Bloomberg Daybreak: Asia Edition Takaichi and Japan Inflation, Nvidia's S&P Gains Evaporate
11 snips
Nov 21, 2025 
Masa Takeda, Portfolio Manager at the Hennessy Japan Fund, explores Japan's rising inflation and discusses Prime Minister Takaichi's economic package aimed at addressing it. He predicts gradual BOJ rate hikes and notes the potential benefits of corporate governance reforms for Japanese equities. Adam Coons, CO-CIO at Winthrop Capital Management, weighs in on the S&P's market reversal post-Nvidia earnings, raising concerns about inventory and AI revenue quality. He also addresses crypto volatility and a defensive strategy as year-end approaches.
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Japan's Inflation Suggests Gradual BOJ Tightening
- Japan's October CPI (ex-fresh food) rose 3% year-on-year, signaling persistent inflationary pressure.
- Masa Takeda says that rise could keep the BOJ on a path toward gradual rate hikes rather than immediate tightening.
Takaichi's Package Likely Stimulative, Timing Unclear
- Sanae Takaichi's first economic package may be stimulative and have inflationary side effects, but impacts will take time to show.
- Masa Takeda highlights her tilt toward proactive fiscal policy and dovish monetary views as key market considerations.
Negative Real Rates Drive Yen Weakness
- Yen weakness partly reflects Japan's deeply negative real interest rates, which raises import prices and feeds inflation.
- Masa Takeda expects the BOJ to hike gradually to avoid past mistakes of premature tightening that triggered recessions.