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Nobutaka Machimura, the leader of the biggest faction, who had served for a month as Mr Abe's foreign minister, becomes Mr Fukuda's chief cabinet secretary and in effect government gatekeeper.
ECONOMIST: Japan's new prime minister
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Yet Mr Fukuda's survival hangs on people taking seriously his promise to face down pork-barrel interests.
ECONOMIST: Back from the brink, but still beleaguered
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Mr Fukuda's approval ratings are now even lower in some polls than the low point of his predecessor, Shinzo Abe.
ECONOMIST: Back from the brink, but still beleaguered
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At the time of the cabinet reshuffle, Yoshiro Mori, one of the LDP's grand old men, foisted Taro Aso onto Mr Fukuda as the party's new secretary-general.
ECONOMIST: Japan
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But Fukuda said that's a dangerous mind-set.
CNN: STORY HIGHLIGHTS
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The move from level three to level four on the WHO's six-level threat scale means the world body has determined the virus is capable of significant human-to-human transmission -- a major step toward a flu pandemic, said Dr. Keiji Fukuda, the agency's assistant director-general.
CNN: The story
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As host, Japan's prime minister, Yasuo Fukuda, is determined to make the best of the contradictions.
ECONOMIST: The G8 summit
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Mr Fukuda will possibly not be around in a year's time, with Mr Brown's future only a little less assured.
ECONOMIST: The G8 summit
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Mr Aso, more hawkish than Mr Fukuda, is congenial and fairly popular, having worked the party's grass-roots organisations.
ECONOMIST: Japan
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Late last month, Mr Fukuda called for a fresh diplomacy in Asia that built on his father's beliefs.
ECONOMIST: Japan's succession: After he's gone | The
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Still, Mr Fukuda has pulled off a Koizumi-like feat: with Mr Ozawa's help, he has positioned himself as a crusader against his own party's forces of reaction.
ECONOMIST: A grey man tries to show his gumption
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Researchers are still trying to determine how easily the virus is transmitted person to person and it's too early to predict whether there will be a mild or serious pandemic, said Fukuda.
CNN: The story