From salsa to software, having muscle to hike prices lifts stocks

TOKYO -- Businesses that can pass along higher costs by raising prices for products ranging from chicken burritos to silicon chips have become the new darlings of global stock markets.

Chipotle Mexican Grill serves as the poster child for this trend. The U.S. restaurant chain raised prices by an average of 4% in early June to offset higher wages, and weeks later it reported second-quarter results that topped market expectations.

"This is due to the menu price increase we took in early June, which is holding strong


JAL to recycle 100% of airline food waste into fertilizer

TOKYO -- Japan Airlines aims to recycle all cooking waste from in-flight meals into fertilizer as part of its sustainability goals.

The 100% target is set for fiscal 2025, which runs through March 2026. Group company JAL Royal Catering will lead the effort.

Food will also be prepared differently with an eye toward reducing waste at the source. Fiscal 2019 saw the production of 48 tons of vegetable waste. But only 7.7% of food waste


NEC and Spain's Telefonica to test Open RAN wireless

TOKYO -- Japanese tech group NEC and Spanish telecommunications provider Telefonica will conduct pre-commercial trials for an open-source wireless platform called Open Radio Access Networks in Spain, Germany, the U.K. and Brazil, the companies said Tuesday.

NEC will provide equipment and serve as the system integrator for the trials. Open RAN allows equipment and software from different vendors to communicate, meaning network operators do not have to rely on a single supplier and could slash costs.

In its first multimarket foray into Open RAN,


Japan's LDP race throws wrench into post-Kuroda BOJ preparations

Japan's next prime minister will have to appoint a replacement for BOJ Gov. Haruhiko Kuroda, who since the spring of 2013 has been running an aggressive yen-printing operation as he seeks to raise the country's stubbornly flat inflation rate to 2%.

Who will be Kuroda's replacement is a question that had vexed Yoshihide Suga ever since he became prime minister one year ago.

Almost immediately after replacing Shinzo Abe as prime minister, Suga asked Deputy Prime Minister Taro Aso, who doubles as


China's manufacturing machine powers on

William Bratton is author of "China's Rise, Asia's Decline." He was previously head of equity research, Asia-Pacific, at HSBC.

China's current regulatory crackdown may have focused attention on its technology and service sectors, but this should not distract from the continued robust performance of the country's other growth driver: its hypercompetitive manufacturing industries.

For despite all the apparent headwinds faced by Chinese manufacturers, including much chatter about the need to reduce the dependency of global supply chains on the


China Evergrande faces default test as bond coupons come due

HONG KONG -- China Evergrande Group's efforts to placate its creditors are facing crucial tests.

For the past three days, investors who bought wealth management products from the group have been protesting at its offices in Shenzhen to demand repayment. Next week, the focus is due to turn to bondholders as the company faces a string of 15 coupon payments through the rest of 2021, totaling $850 million.

"Evergrande is facing liquidity issues, and when everyone demands payments at the same time


U.S. freed from burden of high crude oil prices

TOKYO/NEW YORK -- Terms of trade have greatly improved for the U.S. since the so called Shale Revolution enabled it to substitute oil imports and become a net energy exporter.

A country's terms of trade describe the relationship between its cost of raw materials and export prices. In energy terms, the U.S. is now insulated from high Middle Eastern crude oil costs, giving it a significant competitive advantage globally.

Two decades after the Sept. 11 terror attacks on New York and Washington

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Afghanistan tops laundry list of challenges at U.N. debate

UNITED NATIONS -- The situation in Afghanistan, the coronavirus vaccine and climate change are expected to dominate discussions at the U.N. General Assembly starting Tuesday, with dozens of global leaders meeting face to face for the first time in two years.

Despite U.S. requests that countries send prerecorded messages instead to curb the spread of the coronavirus, 83 heads of state, 43 prime ministers, three deputy prime ministers and 23 foreign ministers were scheduled to address the General Assembly in person as of Friday


Tech industry braces for skyrocketing rare earth prices

TAIPEI -- Electronic hardware manufacturers are sweating as prices for rare-earth metals surge amid soaring demand and simmering tensions between the U.S. and China, the world's most important source of these vital materials.

For Max Hsiao, senior manager of an audio component maker based in Dongguan, China, the squeeze is coming from a magnetic alloy known as praseodymium neodymium. The price of the metal, which Hsiao's company uses to assemble speakers for Amazon and laptop maker Lenovo, has doubled since June last


Indonesia creates ultramicro holding via $6.7bn rights issue

JAKARTA -- State-owned Bank Rakyat Indonesia has officially become a holding company for so-called ultramicro businesses, having acquired two smaller state enterprises as the trading period begins for the lender's potential record 95.9 trillion rupiah ($6.7 billion) rights issue financing the deal.

BRI, one of Indonesia's largest banks by assets, now holds 99.99% stakes of pawnshop chain Pegadaian and microlender Permodalan Nasional Madani.

The ownership transfers were legalized through a deed signed on