Saxo Market Call Japan gets its Iron Maggie, while France achieves new level of dysfunction
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Oct 6, 2025 Japan's political landscape takes a surprising turn with Takaichi's unexpected victory, weakening the yen in the process. The discussion explores potential long-term implications for Japan's currency strength. Meanwhile, France faces turmoil as its new prime minister resigns, raising concerns about euro volatility and bond market risks. Insights on Palantir's alarming glitch and the unsettling divergences in US market internals provide a thrilling blend of market analysis, while recommendations on credit highlight the challenges in private equity.
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Market Shock From Unexpected LDP Win
- Sanae Takeichi's LDP victory surprised markets and sent the yen sharply lower as positioning was wrong.
- John Hardy warns first-order reactions may be overstated and suggests watching for technical confirmation before trading.
Japan Can Engineer A Stronger Yen
- Japan has structural tools (high savings, large NIIP) that make engineering a stronger yen feasible.
- Takeichi's pro-growth, Thatcher-inspired stance could attract investment that ultimately supports yen strength.
Takeichi's Unconventional Background
- John Hardy praises Takeichi as an impressive, formidable politician who rose in a male-dominated system.
- He adds a lighter note that she was once a heavy metal drummer, showing personality beyond politics.