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Japan’s Chief Is Stepping Down. Right here’s Who Would possibly Exchange Him.

TOKYO — When Prime Minister Yoshihide Suga announced on Friday that he would not seek re-election as head of Japan’s governing party, the decision created an unexpected opening to replace him.

The winner of a party leadership contest later this month will be a shoo-in to become the next prime minister. But it’s a job that may have few takers.

Mr. Suga leaves the Liberal Democratic Party facing its biggest crisis in over a decade. Japan’s vaccine rollout started slowly. Coronavirus case counts are at their highest levels of the pandemic. The economic recovery has been tepid. And the government has failed to articulate a clear path forward.

The public is angry “about the way that Covid-19 and its economic effects have been handled,” said Michael Cucek, an assistant professor of Asian studies at Temple University’s Japan campus.

There’s little chance that the L.D.P. will lose power, but it is almost certain to see its majority diminished, he said. That means that, as the party decides who will replace Mr. Suga, the priority is finding someone who can “stanch the bleeding.”

With rank-and-file party members afraid for their prospects in the lower house elections that are likely to be held next month, many will want to “take this opportunity to change the image of the L.D.P.,” said Jiro Yamaguchi, a professor of political science at Hosei University in Tokyo.

Standing in the way of that desire, however, are the entrenched interests of the party’s elite, who will be reluctant to hand power to a new generation, he said.

The outcome of the party election is likely to hinge, as always, on the results of horse trading and back-room deals among the various internal factions led by those insiders. Here are some of the candidates they are likely to consider.

Credit…Pool photo by Philip Fong

So far, only one person has officially announced an intention to run: Fumio Kishida, a former foreign minister. During a news conference on Tuesday outlining his platform, he sought to draw a bright line with Mr. Suga, pledging a more transparent and accountable style of government that would get the coronavirus firmly under control by early next year.

Mr. Kishida, 64, is a party insider, educated at the elite Waseda University, for whom politics is a family business: He got his start working in the office of his father, who represented the city of Hiroshima.

Over his years in politics, Mr. Kishida has held a wide range of cabinet positions and important roles in the L.D.P., but he is best known as the long-serving foreign minister under Shinzo Abe, Mr. Suga’s predecessor. He also briefly served as defense minister.

Last year, when Mr. Abe stepped down, Mr. Kishida was his favored successor. But rival factions within the L.D.P. opposed the pick, and Mr. Suga emerged as a compromise candidate.

Although Mr. Kishida seems the most likely choice of the old guard, Mr. Abe and other party grandees have not yet indicated whom they will support.

Mr. Kishida is unpopular among backbench lawmakers. “If the rank-and-file members are obedient to these bosses, then Mr. Kishida will get enough votes to replace Mr. Suga,” Mr. Yamaguchi, the political science professor, said. But if those members insist that the party needs a makeover, Mr. Abe and others will have to look elsewhere.

Credit…Koji Sasahara/Associated Press

If the L.D.P. is looking for a new face, it might turn to Sanae Takaichi, a conservative who is a darling of the Japanese right wing.

A former minister of internal affairs and telecommunications, Ms. Takaichi, 60, said on Friday that she would be interested in running for the top job, taking the opportunity to draw a contrast with Mr. Suga by dressing him down for what she called his indecisive leadership.

“She’s very conservative, and she tries to present herself as the idol of the right wing or conservative camp in the L.D.P., the true believers,” Mr. Yamaguchi said, adding that many in the party would be happy to line up behind her.

That said, Ms. Takaichi has no faction of her own, so she would need to clear the hurdle of getting 20 L.D.P. lawmakers to endorse her before she could run. The party, which has governed Japan for most of the postwar era, has never had a female leader.

“The Japanese public wants to see a female prime minister, but in the inside-party struggle, she has no base,” said Lully Miura, a political scientist and head of the Yamaneko Research Institute in Tokyo.

If Ms. Takaichi enters the race, Ms. Miura said, “she’s running in this election to become the top female candidate in the future,” hoping that the profile boost would give her an edge in the next leadership race.

Credit…Charly Triballeau/Agence France-Presse — Getty Images

Mr. Ishiba, 64, is a former defense minister popular among the public but disliked by L.D.P. lawmakers for his abrasive, populist style.

He twice ran against Mr. Abe, nearly beating him in the 2012 election, and was one of the leading contenders for Mr. Suga’s job during last year’s contest.

Mr. Ishiba has said he will take another shot at seizing the reins of the party, but it is not clear who would support him. Mr. Abe reportedly still holds a grudge against him, and the other faction leaders actively worked to foil him last year.

“He’s a borderline case in terms of a candidate. He can probably get the 20 signatures, but he’s not particularly well liked by the Diet members,” said Mr. Cucek of Temple University, referring to the Japanese Parliament.

Still, Ms. Miura argued that Mr. Ishiba may be the best positioned to challenge Mr. Kishida. Local party members, she said, are fans. “They want to win their election, and in order to win their election, they want the candidate that can win,” she said.

Credit…Kazuhiro Nogi/Agence France-Presse — Getty Images

Mr. Kono, 58, is a popular, charismatic figure with the right policy experience to be the next prime minister. But his current position as the minister in charge of the vaccine rollout could make it tough for him to win.

That’s partly because it will be hard for him to avoid responsibility for Japan’s missteps and partly because many will argue that he should be devoting his time and energy to combating the current crisis, not politicking.

But if Mr. Kono jumps in — he said on Friday that he was consulting with colleagues about the possibility — he could shake up the election. With a widely followed Twitter account and an easy, relatable style that contrasts with the traditional wooden affect of many Japanese politicians, he is seen as a leading contender to usher in a generational shift in the L.D.P.

“He’s well known for saying the right things to powerful politicians. So he is regarded as a brave challenger to old-style politics,” Mr. Yamaguchi said.

But the party might be better off having him wait to run until after the pandemic, when he would have an easier time marshaling support, Ms. Miura said.

If the party leadership lines up behind him during this election, it will be a sign that it is very worried about the L.D.P.’s political prospects, she said, adding, “He’s the last resort.”

Hisako Ueno, Makiko Inoue and Hikari Hida contributed reporting.

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Politics

Home GOP elects Elise Stefanik to exchange Liz Cheney as convention chair

Representative Elise Stefanik (R-NY) smiles after the House Republicans elected her to chair the conference on May 14, 2021 at the U.S. Capitol in Washington, DC.

Almond Ngan | AFP | Getty Images

House Republicans voted Friday to make Rep. Elise Stefanik their conference chair, days after they called Rep. Liz Cheney for her opposition to former President Donald Trump’s continued influence on the party and her condemnation of his “big lie”, that the 2020 election had been rigged.

The Republicans met at around 8:30 a.m. ET at the Congress Visitor Center, the same room where they voted Cheney off the No. 3 position two days earlier.

The vote for Stefanik was carried out by secret ballot. The final balance was 134-46.

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Stefanik, a fourth-term New York State Congresswoman, gained national attention and clout in her party in 2019 when she forcibly defended Trump during his first impeachment trial.

“My focus is on unity because the American people and our voters deserve it,” Stefanik told reporters after the vote.

She thanked Trump for approving her role over Cheney and called the former president “a critical part of our Republican team.”

Cheney was denounced within her party for refusing to blow up Trump for spreading unsubstantiated conspiracy theories about his loss of election to President Joe Biden.

While federal officials said there was no widespread electoral fraud and dozens of lawsuits by Trump’s allies did not reverse a state’s election results, Trump has nonetheless refused to concede Biden. The former president continues to falsely claim that he won the election and that it was “stolen” from him.

Cheney blames Trump directly for invading a group of his supporters on January 6th in the Capitol. She was one of only 10 Republicans to vote for inciting an uprising against Trump in the House, and since that vote she has continued to argue that if the Republican Party fails to condemn Trump, Trump is a threat to the country. Trump was acquitted in the Senate.

Trump “risks further violence,” said Cheney on the eve of the vote on the House floor to remove her leadership role. He “continues to undermine our democratic process and sow doubts as to whether democracy works at all,” she said.

Stefanik was endorsed by Trump and House Republican leaders Kevin McCarthy and Steve Scalise, both of whom pointed out that Cheney’s focus undermined the GOP’s goal of reclaiming the House in 2022.

While Stefan’s status as the front runner on Cheney’s job has never been questioned, some conservatives have complained that the less experienced congresswoman was not conservative enough for the job.

She faced a last-minute challenge from Texas MP Chip Roy, supported by MP Ken Buck, of Missouri, and has been criticized by some conservative groups.

“Elise Stefanik is NOT a good spokesperson for the House Republican Conference,” the conservative Club for Growth tweeted last week. “The Republicans in the House should find a Conservative to run the news and win back the majority of the House.

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Business

Why Wall Road thinks flying taxis can substitute helicopters

Archer Air

Source: Archer Air

Wall Street investment banker Ken Moelis said the current bull market in stocks has raised concerns about speculation with too many offers and unproven technology, but without flying taxis.

Flying taxis – formerly known as electric aircraft and urban air mobility market – are coming in the near future and can replace helicopters, Moelis and the company’s CEO and founder, Ken Moelis, told CNBC earlier this week.

“These vehicles will be 100 times quieter, significantly safer, significantly cleaner and significantly cheaper,” Moelis told CNBC’s Squawk Alley on Thursday.

On Wednesday, the electric aircraft start-up Archer announced the merger of a special purpose vehicle (SPAC) with Moelis-backed Atlas Crest Investment Corp. worth $ 3.8 billion. The start-up plans to bring out its first aircraft sometime around 2024. The deal was valued on 2026 numbers.

According to Moelis, Archer is in the early stages of development, but its business plan is fully funded and the market opportunity is significant. “There is no speculation,” he said.

While skeptics “act like vertical takeoff and landing,” this is something new and unproven, “formerly known as helicopters,” said Moelis. “We add the word electric … The technology exists. There is nothing to invent.”

A 12-rotor design also makes the flight method safer than helicopters, Moelis said.

Archer Air

Source: Archer Air

The US civil helicopter market is currently estimated at 10,000 to 15,000 aircraft. Moelis believes the market could double to up to 30,000 due to the electric aircraft replacement cycle and that batteries will continue to evolve and extend range up to 100 miles.

“Only when helicopters are replaced by electronic take-off and landing vehicles will this be a huge market,” said Moelis. “There are 15,000 helicopters now. Can you imagine a world in which you can achieve that?”

Whether Archer’s electric vertical take-off and landing aircraft (eVTOL), which can fly up to 100 km, reach speeds of 250 km / h and cause minimal noise, can hit the market in 2024 depends, among other things, on Federal Aviation certification Administration.

United already orders 200 eVTOL Archer aircraft valued at $ 1 billion. The Chicago-based aviation giant has invested in several strategies over the past few months to reduce its carbon footprint, including an investment in a carbon capture company owned by oil and gas company Occidental Petroleum. Urban air mobility vehicles are likely to be used initially to transport passengers to and from airports. Stellantis, the newly combined Fiat Chrysler and PSA Peugeot, is also among a growing list of Archer investors.

Key players in the auto and aviation industries, including Uber, Toyota, and Airbus, are following the flying taxi market. Uber sold its flying taxi business late last year to Archer rival Joby, in which it has already invested.

Data from Deloitte suggests that around 200 companies are working on similar aircraft for passengers or cargo. The market is projected to explore $ 4 billion by 2025 and $ 57 billion by 2035. Another study by Frost & Sullivan assumes that air taxis will fly in the sky in Dubai as early as 2022.

Categories
Politics

Who Will Substitute Kamala Harris? It’s About Extra Than a Senate Seat

LOS ANGELES – Jockeying started right next to the festivities in the summer. Leading California Democrats were thrilled that Kamala Harris was named as the Democratic nominee for Vice President and ready to help her and Joseph R. Biden get into the White House. That was not a question on which the sprawling and divided state political establishment disagreed. But what to do with this empty Senate seat? That was far more difficult.

Latinos make up around 40 percent of California and remain a growing population in the state. White residents make up about 38 percent, and black residents make up nearly 6 percent of the state’s roughly 40 million residents. By the time Ms. Harris won her Senate seat in 2016, the state had been represented by two white senators since 1983.

Some Latino officials point to these numbers, arguing that state governor Gavin Newsom must appoint a Latino to the U.S. Senate – without question – the first in California history.

Black political leaders, however, claim that Ms. Harris can only be replaced by a black woman. Without them, the Senate would have no black women in the Chamber.

Mr Newsom’s decision, which is expected to be taken before the end of the year, is not about politics. Every candidate whose name appears on different lists agrees on important issues. Instead, the choice makes it clear that even for advocates who genuinely believe in coalition building, the arguments are to a large extent a zero-sum game – if one group gets what it wants, it is impossible for the other group to get what it wants, too . And it has shared many leaders who are usually united.

“We have waited a long time for the representation to match the size of our community,” said Thomas A. Saenz, executive director of the Mexican-American Legal Protection and Education Fund, which campaigned for a Latino election. “We need representatives who reflect the population here. The fact is, the African American community in California is not growing and Latinos are an increasing part of the electorate. “

While the Democratic Party is preparing to take over the White House again, there are also arguments over representation in the presidential cabinet. Black, Latin American, and Asian members of Congress each advocate the transition from Biden to Harris. And efforts threaten to open divisions among Democrats who have long relied on a multiracial alliance.

The debates bring to the surface long-simmering tensions between groups that have historically struggled to attain power at the highest levels. In California, Mr. Newsom’s decision has the potential to turn a triumphant moment to see Ms. Harris in the White House into something more bittersweet for many black women.

“The governor must acknowledge that California supported a black woman, and he must meet right now,” said Aimee Allison, the founder of She the People, who also helped vote for Ms. Harris as vice president to use. “This is about realizing that capitalized black women are essential as organizers and legislators. 2020 is not the time for him to turn his back on black women. “

After California Foreign Secretary Alex Padilla emerged as the top candidate in recent weeks, activists like Ms. Allison have become increasingly frustrated. Dozens of local and national officials raised their voices and wrote a letter to the governor asking him to appoint either Congresswoman Barbara Lee or Congresswoman Karen Bass to the seat.

“No constituency is more committed and reliable to the Democratic Party than African-American women,” the letter said. “You deserve voting rights and direct representation in the United States Senate.”

Gender dynamics is also an important consideration for Mr. Newsom, who has long sought to improve his feminist credentials. California has elected two senators for decades, and women’s groups suggest it would be unfair to hand over Ms. Harris’s seat to a man.

Another sign of the complexity of the moment for California Democrats is that black and Latin American activists are jointly pushing for Dianne Feinstein’s resignation despite battling each other for a Senate seat, citing her age and obvious consolation with a few Republicans . (A New York story published earlier this month raised specific questions about her mental acuity and short-term memory, and Mrs. Feinstein later defended herself.) Mrs. Feinstein said she believed Mr. Padilla should be appointed to Mrs. Harris’ seat, a position which has led some to propose that if it is so determined that Mr Padilla take office, she should resign. Ms. Feinstein herself easily defeated Kevin de León, a former Democratic leader in the California Senate, during her 2016 re-election campaign.

“Everyone says she thinks she’s sitting in this seat – no,” said Molly Watson. the progressive group Courage California. “Getting a man into this position is really a slap in the face, and it doesn’t represent what we voted for in that office, either.”

Repeating the call for Ms. Feinstein to resign, Ms. Allison said, “It is your time to step aside and make room for those who represent a large part of the state.”

In many ways, this outspoken endorsement in both California and Washington draws lessons from the successful campaign to have Mr. Biden choose a black woman as his runmate. This summer hundreds of women and organizations went to great lengths to coordinate their efforts in daily phone calls and strategy meetings.

The efforts of the Hispanic Caucus of Congress also reflect the growing number and power of Latinos in Congress. The caucus has met regularly with dozens of Latino organizations in an attempt to unify their message, focusing on candidates who they believe have a serious chance of being selected for the cabinet.

The drive for representation today, both nationally and in California, is more aggressive and direct than in the past. This partly reflects that Democrats have not had such power in more than a decade – and that demographics have changed significantly during that time.

“We have said that one of our goals is to see the face of America in the cabinet,” said Joaquin Castro, chairman of the Hispanic Caucus in Congress, who has aggressively pushed for five Latino cabinet members, including at least one Latina woman . “Our population and our importance have grown. People don’t want to settle for less. “

After the Hispanic Caucus met with members of the transition team last week, civil rights activists, including Rev. Al Sharpton, met with Mr Biden himself last week to call for black candidates to join the cabinet.

“We are moving in the right direction but we haven’t got there yet,” Sharpton said in an interview. Mr Sharpton also joined the call for a black woman to replace Ms. Harris, but said he was careful about pitting black leaders against Latinos. “I’m very concerned about this – we don’t want this to be ugly.”

Congresswoman Judy Chu, the chairwoman of the Asian Pacific American Caucus, has also repeatedly expressed frustrations with the Biden transition team.

“We are shocked because for the first time in 20 years there is a big possibility that there is no AAPI in the cabinet,” said Ms. Chu. “What is different this time is that we feel like our voice is not being heard.”

After extensive lobbying, Mr. Biden appointed Congresswoman Deb Haaland to head the Home Office last week. For the first time a Native American was appointed to the cabinet.

In California, political organizers and activists have for the most part avoided direct confrontation with Mr. Newsom.

But both sides have made it clear that they will not easily forgive Mr. Newsom if he ignores their pleas.

“I’m really disappointed,” said MP Shirley Weber, a leading supporter of Ms. Lee and Ms. Bass. “These numbers are so strong and it cannot be said that we no longer need black women. I would have liked to have expected more from my Latino colleagues. “And some Latino leaders have expressed support for the appointment of a black woman in the past few days, including Dolores Huerta, co-founder of United Farm Workers.

Last week, Alberto Retana, the executive director of Community Coalition, a south Los Angeles-based group that Ms. Bass founded after the crack epidemic in the early 1990s, organized a petition that was sent to Mr. Newsom on Friday.

“As leaders of the Latinx community, we must lead by our values, not our demographics,” the group wrote in the letter. “For a multicultural democracy, it is imperative that we focus this choice on promoting race, gender and social justice. This is achieved through the appointment of a progressive black woman. “

Categories
World News

Tesla to switch Condominium Funding and Administration within the S&P 500

Tesla will replace Apartment Investment and Management Co. in the S&P 500 if the electric vehicle company joins the index before trading begins December 21, S&P told Dow Jones Indices on Friday.

Tesla is also included in the S&P 100, replacing Occidental Petroleum in that index.

S&P Dow Jones Indices announced on November 16 that Tesla would join the S&P 500. The size of Tesla – the largest company ever to be included in the benchmark index – prompted the index provider to seek feedback from the investment community on whether to add Tesla all at once or in two separate tranches.

S&P Dow Jones Indices eventually chose the former and announced on November 30th that it would add Tesla to its full float-adjusted market capitalization on December 21st.

“In making its decision, S&P DJI took into account the wide range of responses received, including the expected liquidity of Tesla and the market’s ability to absorb significant trading volumes that day,” said the index provider. Tesla’s inclusion in the S&P 500 is based on closing prices on Friday, December 18, which coincides with the expiration of stock options and stock futures, which should make it easy to add due to the high trading volume, S&P said.

S&P Dow Jones Indices has not yet announced the weighting of Tesla in the index.

There are currently over $ 11.2 trillion in net worth compared to the S&P 500, with roughly $ 4.6 trillion of the total indexed funds making up. This means significant portfolio adjustments will have to be made to make room for Tesla.

According to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, $ 80 billion in Tesla stock must be bought by index investors. He pointed out that trading volatility could be exacerbated by Tesla’s not being a member of the S&P 1500, S&P 400 Midcap, or S&P 600 Small Cap indices.

Fund managers who need to buy the index will try to buy Tesla as close to the December 18 closing price as possible. “It will likely be one of the largest tight buy markets ever,” said Peter Boockvar, chief investment strategist at Bleakley Advisory Group.

– CNBC’s Patti Domm contributed to the coverage.

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