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Japan’s new prime minister pledges to tackle deflation in first policy speech

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Japan’s new prime minister Shigeru Ishiba has promised to help households cope with rising prices, in effect starting his campaign to voters ahead of a snap general election this month.

But Ishiba also told lawmakers in his first policy address on Friday that he would decisively conquer deflation, highlighting the delicate policy environment as Japan tries to engineer an exit from decades of virtually stagnant prices and low growth.

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Ishiba’s pledges closely match the policy agenda of his immediate predecessor, Fumio Kishida, who stepped down in August. But in the face of historically low approval ratings and volatile financial markets, Ishiba, who was chosen by the ruling party to be its leader, will be forced to carry them out in what analysts called a “zero honeymoon” environment.

“It’s necessary that we provide support to those reeling from rising prices until a virtuous cycle of growth and redistribution is certainly in motion, where pay hikes outpace inflation and companies invest proactively,” Ishiba said.

He also called for restoring trust in politics, saying the government had a responsibility to earn the public’s “understanding and empathy”.

Ishiba’s first full speech to parliament followed his swearing-in as prime minister on Tuesday. The selection of the 67-year-old party veteran for the top job triggered a 5 per cent drop in Japanese stocks, and, following a flip-flop on monetary policy, the sharpest one-day sell-off in the yen in two years.

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Japan will begin campaigning next week for a general election on October 27, in which analysts predict the ruling Liberal Democratic party will face the combined challenge of public concern over the economy and a reinvigorated opposition.

“Things have become really bad really quickly for Ishiba,” said Tobias Harris, founder of political risk advisory firm Japan Foresight. “He’s had literally no honeymoon. But we knew that the LDP was divided. If you start off in a position where you are heading off a party rebellion, you do not really have much room for manoeuvring.”

During his bid for leadership of the LDP, Ishiba said he favoured higher corporate taxes, a heavier levy on capital gains, a rebalancing of the US-Japan relationship and the creation of an “Asian Nato”.

None of those proposals featured in Friday’s speech. Instead, the 30-minute address to the lower house suggested a continuation of the “Abenomics” platform of the late former prime minister Shinzo Abe, over which there is less dispute within the ruling party.

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Nicholas Smith, chief Japan strategist at CLSA, said the result would probably be to calm investors’ fears of drastic policy changes and ultimately benefit markets.

Analysts pointed out that Ishiba needed to build consensus within a party that is still reeling from a corruption scandal and win over a sceptical electorate.

In effect, that means maintaining policies that have guided the party for most of the past decade and improving corporate governance reform and other policies that have drawn global investors back to Japanese markets.

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“Japan’s economy is in a situation where policymakers cannot now avoid the general contours of the Abenomics policy mix,” said Izumi Devalier, head of Japan economics at Bank of America.

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Dubai travel warning: How the Israel-Hamas war is affecting UAE flights

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Airlines including Emirates have cancelled and diverted flights

AMID the chaos of the escalating conflict in the Middle East, several flights to and from Dubai have been cancelled or delayed.

Here we take a look at whether it is safe to travel to the area, which airlines are affected and how flight paths have changed so far.

Airlines including Emirates have cancelled and diverted flights

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Airlines including Emirates have cancelled and diverted flightsCredit: Mark Ferguson

Are flights going to and from Dubai?

Flights are still operating to and from Dubai, but with significant disruptions due to the spiralling regional tensions.

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Dubai International Airport, the world’s busiest for international travel, is experiencing cancellations and delays.

Airlines cancelling and diverting flights

Several major airlines have been affected:

  • Emirates cancelled all flights to and from Iraq, Iran and Jordan between Wednesday, October 2, 2024 and Saturday, October 5.
  • Flydubai has also cancelled flights to these destinations.
  • Emirates has suspended routes to and from Beirut until Tuesday, October 8, while Flydubai has suspended them until Monday, October 7.
  • British Airways, Lufthansa and Swiss Air have diverted flights headed to Dubai and other Middle Eastern destinations.
  • Etihad Airways is rerouting flights and warning of likely delays and cancellations.

Safety of travelling to Dubai

The UK Foreign, Commonwealth and Development Office (FCDO) does not advise against travel to the United Arab Emirates (UAE), including Dubai.

However, they recommend staying vigilant, stating: “Terrorists are likely to try to carry out attacks in the UAE”.

The FCDO further advises: “Ongoing hostilities between Israel and Lebanon could escalate quickly and pose risks for the wider region. Monitor this travel advice and other media as the situation is changing fast”.

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They also note that “Military activity in the Red Sea area” poses a security risk, with the “possibility that Travel Advice for nearby countries could change at short notice”.

Changes in flight paths

Flight paths changed significantly on Tuesday, October 1, 2024. Here are the diversions which were put in place:

  • Many flights avoided airspace over Iran, Israel, Jordan, Iraq and Lebanon.
  • Airlines diverted flights through alternative routes, which led to longer flight times.
  • Traffic became dense over Istanbul, Cairo, and Antalya as flights rerouted to avoid certain areas.
  • Some flights took wide arcs to the north and south to avoid affected airspace.
  • These diversions added several hours to flight times.

According to FlightRadar, 81 flights were diverted by 16 airlines on October 1, when Iran launched its attack on Israel.

Some flights in and out of Dubai have been suspended

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Some flights in and out of Dubai have been suspended

Additional travel advice

Visitors should remember to respect local laws when travelling in the UAE.

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The FCDO advises: “Take care when walking or travelling alone, and use a reputable taxi company, particularly if you are female, and at night. Do not accept lifts from strangers”.

Travellers should also be aware that UAE airports have strict security measures for detecting illegal items, including in transit passengers’ baggage.

Even residual trace amounts of illegal drugs can lead to arrest and imprisonment.

Those flying within the region are strongly advised to check with their airlines for the most up-to-date information and to be prepared for potential last-minute changes or extended delays.

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In British politics, the centre no longer holds

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As an anthropological study of the political tribes, I found this year’s UK party conferences intriguing. Labour, urban and blokeish, are bizarrely miserable despite being in power. The Tories, shambling and earnest, are weirdly upbeat, relieved to be out of office. The unexpectedly large number of young men and women in Birmingham was perhaps testament to the fact that politics is exciting when you have a chance to change it. 

With four candidates vying to lead the Conservatives, a common argument — put forcefully by former West Midlands mayor Andy Street — is that the party needs to find the centre ground. But where is it? In an age of polarisation and identity politics, does it even exist?

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The idea that parties win from the centre dominated postwar political thinking. Bill Clinton extolled the “vital centre”, a phrase coined by Arthur Schlesinger in 1948 to describe a middle way between fascism and communism. Tony Blair’s Third Way ideology was a muscular version of what Harold Macmillan, in his 1938 book The Middle Way, described as a means of blocking off the “extremes” of collectivism, on the one hand, and laissez-faire individualism on the other. 

Centrism, on these definitions, is moderate and pragmatic. It sits midway between two extremes — and political strategists expend a great deal of energy working out how to split the difference. The assumption is that the majority of voters sit in the “centre”. But what if they don’t? 

Some interesting analysis of 2020 polling data by Matteo Tiratelli, of University College London, challenges the idea that most Britons hold moderate political opinions on most issues. When asked whether the government should try to make incomes equal, for example, as many people agree very strongly as put themselves in the middle; with almost as large a group disagreeing completely. 

It’s also possible that commentators mistake where the centre is. Many prominent people who describe themselves as “centrist” are, broadly speaking, Remainers who care about the environment, believe that business and immigration are generally a force for good, are socially liberal and want government to play a positive role in the world through aid and diplomacy.  

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They assume that a majority of voters are like them. But what if they’re wrong? What if many voters think those people have been shoring up the status quo in their own interests — with cheap money making the rich richer, the costs of the green transition loaded on to energy bills, tech companies selling misery and mass immigration putting intolerable strain on public services? 

The 2008 financial crash shook faith in free markets. And widespread discontent showed up in 2016, in the US election of Donald Trump and the UK’s vote for Brexit. A new gulf was revealed between voters with and without university degrees. Were people who voted for Trump and Brexit victims of disinformation, misled by populists? Or did their material circumstances lead them to issue a riposte to those who conflated their own world view with the virtuous centre?

Moderate centrism has lost its energy. Political dynamism now lies with angry, single-issue movements like Just Stop Oil. In this summer’s general election, the combined share of the vote for Britain’s two main political parties, both run by moderate technocrats, was the lowest in our era. Offered a wider range of options, the electorate gave significant backing to Reform UK and the Greens. The fact that Reform UK came second to Labour in so many seats suggests that the desire for drastic immigration control is not “rightwing”, but mainstream — just as concerns about the environment may no longer be “leftwing”. 

If centrism means anything, it must mean decency, respect for facts and pluralism. These are the lifeblood of democracy, and worth fighting for. In 2022, Sir Keir Starmer claimed that Labour was “now firmly in the centre ground of British politics”. He also asserted that this was “not a place of mushy compromise”. Centrism don’t have to feel soggy, but it has to be more than technocracy.

Where does this leave the Conservatives? David Cameron’s leadership-winning conference speech in Blackpool 19 years ago was remarkable not because he delivered it without notes but because he looked like the future. He challenged his party to be “comfortable with modern Britain” and to believe that the “best days lie ahead”. Those words still resonate today. 

None of the current candidates to lead the Tories is in Cameron’s league. But the job of whoever wins is not to run the country — it is to reestablish trust in the Conservatives as decent and competent. If that is even possible, it can only be done with humour and optimism, not with anger. I also don’t see how it can be achieved by anyone who served in Boris Johnson’s cabinet, which rules out James Cleverly and Robert Jenrick.

The current debate within the Conservative party is between those who think elections are won in a virtuous centre and those, like the late Keith Joseph, architect of Thatcherism, who once derided the middle ground as the lowest common denominator. Joseph preferred what he called “the common ground”: a place which better reflected people’s real values and aspirations. This does not have to mean the Liz Truss “moron premium”. It does mean Conservatives working out what they are in politics for. That would be a good start.

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camilla.cavendish@ft.com

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Major update for nearly 1million energy customers as meters set to go ‘dumb’

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Major update for nearly 1million energy customers as meters set to go 'dumb’

MORE than 800,000 households will have their energy meters replaced before the RTS network is switched off next summer.

Economy 7 and other multi-rate energy tariffs use these meters, which charge users different rates depending on the time of day.

More than 800,000 households could be affected by the RTS network switch-off

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More than 800,000 households could be affected by the RTS network switch-offCredit: Getty

These devices are operated through the Radio Teleswitch Service (RTS), which broadcasts a signal alongside the long-wave channel for BBC Radio 4.

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This service is being turned off on June 30 2025 after the deadline was extended following coverage by The Sun last year.

The switch-off could lead to huge bill hikes for customers as they are no longer able to access cheaper energy rates.

Some homes, businesses and schools could even be left without heating or hot water.

Others may be unable to turn off their heating.

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The only way to avoid facing these issues is for affected households to switch to a smart meter.

Customers who swap to a smart meter will still be able to access multi-rate energy tariffs including Economy 7.

What has been agreed?

Energy suppliers, Government and consumer groups have now pledged to work together to replace RTS meters before the switch off.

The ten energy companies who have signed up are British Gas, EDF, E.On, Octopus, Ovo, Scottish Power, So Energy, SSE, Total Energies, Utilita and Utility Warehouse.

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Industry regulator Ofgem, trade association Energy UK, Distribution Network Operators, Smart Energy GB, Government and consumer groups will also be involved.

How to take a meter reading

Through their Call To Action, the industry has pledged to:

  • Focus their resources on regional “hot spots” where there are the most RTS customers
  • Fast track RTS customers for meter upgrades
  • Prioritise upgrades for customers who are known to be vulnerable
  • Tackle any technical problems by sharing their knowledge and expertise
  • Provide monthly updates on how many meters have been replaced
  • Consider if further action is needed

The pledge will also speed up the rate at which RTS meters are replaced.

At the current pace, it would take until 2028 for all of the RTS meters across the UK to be upgraded.

How do I know if I have an RTS meter?

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YOU’LL be able to tell if you have a meter that relies on the RTS quite easily.

The oldest RTS-powered meters have a switch box labelled “Radio Teleswitch” located next to the physical electricity meter.

Others may the RTS switch box included within the electricity meter as a single box on the wall.

If you’re unsure about the type of electricity meter in your home – call your supplier as they’ll usually have this information on hand.

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What does it mean for me?

Customers who have an RTS meter, or those who are not sure if they have one, should contact their energy supplier for advice.

The supplier should then be able to make an appointment for an engineer to visit their home and check.

Energy companies have been contacting customers about the switch-off since 2023.

But under the new plans suppliers will contact all RTS customers by December 31 2024 to let them know that RTS will be shut down.

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Households will also be told why it is important that their service is upgraded and they will be offered an appointment to have their meter upgraded.

It usually takes around two hours for an RTS meter to be upgraded but some cases may need more than one visit by an engineer.

Many properties with RTS meters are in rural areas or on islands.

What are the benefits of installing a smart meter?

Getting a smart meter does not cost anything as your supplier will install it for free.

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Customers affected by the RTS switch-off will also not be charged.

Smart meters send readings to your energy supplier automatically, which means you do not need to do this yourself.

They can make your bills more accurate too as they are based on readings from your actual usage, rather than estimates.

The devices can help to track how much energy you use at night, during the day and at peak times.

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You will be given an in-home display, which connects to your meter and shows your energy usage and the cost in pounds and pence.

Customers with RTS electricity meters that swap to a smart meter will still be able to access flexible electricity tariffs if they opt for one.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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‘Let’s be more normal’ – and rival Tory strategies

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Who’s up and who’s down in the Tory leadership race after the four-day beauty parade at the party’s conference in Birmingham? Host Lucy Fisher and Political Fix regulars George Parker and Stephen Bush assess the four contenders’ performances, as Conservative MPs prepare to whittle down the field to two next week. The panel are also joined by the FT’s public policy editor Peter Foster to discuss Sir Keir Starmer’s first step on the road to resetting UK-EU relations. Plus, the group discusses the latest twist in freebiegate.

Follow Lucy on X: @LOS_Fisher; George on X @GeorgeWParker, Stephen @stephenkb and Peter @pmdfoster

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US and G7 warn Israel against strikes on Iranian nuclear facilities

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Sign up here for 30 free days of Stephen Bush’s Inside Politics newsletter, winner of the World Association of News Publishers 2023 ‘Best Newsletter’ award.

Presented by Lucy Fisher. Produced by Clare Williamson. The executive producer is Manuela Saragosa. Audio mix and original music by Breen Turner. The FT’s head of audio is Cheryl Brumley.

View our accessibility guide.

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Podcast: Confronting our biggest fear – public speaking

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Podcast: Confronting our biggest fear – public speaking

In this week’s Weekend Essay, editor Tom Browne dives into one of our biggest fears: public speaking. From awkward job interviews to addressing packed rooms, Tom reflects on his journey from shyness to confidence, and how mastering public speaking can be a game-changer in both personal and professional life. Tune in now:

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US economy smashes expectations with 254,000 jobs added in September

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The US economy added 254,000 jobs in September, far outstripping expectations, in a sign of the labour market’s resilience as the Federal Reserve considers how rapidly to cut interest rates.

The figure from the Bureau of Labor Statistics was above expectations of economists polled by Reuters of 140,000 and compared with an upwardly revised gain of 159,000 jobs in August.

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The unemployment rate fell to 4.1 per cent, having come close to a three-year high in July at 4.3 per cent.

The report suggests the Fed is on course to pull off a so-called soft landing for the US economy, which has weathered the worst period of high inflation in a generation while maintaining robust growth and strong employment.

The Fed last month cut its benchmark interest rate by half a percentage point to pre-empt any significant weakening of the labour market. 

After Friday’s data release, investors in futures markets scaled back predictions that the Fed would cut interest rates by another half percentage point at its next policy meeting in November.

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Futures markets were pricing in a 94 per cent chance of a smaller quarter-point cut, compared with about 65 per cent shortly before the data was released.

“These numbers are a bit of a game-changer,” said Josh Hirt, senior US economist at Vanguard. “When you look at the revisions too, this changes the narrative about the underlying pace of job growth . . . overall it’s very positive.”

Treasury yields jumped shortly after the data was published. The two-year Treasury yield, which is sensitive to interest rate expectations, rose 0.15 percentage points to a one month high of 3.86 per cent. Futures markets suggested the S&P 500 was poised to open 0.9 per cent higher.

The dollar climbed 0.5 per cent against a basket of rival currencies following the data. It has risen more than 2 per cent since last Friday, putting it on course for its strongest week in more than two years.

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“The market likes cuts but it doesn’t like them if they’re because of real weakness in the economy and worries about recession,” Hirt said. “It likes cuts with a positive underlying economy, which would bolster the soft landing scenario.”

Jobs growth in Friday’s report was strongest across the leisure and hospitality sector, specifically in restaurants and bars. Employment in those categories increased by almost 70,000. Healthcare jobs rose by 45,000.

Manufacturing and other industrial jobs such as in mining and oil were unchanged for the month, alongside the retail, transportation and professional and business services sectors.

Average hourly earnings increased 0.4 per cent for the month and are up 4 per cent on an annual basis.

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US central bank officials are focused on the health of the labour market as they plan further interest rate cuts in the coming months after making a larger-than-usual half-point reduction in September. The cut left the Fed’s benchmark rate at 4.75-5 per cent.

Fed chair Jay Powell hinted this week that the central bank would revert to its more usual quarter-point cut when it next meets in November — just after the US presidential election — as long as the economy does not deteriorate unexpectedly.

Officials have grown more confident in their ability to bring price pressures back down to the Fed’s 2 per cent target without triggering a recession. Lay-offs have not yet risen, although some economists warn that the fall in demand in recent months could be a precursor to steeper job losses.

New data on Tuesday showed that the number of vacancies unexpectedly rose in August to 8mn, but the rate at which Americans are quitting their jobs fell to the lowest level since June 2020.

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The unemployment rate is up substantially from its recent low of 3.4 per cent last year, but economists largely attributed the rise to a growing workforce.

Most Fed policymakers last month forecast that the US unemployment rate would peak at 4.4 per cent this year and next, while interest rates would fall to 4.25-4.5 per cent and 3.25-3.5 per cent, respectively.

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