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MNI Interview: Hainan To Trial China’s Opening Up Reforms

Beijing will first trial opening up reforms in Hainan before evaluating policies nationwide, a Hainan government official has told MNI.

MNI BoJ Preview - April 2024: ‘Wait And See’ Approach, Alert To Messaging On JGB Purchases & Currency Weakness

At this week’s meeting, we expect the BoJ to maintain its target range for the uncollateralized overnight call rate at 0-0.1%.

Political Risk

Kremlin Spox-Long Range Missiles Mean Larger 'Buffer Zone'

Kremlin spox Dmitri Peskov, when asked about the prospect of the US supplying more long-range ATACMS missiles to Ukraine following the passage in the US Senate of a USD95bn defence supplemental, claims that "The longer the range of western weapons supplied, the further Russia will have to move the border of the buffer zone." This would imply Russia's intention to continue its slow but relatively steady military advance in areas of eastern Ukraine in order to maximise the distance between areas controlled by Kyiv and Russia-proper.

  • Long-range missiles, as well as drone attacks, have caused significant disruption to Russian oil refineries and other areas within the hydrocarbons and military sectors as Kyiv has turned some of its focus to hitting deep within Russian territroy in an effort to disrupt Moscow's war machine.
  • Talking up Russia's military prospects comes amid the arrest and detention of Deputy Defense Minister Timur Ivanov on 23 April on charges of recieving a bribe. Ivanov has been detained for two months according to state-run Interfax.
  • Ivanov is seen as close ally of Defence Minister Sergei Shoigu, and the former's arrest - the highest-profile corruption charge since the invasion of Ukraine - could be seen as an attempt to consolidate power by President Vladimir Putin post-election, or to placate a public increasingly resentful of percieved corruption at the top of the military when Russian casualties on the front line are so high.

Opinion Poll Shows Voters Want LDP Out Ahead Of Crucial By-Elections

The latest opinion poll from outlet Mainichi makes difficult reading for PM Fumio Kishida and his Cabinet, showing that a significant majority of respondents want to see the governing conservative Liberal Democratic Party (LDP) ousted from power at the next general election. The poll, carried out from 20-21 April, asked respondents what their desired outcome of the next general elections would be. Sixty-two percent of respondents said they want to see a change in gov't, with just 24% in favour of a continuation of the current coalition involving the LDP and the Komeito party.

  • Kishida faces a significant test on 28 April, with three parliamentaryby-electionstaking place that could have a significant impact on the PM's longevity in office. All three seats were previously held by the LDP. However, in the face of declining support and unlikely odds, the party is only standing a candidate in the Shimane No.1 seat.
  • Kishida faces an internal LDP leadership contest in September. One of the few paths to the LDP reconfirming Kishida would be a strong general election performance ahead of then. However, a loss in Shimane could deal a blow to the prospects of a summer election, and therefore raise the likelihood of the LDP replacing Kishida.
  • It should be noted that in spite of the poor polling for Kishida and the LDP, a change in governing party remains unlikely. The main opposition liberal Constitutional Democratic Party has not benefited substantiallyfrom the LDP's unpopularity, trailing the governing party in all polling.

/JAPAN: Ex-PM Aso Meets With Trump As More Countries Hedge Their Bets In US Presidential Race

Former Japanese Prime Minister Taro Aso, who currently serves as Vice President of the ruling Liberal Democratic Party (LDP), met with Donald Trump on Tuesday, joining several senior political leaders who decided to speak with the presumptive Republican presidential nominee ahead of the November election.

  • Multiple countries have recently deployed their officials to hold talks with Trump, albeit at various levels of seniority. The list includes Hungarian Prime Minister Viktor Orban, Polish President Andrzej Duda and UK Foreign Secretary David Cameron, as well as King Hamad bin Isa Al Khalifa of Bahrain, who spoke with Trump by phone.
  • Japanese Foreign Minister Yoko Kamikawa told reporters that the government was not involved in arranging Aso's meeting with Trump. However, it is a well known fact that the octogenarian remains one of the LDP's most senior figures and had close ties to the late Prime Minister Shinzo Abe, who forged a cordial relationship with Trump.
  • The latest series of Trump's interactions with foreign leaders represents their efforts to hedge their bets ahead of the upcoming presidential election. With global geopolitical tensions on the rise, they are seeking to ensure that American security guarantees will remain in place regardless of who forms the next administration.

GERMANY-Sunak Unveils Major Defence Spending Plans On Germany Visit

UK Prime Minister Rishi Sunak has outlined plans for a major increase in gov't spending on defence that would have a significant impact on the UK defence sector as well as the gov'ts fiscal outlook. Sunak pledged that by 2030, 2.5% of the UK's national income would go on defence spending, which would allow a major increase in production of ammo to restock increasingly-barren reserves, as well as develop new military tech. Speaking in Poland on 23 Apr, Sunak announced an additional GBP75bn in military spending that would take the UK's total to GBP87/annum by the end of the decade.

  • The main opposition centre-left Labour Party - seen as almost certain to come to power at the next general election - has also committed to hitting 2.5% of GDP on defence spending, but only 'when economic conditions allow', rather than setting a target date.
  • Sunak travels to the German capital Berlin on 24 April for the first time since becoming PM in Oct 2022 for talks with Chancellor Olaf Scholz. The German leader is set to pressSunak on offering a more concrete plan for defence spending increases. However, this risks a backlash from the UK, given that it is fairly recently that Germany has significantly ramped up its spending on security following Russia's invasion of Ukraine while the UK has long exceeded the 2% of GDP NATO spending floor.

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