Japan's PM Ishiba denies talk he will quit following election drubbing
The 68-year-old leader said media reports that he had already decided to resign were "completely unfounded."
Ishiba chose not to quit straight after the election to prevent political instability as an August 1 deadline for clinching a trade deal with the U.S. approached, a source close to the prime minister said, asking not to be identified because they are not authorised to talk to the media.
Ishiba and Trump unveiled a trade deal on Tuesday that lowers tariffs on imports of Japanese autos and spares Tokyo punishing new levies on other goods.
Ishiba will announce his resignation next month, Japanese media reported earlier.
If he does go, his departure less than a year after taking office will trigger a succession battle within the ruling Liberal Democratic Party as it contends with challenges from new political parties, particularly on the right, that are stealing its support.
Among them is the "Japanese First" Sanseito far-right group which surged in Sunday's vote, growing its representation in the 248-seat upper house to 14 from one. The party has attracted voters with pledges to curb immigration, slash taxes, and provide financial relief to households squeezed by rising prices.
Ishiba defeated hardline conservative Sanae Takaichi in a party leadership runoff last year. Whoever succeeds him as head of the LDP would have to govern without a majority in either house of parliament following the government's lower house election defeat in October.
Any new leader's immediate priority will be to secure support from enough opposition party lawmakers to win confirmation as prime minister.
An incoming leader is unlikely to call a general election straight away, instead holding off on strengthening the party's appeal before seeking a mandate from voters, the source said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
3 minutes ago
- Reuters
Pakistan's central bank seen cutting interest rate by 50 bps as inflation cools: Reuters poll
KARACHI, July 29 (Reuters) - Pakistan's central bank is expected to cut its key interest rate by 50 basis points to 10.5% on Wednesday, a Reuters poll showed, with a unanimous forecast for further easing as inflation slows and external balances improve. All 14 analysts surveyed expect the State Bank of Pakistan to cut rates, with nine projecting a 50 bp cut - also the median forecast - while four see a deeper 100 bp cut and one a 25 bp reduction. Consumer price inflation stood at 3.2% in June, while average inflation for the fiscal year ending June 30 fell to a nine-year low of 4.49%, from 23.4% the year before. With real rates firmly positive, most analysts expect easing to continue, backed by stabilising indicators and high government borrowing costs. Sana Tawfik, head of research at Arif Habib Limited, said slowing inflation and an improved external account give the SBP room to cut, but warned that rising imports and currency pressure called for a cautious, data-driven approach. Reserves, supported by International Monetary Fund inflows under a $7 billion programme and bilateral financing, have grown to more than $14 billion. Renewed rupee pressure triggered a security-led crackdown on informal dollar trade, underscoring the government's push to stabilise the exchange rate as the central bank considers further easing. The SBP began cutting rates from a record 22% in June 2024 before pausing in March after 10 percentage points of easing. It then cut by a further 100 bps in May but held again in June as Iran-Israel tensions escalated. Earlier this month, SBP Governor Jameel Ahmad told the Reuters NEXT Asia summit that the central bank would maintain a 'tight' stance to stabilise inflation within its 5–7% target, adding that its policy was already affecting both inflation and the external account. Ahmed Mobeen, senior economist at S&P Global Market Intelligence, said the SBP is likely to cut rates further but may adopt a more "cautious" pace in the second half of the year due to rising import demand and global commodity risks. Mustafa Pasha, chief investment officer at Lakson Investments, said the central bank could gradually lower rates into the high single digits in the first half of 2026, given stronger buffers and the completion of the budget and IMF review. S&P Global upgraded Pakistan's rating to 'B-' from 'CCC+' last week, citing lower inflation, fiscal consolidation and stronger reserves.
Reuters
an hour ago
- Reuters
South Korea Finance Minister Koo to target mutually beneficial US trade deal
SEOUL, July 29 (Reuters) - South Korean Finance Minister Koo Yun-cheol said on Tuesday he would try to derive a mutually beneficial trade agreement with the United States, in comments ahead of his departure to Washington to meet U.S. Treasury Secretary Scott Bessent. Seoul officials are scrambling in an all-out push to clinch a trade deal ahead of an August 1 deadline to avert punishing tariffs threatened by U.S. President Donald Trump against the country's key industrial exports to the United States. Koo's plan to travel to Washington last week for talks with Bessent was postponed due to the U.S. treasury chief's scheduling conflict. "Treasury Secretary Bessent holds the important position of overseeing trade negotiations in the Trump administration," Koo said in brief remarks to reporters. "We will make the best effort to derive an agreement based on our national interest that would allow South Korea and the United States to co-exist," he said. Koo said he would be joining Industry Minister Kim Jung-kwan and Minister for Trade Yeo Han-koo who have been holding talks with U.S. officials including Commerce Secretary Howard Lutnick for an "all-out response."
Reuters
an hour ago
- Reuters
Euro under pressure as US-EU trade deal fails to impress
SINGAPORE, July 29 (Reuters) - The euro struggled to recoup its steep losses on Tuesday as investors sobered up to the fact that terms of the trade deal between the U.S. and the European Union favoured the former and hardly lifted the economic outlook of the bloc. France, on Monday, called the framework trade agreement a "dark day" for Europe, saying the bloc had caved in to U.S. President Donald Trump with an unbalanced deal that slapped a headline 15% tariff on EU goods. German Chancellor Friedrich Merz said his economy would suffer "significant" damage due to the agreed tariffs. The euro slid 1.3% in the previous session, its sharpest one-day percentage fall in over two months, on worries about growth and as euro-area government bond yields fell. The common currency last traded 0.07% higher at $1.1594. "It hasn't taken long for markets to conclude that this relatively good news is still, in absolute terms, bad news as far as the near term implications for euro zone growth are concerned," said Ray Attrill, head of FX research at National Australia Bank. "The deal has been roundly condemned by France while others - including German Chancellor Merz, are playing up the negative consequences for exporters, and with that, economic growth." The slide in the euro in turn boosted the dollar, which jumped 1% against a basket of currencies overnight. The dollar held on to gains on Tuesday and knocked sterling to a two-month low of $1.3349. The yen edged marginally higher to 148.49 per dollar. The dollar index steadied at 98.67. "While the U.S. dollar's strength... may reflect the perception that the new U.S.-EU deal is lopsided in favour of the U.S., the U.S. dollar's strength may also reflect a feeling that the U.S. is re-engaging with the EU and with its major allies," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Still, Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he set in April. Elsewhere, the Australian dollar eased 0.05% to $0.6518, while the New Zealand dollar was little changed at $0.5972. The offshore yuan was little changed at 7.1813 per dollar. Top U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the centre of a trade war between the world's top two economies, seeking to extend a truce by three months. Apart from trade negotiations, focus this week is also on rate decisions from the Federal Reserve and the Bank of Japan (BOJ). Both central banks are expected to stand pat on rates, but traders will watch subsequent comments to gauge the timing of their next moves.
