To the deflationary spiral however now because theres a strong trend of Wage Increases, Finance Minister Shunichi Suzuki says its over. Joining me now is seijiro takeshita, whos a professor at the university of shizuoka. Thank you for being with us today. Talk to us first of all, this is a pretty unique set of circumstances that japan has pretty unique set of circumstances thatjapan has been pretty unique set of circumstances that japan has been through for the past generation. It is todays Declaration Calls for celebration . Yes, i would think so. Concerning the fact that for two decades, we havent seen any wage rise. Where the only country to do that. There are a lot of recurring profits, bits nine redeeming to their employees. This is, in that sense, a remarkable change. In most of the estimates, there were around 4 , but now its been reported to be around 5. 2, exceeding expectations. fist been reported to be around 5. 2, exceeding expectations. Been reported to be around 5. 2, exceeding expectations. At the same time, risin exceeding expectations. At the same time, rising wages exceeding expectations. At the same time, rising wages means exceeding expectations. At the same time, rising wages means rising time, rising wages means rising prices at the shops, something i think a generation ofjapanese people have not been accustomed to. What has been the reaction . The ja anese what has been the reaction . Tue japanese consumer what has been the reaction . Tte japanese consumer tend to be excessively conservative. They are, as we say in expression, their wallet is very tight, considering their very conservative in their spending patterns. That said, one of the reasons is because of insecurity and ambiguous external environment. These two issues are partly sold, they will start spending with a Wage Increase, which is a sign that this company is doing well. Increase, which is a sign that this company is doing well. Labour unions and now negotiating company is doing well. Labour unions and now negotiating a company is doing well. Labour unions and now negotiating a pay company is doing well. Labour unions and now negotiating a pay rise company is doing well. Labour unions and now negotiating a pay rise for and now negotiating a pay rise for the first time in a long time, im sure theyre Negotiating Skills might be rusty at this stage, what are they seeking . In might be rusty at this stage, what are they seeking . Might be rusty at this stage, what are they seeking . In japan, the most im ortant are they seeking . In japan, the most important thing are they seeking . In japan, the most important thing is are they seeking . In japan, the most important thing is security are they seeking . In japan, the most important thing is security of are they seeking . In japan, the most important thing is security ofjobs. I important thing is security ofjobs. Japan takes what we call in enterprise union, which is unique and different to the nation. Its a union within the company. Basically, theres a lot of coordination with theres a lot of coordination with the labour and the management. That is one of the reasons why Wage Increase have been held back, because corporations wanted to secure a lot of fans for uncertain times, and employees went with it. As long as they got security of the job. Now, its about time they should be redeemed back to the shareholder, as well as the employees. Shareholder, as well as the employees shareholder, as well as the emlo ees. ~. , employees. When we look back over the last generation, employees. When we look back over the last generation, and employees. When we look back over the last generation, and what employees. When we look back over the last generation, and what it employees. When we look back over the last generation, and what it is i the last generation, and what it is that has helped japan enter spirit, is it easy to point out one thing that we can say has helped tip the balance, or has it been a game of patience . Balance, or has it been a game of atience . �. , , balance, or has it been a game of atience . A. ,. , � patience . Actually come about. But the fact that patience . Actually come about. But the fact that corporations patience . Actually come about. But the fact that corporations are the fact that corporations are making Record Traffic for net profits back from a weakened yen, they have enough cash to do that and secondly, considering the inflation issues we are getting from external factors such as oil price, its understandable that theyre doing this. Theyre being criticised, and its rare that the government is inducing, Encouraging Companies to raise prices, so it is about time, and a lot of it has to do with, as you pointed out, patients by the japanese in place. You pointed out, patients by the japanese in place. Seiiro takeshita from the University Japanese in place. Seijiro takeshita from the University Of Japanese in place. Seijiro takeshita from the university of shizuoka. I from the university of shizuoka. Thank you forjoining us. Staying injapan, two of the countrys rival carmakers honda and nissan have announced theyre considering a partnership in electric vehicles. The deal would bring Togetherjapan 5 second and Third Largest carmakers in collaboration to make key components for evs and develop Artificial Intelligence for cars. It could help them as they battle competition from emerging chinese Car Manufacturers as well as the market leader, tesla. Lets speak now to david bailey, professor of Business Economics at the Birmingham Business school and an expert on the car industry. Thank you forjoining us today, david. How big a deal is this . Or would this be . They havent quite signed the dotted line yet . Tts would this be . They havent quite signed the dotted line yet . Tts a signed the dotted line yet . Its a bi deal. Signed the dotted line yet . Its a big deal. What signed the dotted line yet . Its a big deal. What it signed the dotted line yet . Its a big deal. What it really signed the dotted line yet . Tt� s. Big deal. What it really shows is the massive challenge that china is bringing to the global auto industry. China has been making electric vehicles for 25 years, they have got costs down and can make cars 25 to 30 cheaper than european firms. Japanese firms like nissan said they need to do something. Nissen had an early advantage, but has started to lag behind as has hyundai. They need to speed things up, so it shows the scale of the challenge that Car Companies outside china really now face. [30 challenge that Car Companies outside china really now face. China really now face. Do you think we could begin china really now face. Do you think we could begin to china really now face. Do you think we could begin to see china really now face. Do you think we could begin to see more china really now face. Do you think we could begin to see more of china really now face. Do you thinkl we could begin to see more of this . Consolidation among the big legacy names in cat making . Recently, we saw the creation of that new giants, with a merge across the atlantic. Reynolds is in partnership with nissan, nissan is finding another partner. What you make of that . Thats absolutely right. We are going to see maps of alliances between firms, drawn and redrawn, bigger groups coming together. What nissan and honda are looking to do here is looking developing new cars together to share costs, procure to buy components more cheaply through bulk buying, but also to develop joint platform, so you can make, essentially, different brands of models under the same technology. That will be interesting and event nissan reynold alliance. Is there a possibility that in the future, you could see not only in this a hundred do that. T could see not only in this a hundred do that. ,. , do that. I want to see in particular. Do that. I want to see in particular, about do that. I want to see in particular, about japan, | do that. I want to see in particular, about japan, want to do that. I want to see in particular, about japan, want to see particular, aboutjapan, want to see in particular, aboutjapan, once a hotbed of innovation, particularfor the car industry. It doesnt feel like that any more, does it . Tt doesnt. Thats the big thing. Its interesting that different japanese firms are going in different directions. Toyota is doubling down on hybrids. Its a long transition towards electrification. Nissan is thinking education is coming more quickly, and is lagging behind. They are world leaders, and i being beaten by chinese leaders, especially with tesla in china. Look at other industries, japan was a leader in colour tvs, but was too slow to embrace new technologies thatis slow to embrace new technologies that is largely now being wiped out. There is an existential threat to the japanese industry from chinese players. The japanese industry from chinese la ers. , ~ , the japanese industry from chinese. La ers. ~ ,. The japanese industry from chinese la ers. ,. , players. Thank you very much for that. To the us now where shares of industrial giant, us steel, have fallen sharply after President Biden weighed in to oppose a near 15 billion takeover of the firm by a japanese company. Us steel is based in pittsburgh, pennsylvania a key battleground in this years election. The Takeover Deal agreed in december, has caused major controversy there. But any move to block it, could raise tensions with japan a vital ally for the us as it tries to counter the growing power of china. From new york erin delmore reports. President biden is taking a stand against a deal in the making. Us steel, an american company, is set to be bought by nippon steel, a japanese company. But President Biden says that us steel should stay in the us. Us steel, the stronger america is made here. The president praised the iconic 123 year old American Steel company and said its vital that the company remain owned and operated in the states. This is a big deal and notjust politically. Nippon steel is set to pay 14. 9 billion to acquire the us giant. But politically, this is territory President Biden knows well. Hes cast himself as a champion of the Working Class and called himself the most pro Union President in history. He made headlines for walking the picket line with striking Auto Union Workers last fall. Unionized steelworkers could lend the president support in his election bid. They form north americas largest industrial union. And for his part, former President Donald Trump pledged to block the deal if he retakes the white house. The president of the United Steelworkers International welcomed a call from biden on thursday, agreeing that Foreign Ownership would leave the us vulnerable when it comes to prioritizing its own defense and infrastructure. Its bound to be a topic of conversation between key allies. Whenjapanese Prime Minister Fumio Kishida and his wife visit the white house for an official state visit next month. Lets head to china where we got a fresh snapshot of the countrys struggling housing market, with new home prices falling by 1. 4 in february from the same period in 2023. The real estate sector makes up roughly a third of the chinese economy and has been in a severe state of crisis. But, could there be some green shoots . Heres our Asia Business reporter katie silver. Chinas new home prices have been falling. In the month ofjanuary, they dropped by almost three quarters of a percent from the same time a year earlier. It was the steepest drop in almost a year and represents just how unconfident people in china are about buying up property. Now, for years, investing in real estate is a fundamental part of the chinese dream. Individuals borrowed to buy new condos, and the developers that built these properties also borrowed up big. The government liked it. It created jobs. Companies formed to supply these developers, and the property sector became a pillar of the countrys economic growth. The problem was you had skyscrapers across the country literally built on debt. Its an Unstable Foundation and the government spying a problem introduced a number of rules aimed at putting a pin in to slowly burst the bubble. Now known as the three red lines, the general principle articulated by xi jinping was that property is to be lived in, not to be speculated on. The problem was the pin was perhaps too sharp. The bubble burst and the sector has come crashing down, having Contagion Impacts across the economy. Its a smaller regional areas, often known as tier 3 or four cities that are feeling it the hardest. Loads of new apartments for sale, but no one wanting to buy. In one of them, xiao guan. It would take almost ten years to sell the number of apartments available. Given current clearance rates and in something of a policy u turn, beijing has been ramping up efforts to boost confidence and encourage people to spend. Last week, the countrys National Peoples congress was seen as an opportunity to boost morale and rates have been cut to encourage people to buy. The question, though, is, will they . That is World Business report, ill be back in a few hours time. By. Small steps, but this is a giant leap forjane. Bone cancer meant that part of her pelvis, including an entire hip, had to be removed. The operation saved her life, but left her with limited mobility. The surgeon said that i would always need crutches or a wheelchair. When he gave us the diagnosis. Yeah, thats it. Lovely. And again, thats it. Janes husband, paul, had other ideas. A retired salesman with no Engineering Experience and only a garage to work in. He took on a considerable challenge. Well, what we had to do was try and recreate the human hip, which is an incredibly complexjoint. Jane lost all the Attachment Points where muscles are connected to the skeleton. So what we had to do was create a true exoskeleton. The plan was that the brace would enable jane to walk using just one crutch. But things have gone even better than theyd hoped. I can now walk unaided in the brace. Its early days and were working slowly and methodically, but were hoping to be able to perfect on this so that i can walk greater distances unaided. But with obviously with the brace on. Hello from the bbc sport centre. We start with Breaking News in the last half hour where the last eight teams remaining in this seasons Champions League now know their route to the final. Iii time european champions real madrid against the defending champions Manchester City is the Stand Out Tie in the quarter finals with the winner of that tie facing either arsenal or Bayern Munich in the finalfour. The other two ties sees Paris Saint Germain take on barcelona, with the winner taking on either Atletico Madrid or borussia dortmund. More reaction to that over on the bbc sport website, you can keep across there as well. Well, the Side Favourite to lift the Europa League trophy, liverpool, will find out theirfate shortly, with the draw for the last eight coming up. Jurgen klopps side eased into the quarterfinals with an emphatic win against sparta prague. They won their second leg 6 2 with their first four goals coming inside the opening ia minutes. That gave them an 11 2 win on aggregate and keeps them on track for the quadruple