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    Stocks Tumble in Japan After Party’s Election of New Prime Minister

    Stocks dropped after Japan’s governing party chose Shigeru Ishiba, a critic of the country’s longstanding ultralow interest rates, as its leader.Stocks in Japan fell sharply after the country’s governing party chose a leader some view as hawkish on interest rates, underlining how central bank decisions continue to set the course of the world’s fourth-largest economy after decades of easy money policy.On Friday, Japan’s Liberal Democratic Party elected Shigeru Ishiba, a proponent of raising interest rates to help curb inflation, as Japan’s next prime minister.Mr. Ishiba narrowly defeated Sanae Takaichi, a disciple of Shinzo Abe, who remains committed to the former prime minister’s longstanding policies aimed at strengthening Japan’s economy by maintaining ultralow interest rates.Japan’s benchmark Nikkei 225 index fell more than 4 percent in early trading on Monday.Some economists said the decline, which they described as the “Ishiba Shock,” was caused by the unwinding of stock trading that reflected expectations that Ms. Takaichi would be elected.The market jitters show how the recent L.D.P. election came at a pivotal moment for the Japanese economy.Following a recent surge of inflation, the Bank of Japan has raised interest rates twice this year. The bank’s governor, Kazuo Ueda, has indicated he plans to continue increasing rates, though it is unclear how quickly that might happen.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Pennsylvania steel workers, wooed by Harris and Trump, remain skeptical: ‘I don’t trust either one of them’

    The Monongahela River winds through the tight Mon Valley south of Pittsburgh, Pennsylvania, creating a main artery in the nation’s industrial heart, where the steel and coal industries have driven the region’s economy and shaped political landscapes since the late 19th century.In the weeks preceding the election, the region is once again playing an outsize role in determining the nation’s political future. A controversial Biden-Harris administration plan to kill Pittsburgh-based US Steel’s proposed sale to Japan’s Nippon Steel is viewed in part as an election-year strategy to shore up critical union support in a must-win swing state.On the ground in and around the city, evidence suggests the move may just work – unions oppose the sale and the administration’s position is at the very least maintaining recent Democratic gains in the tug-of-war for swing voters in the nation’s steel capital.Anecdotal evidence and polling point to Harris gaining momentum here.“I’ve learned not to be comfortable with any election because we didn’t think Trump could win in 16 … but I think people are going to vote more common sense this year,” said Keli Vereb, a steelworker union rep and Lincoln borough council member.Unusually in these fractious times, both presidential candidates oppose the deal, backing United Steelworkers International union members across the political spectrum who are determined to thwart a deal they see as a job killer that puts their pensions at risk.Recent memories of supply chain issues have also hardened US resolve to protect vital industries such as steel.Still, politics are omnipresent, and the deal undoubtedly will play a role in determining the next president. It comes eight years after blue-collar workers here defected from the Democratic party en masse when then candidate Hillary Clinton said during a debate that she would put coalminers out of business.Some union leaders say the comment may have cost her Pennsylvania, which Donald Trump won by 0.7%. After four years of pro-labor policies from Joe Biden, the party has begun to win back some who left, and with Trump proposing to block the US Steel sale if he were elected, Democrats risk a 2016 repeat if it is allowed to proceed.“Trump would pounce on them if they let [the sale] go,” said Allen George, a lifelong Democrat who worked in unions adjacent to the steel industry.The companies are making a powerful argument that the deal is vital to US Steel’s survival. US Steel claims it will be forced to cut Pennsylvania jobs and move its headquarters out of Pittsburgh if Biden blocks Nippon’s $14.1bn bid, while it has promised to invest $2.4bn in its facilities if the sale goes through. The company’s “scorched earth” public relations campaign on the factory floors has at least some rank and file supporting the sale, said Bernie Hall, Pennsylvania director for USI.“Some are scared and think: ‘We should just take this and live to fight another day,’ and that’s natural,” Hall said.Many more, however, oppose the sale. The union’s contract is up in 23 months and they fear a Nippon-US Steel would cut jobs, or continue to send them to non-union states. They point to Nippon’s long history of “dumping” steel in the US, which has cratered prices and cost American jobs, and many fear the purchase is a ploy to continue the practice.US Steel’s record of closing factories and failing to keep promises has generated a deep mistrust and disdain for the company, workers told the Guardian on a recent Monday afternoon outside the Harvey Wilner’s pub in West Mifflin, just south of Pittsburgh. They rattled off a list of facilities that have closed over the decades.“Nippon can have at it,” said Barry Fez, who has worked in manufacturing in the region for decades, but, he says, in a few years he expects they will go back on their word.But that sentiment is colliding with Wall Street and Beltway support for the deal. The latter argue that the administration’s protectionist plan would run counter to international trade norms because Japan is an ally and close economic partner.The idea that trade decorum with Japan is more important than Pennsylvania union members’ security drew scoffs from some workers.“And then they’ll wonder why they lost an election,” said Mike Gallagher, a retired union member.‘They lie all the time’Banking legend JP Morgan created US Steel in a mega-merger in 1901. It grew to be the largest US producer, employing more than 340,000 people at its second world war peak. Today, it is a shadow of its former self, has closed many of its Mon Valley facilities, and now employs about 4,000 people, although the company says it indirectly supports 11,000 jobs and generates $3.6bn in economic activity annually.In the face of waning American steel power, the company has looked for a buyer, and many feel a US-Japan alliance makes sense in countering increasing Chinese domination of the industry.But the union is opposed, and in Pennsylvania, 25% of the electorate is unionized, making it a formidable bloc intensely courted by both political parties.Trump in January said he would stop the deal. Biden has said the same, including in a private meeting with steel workers in April, when the president insisted “US steel will stay US-owned”, according to Don Furko, president of Local 1557 in Clairton. “He said he ‘guarantees’ it.”The administration’s decision on whether the deal should be blocked largely lies with the Committee on Foreign Investment in the United States, or CFIUS, which is made up of Biden’s cabinet members and other appointees. It can veto mergers and acquisitions it finds present a national security risk.CFIUS was expected to issue an opinion on 21 September, but the administration punted until after the election. Union members say they aren’t worried.“President Biden and Vice-President Harris have been pretty clear and they will follow through,” Hall said.Harris has got the message: “US Steel should remain American-owned and American-operated,” she told a rally in Pittsburgh earlier this month.David Burritt, the CEO of US Steel, has warned of consequences if the deal is blocked. He says the company would “largely pivot away” from its blast furnace production in the region, and move its headquarters out of Pittsburgh.“We want elected leaders and other key decision makers to recognize the benefits of the deal as well as the unavoidable consequences if the deal fails,” Burritt said last month.That threat has further inflamed tensions. Furko said it reminds him of his young son flipping over the Monopoly board when he loses: “That’s really what’s going on here – if this deal doesn’t go through, then they’re going to flip over the Monopoly board.”Asked about US Steel’s claims that it will revitalize the region if the sale goes through, workers told the Guardian that there are no guarantees that the investment will be in Mon Valley. People would be “foolish” to believe that, Vereb said.That was echoed outside the Wilner’s pub. Fez recalled the pub’s heyday, when “you couldn’t get in there at 7am because it was so packed”, and the floor was littered with quarter wrappers from the slot machines.On a Monday afternoon around shift change time, a group of about a dozen retirees sat around the bar. They blamed US Steel for the region’s slowdown, and while they say they do not expect Biden or Trump to save the city, they have even less confidence that US Steel and a Japanese company will turn it around.“They lie all the time, and I don’t trust either one of them,” said Jack, a retiree who worked for US Steel for more than 30 years, who declined to use his last name.‘He gets credit for that’The political price that the Biden-Harris administration could pay for allowing the deal to go through can be seen in the 2016 election’s wake.Before 2016, the region was largely Democratic. But when Clinton made the comment about the clean energy industry putting coalminers and barons out of business, “Things turned on a dime,” Vereb said. Her borough of 900 was once about 80% Democrats. It’s now about 75% Republican, she estimates.About 75% of those working at US Steel’s Clairton Mill Works, several union leaders estimate, support Trump, and there is little Democrats can do to win back many of them.The situation is also complicated by US Steel’s intense campaign to convince workers that the sale will save their jobs. The company sends regular emails, holds meetings, takes out ads in newspapers and makes their case to reporters.“They say: ‘If you don’t support us, then we’re gonna shut this place down, and if that happens you can thank your union leadership,’” said Rob Hutchison, president of Local 1219. “When [rank and file] have that threat in their face eight to 12 hours per day, then it starts to become something they think about.”That also presents another political risk: if the Biden-Harris administration were to block the deal, and US Steel shuts down a plant, Democrats may again lose some voters.However, so far, the controversial move seems to be paying dividends.“I don’t know if the average Joe is thinking about CFIUS or is that in the weeds, but I think from a macro level, people see it, that it’s Biden supporting the union workers, and he gets credit for that,” Hall said. More

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    Earthquake Off Japan Coast Triggers Tsunami Advisory

    The earthquake occurred off the coast of Torishima Island, which is uninhabited, at 8:14 a.m. on Tuesday, according to the Japan Meteorological Agency. The advisory was lifted at 11 a.m.An earthquake off the coast of Japan on Tuesday morning triggered tsunami advisories for residents across several remote islands, according to the authorities.The 5.9 magnitude earthquake occurred off the coast of Torishima Island at 8:14 a.m. on Tuesday, according to the Japan Meteorological Agency. The U.S. Geological Survey said its magnitude was 5.6. The Japanese agency issued tsunami advisories for the Izu and Ogasawara islands. Waves of up to one meter, or about three feet, were expected, forecasters said. The advisory was lifted at 11 a.m.A tsunami about 1.6 feet high reached the Hachijo Island at 8:58 a.m., according to the Japan Meteorological Agency. A tsunami about four inches high was recorded at Miyake Island at 9:11 a.m., the agency said.A tsunami forecast indicating slight sea level change of less than 0.2 meters, or about eight inches, was issued for the eastern and southern islands of Japan.According to the national broadcaster NHK, residents are advised to remain vigilant and stay away from coastal areas. The Japan Coast Guard has issued warnings to ships in the area, NKH reported.Torishima is an uninhabited volcanic island about 375 miles south of Tokyo. It is part of the southern Izu Islands.The tsunami advisory followed a record amount of rain that killed six people and triggered flooding and landslides in a coastal region in Japan that is still recovering from a deadly earthquake earlier this year, according to local authorities.Yan Zhuang More

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    Russian Military Plane Breaches Japan’s Airspace

    The infringements were the first by Russia in five years, according to the Japanese defense ministry. A fighter fired a warning flare in response.A Russian military patrol plane breached Japanese airspace off the country’s northwestern coast three times on Monday, prompting Japan’s military to dispatch a fighter jet to issue radio warnings and, for the first time, to use a signal flare to deter the Russian aircraft.According to Yoshimasa Hayashi, the chief cabinet secretary to Prime Minister Fumio Kishida, the Russian plane flew above Rebun Island, which is northwest of Hokkaido, Japan’s northernmost prefecture, between 1 p.m. and 3 p.m. on Monday afternoon.“This violation of our airspace is extremely regrettable,” said Mr. Hayashi, in remarks to reporters on Monday afternoon. “We have lodged an extremely strong protest with the Russian government through diplomatic channels and have strongly urged them to prevent a recurrence.”This was not the first time that a Russian military plane had violated Japanese airspace but it was the first time that Japan’s military had responded with a flare to warn the plane to leave. Last month, a Chinese military aircraft flew into Japan’s territorial airspace and the government said it was the first known incursion by the Chinese military.Minoru Kihara, Japan’s defense minister, said Japan’s military had dispatched F-15 and F-35 fighter jets but that there had been “no particularly dangerous acts by the Russian aircraft.”According to Japan’s defense ministry, the flights on Monday represented the 44th known incursion by a Russian plane — or an aircraft suspected to be Russian — since 1967, but it was the first time that a Russian military plane had breached Japanese territorial airspace since June 2019.Mr. Kihara noted that both Chinese and Russian naval vessels had passed this week through the Soya Strait between Hokkaido and Sakhalin, a Russian island about 25 miles north of Hokkaido. Mr. Kihara said it was possible that the movement of the ships and the Russian aircraft were related.Mr. Hayashi said the Japanese government did not know the “intentions and goals” of the Russian military aircraft. He said Japan would “take all possible measures to ensure vigilance and surveillance.”The prime minister is in New York to attend the United Nations General Assembly, and Mr. Hayashi said he had advised Mr. Kishida to “respond calmly and resolutely” and to cooperate closely with the United States.Russia’s embassy in Tokyo referred requests for comment to the defense ministry, which did not immediately respond.Anton Troianovski More

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    Map: Tracking Tropical Storm Pulasan

    Pulasan was a tropical storm in the Philippine Sea Tuesday morning Japan time, the Joint Typhoon Warning Center said in its latest advisory. The tropical storm had sustained wind speeds of 40 miles per hour.  All times on the map are Japan time. By The New York Times Where will it rain? Flash flooding can […] More

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    How Swing State Politics Are Sinking a Global Steel Deal

    As the Biden administration nears a decision to block the proposed acquisition of U.S. Steel, the debate over national and economic security is being dwarfed by presidential politics.The Biden administration has spent the past three years promoting a policy of “friend-shoring,” which aims to contain China and Russia by forging closer ties with U.S. allies like Europe and Japan.That policy appears to stop at the state lines of Pennsylvania.As the administration nears a decision to block the proposed acquisition of the Pittsburgh-based U.S. Steel by Japan’s Nippon Steel, the traditional debate over national security and economic security is being dwarfed by a more powerful force: presidential politics.Legal experts, Wall Street analysts and economists expressed concern about the precedent that would be set if President Biden uses executive power to block a company from an allied nation from buying an American business. They warn that scuttling the $15 billion transaction would be an extraordinary departure from the nation’s culture of open investment — one that could lead international corporations to reconsider their U.S. investments.“This was a purely political decision, and one that stomps on the Biden administration’s stated focus on building alliances among like-minded countries to advance the economic competition with China,” said Christopher B. Johnstone, a senior adviser and the Japan chair at the Center for Strategic and International Studies. “At the end of the day, it represents pure protectionism that draws no apparent distinction between our friends and our adversaries.”Administration officials such as Treasury Secretary Janet L. Yellen, who leads a government panel that is reviewing the steel deal, have espoused the benefits of deepening economic ties with U.S. allies to make supply chains more resilient. Those sentiments are being disregarded in the heat of an election year, where domestic political dynamics take priority.The Biden administration has been under pressure to find a way to justify blocking the Nippon acquisition amid backlash against the deal from the powerful steelworkers’ union. The labor organization believes that Nippon, which has pledged to invest in Pennsylvania factories and preserve jobs, could jeopardize pension agreements and lay off employees.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Typhoon Shanshan Makes Landfall in Southern Japan

    The risk of life-threatening landslides and floods was rapidly increasing in parts of Kyushu Island as the storm lashed it with relentless rain, the authorities warned.The storm unleashed torrential rain, hurricane-force winds and the threat of landslides.Kyodo, via Reuters More

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    Chinese Military Plane Breaches Japanese Airspace, a First

    The territorial violation by China is the latest in a series of events amplifying tensions between Beijing and Japan.A Chinese military surveillance plane breached Japanese airspace off the country’s southwestern coast on Monday, marking what Japan’s defense ministry described as the first known incursion by China’s military into its territorial airspace.According to a ministry official, a Chinese reconnaissance aircraft briefly entered Japanese territory near Nagasaki Prefecture around 11:30 a.m. on Monday. In response, Japan’s Self-Defense Force put fighter jets on high alert and issued a warning to the Chinese aircraft.While Chinese planes frequently appear in international airspace around Japan, this incident represents the first confirmed entry of a military aircraft into Japan’s territorial airspace.Over the past two decades, Japan has increasingly faced foreign aircraft encroachments. Last year, Japan’s Self-Defense Force scrambled fighter jets to intercept foreign planes on 669 occasions — more than three times the number of such responses two decades ago.Of these 669 cases, 479 were in response to Chinese aircraft sightings, according to Japan’s Ministry of Defense.The incursion took place a day before Jake Sullivan, the White House national security adviser, is set to visit Beijing to hold talks with senior Chinese officials. The two sides are expected to discuss tense issues such as the status of Taiwan, the de facto independent island claimed by Beijing, and U.S. export controls of advanced technologies to China.Military analysts suggest that Monday’s airspace violation could be a message from China challenging Japan’s delineation of its territorial border. China asserts control over a large continental shelf in the East China Sea, with its outer edge extending close to the Danjo Islands area, where the Chinese plane was spotted.The airspace violation is the latest in a series of recent events heightening tensions between Japan and China.Last week, a Chinese newscaster deviated from the script on a radio news program by Japan’s public broadcaster, asserting that the Senkaku Islands — controlled by Japan but claimed by China — are Chinese territory.That same day, graffiti was discovered at the Yasukuni Shrine war-commemoration site in Tokyo using Chinese characters that appeared to read “toilet.”Japanese officials summoned Chinese Embassy representatives to a meeting on Monday evening and urged them to prevent future incursions into Japanese airspace, according to a statement from Japan’s Ministry of Foreign Affairs. More