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Japan’s new prime minister, Yoshihide Suga, is wasting no time.
Mr Suga has already made clear that he intends to continue with the three ‘arrows’, as they are called, of his predecessor Shinzo Abe’s economic blueprint of Abenomics – an aggressive monetary policy, a flexible fiscal policy and a growth strategy including structural reform.

With the Bank of Japan already having implemented a main policy rate of -0.1% and the Japanese government set to continue running budget deficits as far into the future as the eye can see, that means structural reform is likely to take up most of the slack.

Image: Yoshihide Suga became Japan’s new prime minister in mid-September
Today came an example of the kind of thing Mr Suga may have in mind.
Mobile phone fees have long been a bugbear of the new prime minister.

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Two years ago, as chief cabinet secretary, he demanded mobile phone operators cut their charges by as much as 40%. And, while some of the carriers did indeed reduce fees afterwards, Japanese mobile phone charges remain higher than in many other countries.

A survey by the Japanese communications ministry published in July this year revealed that heavy data users in Tokyo pay significantly more than users in five comparable connected cities – New York, London, Paris, Seoul and Dusseldorf.

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London’s mobile charges were the cheapest of the six.
It prompted further criticism from Mr Suga. During his first news conference after becoming prime minister, he hit out at the three main players, Docomo, KDDI and Softbank.

Image: Japan’s mobile phone charges remain high – partly through a lack of competition
He said: “They continue to post operating profit [margins] of 20% with some of the highest fees in the world.”
Mr Suga immediately ordered Ryota Takeda, his internal affairs and communications minister, to tackle the issue. Mr Takeda promptly warned the sector that he expected a cut of more than 10% in mobile charges.
Those cuts may come a step closer following news on Tuesday of what would be the country’s biggest corporate takeover.
Nippon Telegraph and Telecom (NTT), which can be seen as Japan’s equivalent of a company like BT in the UK or Deutsche Telekom in Germany, spun off its mobile phone arm, Docomo, as long ago as 1992.
Today, though, it said it wanted to buy the remaining 34% of the carrier that it does not already own. The deal would value Docomo at 4.25 trillion yen (£31.3bn).
Because the Japanese government still owns one-third of NTT – it began privatising the company a year after Margaret Thatcher launched the privatisation of BT in 1984 – this would put it in a strong position to lobby for cuts to mobile rates.
This is clearly what investors expect: shares of Docomo’s main rivals, KDDI and Softbank, both fell sharply on news of the takeover and on concerns that a price war may be looming.
Jun Sawada, NTT’s chief executive, insisted that government pressure for price cuts had not been a factor – but confirmed they were likely.

Image: Jun Sawada is NTT’s chief executive. Pic: NTT
He said: “Doing this will make Docomo stronger and its financial foundation stronger, which would create room to lower rates. We will take full advantage of our group’s resources to enhance our competitiveness.”
Mr Sawada said that Docomo would also be a more nimble business under his company’s full control.
He added: “We can speed up decision making.”
While Docomo may be in a position to implement greater cuts in mobile charges as part of NTT, what will still be missing in Japan is proper competition.
In the UK, prices are arguably kept low by tough competition involving four major players – Vodafone, EE, O2 and 3UK – as well as a host of ‘virtual mobile network operators’ (MVNOs), including Virgin Mobile, Tesco Mobile and Sky Mobile.
Similarly, in France, there are four major operators – Orange, SFR, Free and Bouygues Telecom – as well as numerous MVNOs including Coliolis, Prixtel and La Poste Mobile.
By contrast, in Japan, the three main players have 90% of the market between them and Docomo, which currently has 80 million subscribers, is the biggest.
The e-commerce giant Rakuten, which previously operated as an MVNO, is now building out its own 5G network and launched in three cities in April this year – Tokyo, Nagoya and Osaka – but it remains some way off from becoming a serious competitor to the big three.
The takeover marks something of a comedown for Docomo. At the turn of the century, during the first dot-com and tech boom, it was briefly worth almost $350bn – making it Japan’s biggest company by stock market valuation and one of the five biggest companies in the world.

Image: NTT’s work has included developing robotics to help control multiple electronic devices
Then the bubble burst and it swiftly lost one-third of its value. More recently it has become smaller still after a vainglorious overseas expansion – during which it overpaid for a 16% stake in the US mobile firm AT&T Wireless – backfired and it was forced to retrench.
The NTT takeover of Docomo may also set a trend for another round of corporate restructuring that could be construed as a key aim of Abenomics.
Japanese business is notable for what is known as ‘keiretsu’ – a complex system of business networks full of companies with cross shareholdings, alliances and close relationships.
Mr Abe did his best to dismantle this system, which was blamed for thwarting productivity improvements and stifling competition, but he only got so far. Many so-called ‘parent-child’ shareholder arrangements, such as NTT’s ownership of 66% of Docomo, persist.
This deal could hasten their elimination – to the benefit of consumers and shareholders alike.

The owner of Young’s Seafood is lining up bankers to help it land the prize catch of a London stock market listing next year.
Sky News understands that Eight Fifty Food Group, which owns Young’s and the giant pork processing business Karro, is close to appointing JP Morgan and Jefferies to work on an initial public offering.

A formal decision to proceed with a flotation has yet to be made, but if it goes ahead, it would not take place until next year.

Where jobs have been lost in the UK economy

Eight Fifty takes its name from the fact that there are roughly 850 acres in a nautical square mile and denotes “the unity of land and sea”, according to the company.
Owned by the private equity firm CapVest, it has annual sales of approximately £1.4bn and employs more than 7,500 people across 19 sites in the UK and Ireland.

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It is unclear whether CapVest might also seek to gauge the interest of potential buyers of the company, alongside the preparations for a stock market listing.

The buyout firm owns a number of other food assets, including brands such as Rowse Honey, which is part of CapVest’s Valeo business.

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When asked about the possibility of an IPO this month, an Eight Fifty Food Group spokesperson declined to comment, but said: “As a major food group made up of Karro Food Limited and Young’s Seafood we continue to focus on providing great food to customers across pork and seafood.
“We are excited about the ongoing opportunity to create an ambitious multi-protein food business of considerable scale with a combined platform in two important protein categories that are experiencing consistent long-term growth.”
CapVest declined to comment.

Hotel Chocolat has seen profits melt away as it counts the cost of the pandemic.
The chocolate maker and retailer reported a pre-tax loss of £7.5m for the year to 28 June, compared with a profit of £14.1m the year before.

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Image: Hotel Chocolat said impulse purchases fell
It was dragged into the red after writing down the value of assets by £10m due to the “current disruption”.
Sales had been up by 14% in the first half of the year, but tumbled by 14% in the second half, which included the key Easter period when stores were closed.

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Overall for the year, revenues grew 3% to £136.3m.

Chairman Andrew Gerrie said: “Having delivered a strong first-half performance, the second half of the year was materially disrupted by COVID-19 and the related restrictions, which led to the closing of all UK retail locations for 12 weeks, and the shutdown of our factory for eight weeks.”

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More recent trading showed how sales have shifted online, with digital demand up 150% over the summer.
Meanwhile, the company has closed five sites in commuter locations due to reduced footfall.

Changing face of retail under coronavirus

It said there had been a drop in “impulse” sales, particularly in London.
The group said it was in discussion with landlords “to find collaborative solutions to the ongoing disruption”.

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Chief executive Angus Thirlwell told Sky News most were “in the bag” and rents had been paid for September but that other property owners were “not getting it”.

Mortgage approvals rose to their highest level for nearly 13 years last month in the latest sign of a post-lockdown recovery in the housing market.
The number of home loans signed off rose to 84,715, up from 66,288 the month before, according to latest Bank of England figures.

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Plans to speed up house-building

That took mortgage approvals back above pre-pandemic February levels for the first time and was the highest number since October 2007.
The Bank of England said it showed “more signs of recovery” for the mortgage market but that it only “partially offsets” weakness between March and June – a period which saw approvals sink to record lows.

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In total, there have been 418,000 approvals in 2020, compared with 524,000 in the same period in 2019.

Thomas Pugh, UK economist at Capital Economics, said the “mini-boom” in the housing market was due to pent-up demand and the government’s stamp duty holiday.

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But Mr Pugh also pointed to sluggish data on consumer credit – covering the likes of credit cards and car finance – within the BoE data.
Consumer borrowing, which is seen as a key driver of economic growth, increased by just £300m in August, having increased by £1.1bn in July.

Image: The increase was partly attributed to pent-up demand
That followed four straight months from March to June when households had been net paying back loans.
Mr Pugh said: “Darkening clouds on the economic horizon may tempt some households to start to rein in spending in the months ahead.

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“These figures suggest that the recovery was already starting to slow in August, before the latest restrictions were announced.
“Those restrictions and rising unemployment will put a further dampener on consumers ability to spend.”

Jobs that “don’t fit” with coronavirus may “take a long time to come back”, a minister has warned.
Gillian Keegan told Kay Burley that the furlough scheme did aim to support people in industries hardest hit by COVID-19, but it cannot continue “indefinitely”.

She admitted it “is hard to see how nightclubs will open until we have some kind of long-term way to deal with coronavirus”.
The skills minister was quizzed on fresh new restrictions slipped out by the government banning some singing and dancing in hospitality firms.
“It’s hard to keep your space if people are moving and you don’t know how someone else is going to move,” she said.

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And Ms Keegan defended the 10pm curfew for pubs, bars and restaurants.

She said they should be “COVID-secure” anyway but “if they stay open later, we don’t get control of the virus”.

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Asked what scientific basis there was for the policy, Ms Keegan pointed to Belgium where a similar measure was introduced and cases decreased.
“That is the science, the evidence that we have,” she added.

Eighteen workers at a Bernard Matthews turkey plant have tested positive for coronavirus.
The staff members are self-isolating and approximately 100 other workers at the Suffolk site have been tested, with most returning negative results.

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Why are COVID-19 outbreaks happening in food factories?

Food production has not been affected by the outbreak, which comes ahead of the busy Christmas period.
The processing facility – which is in Holton, near Halesworth – has had controls in place since March to reduce the spread of coronavirus, including regular temperature checks, staff working in bubbles, COVID marshals, masks and visors and social distancing.

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Most of those who tested positive live in the Great Yarmouth and Lowestoft areas and the cases are believed to have originated in the community, Bernard Matthews said.

Suffolk County Council, Public Health England and Bernard Matthews are now trying to manage the situation.

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Stuart Keeble, Suffolk’s director of public health, said: “I’d like to reassure people that this is, at this stage, a relatively small number of cases and that the situation is being very carefully managed by all the partners working closely together.”

Image: The outbreak has not affected food production
A spokesperson for Bernard Matthews said: “We are grateful for the help of all local agencies and we fully support their objectives to protect the local community.
“We believe these small number of cases were initiated in the community, but nevertheless we will continue to enforce our robust COVID measures as we enter into our busiest period of the year.”

Greggs has warned that trading will remain “below normal for the foreseeable future” as it plans cost-cutting measures that could see jobs go.
The high street bakery chain said sales were recovering but were still almost 25% below last year’s levels in recent weeks, following an even tougher August.

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‘Majority of Greggs’ customers can’t work from home’

It confirmed that it had launched a consultation with employee and union representatives, first revealed earlier this month, but would seek to “minimise the risk of job losses” by reducing hours in shops.
Greggs, best known for its sausage rolls, is launching the plan as the government’s furlough scheme comes to an end.

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“With the Job Retention Scheme planned to end in October we are taking steps to ensure that our employment costs reflect the estimated level of demand from November onwards,” Greggs said.

“With business activity levels remaining below normal for the foreseeable future we must change the way we work to be as productive and flexible as we can in order to protect as many jobs as possible for the long term.”

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The company pointed to an uncertain outlook with the risk of rising COVID-19 infection rates disrupting its supply chains and resulting in lockdown rules tightening.
Shares fell 4% in early trading.

Can the economy recover as furlough ends?

Greggs said sales in the 12 weeks to 26 September in its company-managed shops averaged 71.2% of 2019 levels though they improved to 76.1% in the most recent four weeks.
Trading was held back in August as the company was not able to take part in the government’s Eat Out To Help Out scheme – with its own seated food service still closed at that time.
Hot weather also made it a “difficult month”, Greggs said, though there has been a recovery this month thanks to “increased out-of-home activity”.
The company said it was bringing back more of its products and reopening customer seating in larger shops, adding that its click and collect offer is now available stores and delivery partnership with Just Eat was “progressing at speed”.

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Newcastle-based Greggs, which has more than 2,000 UK stores, said it was partially restarting its shop opening programme and expects to add a net 20 this year.
It acknowledged an “ongoing challenge” to operations after a “COVID-19 occurrence” saw a distribution centre in Leeds close temporarily last month and another at a manufacturing site in Newcastle.
Greggs said: “The outlook for trading remains uncertain, with rising COVID-19 infection rates leading to increasing risks of supply chain interruption and further restrictions on customer activities out of the home.”

Liverpool, Leeds and Manchester face mass redundancies and “boarded-up high streets” amid a collapse of the hospitality sector unless coronavirus restrictions are reviewed, the cities’ leaders have warned the government.
A letter to Health Secretary Matt Hancock and Business Secretary Alok Sharma from the leaders and chief executives of the three city councils said restrictions in place in the regions were threatening a “huge, disproportionate” economic impact.

They said hotel occupancy was down to 30% and footfall had dropped by up to 70%.
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In the letter, they said: “The stark reality is that these businesses are facing the prospect of a complete decimation in trade, not just in the short term but as we look ahead to the sector’s traditional lifeblood of the Christmas period and almost certainly continuing into spring/summer of next year which we know with certainty will result in mass market failure, huge levels of redundancies and depleted and boarded up high streets.”

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They said coronavirus guidance in place in the cities that advises people not to mix with other households was “unenforceable” as well as being “contradictory and confusing”.

And they urged ministers to make the advice law, and compensate businesses with a package of support – or allow mixing within the “rule of six” in controlled environments.

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A law banning the mixing of households in public spaces – including pubs and restaurants – was announced for parts of northeast England on Monday, but it remains advice rather than law for other areas in the North.
Leaders of the cities also called for the government to review the 10pm curfew and discuss concerns with local authorities and businesses in advance.

Image: Leaders want the government to review the 10pm curfew
Mayor of Liverpool Joe Anderson said: “We need to find a way to adjust the restrictions to ensure a balance in protecting public health and the need to protect businesses, many of which are teetering on the brink.
“Liverpool is a city which has built its revival on the leisure and hospitality sectors and it is a massive contributor not just to employment but also to business rates which fund vital local services.
“The vast majority of our businesses have responded in the right way, investing heavily in providing safe, compliant environments and a place for people to enjoy themselves safely.
“The inspections we have carried out show a very high level of compliance.
“People in restaurants are in COVID-safe environments with high levels of sanitisation and appropriate spacing.
“Forcing people to leave at 10pm runs the risk that they then go on together to a house in a large group which does not have the same measures in place.

Boris Johnson is launching a skills revolution to tackle coronavirus job losses, while battling against a Tory backlash over further COVID-19 restrictions.
In a move aimed at creating a jobs recovery, the prime minister plans to expand post-18 education and training to help people made redundant retrain for a new job.

Mr Johnson is promising a £2.5 billion Lifetime Skills Guarantee, which he says will give adults without an A-level or equivalent qualification the chance to take a free vocational college course.
But while the embattled PM unveils his jobs plan, senior ministers are desperately trying to persuade up to 80 rebel Tory MPs not to inflict a humiliating Commons defeat on new lockdown restrictions.
And the Education Secretary Gavin Williamson – branded the “Invisible Man” by Labour – is facing a bruising showdown with MPs as he makes a Commons statement on the lockdown of thousands of students forced to self-isolate on university campuses.

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In his speech announcing the new skills guarantee, the prime minister will say: “As the Chancellor has said, we cannot, alas, save every job.

“What we can do is give people the skills to find and create new and better jobs. So my message today is that at every stage of your life, this government will help you get the skills you need.”

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He will add: “We’re transforming the foundations of the skills system so that everyone has the chance to train and retrain.”

What you can and can’t do – and the penalties for breaking the rules

But behind the scenes at Westminster, leaders of the Tory backbencher rebellion, who are demanding Commons votes on new lockdown restrictions, were summoned to talks with senior ministers.
It is claimed up to 80 Conservative MPs are prepared to back an amendment to the Coronavirus Act, tabled by the chairman of the Tory backbench 1922 committee Graham Brady, demanding debates and votes on all new COVID-19 curbs.
The rebels’ spokesman, former Brexit minister Steve Baker, met Health Secretary Matt Hancock, Government chief whip Mark Spencer and Commons Leader Jacob Rees-Mogg for crisis talks aimed at hammering out a compromise.
After the meeting, Mr Baker said it was “cordial and constructive” and that further talks were planned. “I hope and expect we will reach a satisfactory agreement,” he said.
One option being discussed is thought to be a plan for MPs to be granted a retrospective vote on new coronavirus powers five sitting days after they are laid in parliament as opposed to the current four weeks.
Hinting at a deal during a Commons debate in which Tory MPs vented their fury over the lack of scrutiny, Mr Hancock told MPs: “The question is how we can have the appropriate level of scrutiny whilst also making sure that we can move fast where that is necessary.”
Senior ministers, however, are hoping the Commons Speaker, Sir Lindsay Hoyle, will rule the Brady amendment out of order and save the government from the threat of a hugely embarrassing defeat.

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In an alarming development for the prime minister, the Tory backbench rebellion includes a Red Wall revolt over the latest coronavirus crackdown, by MPs representing seats snatched from Labour at the December general election.
A group of Conservative MPs from Teesside and County Durham – Jacob Young, Matt Vickers, Simon Clarke, Peter Gibson and Paul Howell – have written a hard-hitting letter to Mr Hancock.
In the letter, they claim national measures like the rule of six and the 10pm curfew on pubs should be given more time to “bed in” before further measures are imposed.
“In particular, a ban on household mixing as winter approaches would in practice condemn thousands of local people to loneliness and isolation – even with mitigating measures in place,” they wrote.
North West Durham MP Rick Holden told the Daily Mail his constituents wanted to know when they would be freed from the latest onerous restrictions, which were requested by local authorities in the region.
“People are incredibly irritated by the restrictions and they are a disaster for the hospitality industry,” he said. “They will grudgingly abide by it in the short term, but they want to know where the end is, and they certainly don’t want any more.”
Ahead of Mr Williamson’s Commons statement on student lockdowns, Labour’s Shadow Education Secretary Kate Green said: “After days of silence, this statement is a chance for the education secretary to end his Invisible Man act and begin to get to grips with the situation.
“None of this was unforeseeable. Labour and others have warned that campuses would need access to testing. But – just as with the exams fiasco over the summer – the education secretary has created chaos through his incompetence and failure to act.
“Gavin Williamson must set out what he is doing to resolve these problems and put young people and parents’ minds at rest.”

Care leavers are facing “digital poverty” without laptops or access to the internet, campaigners say.
A government scheme to provide digital devices and internet access to vulnerable young people in England during the pandemic is set to end in November.

Charities say it risks leaving up to 80,000 18-25 year-old care leavers isolated and unable to access education and work or to keep in touch with friends and family.
In an open letter to ministers, leading charities and youth organisations including Barnardo’s and The Children’s Society have called on the government to extend the scheme and ensure every care leaver gets internet access for at least 12 months when they first live independently.
They’ve described the move to stop the scheme as a “backward step”.

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The letter reads: “Taking it away would not only be a backwards step, but would have a potentially damaging effect on these young care leavers’ ability to learn, communicate and work effectively.

“It would plunge many into digital poverty.

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“Devices and internet access are crucial to minimise disadvantage and maximise opportunity. Digital access should be a right, not a luxury.”
The letter has been sent to Education Secretary Gavin Williamson, Children’s Minister Vicky Ford and Business Minister Nadhim Zahawi.

Image: Luke Fox felt isolated after leaving care when he was 18
Alongside the open letter, care leaver Luke Fox has started up a petition on behalf of the Care Leavers National Movement (CLNM) which is part of the National House Project.
He is hoping to get 100,000 signatories to secure a debate in parliament.
He told Sky News living without digital access makes “you feel like you’re the lowest of the low”.
He added: “Because you can’t do things that everyone else can and care leavers often don’t feel like they’re normal anyway because they’ve essentially lived without their family whereas everyone else have.”
He described how vital an internet connection was in supporting a friend in care who was suicidal.
He said: I’ve actually managed to stop them killing themselves virtually over the internet.
“It was a very difficult night for me.
“I was laid up in south Yorkshire, they were down in London standing on edge of a bridge.
“If it wasn’t for that virtual connection and the internet I wouldn’t have been able to do any of that.
“The only reason I was able to do that at the time was because I was in a place what had internet.”

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Charities said lockdown has “shone a light” on the isolating situation many care leavers find themselves in.
As a result, they want the government to recommend that all local offers for care leavers include the right to a digital device and internet access to keep them connected to others.
Chris Wright, Chief Executive Catch22 – one of the charities to sign the letter – said: “For many young care leavers, having access to a laptop and a decent internet connection has been a lifeline during the pandemic.
“With the scheme ending and Covid-19 restrictions tightening again, there is a real danger of young care leavers slipping back into digital poverty in the coming months and beyond.
“We cannot afford to let the digital divide become even wider.
“We urge Government not to desert these young people, and to keep them connected. Digital access must be seen as a right, not a privilege.”