FT News Briefing Why Japan’s prime minister might call a snap election
Jan 15, 2026
Leo Lewis, FT Tokyo Bureau Chief, discusses Japan's Prime Minister Sanae Takaichi and her potential call for a snap election to bolster the ruling party's fortunes. He highlights her popularity and key focuses like industrial policy and stimulus. Meanwhile, Akilah Quineo, FT U.S. banking correspondent, elaborates on the backlash against Donald Trump’s proposed 10% cap on credit card interest rates, detailing banks' concerns about its implications and the need for Congressional support to enact it. Tune in for insights on these pressing issues!
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Election-Fueled Market Rally
- Markets have rallied on speculation that Sanae Takaichi will win a snap election and push fresh stimulus measures.
- Investors expect gains for tech, defense and banks if her agenda boosts growth and rates.
Popularity Turned Into Political Strategy
- Takaichi hopes to convert high personal popularity into party strength after the LDP lost a lower house majority in 2024.
- She aims to restore the Liberal Democratic Party's position through a quick mandate.
Stimulus Drives Currency And Sector Bets
- The yen has weakened amid hopes for stimulus, raising concerns about fiscal stretch and import costs.
- Different sectors are pricing in varied outcomes from stimulus, from tech gains to banking benefits.