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Takaichi Cabinet approval rating recovers to 55.4%, boosting momentum for September reshuffle

The Takaichi Cabinet's approval rating recovered to 55.4% in an ANN opinion poll, up 6.2 points from the previous month, and coordination for the September Cabinet reshuffle and party personnel changes has entered full swing, including talks with Vice President Aso. The government has rolled out a series of major policies, including continuing gasoline subsidies, sharply raising residence fees for foreigners, and deciding on basic guidelines for disclosing AI training data. Meanwhile, long-term interest rates have risen to near 3%, a level not seen in about 30 years, and concerns over Takaichi's fiscal policy are spreading to global markets.

15 sources5 min read

Takaichi Cabinet approval rating recovers to 55.4%, up 6.2 points from previous month In ANN's August opinion poll, the Cabinet approval rating was 55.4%, recovering 6.2 points from the previous month, which was the lowest since the administration took office. Government officials indicated that the decision on the consumption tax cut policy and the stable environment due to the Diet's adjournment were factors. 1

PM Takaichi meets Vice President Aso to discuss Cabinet reshuffle On the 25th, Prime Minister Takaichi held a one-on-one meeting with Vice President Taro Aso at the Prime Minister's Office, apparently discussing the Cabinet reshuffle and party executive appointments expected to take place in mid-September. Based on responses to a survey on desired posts, there is a strong view that Aso will remain vice president. 2

Long-term interest rates near 3%, concerns over Takaichi's fiscal policy spread The yield on newly issued 10-year government bonds briefly reached 2.945%, a roughly 30-year high, bringing the 3% range into view. In addition to expectations of further rate hikes by the Bank of Japan, concerns over increased bond issuance due to the Takaichi administration's expansionary fiscal policy are behind the rise, and selling has also spread to U.S. Treasuries. 3

PM Takaichi announces continuation of gasoline subsidies, maintaining cap at 170 yen On the 25th, Prime Minister Takaichi announced that subsidies to keep retail gasoline prices at around 170 yen per liter would continue after September, citing uncertainty in the Middle East. The government will use reserve funds for responding to Middle East situations as a financial source, and will flexibly consider an exit strategy. 4

Foreign residence fees: permanent residence permission to rise 20-fold to 200,000 yen On the 25th, the Immigration Services Agency announced revised fees that significantly raise charges for changing or renewing status of residence and for permanent residence permission. The fee for permanent residence will rise from 10,000 yen to 200,000 yen, effective October 1. Support groups have criticized the excessive burden. 5

Government decides basic guidelines to encourage disclosure of AI training data On the 25th, the government decided on a 'Principle Code' requiring generative AI businesses to disclose the types and collection methods of training data. Although it is not legally binding, the government will accept notifications from businesses around this autumn and publish the names of compliant businesses. 6

Consumption tax cut: government considers exception to total-price display to ease burden of changing price tags Regarding the planned reduction of the consumption tax rate to 1% for food and beverages, the government is considering a special exception to exempt retailers from the obligation to display total prices, in order to reduce the burden of changing price tags. The Liberal Democratic Party's tax research commission has begun designing the system for a two-year tax cut starting in April 2027. 7

Doshisha chairman to resign over responsibility; principal also dismissed over Henoko accident In connection with the capsizing accident off Henoko, Okinawa, in which two students died, Eiji Hatta, chairman of the educational corporation Doshisha, has expressed his intention to resign. Kikuo Nishida, principal of Doshisha International High School, will also be dismissed effective the 31st, and Hiroshi Shuku will succeed him. 8

CDP to hold all-members meeting on 28th; early three-party merger seen difficult The Constitutional Democratic Party (CDP) will hold a meeting of all its lawmakers on the 28th regarding merger talks with the Centrist Reform Union and Komeito. Within the party, recognition is spreading that an early three-party merger is difficult, and a plan to form a unified parliamentary group with Komeito in the House of Councillors has also emerged. 9

Fukushima decontamination soil to be reused in Miyagi and Saitama; first use outside Tokyo On the 25th, the government decided on a policy to reuse soil generated from decontamination work in Fukushima Prefecture at national government regional offices in Miyagi and Saitama prefectures. This is the first use outside Tokyo, with the aim of reducing the volume destined for final disposal outside the prefecture. 10

Government decides action plan for CBRNE terrorism countermeasures The government decided on an action plan for countermeasures against 'CBRNE terrorism' using chemical, biological, radiological, and other materials, including the establishment of an expert panel and information-sharing meetings among relevant ministries. It will proceed with measures with next year's International Horticultural Expo in mind. 11

Typhoon No. 18 to approach Okinawa main island and Amami through 26th Very strong Typhoon No. 18 was moving westward south of Japan on the 25th and is expected to approach Okinawa's main island and the Amami region through the 26th. Because it is moving slowly, the impact may be prolonged, and the Japan Meteorological Agency has called for caution against strong winds and high waves. 12

Cruiser runs aground off Haneda Airport; 10 injured, 2 seriously A cruiser heading to a fireworks display in Yokohama ran aground off Haneda Airport's C runway, and all 10 people aboard were rescued, but two of them were seriously injured. There is a possibility the vessel was traveling at considerable speed, and the Japan Coast Guard is investigating, including on suspicion of professional negligence. 13

Tobu Railway accident killing 4: 2 workers may have noticed approaching train and escaped In the accident on the Tobu Nikko Line in Kanuma, Tochigi Prefecture, where four workers died after being struck by a limited express train, it has been learned that a total of six people were doing weed removal work at the site. Two of them noticed the approaching train and escaped, and the prefectural police are investigating whether a lookout gave a signal. 14

High school student dies in Sagamihara; person in trailing car may have assaulted him A male high school student died in Sagamihara, Kanagawa Prefecture, and police are investigating. They believe a person in a car that was following him may have assaulted him, and are searching for the suspect. 15

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