Chairman Mitarai's comment at his press conference

January 28, 2008

Following is the gist of remarks made by Chairman Mitarai at his Press Conference. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

( Japanese stock prices )

President Bush called for a $150 billion stimulus program in a bid to arrest the deterioration of the US economy. It was followed by the Fed unscheduled interest rate cut intended to counter slowing growth and to stop a spreading move of selling in the world stock markets. Although these swift actions have been taken, the Subprime Mortgage Problem is still alive and it keeps the global capital market unstable. Both the US and Japanese economy will get better in the latter half of 2008. It will pull up Japanese stock prices without doubt.

( Labor-management negotiations )

It is true that the Japanese economy is slowing down, but Japanese companies still enjoy good performance. The companies with a high productivity and ability to pay can share the profit with their employees. On the other hand, a lot of medium and small sized enterprises suffer from tough global competition and the current material price hike.
It is impossible to lump all the different companies and their labor-management negotiations together and say something.

( Road related taxes for wider purposes )

The most important point is not to confuse people's life. In this context, it is understandable to pass the bill intended to extend the time limit of disputed temporary tax rates in the Diet.
It goes without saying that how and what for to use the related tax revenue should be properly checked and opened to the public.

( PM Fukuda speech at the Davos forum )

The speech was great. The proposition on the global warming issue mentioned in his speech is basically in line with Keidanren's stance. PM Fukuda emphasized the importance of developing innovative technologies.
The prime minister also stressed the necessity of setting fair and equitable emissions target which should be based upon a bottom-up approach by compiling on sectoral basis energy efficiency. He clearly said that the base year should be reviewed from the standpoint of equity. Keidanren shares the view.


Home Page in English