East Japan Railway is investigating the decoupling of two Shinkansen bullet trains running in Tokyo on Thursday morning. The linked Hayabusa and Komachi trains on the Tohoku Shinkansen line became separated at around 11:30 a.m. while traveling between Ueno and Omiya stations in Tokyo and Saitama Prefecture. The decoupling caused an automatic brake to activate and the trains came to a stop on the tracks. Passengers going to Akita will have to change trains at Morioka Station, and those to Yamagata at Fukushima Station. The government’s Transport Safety Board says it will investigate the case as a serious incident that could have led to a major accident. (Ref.NHK WORLD-JAPAN)

Retail giant Seven & i Holdings has announced it will replace its president Isaka Ryuichi with an outside director. Stephen Dacus will be the company’s first non-Japanese president after he takes the job following a shareholders meeting in May. Isaka said: “Our group has grown steadily, but we are aware that we have entered a phase where we need different measures to achieve growth in the future. As a result of a strict process, we have decided that Stephen Dacus is the most suitable person to take the helm of the company group from this point on.” Dacus said: “We are now at a time of change and the opportunity to take this great foundation that Isaka-san and his team and others have created and take that to the next level is an opportunity that is just too good to walk away from. I’m honored to have been chosen by the board, and I look forward to working with the board, our franchisees and others throughout the company to make this an even better company.” The firm approved the reshuffle at a board meeting on Thursday. It also revealed plans to boost its value. (Ref.NHK WORLD-JAPAN)

Foreign Secretary and Business Secretary travel to Japan for the Economic 2+2, a new way for the UK and Japan to coordinate international economic policy.

• huge Japanese market to be further unlocked through new partnership between UK and Japan as Foreign Secretary and Secretary of State for Business and Trade

visit to the world’s 4th largest economy

• Japan already invests £86 billion in the UK economy; a business delegation travelling alongside the ministers will drive more investment and opportunities for

British companies in Japan

• UK and Japanese defence industrial cooperation will deliver jobs for Brits and security across the Indo-Pacific – building our defence capability and our economy

It comes as the Foreign Secretary and Business Secretary travel to Japan today (6 March 2025), for the Economic 2+2, a new strategic way for the UK and Japan to coordinate international economic policy. The visit is part of the government delivering its Plan for Change to boost growth, create jobs and put more money in people’s pockets. The Economic 2+2 will strengthen UK and Japan cooperation in a range of areas– such as continued commitment to a fair-trading system, joint research into the technologies of the future and mutual investment to support growth, innovation and jobs in the defence industry. Chief Economist at the CBI – member of the travelling business delegation – Louise Hellem said: Cooperation with like-minded partners like Japan will be critical to achieving the government’s Growth Mission. As a significant and growing trading partner, Japan’s economy offers unique opportunities for UK firms looking to expand and internationalise. This delegation is an important next step in our relationship, enabling both governments to explore deeper collaboration across topics like digital and technology, advanced manufacturing, and sustainability. (REF.GOV.UK)

SINGAPORE, March 4, 2025 – The Japanese economy is projected to grow at 1.3 percent in 2025, driven by sustained wage gains, strong business investments, and resilient performance in goods exports and tourism. While inflation has eased, it is expected to remain above the Bank of Japan’s (BOJ) target, with CPI (excluding fresh food) inflation estimated to average 2.2 percent in 2025. Amid ongoing uncertainties surrounding the growth and inflation outlook, the BOJ should maintain a flexible, data-driven approach to monetary policy. Meanwhile, with public debt at elevated levels and rising fiscal pressures due to an aging population, stronger fiscal consolidation efforts will be needed to strengthen fiscal resilience. Recent developments and outlook Japan’s economic growth moderated to 0.1 percent in 2024 following the post-pandemic rebound. Although the economy contracted sharply in Q1 2024, growth rebounded over the subsequent three quarters, driven by strong consumption as wage hikes from the “Shunto” wage negotiations began to take effect. Wage increases are expected to remain high on account of a tight labor market and a shift in firm behavior. Corporate earnings are also expected to contribute to higher wages and increased capital investment in 2025, further boosting domestic demand. Goods exports and tourism are projected to remain robust, provided there is no sharp slowdown in major global economies. Risks, vulnerabilities, and challenges Japan’s macrofinancial outlook is skewed to the downside, reflecting substantial uncertainties, particularly from external factors. Key risks include a spike in global commodity prices triggered by escalating geopolitical tensions and a pronounced economic slowdown in other major economies. (REF &Photo . ASEAN+3 Macroeconomic Research Office