Takaichi Bends To Washington As Japan's Yields Rise

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Scott Foster reports that Sanae Takaichi is retreating from reflationary policy as US pressure over the weak yen converges with rising JGB yields and domestic fiscal constraints. Her agenda is shifting toward greater prudence even as defense demands, inflation dissatisfaction and AI-driven corporate borrowing keep pressure on rates.

Germany's recovery is increasingly bought on credit

Diego Faßnacht reports that Germany's improving headline data masks a recovery increasingly powered by large orders, fiscal expansion and borrowing rather than broad industrial strength. With municipal finances deteriorating and global borrowing costs rising, weak private investment and a shrinking tax base risk becoming fresh drags on growth.

Russia losing faith in a political reset with Europe