Cupid Showed Up

History was made in Japan, with PM Sanae Takaichi’s landslide victory. She gave the LDP its majority back, and then some. The LDP and its coalition partner, Komeito, now have 352 seats, or 76% of the House of Representatives’ 465 seats. Given that massive majority, there will be no concerns about the opposition. And voters (young and old) are expecting the leader, who is a fan of Abenomics, to deliver. Her ¥21 trln fiscal spending plans, which she unveiled in November, include her promise to axe the 8% food tax for two years. The market’s initial reaction was interesting: 40-year JGB yields soared to 4% for ... (