Tokyo should get involved to help ensure best practices and to avoid being left out. "Now it has become awkward as Europe joins but the U.S. and Japan stay out."

Finance Minister Aso told a news conference that the AIIB needs to have its board of directors screen and approve individual cases in deciding provision of loans.

"We have been asking to ensure debt sustainability, taking into account its impact on environment and society," he said after a cabinet meeting.

"We could (consider joining) if these issues are guaranteed. We'll give it careful consideration from diplomatic and economics viewpoints."

If the bank can address debt sustainability, environmental and societal concerns, "there could be a chance that we would go inside and discuss," he said. "But so far we have not heard any responses."

Suga, the chief cabinet secretary, interpreted Aso's comments to mean that "unless such issues are resolved, participation would be impossible."

(Reuters)(Additional reporting by Yuko Yoshikawa and Kaori Kaneko; Editing by William Mallard and Raju Gopalakrishnan)

China, Japan agree to keep momentum alive for better ties

(GNN) - China and Japan held their first security talks in four years on Thursday and agreed to keep alive and foster a nascent recovery in bilateral ties plagued by the legacy of Japan's wartime aggression and a territorial dispute.

The world's second- and third-largest economies, however, failed to set a timetable for the implementation of a scheme designed to ensure real-time communication between their armed forces.

Sino-Japanese relations have chilled over what China views as Japan's reluctance to properly atone for its wartime past as well as a dispute over a group of tiny East China Sea islets.

Patrol ships and fighter jets from both countries have shadowed each other regularly near the uninhabited islands that are controlled by Japan but also claimed by China, prompting fears that an accidental collision could spark conflict.

Japanese Prime Minister Shinzo Abe's moves to ease the constraints of Japan's pacifist constitution on its military have unnerved China. Japan says China's defence policy lacks transparency.

Abe held formal talks with Chinese President Xi Jinping last November. In the meeting, hailed by Xi as the first step toward improved ties, the two agreed to work for the implementation of a bilateral crisis management mechanism.

"Both sides agreed that the tide is beginning to turn for the better regarding relations between Japan and China following the summit meeting," a Japanese Foreign Ministry official told a media briefing after the one-day meeting.

"They also agreed that it is important to keep on taking positive steps in various areas and at various levels to firmly establish this trend."

In a sign of a thaw in Sino-Japanese ties, foreign ministers of Japan, China and South Korea are set to meet on Saturday in Seoul for the first time in nearly three years.

Xi and Abe, in their talks last year, agreed to aim for implementation of a plan for hot lines between defence officials as well as communication between vessels and aircraft to convey each other's intentions and avoid clashes.

Although both sides at the Thursday meeting agreed to work to implement the scheme at an early date, no agreement was reached on a concrete schedule toward that goal, the official said.

(Reuters)(Reporting by Kiyoshi Takenaka; Editing by Robert Birsel)

Japan confirms one citizen killed, three wounded in Tunisia attack

(GNN) - Japanese Foreign Minister Fumio Kishida said on Thursday one Japanese citizen was killed and three were wounded in an attack on Tunisia's national museum.

"We cannot forgive this despicable act of terrorism for whatever the reasons. We strongly condemn it," Kishida told reporters.

Tunisian Prime Minister Habib Essid said earlier five Japanese were among 17 people killed when gunmen wearing military uniforms stormed Tunisia's national museum on Wednesday.

Kishida did not refer to that but said there was information other Japanese people had been wounded and the Japanese government was checking.

The attack in Tunisia was one of the worst militant attacks in a country that had largely escaped the region's "Arab Spring" turmoil.

Kishida said Japan would continue to fight terrorism in cooperation with the international community.

(Reuters)(Reporting by Kaori Kaneko; Editing by Robert Birsel)

New global disaster plan sets targets to curb risk, losses

SENDAI, Japan (Thomson Reuters Foundation) - Governments set targets to substantially reduce deaths and economic losses from disasters at a U.N. conference in Japan on Wednesday, but critics were disappointed by the lack of a firm goal to ramp up financial support for poor countries.

The non-binding agreement adopted after a marathon negotiating session, includes seven targets to measure progress on protecting people and assets that experts described as a leap forward.

The Sendai Framework for Disaster Risk Reduction, a 15-year plan, replaces the current 10-year blueprint.

In the decade covered by the expiring Hyogo Framework for Action, more than 700,000 people lost their lives, and over 1.5 billion people were affected by disasters. Total economic losses topped $1.3 trillion.

"This new framework... opens a major new chapter in sustainable development as it outlines clear targets and priorities for action which will lead to a substantial reduction of disaster risk and losses in lives, livelihoods and health," said Margareta Wahlström, head of the U.N. Office for Disaster Risk Reduction (UNISDR).

Implementing the plan "will be vital to the achievement of future agreements on sustainable development goals and climate later this year", she added.

Some were disappointed that earlier proposals for percentage goals were rejected.

Instead the draft text includes aims to lower the global mortality rate from disasters between 2020 and 2030, compared to 2005 to 2015, and reduce the proportion of people affected.

Another target is to reduce economic losses in relation to global GDP by 2030.

The new agreement also includes targets to reduce damage to infrastructure and disruption to basic services, including health and education facilities, and to widen access to early warning systems and disaster risk information for the public.

But some disaster experts said a lack of a clear goal in the agreement to increase international aid for risk reduction would undermine developing countries' efforts to make progress on the goals.

Only Japan put money on the table in Sendai, promising to provide $4 billion in support over the next four years.

"Rich nations have pushed making financial commitments to reduce disaster risk to a separate round of financing negotiations later in the year," said Farah Kabir, country director of ActionAid Bangladesh, referring to a conference in Ethiopia in July.

Without larger pledges, "the results for vulnerable communities in poor countries will be catastrophic," he added.

Wahlström told reporters disaster risk reduction had received very little international funding so far, but she was convinced donors would make it a policy priority in coming decades for their development assistance.

Japan's Minister of State for Disaster Management Eriko Yamatani said that for her government, it was "not really a cost but an investment for the future".

HELP FOR MOST VULNERABLE

The devastation caused by Cyclone Pam in the South Pacific island nation of Vanuatu at the start of the conference last week highlighted the need for greater efforts to protect those most at risk from extreme weather and other hazards.

"Disasters, many of which are exacerbated by climate change and (are) increasing in frequency and intensity, significantly impede progress toward sustainable development," the Sendai framework said.

"It is urgent and critical to anticipate, plan for and reduce disaster risk in order to more effectively protect persons, communities and countries... and thus strengthen their resilience," it added.

Maggie Ibrahim of World Vision UK said the Sendai conference had put issues affecting the disabled, women and children in disasters under the spotlight.

But the agreement would not equip them and other vulnerable people with the resources and tools to build skills so they can better prepare for disasters and avert crises, she said.

(Reporting by Megan Rowling; Editing by Katie Nguyen)

Exclusive: U.S. asks Vietnam to stop helping Russian bomber flights

(GNN) - The United States has asked Vietnam to stop letting Russia use a former U.S. base to refuel nuclear-capable bombers engaged in shows of strength over the Asia-Pacific region, exposing strains in Washington's steadily warming relations with Hanoi.

The request, described to Reuters by a State Department official, comes as U.S. officials say Russian bombers have stepped up flights in a region already rife with tensions between China, U.S.-ally Japan and Southeast Asian nations.

General Vincent Brooks, commander of the U.S. Army in the

Pacific, told Reuters the planes had conducted "provocative" flights, including around the U.S. Pacific Ocean territory of Guam, home to a major American air base.

It is the first time that U.S. officials have confirmed the role of Cam Ranh Bay, a natural deep-water harbor, in Russian bomber plane activity that has increased globally.

Brooks said the planes that circled Guam were refueled by Russian tankers flying from the strategic bay, which was transformed by the Americans during the Vietnam War into a massive air and naval base.

Vietnam's willingness to allow Russia to use Cam Ranh Bay reflects Hanoi's complex position in a geopolitical tug-of-war that frequently pits China and Russia on one side and the United States, Japan and much of Southeast Asia on the other.

   Washington is keen to secure greater access itself to Cam Ranh Bay as part of its strategic "pivot" to Asia to counter China's growing strength in the region. U.S. ships have visited for repairs in recent years.

Vietnam, in turn, has sought closer U.S. ties as a hedge against what it sees as China's aggression, but remains close to Russia in both defense and energy cooperation.

Cam Ranh Bay is now host to three submarines bought by Vietnam's navy from Russia to counter Chinese expansion in the South China Sea, with two more expected by early next year.

Brooks said in an interview the flights indicated that Vietnam's Cold War-era ally Russia was acting as "a spoiler to our interests and the interests of others."

RAISING TENSIONS

Asked about the Russian flights in the region, the State Department official, who spoke on condition of anonymity, said Washington respected Hanoi's right to enter agreements with other countries.

But the official added: "We have urged Vietnamese officials to ensure that Russia is not able to use its access to Cam Ranh Bay to conduct activities that could raise tensions in the region."

The Vietnamese government did not immediately respond to a request for comment on the U.S. request.

Brooks declined to say when the flights he referred to took place. He did not say how many had been conducted and how many aircraft were involved. But he confirmed they had occurred since Russia's annexation of Crimea last March, which sparked a broader conflict with Ukraine and a surge in tensions between Russia and the United States.

The head of U.S. air forces in the Pacific said last May that Russia's intervention in Ukraine had been accompanied by a significant increase in Russian air activity in the Asia-Pacific region in a show of strength and to gather intelligence.

Russia's Defense Ministry said on Jan. 4 that Russian Il-78 tanker aircraft had used Cam Ranh Bay in 2014, enabling the refueling of nuclear-capable TU-95 "Bear" strategic bombers, a statement also reported in Vietnam's state-controlled media.

In that time, Russia has conducted increasingly aggressive air and sea patrols close to the borders of the U.S.-led NATO alliance, including by Bear bombers over the English Channel.

    Last year, NATO conducted more than 100 intercepts of Russian aircraft, about three times as many as in 2013.

RUSSIAN BOMBER FLIGHTS

Russian bomber patrol flights, a Cold War-era practice, were cut back after the fall of the Soviet Union but President Vladimir Putin revived them in 2007.

Russia said in November it planned to send long-range bombers on patrols over North American waters but the Pentagon played this down at the time as routine training in international airspace.

In its effort to boost ties with Vietnam, the United States has been pouring in aid and assistance in health, education, landmines clearance, scholarships and nuclear energy.

Defense cooperation had been limited by an embargo on lethal arms. But Washington started to ease this in October, enabling humanitarian exercises between both militaries late last year and more are taking place this month.

Last year saw a flurry of high-level U.S. visits to Vietnam that coincided with a maritime territorial row between Hanoi and Beijing. On Friday, the U.S ambassador in Vietnam announced that the Vietnamese Communist Party chief would later this year become the first party leader to visit Washington.

U.S. Ambassador to Vietnam Ted Osius said on Friday it was understandable Hanoi would look to "historic partners" when it came to security, but the United States had "much to offer... to enhance Vietnam's security in the short, medium and long term."

(Reuters)(Reporting by David Brunnstrom; Additional reporting by Martin Petty and Ho Binh Minh in Hanoi and Jason Szep in Washington; Editing by David Storey and Stuart Grudgings)

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Japan PM vows new five-year plan to rebuild from 2011 disaster

(GNN) - Japanese Prime Minister Shinzo Abe on Tuesday vowed to draw up a new-five year plan to speed rebuilding from a massive 2011 tsunami and the world's worst nuclear disaster since Chernobyl that have left thousands still homeless.

Abe spoke ahead of the fourth anniversary of the devastating March 11 earthquake, which set off a massive tsunami that ravaged the Pacific coastline, killing nearly 20,000 and causing explosions and meltdowns at the Fukushima Daiichi nuclear plant.

Much remains to be done, with many towns struggling to provide jobs and permanent housing for thousands of residents, Abe told a news conference, adding that the government would prepare a new five-year reconstruction plan by this summer.

"We in the Abe government will provide all the support needed for the people in the devastated areas, who are working so hard to rebuild their lives and move ahead," Abe said.

"The current intensive five-year reconstruction plan expires next March, but we will draw up another for the next five years by this summer," he added.

He declined to give any details of the budget, apart from saying it would be decided in talks with local governments. It is estimated that the government has paid out as much as $50 billion to the three regions hardest hit by the disaster.

Abe added that the government would continue to spearhead efforts in dealing with contaminated water from the wrecked Fukushima plant, as well as its decommission.

Since the 9.0 magnitude quake, Japan has allocated more than $15 billion to an unprecedented project to lower radiation in towns near the plant, with irradiated trash piling up in 88,000 temporary storage facilities nearby.

Tokyo plans to build a more permanent storage facility in several towns abandoned due to the accident, despite opposition from some residents, a decision Abe alluded to by thanking those in agreement with the plan.

"We in the government will continue to do everything possible to deal with the issue of irradiated water as well as decommissioning the plant," he said.

"It may only be by slow steps, but reconstruction is definitely moving into a new stage."

Abe, along with Emperor Akihito, will attend Wednesday's ceremonies to mark the quake anniversary. Tokyo's subway trains will stop for a minute at 2:46 p.m. (05:46 GMT), the time the quake struck.

(Reuters)(Reporting by Elaine Lies; Editing by Clarence Fernandez)

Japan weather bureau raises chance of El Nino emerging by summer

(GNN) - Japan's weather bureau said on Tuesday that the possibility of an El Nino pattern forming by summer is higher than the 50 percent it projected in its previous monthly forecast.

Normal weather patterns may continue, but there is higher chance of an El Nino, which is often linked to heavy rainfall in some regions and drought in others, emerging by summer, the bureau said.

The El Nino weather pattern - a warming of sea-surface temperatures in the Pacific - can trigger drought in Southeast Asia and Australia, and floods in South America, hitting production of key foods such as rice, wheat and sugar.

(Reuters)(Reporting by Yuka Obayashi; Editing by Ryan Woo)

Singtel, Sony And Warner’s New Video Streaming Service Beats Netflix To Asia

(AsiaTimes.ga) Telecom giant Singtel is planning to beat Netflix to the punch in Asia after it announced it has partnered with Sony Pictures and Warner Brothers to introduce a video streaming service in the region.

The companies said that HOOQ — which is described as a “joint venture startup” — will offer Hollywood movies and U.S. TV shows alongside domestic content from India, China, Thailand, Philippines, Indonesia, Korea and Japan. In total, HOOQ will begin with an initial catalog of over 10,000 shows and movies.

There’s no specific launch date, but Singtel said the service will go online in the first quarter of 2015, initially in Indonesia, Philippines, India and Thailand. From there, the telecom giant is promising a ‘progressive rollout’ to other countries where it has business — other Singtel markets include Singapore, and Australia.

Also lacking from the initial announcement is an indication of price, but — interestingly — it looks like customers won’t be limited to paying via credit cards, as is the case with Netflix. Singtel said it will use its “billing capabilities” in countries where credit card ownership remains low, so that may mean customers can pay as part of their post-pay contract, and perhaps even using prepaid credit.

The timing of the launch is interesting because Netflix has not arrived in Asia Pacific yet. The U.S. company is preparing to launch in Australia and New Zealand sometime this year, after which it is likely to foray into Asian markets, so HOOQ will almost certainly be first in many parts of the region. You could see that as a first mover advantage, or a move that is good for the industry in general because it raises awareness of OTT video services in nascent markets.

Nonetheless, Peter Bithos, the CEO of HOOQ, believes that there is an immediate demand for Netflix-like video streaming services in Asia.

“We are starting this venture to change the way people across Asia view entertainment. Today, across developing markets, there is limited access to quality entertainment, streamed directly to the screen of one’s choice. It’s either illegal, high cost or difficult to get. We aim to fix that,” he said in a statement.

Piracy and lack of awareness are often cited as major barriers for licensed streaming services in Asia but, with two content companies and one telco on board, HOOQ is no bootstrapped startup. It could use Singtel’s network of operators — which reach a total subscriber base of over 500 million customers — and vast resources to gain traction from the get-go.

No doubt we’ll be hearing more updates from HOOQ very soon.

Featured Image: Marc Bruxelle/Shutterstock

Japanese reporter's bid to save friend led to IS abduction

(AsiaTimes.ga) - It is an unlikely friendship that ties the fates of war correspondent Kenji Goto and troubled loner Haruna Yukawa, the two Japanese hostages for whom Islamic State militants demanded a $200 million ransom this week.

Yukawa was captured in August outside the Syrian city of Aleppo. Goto, who had returned to Syria in late October to try to help his friend, has been missing since then.

For Yukawa, who dreamed of becoming a military contractor, traveling to Syria had been part of an effort to turn his life around after going bankrupt, losing his wife to cancer and attempting suicide, according to associates and his own accounts.

A unit at Japan's Ministry of Foreign Affairs had been seeking information on him since August, people involved in that effort said. Goto’s disappearance had not been reported until Tuesday's video apparently showing him and Yukawa kneeling in orange t-shirts next to a masked Islamic State militant wielding a knife.

Yukawa first met Goto in Syria in April and asked him to take him to Iraq. He wanted to know how to operate in a conflict zone and they went together in June.

Yukawa returned to Syria in July on his own.

"He was hapless and didn't know what he was doing. He needed someone with experience to help him," Goto, 47, told Reuters in Tokyo in August.

Yukawa's abduction that month haunted Goto, who felt he had to do something to help the man, a few years his junior.

"I need to go there at least once and see my fixers and ask them what the current situation is. I need to talk to them face to face. I think that's necessary," Goto said, referring to locals who work freelance for foreign correspondents, setting up meetings and helping with the language.

Goto began working as a full-time war correspondent in 1996 and had established a reputation as a careful and reliable operator for Japanese broadcasters, including NHK.

"He understood what he had to do and he was cautious," said Naomi Toyoda, who reported with him from Jordan in the 1990s.

Goto, who converted to Christianity in 1997, also spoke of his faith in the context of his job.

"I have seen horrible places and have risked my life, but I know that somehow God will always save me," he said in a May article for the Japanese publication Christian Today. But he told the same publication that he never risked anything dangerous, citing a passage in the Bible, "Do not put the Lord your God to the test."

In October, Goto's wife had a baby, the couple's second child. He has an older daughter from a previous marriage, people who know the family said.

Around the same time, he made plans to leave for Syria and uploaded several short video clips to his Twitter feed, one showing him with media credentials issued by anti-government rebels in Aleppo.

On Oct. 22, he emailed an acquaintance, a high school teacher, to say he planned to be back in Japan at the end of the month.

Goto told a business partner with whom he was working to create an online news application that he expected to be able to travel in territory held by the Islamic State because of his nationality.

"He said that as a Japanese journalist he expected to be treated differently than American or British journalists," Toshi Maeda said, recalling a conversation with Goto before his departure for Syria. "Japan has not participated in bombing and has only provided humanitarian aid. For that reason, he thought he could secure the cooperation of ISIS."

Friends say Goto traveled from Tokyo to Istanbul and traveled from there to Syria, sending a message on Oct. 25 that he had crossed the border and was safe.

"Whatever happens, this is my responsibility," Goto said on a video recorded shortly before he set out for Raqqa, the capital of the Islamic State.

That was the last time he was seen before the IS video this week.

(Additional reporting by Nobuhiro Kubo, Teppei Kasai and Mari Saito; Editing by Will Waterman and Raju Gopalakrishnan)(GA, Reuters)

Japan's Abe pledges support for Mideast countries battling IS

(AsiaTimes.ga) - Japanese Prime Minister Shinzo Abe warned on Saturday that the world would suffer an "immeasurable loss" if terrorism spreads in the Middle East and pledged about $200 million in non-military assistance for countries battling Islamic State.

The threat of Islamist militancy has come into sharp focus outside the Middle East after gunmen killed 17 people in three days of violence in Paris that began on Jan. 7 with an attack on the offices of a newspaper that had published satirical images of the Prophet Mohammad.

Islamic State controls large parts of OPEC oil producer Iraq and neighboring Syria, has declared a caliphate and wants to redraw the map of a region vital for Japan's energy needs.

"It goes without saying that the stability of the Middle East is the foundation for peace and prosperity for the world, and of course for Japan," Abe said in Cairo in the first leg of a regional tour.

"Should we leave terrorism or weapons of mass destruction to spread in this region, the loss imparted upon the international community would be immeasurable."

Highlighting his concern, Abe told a meeting of the Japan-Egypt Business Committee that Tokyo would provide non-military financial backing for countries fighting the al-Qaeda breakaway group, also known as ISIL.

"I will pledge assistance of a total of about 200 million U.S. dollars for those countries contending with ISIL, to help build their human capacities, infrastructure, and so on," said Abe.

Stability has remained elusive in the Middle East since the Arab Spring uprisings toppled veteran autocrats and raised hopes of democracy and economic prosperity.

"There is no shortcut to nipping violence in the bud. There is no way other than bringing stability to people's livelihoods and fostering a middle class, even if it takes time," Abe said.

'GREAT POSSIBILITIES'
In addition to the $2.2 billion in assistance Japan pledged for the Middle East two years ago, Abe said his government would provide another $2.5 billion in non-military assistance in fields such as humanitarian assistance and infrastructure.

"The Middle East ... that's the region endowed with great possibilities," said Abe, whose tour will also include Jordan, the Palestinian territories, Lebanon and Turkey.

"And yet now it appears to be no exaggeration to say that the region is exposed to a challenge that is among the most serious in its modern history."

The Japanese leader stressed the need for economic growth in the Middle East, where militants often try to exploit frustrations with issues such as unemployment and neglected schools to gain recruits.

Security crackdowns alone have failed to defeat militancy in Egypt, the most populous Arab country, and other states as well.

Japan will provide Egypt with $360 million in loans for projects including an airport and a power grid in a country suffering from an energy crisis, Abe said.

"These are intended to contribute to Egypt's development, and by extension, to widening the foundation for stability across the entire region," he added.

Aside from tackling Islamic State, the region and Western leaders also face the daunting task of securing serious progress on the Israeli and Palestinian front.

"Japan believes that the day will come in the near future when we can recognize Palestine as a state," said Abe.

"In order for that day to arrive sooner, we will appeal to both Israel and Palestine to resume negotiations to advance the so-called two-state solution."

(Writing by Michael Georgy; Editing by Pravin Char)(GA, Reuters, Asia Times)

Tennis: Nishikori, Verdasco score wind-blown Kooyong wins

(ATimes/Sports) MELBOURNE: Japan’s Kei Nishikori and Spanish veteran Fernando Verdasco scored a pair of opening victories amid a “little typhoon” to begin final Australian Open preparations at the Kooyong Classic on Wednesday.US Open finalist Nishikori fought past a tough Australian challenge from Jordan Thompson to post a 6-4, 3-6, 7-6 (7-4) result while Verdasco beat Frenchman Gilles Simon 6-2, 7-6 (7/4).

Nishikori, ranked fifth in the world, was forced to work hard in swirling conditions at Kooyong Club for just over two hours.

“It was tough for both of us  — like a little typhoon out there,” said the Tokyo-born player now based in Florida. “But it was a good match for me: three sets and some good tennis.”

The eight-man warm-up event for the Australian Open starting on Monday is considered prime preparation for the first major of the season.

“Conditions made it tough to play,” added the 25-year-old Nishikori.

“It was difficult for me to be aggressive. But I played a good tie-break and I’m happy to win today.”

Verdasco also took charge of his game as he was tested by the weather.

The 33rd-ranked Spaniard collected the first set against Simon in 27 minutes and thwarted the Frenchman as Simon served to level at a set each.

Instead, he was broken to love, with Verdasco eventually winning a tie-breaker on a concluding Simon backhand error.

“This wind is tough for everyone,” said the Spaniard. “You need to be focused and hit every ball with confidence — if not it flies everywhere.

“Despite the conditions, this is perfect preparation for the Open. I like the hot conditions but you never know here.”

Nishikori came to Kooyong after a semi-final last weekend in Brisbane, where he lost to Canadian Milos Raonic in three tie-break sets.

After winning the opening set thanks to a break in the first game, Nishikori’s level slipped as Australian world number 273 Thompson made his move in the second set, winning it via a break of serve in the fourth game.

The third set was halted for a short time due to a passing shower.

When the players returned Nishikori failed to serve out for victory at 5-3, the set eventually going to a tie-break after Thompson saved a match point in the 12th game.

Nishikori took his first match point in the tie-break as the Australian double-faulted.

Later matches see Ukrainian Alexandr Dolgopolov against Serbian youngster Filip Krajinovic and another Spanish veteran Feliciano Lopez versus Richard Gasquet of France.

Source: AFP

Japan proposes joint work on Australia sub fleet: report

GNN TOKYO: Japan is proposing jointly building Australia’s new submarines, instead of exporting a new fleet, a report said Monday, after concerns in Canberra over the effect on the domestic ship-building industry.

Under the proposal, Japan’s defense ministry is to cooperate with Australia in developing special steel and other materials for its new submarines, while Tokyo will be in charge of assembling them, the Mainichi Shimbun said.

The Australian side has taken “a positive stance” on the proposal, the daily said, adding that the two countries may strike a deal by the end of 2015.

Australia needs to replace its fleet of diesel and electric-powered subs, which date from the 1990s, and Japan’s high-tech ship-building industry is through to be well-placed to win the contract.

But opposition politicians and industry groups in Australia protest that losing the contract could deal a potentially fatal blow to naval shipbuilding at home, with a knock-on effect for associated industries.

However, critics point out that Japan may be able to supply the fleet for as little as half of the cost of making it at home.

Japan is on a drive to promote its manufacturing industries abroad, with Prime Minister Shinzo Abe touring the world as salesman-in-chief.

Abe has argued that Japan must play a bigger role on the global stage and has pushed to loosen post-World War II restrictions on when its well-equipped armed forces can act.

He has also relaxed a self-imposed ban on weapons exports, paving the way for the possible deal with Australia.

Immediate confirmation of the report was not available.

Source: AFP

Japanese woman abducted by North Korea died of drug overdose: report

GNN - Megumi Yokota, a Japanese national abducted by North Korean agents decades ago as a schoolgirl, died from an overdose of medication in 1994 and was buried in a pit with other corpses, a South Korean newspaper said on Friday.

Yokota, who has been an iconic symbol of Japanese nationals abducted by the North and Tokyo's efforts to ascertain their fate, died of an overdose of sedatives and sleeping pills in a psychiatric ward, South Korea's Dong-a Ilbo newspaper said.

Japanese Prime Minister Shinzo Abe's administration eased some sanctions on North Korea in July in return for Pyongyang's reopening of a probe into the fate of Japanese citizens abducted in the 1970s and 1980s.

Dong-a Ilbo said the finding was included in a report by Japanese officials who had interviewed North Korean witnesses who were on the staff of the hospital where Yokota died, and Abe's administration had been briefed about the fresh details.

Abe, whose government is under fire for fund-related scandals in his cabinet, has made resolving the abductee issue a priority. Last week, he said the North had told Japan it intended to deepen its probe into their fate.

Pyongyang admitted in 2002 to kidnapping 13 Japanese citizens to help train spies, and five abductees and their families later returned to Japan.

Japan wants to know about the fate of the remaining eight, who Pyongyang has said have died, and others that Tokyo believes were also kidnapped.

Yokota was snatched off a beach in northern Japan on her way home from school in 1977 at the age of 13. Pyongyang has said she had committed suicide after suffering from mental diseases.

Japan has never accepted North Korea's explanation of Yokota's death, after bones North Korea said were hers were shown by DNA testing to be those of a man.

The Dong-a Ilbo newspaper said two North Koreans who were on the staff of the hospital gave testimony that Yokota was given sedatives and sleeping pills that exceeded safe doses.

"At the time of the patient's death, there were blue marks all over her body," one of them was quoted as saying. That was an indication that poison or excessive medication was taken or injected, the person was quoted as saying.

Her body was dumped in a pit to be buried without a coffin, the report said.

While in the North, she married a South Korean abductee named Kim Young-nam in 1986, and they had a daughter. Yokota died in 1994, said Kim, who was one of more than 500 South Korean civilians thought to have been abducted by the North and who was briefly reunited with his South Korean family in 2006.

At the rare family reunion event held by the two Koreas, he said Yokota had suffered from depression and schizophrenia and repeatedly attempted suicide.

(GNN,AIP,Reuters,ga)(Reporting by Ju-min Park; Editing by Jack Kim and Clarence Fernandez)

Asian shares wilt, dollar off highs

GNN - Asian shares got off to a lackluster start on Wednesday after a plunge in oil prices dragged down U.S. shares, while the dollar took a breather after this week's rally.

Crude prices steadied after falling to multi-year lows on news top oil exporter Saudi Arabia cut its U.S. sales prices.

Investors warily tracked U.S. election results, in which Republicans were poised to make major gains and possibly capture control of the Senate in a midterm vote that could serve as a public referendum on President Barack Obama's job performance.

The dollar dipped as investors locked in profits after this week's rally, while a Reuters report saying central bankers in the euro zone plan to challenge European Central Bank President Mario Draghi's leadership style underpinned the euro.

Some members intend to raise their concerns with Draghi at the governors' traditional informal working dinner on Wednesday before the ECB's formal monthly rate-setting meeting on Thursday, the sources interviewed by Reuters said.

"We do not expect further easing at Thursday’s ECB meeting but it may give more insight into its new asset purchase programs," strategists at Barclays said.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down about 0.1 percent in early trade, while Japan's Nikkei stock average .N225 gave up about 0.2 percent.

On Wall Street on Tuesday, the S&P 500 .SPX and Nasdaq Composite .IXIC ended lower after the big drop in oil prices, while the Dow Jones industrial average .DJI eked out a small gain, with energy shares under pressure from low oil prices.

U.S. data on Tuesday revealed a surprise widening of the trade deficit last month, which raised speculation that the initially reported 3.5 percent pace of third-quarter U.S. growth could be revised down. That in turn reduced the likelihood that the U.S. Federal Reserve would hike interest rates in 2015.

The Commerce Department said the trade deficit grew 7.6 percent to $43.03 billion, compared with a forecast of $40.00 billion among analysts polled by Reuters.

The data increased the safe-haven appeal of U.S. Treasury notes, pushing down the benchmark 10-year yield and weighing on the dollar. The yield stood at 2.335 percent in Asia, down from its U.S. close of 2.342 percent on Tuesday, when it fell as low as 2.303 percent.

The dollar index was flat on the day at 87.015 .DXY, after moving away from its four-year high of 87.406 touched on Monday.

The dollar was buying 113.60 yen, down slightly and well below a seven-year peak of 114.21 hit on Monday.

The euro edged up to $1.2550, moving off a two-year low of $1.2439 set on Monday and shrugging off downbeat data after the ECB news.

The European Commission on Tuesday downgraded its forecast for euro zone economic growth over the next few years, leading investors to raise bets the ECB might consider more action to stimulate the region's economy.

In commodities trading, U.S. crude futures CLc1 edged up about 0.1 percent to $77.28 after reaching the lowest intraday price since October 2011 on Tuesday, after the Saudi move.

(GNN,AIP,Reuters,ga)(Editing by Eric Meijer)

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Japan could offer unapproved Ebola drug under certain criteria: #government

#GNN - #Japan could offer an unapproved drug under certain circumstances to help treat the deadly Ebola virus even before the World Health Organization has decided to make a request for the drug, the country's top government spokesman said on Monday.

Chief Cabinet Secretary Yoshihide Suga told a news conference that Japan would cooperate with the WHO and was ready to make an international contribution.

"I am informed that medical professionals could make a request for T-705 in an emergency even before a decision by the WHO. In that case, we would like to respond under certain criteria," he said.

T-705 is the developmental code for the influenza drug favipiravir. Japan's Fujifilm Holdings Corp and U.S. partner MediVector are in talks with the U.S. Food and Drug Administration to submit an application to expand the use of favipiravir as a treatment for Ebola.

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The Ebola epidemic in West Africa has killed more than 1,000 people and prompted the WHO to declare an international health emergency.

(GNN)(Reuters)(AIP)(Reporting by Kaori Kaneko; Editing by Chris Gallagher)

Japanese drugmaker Takeda to raise the bar on #research #projects

#GNN - #Japan's #biggest #drugmaker #Takeda Pharmaceutical Co will become more selective in its choice of research and development projects, its newly appointed president said on Tuesday, as the company struggles with shrinking margins due to a dearth of new blockbuster products.

Christophe Weber, poached from GlaxoSmithKline, said Takeda was still reviewing which, if any, of its six major fields of therapy it would exit, but would only invest in areas where it would be the best.

"We have to be very stringent," Weber, who joined Takeda as chief operating officer in April and took the president's post in late June, told Reuters in an interview. "If we do research in oncology or in gastro-intestine diseases, are we good enough to be among the best?"

Confidence in Takeda's pipeline of new products was hit by the failure in December of a late-stage experimental diabetes drug that the company intended as a replacement for its global best-selling diabetes drug Actos.

Patent protection on Actos ended in 2012 and generic versions have since been eating into Takeda's sales and profit margins. Actos was also at the center of a U.S. lawsuit alleging Takeda had concealed cancer risks associated with it.

With the paucity of new drugs, Takeda's operating margin narrowed to 17.6 percent in 2011/12, then to 7.9 percent the following year. The margin remained low at 8.2 percent in 2013/14, when the company switched to IFRS standards, or 9.2 percent if calculated under the previous Japanese standards.

MORE EFFICIENT
The company last Friday forecast flat to slightly lower core earnings, its key measure of performance, for the year through March 2015.

Weber, one of only a handful of foreigners to run a blue-chip company in Japan, said he would announce any changes he intends to make at Takeda by year-end, adding he wanted to make the 233-year-old company more "efficient and agile".

Weber was appointed by Takeda CEO Yasuchika Hasegawa, who intends the Frenchman to succeed him next year, to make the company more global.

But just months into his tenure, and before Takeda's annual shareholders' meeting in late June, a group of more than 100 shareholders and former employees sent a letter to management questioning Weber's appointment, partly due to a belief that foreign executives may favor short-term goals over longer-term gains.

The group also expressed concern about Takeda's acquisitions overseas, which include U.S. biotech firm Millennium Pharmaceuticals in 2008 and Switzerland's Nycomed in 2011.

Characterizing the group's objections as a minority view, Weber said he felt no resistance to his appointment at Takeda.

"You need to be mindful of what you change and what you don't, and the speed at which you change and how you involve people," he said. "I'm not looking for a revolution. It's more like evolution."

(GNN)(Reuters)(AIP)(Editing by Miral Fahmy and David Holmes)

Airbus set to lose Japanese buyer for A380: sources

#GNN - #European #planemaker #Airbus (AIR.PA) is set to lose its only Japanese customer for the A380 superjumbo as Skymark Airlines (9204.T) prepares to cancel an order for six jets worth more than $2 billion, industry sources said on Monday.

The setback comes after Japan's third largest carrier swung into a loss for its latest financial year and raises new questions over the strength of the backlog for the world's largest airliner, which increasingly depends on one customer, Emirates.

An Airbus spokesman declined to comment on the threat to the Skymark order, which was first reported by Bloomberg News.

The news comes as aerospace sources say several other orders for the huge jetliner are already hanging in the balance, including 10 aircraft earmarked for Hong Kong Airlines.

Reuters reported earlier this month the Hong Kong carrier no longer wanted the jets after an associated leasing company struck an expanded deal to buy 70 smaller A320-family aircraft.

Since March the order has no longer been attributed to Hong Kong Airlines, but to an "undisclosed" customer, raising questions over its status, according to a review of Airbus data.

Airbus officials said at the Farnborough Airshow this month that the Hong Kong order remained on its order book.

Skymark was due to take delivery of its first A380 around the end of this year, but the airline said in June the delivery was pushed back by up to six months because of problems in fitting out the interior of the world's largest jetliner.

Industry sources say Skymark, which has reported its first loss in five years, faces a challenge in taking delivery of the A380s, which were worth around $350 million each at list prices when the carrier placed its firm order in 2011.

Airlines pay most of the cost of buying a jet on delivery.

No one at Skymark Airlines was available for comment.

The A380 has so far attracted little interest from low-cost carriers, which operate with fewer of the partnership agreements and loyalty programmes that help traditional network airlines sell tickets and make the 525-seat jet profitable.

The Centre for Aviation (CAPA), an airlines consultancy, has warned that Skymark could encounter "significant losses" if it put the A380 into service without such agreements, and that the airline would need changes in strategy to make it viable.

Adding a new aircraft type adds cost and complexity in training, maintenance and spare parts. Even large airlines can take years and dedicate large teams to preparing for the huge jet.

Skymark, which mainly flies Boeing 737s, has already tested its flexibility by adding two leased wide-bodied A330s.

A380 BACKLOG
The four-engine, double-decker A380 was launched in 2000 as Europe's solution to congested worldwide airports and the success of Boeing Co's (BA.N) 747.

But growth in demand for large twin-engine jets has weighed down sales, which also suffered because of technical problems and the financial crisis, during which many airlines avoided large-scale bets.

The notable exception is Dubai's Emirates, which has invested in 140 of the aircraft, more than five times the number ordered by the next largest customer, Singapore Airlines Ltd (SIAL.SI).

The Dubai airline has said the A380 has unbeatable economics when configured correctly, and has asked Airbus to come up with a more efficient version with new engines from end-decade.

But the remaining backlog of 135 aircraft, of a net total of 324 ordered so far, includes several smaller orders that analysts say look increasingly unlikely to be delivered - at least to the airlines that originally purchased them.

Besides the aircraft originally earmarked for Hong Kong Airlines, these include a remaining eight for cash-strapped Qantas Airways Ltd (QAN.AX), six that Virgin Atlantic has said it may further delay, two for Reunion-based Air Austral, and one originally sold as a flying palace to a Saudi prince.

Despite the setbacks, leasing company Amedeo has ordered 20 superjumbos in the belief there is an untapped market for A380s in a denser and more efficient cabin layout.

While Airbus tries to steady the backlog for its largest jetliner, it faces continued technical headaches from the complex aircraft such as a recent problem with leaking or noisy doors.

Airbus said at this month's UK air show that it was testing a solution after a recent diversion and several incidents involving noise onboard and expected it to be ready this year.

But influential customer Qatar Airways has raised concerns about the doors at the same time as refusing to take the first three aircraft because of what it describes as problems with the cabin, two people familiar with the matter said.

Airbus has said it is confident of reaching its target of 30 A380 deliveries this year, including the aircraft for Qatar.

(Reorders words in paragraph 16 to make plain A380 designed for congested airports worldwide)

(GNN,Reuters,AIP)(Reporting by Tim Hepher; Editing by Greg Mahlich and Andre Grenon)

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Mazda recalls U.S. cars with faulty Takata air bags

#GNN - #Japan's #Mazda #Motor #Corp (7261.T)(MZDAY.PK) will broaden a recall of cars sold in the United States because an air-bag inflator, supplied by Japan's Takata Corp (7312.T), could rupture and seriously injure occupants.

The issue of ruptured inflators - which can hurl metal shrapnel at vehicle occupants - has bedeviled Takata and triggered the recall of millions of vehicles last year. The company supplied the parts to at least nine global automakers.

The recalls were expanded this year as issues cropped up in newer models equipped with Takata air bags and inflators.

In a filing Friday by the U.S. National Highway Traffic Safety Administration, Mazda said it would recall about 18,000 older models, including

18,000 Mazda6 sedans and 50 RX-8 sports cars from 2003-2004.

NHTSA said the inflator could rupture, "with metal fragments striking and potentially seriously injuring" occupants.

Mazda dealers will replace for free the passenger-side air bag inflator, beginning in August.

The U.S. recall is part of a global recall of nearly 160,000 vehicles for similar issues announced by Mazda on June 23.

Indeed, over the past five years, about 12 million vehicles equipped with Takata air bags have been recalled around the world for similar issues.

Last week, German automaker BMW said it would recall another 1.6 million cars with Takata air bags because of the risk of injury from inflators that could rupture.

In two separate actions Friday, NHTSA said it had opened investigations into cars made by Hyundai Motor Co (005380.KS) and Chrysler Group (FIA.MI).

NHTSA said it was investigating nearly 400,000 2006-2006 Hyundai Sonata sedans after receiving complaints that the seat belt buckle assembly had failed. The safety agency said the problem could cause air bags to fail in a crash.

It was also investigating about 123,000 2011-2012 Dodge Chargers over complaints about engines stalling and alternator failure.

(Reporting by Paul Lienert in Detroit; Editing by Bernadette Baum)

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