Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Tuesday, November 8, 2011, from 8:27 a.m. to 8:33 a.m.)

[Opening Remarks by Minister Jimi]

Today, I do not have anything particular to announce.

[Questions & Answers]

Q.

The Tokyo Stock Exchange (TSE) and the Osaka Securities Exchange (OSE) are in the final stage of negotiations about a business integration. What do you think of the current situation? Also, could you tell me what you expect of the business integration?

A.

Until now, I have not received a report from the TSE or OSE about any decision made on the business integration. Generally speaking, I believe that each exchange is required to achieve development itself while providing services that better satisfy the needs of users and investors. I understand that it is up to the management team of each exchange, which is a private organization, to decide how to perform those tasks as part of its management strategy, as I have been saying.

However, generally speaking, as a global trend, there are moves in the United States, Europe and Asia to unify or merge exchanges, as I have seen during my trips to those regions, so I feel that this trend may be influencing this deal.

Q.

The yield on Italian government bonds rose sharply. What is your analysis of that? Do you think that the Greek problem has spread to Italy?

A.

I heard about the rise in the yield on Italian government bonds in a news program this morning. Since the middle of the year, there has been a global move toward risk aversion amid concerns over the European fiscal and financial problems and the weakness of the economic recovery in the United States and Europe, and there have been unstable movements in the financial and capital markets, including the exchange market, as has been made clear to all people around the world through the latest G-20 summit.

As someone in charge of financial affairs, basically, I should refrain from making comments on specific market developments. In any case, as the Minister for Financial Services, I will continue to carefully monitor market development with strong interest and a high level of alertness while maintaining cooperation with relevant ministers and the Bank of Japan.

Q.

Debate on TPP (Trans-Pacific Partnership) is growing intense within the ruling parties. Could you explain your view on TPP once more?

A.

Regarding the TPP, Prime Minister Noda and Mr. Kamei, leader of our party (People's New Party), are scheduled to hold talks after a session of the (House of Representatives') Budget Committee today. As for the TPP, the government intends to decide as soon as possible whether or not to participate in the TPP negotiations after conducting a substantive debate and comprehensive study in light of the effects of the TPP on the recovery of agriculture in the disaster areas as well as the progress in international negotiations and concerns over the hollowing-out of industries, among other things. As I have mentioned several times, Mr. Kamei, leader of the People's New Party, and Prime Minister Noda, who is president of the Democratic Party of Japan (DPJ), will hold a meeting. While I am deputy leader of the People's New Party, I am also a member of the Noda cabinet, which is based on the coalition of the DPJ and the People's New Party. Before today's cabinet meeting, the Chief Cabinet Secretary informed me that Prime Minister Noda and Mr. Kamei will hold a meeting from 5:30 p.m., as I had already been informed by Mr. Kamei.

I am a member of the Noda cabinet, and Prime Minister Noda has not said anything about that within the cabinet. In light of that, I believe that I would betray my pride as a lawmaker with 26 years of experience if I made comments with prejudgment. That is my belief, as the leaders of the two parties are going to discuss this matter today.

(End)