Japan: "We'd never buy foreign bonds (we might buy foreign bonds)"

Abe puts the squeeze on the BoJ.

Even Japan has limits to what it will do in a currency war. The country's finance minister, Taro Aso, has confirmed that the nation has no plans to buy foreign bonds through the Bank of Japan.

The denial is a slight walking-back of the words of the Prime Minister Shinzo Abe last night, who noted — without saying what he actually thought on the subject — that "there are views calling for foreign-bond purchases".

Abe had been discussing the recently revised inflation mandate for the Bank of Japan in parliament when opposition MPs asked him what the bank is actually planning to do to back up its target. Without confirming any particular policy route, Abe named a number of potential unconventional measures, saying that "I hope the BoJ will take effective policy steps that would contribute to overcoming deflation."

The BoJ has every motivation to fight deflation; in the same debate, Abe threatened it with a change in law, saying:

It would be necessary to proceed with revising the BOJ law if the central bank cannot produce results under its own mandate.

While Abe has, for the most part, been content to let the Bank pick its own methods so long as it results in reflation, Aso's comments this morning imply there are limits. Bloomberg's Mayumi Otsuma puts the talking-back in context:

Economy Minister Akira Amari told reporters today that Abe’s comments referred to buying foreign bonds as a general policy idea that is available to any country.

It seems likely that the skittishness of the Japanese cabinet is related to the G20's stand on currency manipulation, which was finally clarified after last week's mild confusion. The group is definitely (maybe) against currency manipulation. And while much of what Japan is doing is clearly aimed at affecting the Yen in international markets, it's also capable of being viewed as simple unconventional monetary policy aimed at having a domestic effect. Buying foreign bonds would render that charade a lot harder to pull off, and could lead to some awkward conversations in Moscow this weekend.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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Jeremy Corbyn sat down on train he claimed was full, Virgin says

The train company has pushed back against a viral video starring the Labour leader, in which he sat on the floor.

Seats were available on the train where Jeremy Corbyn was filmed sitting on the floor, Virgin Trains has said.

On 16 August, a freelance film-maker who has been following the Labour leader released a video which showed Corbyn talking about the problems of overcrowded trains.

“This is a problem that many passengers face every day, commuters and long-distance travellers. Today this train is completely ram-packed,” he said. Is it fair that I should upgrade my ticket whilst others who might not be able to afford such a luxury should have to sit on the floor? It’s their money I would be spending after all.”

Commentators quickly pointed out that he would not have been able to claim for a first-class upgrade, as expenses rules only permit standard-class travel. Also, campaign expenses cannot be claimed back from the taxpayer. 

Today, Virgin Trains released footage of the Labour leader walking past empty unreserved seats to film his video, which took half an hour, before walking back to take another unreserved seat.

"CCTV footage taken from the train on August 11 shows Mr Corbyn and his team walked past empty, unreserved seats in coach H before walking through the rest of the train to the far end, where his team sat on the floor and started filming.

"The same footage then shows Mr Corbyn returning to coach H and taking a seat there, with the help of the onboard crew, around 45 minutes into the journey and over two hours before the train reached Newcastle.

"Mr Corbyn’s team carried out their filming around 30 minutes into the journey. There were also additional empty seats on the train (the 11am departure from King’s Cross) which appear from CCTV to have been reserved but not taken, so they were also available for other passengers to sit on."

A Virgin spokesperson commented: “We have to take issue with the idea that Mr Corbyn wasn’t able to be seated on the service, as this clearly wasn’t the case.

A spokesman for the Corbyn campaign told BuzzFeed News that the footage was a “lie”, and that Corbyn had given up his seat for a woman to take his place, and that “other people” had also sat in the aisles.

Owen Smith, Corbyn's leadership rival, tried a joke:

But a passenger on the train supported Corbyn's version of events.

Both Virgin Trains and the Corbyn campaign have been contacted for further comment.

UPDATE 17:07

A spokesperson for the Jeremy for Labour campaign commented:

“When Jeremy boarded the train he was unable to find unreserved seats, so he sat with other passengers in the corridor who were also unable to find a seat. 

"Later in the journey, seats became available after a family were upgraded to first class, and Jeremy and the team he was travelling with were offered the seats by a very helpful member of staff.

"Passengers across Britain will have been in similar situations on overcrowded, expensive trains. That is why our policy to bring the trains back into public ownership, as part of a plan to rebuild and transform Britain, is so popular with passengers and rail workers.”

A few testimonies from passengers who had their photos taken with Corbyn on the floor can be found here