Identifier
Created
Classification
Origin
07TOKYO4386
2007-09-20 02:19:00
UNCLASSIFIED
Embassy Tokyo
Cable title:
TOKYO MEDIA REACTION - FRB RATE CUT
VZCZCXRO2706 PP RUEHFK RUEHKSO RUEHNAG RUEHNH DE RUEHKO #4386 2630219 ZNR UUUUU ZZH P 200219Z SEP 07 FM AMEMBASSY TOKYO TO RUEHC/SECSTATE WASHDC PRIORITY 7756 RUEKJCS/SECDEF WASHDC PRIORITY RUCPDOC/USDOC WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA PRIORITY RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY RHHMHBA/COMPACFLT PEARL HARBOR HI//N541// PRIORITY RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA// PRIORITY RUHBANB/OKINAWA FLD OFC US FORCES JAPAN CP BUTLER JA PRIORITY RUALSFJ/COMUSJAPAN YOKOTA AB JA PRIORITY INFO RUEHFK/AMCONSUL FUKUOKA 3258 RUEHNH/AMCONSUL NAHA 5672 RUEHNAG/AMCONSUL NAGOYA 2219 RUEHKSO/AMCONSUL SAPPORO 3983 RUEHOK/AMCONSUL OSAKA KOBE 6908 RUEHBJ/AMEMBASSY BEIJING 9059 RUEHMO/AMEMBASSY MOSCOW 1892 RUEHUL/AMEMBASSY SEOUL 5116 RUCNDT/USMISSION USUN NEW YORK 6013 RHEHAAA/NSC WASHDC
UNCLAS TOKYO 004386
SIPDIS
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - FRB RATE CUT
LEAD STORIES: All Thursday morning papers led with the
results of a Japanese government survey that showed a 1
percent rise in average commercial land prices across
the nation as of July 1 compared to a year earlier.
UNCLAS TOKYO 004386
SIPDIS
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - FRB RATE CUT
LEAD STORIES: All Thursday morning papers led with the
results of a Japanese government survey that showed a 1
percent rise in average commercial land prices across
the nation as of July 1 compared to a year earlier.
1. "Drastic Measures Necessary to Resolve Subprime Loan
Problem" The liberal Mainichi editorialized (9/20):
"The US lowered its key interest rate for the first
time in almost four years.... The US has adopted an
easy-money policy as an 'emergency measure' to prevent
cash-strapped financial institutions from suffering a
credit crunch.... It is necessary for the US to take
appropriate steps to deal with the subprime loan fiasco
in order to resolve the current confusion in the
financial markets.... The FRB needs to immediately
take drastic measures to prevent the subprime loan
problem from affecting global markets."
2. "Anxiety Remains Despite Rate Cut" The liberal Tokyo
Shimbun wrote in an editorial (9/20): "...We welcome
the FRB decision to cut the federal funds rate by 0.5
point at a time when a clear message from US
authorities was needed. Markets in New York and Tokyo
reacted positively in the hope of a rise in share
prices. Although markets appear to be enjoying a
temporary respite, this is no time for complacency.
Former FRB Chairman Greenspan recently told the
European press that he would not be surprised to see a
double-digit drop in US housing prices. Current FRB
Chairman Bernanke stressed the gravity of the subprime
loan problem, saying that the vulnerability of the
housing market has continued longer than expected and
that the losses in global financial markets have also
exceeded expectations."
SCHIEFFER
SIPDIS
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - FRB RATE CUT
LEAD STORIES: All Thursday morning papers led with the
results of a Japanese government survey that showed a 1
percent rise in average commercial land prices across
the nation as of July 1 compared to a year earlier.
1. "Drastic Measures Necessary to Resolve Subprime Loan
Problem" The liberal Mainichi editorialized (9/20):
"The US lowered its key interest rate for the first
time in almost four years.... The US has adopted an
easy-money policy as an 'emergency measure' to prevent
cash-strapped financial institutions from suffering a
credit crunch.... It is necessary for the US to take
appropriate steps to deal with the subprime loan fiasco
in order to resolve the current confusion in the
financial markets.... The FRB needs to immediately
take drastic measures to prevent the subprime loan
problem from affecting global markets."
2. "Anxiety Remains Despite Rate Cut" The liberal Tokyo
Shimbun wrote in an editorial (9/20): "...We welcome
the FRB decision to cut the federal funds rate by 0.5
point at a time when a clear message from US
authorities was needed. Markets in New York and Tokyo
reacted positively in the hope of a rise in share
prices. Although markets appear to be enjoying a
temporary respite, this is no time for complacency.
Former FRB Chairman Greenspan recently told the
European press that he would not be surprised to see a
double-digit drop in US housing prices. Current FRB
Chairman Bernanke stressed the gravity of the subprime
loan problem, saying that the vulnerability of the
housing market has continued longer than expected and
that the losses in global financial markets have also
exceeded expectations."
SCHIEFFER