Japan

ボルボＥＶにグーグルのジェミニ ＡＩと会話、運転を補助

Tokyo Shimbun | Local Language | News | Jan. 23, 2026 | UndeterminedTech Development/Adoption

Volvo Cars announced the launch of its new electric vehicle, the EX60, on January 21, 2026. This model is the first Volvo to feature Google’s generative AI, Gemini, enabling drivers to perform functions through conversational interaction with the AI while driving. The vehicle is equipped with a high-performance computer and offers a driving range of up to 810 kilometers on a single charge.

The EX60 introduces an innovative seatbelt system that adjusts based on sensor data related to traffic conditions and the occupant’s status. It also supports rapid charging, providing up to 340 kilometers of driving range in just 10 minutes using a high-power charger. Deliveries of the EX60 in Japan are expected to begin within 2026, though pricing details have not yet been announced.

【開催報告】ウェビナー「高市政権の財政・税制の検証と今後の課題」（2026年1月8日 開催）

Tokyo Foundation for Policy Research | Local Language | AcademicThink | Jan. 23, 2026 | UndeterminedTaxes

The Takai administration has positioned "responsible proactive fiscal policy" as the cornerstone of its economic and fiscal management strategy, unveiling its first budget proposal for Fiscal Year Reiwa 8 with a general account total of ¥122.3 trillion, the largest for the second consecutive year. Tax revenues are forecasted to hit a record ¥83.7 trillion, while debt-service costs surpass ¥30 trillion. In a webinar held on January 8, 2026, fiscal experts from the Tokyo Foundation debated the realism of maintaining debt growth within economic growth rates as a substitute for achieving a primary balance surplus, among other fiscal policy concerns.

The discussion focused on various aspects, including the evaluation of the primary balance on a general-account basis, problems with the fiscal deficit-to-GDP ratio indicator, and the complexities of budget formulation under a small ruling party. Tax reforms received particular attention, including debates on income thresholds—specifically the ¥100 million threshold—and the review of burdens on extremely high incomes. The experts also assessed the expansion of investment tax cuts aimed at strengthening the economy, the clarity of priorities in the tax reform package, evidence-based policy making (EBPM) considerations, and the prospects for a Japanese version of DOGE (digital governance).

Further dialogue centered on the introduction and potential role of tax credits with benefits within the broader framework of tax and social security integration. Key issues raised included whether benefits should be allocated to family or individual units, the division of responsibility between national and local governments, funding mechanisms, and the digital infrastructure necessary for implementation. The webinar drew on detailed research and policy materials, emphasizing ongoing challenges and future directions in Japan’s fiscal and tax policy landscape under the Takai administration.

金利上昇でも続く円安 日銀、物価高止まりを警戒

Tokyo Shimbun | Local Language | News | Jan. 23, 2026 | UndeterminedInflation

The yen continues to weaken against the US dollar despite rising long-term interest rates in Japan and the Bank of Japan's warnings about persistent high inflation. Although the Federal Reserve is cutting rates, narrowing the interest rate gap between the US and Japan, the expected yen strengthening has not occurred. This is attributed to growing concerns over Japan's worsening public finances, which are driving ongoing yen selling in the foreign exchange market.

On January 21, long-term interest rates on Japanese government bonds closed at 2.285%, over 0.6 percentage points higher than in early October 2025, before Prime Minister Sanae Takaichi took office. Typically, such increases in interest rates would support yen appreciation, but this correlation is breaking down due to a lack of confidence in Japan's fiscal health. The Liberal Democratic Party’s upcoming election platform includes a pledge to consider exempting food and beverage items from consumption tax for two years, a move that risks undermining fiscal credibility even if it is not implemented.

Overall, persistent inflation risks and fiscal concerns are leading to continued yen weakness despite conventional factors that would normally strengthen the currency. The uncertainty ahead of the February 8 House of Representatives election is contributing to investor wariness in the currency and bond markets.