

Japan's prime minister is out, and markets are up
Sep 8, 2025
Japan's market responds positively to the resignation of Shigeru Ishiba, signaling a shift in the nation's economy. Meanwhile, France faces political challenges with a confidence vote looming over budget cuts amid rising debt. The UK grapples with high rates of prisoner recidivism, costing the government billions. The struggles of ex-offenders reintegrating into society are explored, spotlighting innovative rehabilitation programs that aim to reduce re-offending and support new beginnings.
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Markets React To Leadership Change
- Markets in Japan rose after Prime Minister Shigeru Ishiba announced his resignation, signaling investor optimism about leadership change.
- The Nikkei 225 climbed about 1.5% reflecting confidence in potential new economic direction and stability for exporters.
Trade Deal And Domestic Pressure
- Shigeru Ishiba secured a U.S. trade deal reducing car tariffs from 27.5% to 15% before stepping down amid domestic pressure.
- The deal mattered for major exporters like Toyota even as Japan wrestled with domestic issues like rising rice prices and inflation.
Monitor Data And Political Risk
- Watch GDP revisions and wage growth as signals that household spending is supporting Japan's recovery.
- Consider investor sensitivity to political shifts when assessing market risk for export-heavy economies.