Security Guarantees & International Cooperation - Security guarantees are being discussed with seven leaders of great countries [1] - There will be a lot of help when it comes to security [1] - The involvement of US troops in security guarantees is a possibility, details to be revealed later [1] European Defense & US Involvement - European countries are the first line of defense [2] - The US will help them out and be involved [2]

Asian leaders are quietly outraged by Trump’s strong-arm tactics linking trade to defense, writes @KarishmaJourno (via @opinion) https://t.co/JK2bbdl4JJ ...

From @WSJopinion: Europe will never keep its promises to Trump on defense. The bloc is staggering under the fiscal weight of foolish welfare, climate and immigration policies, writes @gerardtbaker. https://t.co/eUqWQaLc2k ...

Investment Rating - Overweight on Japanese equities with an end-of-year target for TOPIX at 3,000 and Nikkei Average at ¥40,000 [8][9][10] Core Insights - Corporate earnings remain resilient, particularly in domestic demand-oriented sectors, with no change in guidance at manufacturers and upward revisions at non-manufacturers [6][8] - The report anticipates a gradual yen appreciation to ¥140/$ by December 2025, with manageable impacts on share prices [8][10] - The impact of reciprocal tariffs is expected to be manageable, with a 10% reciprocal tariff already priced in by the market [8][10] Summary by Themes Theme 1: Impact of Trump Tariffs - Expect only a 4-6% EPS decline for Japanese companies due to US tariffs, with the largest impact on the autos sector [10][62] - Share prices in the autos sector have already factored in successful negotiations, assuming tariffs are lowered to 10% [10][62] Theme 2: Domestic Economic Activity and Bank of Japan Outlook - Moderate improvement in domestic economic activity is anticipated due to peaking import inflation and spring wage hikes [10][8] - The Bank of Japan is gradually moving toward policy normalization, with expectations for the next rate hike in late 2025 [10][8] Theme 3: Forex Rate Impact on Japanese Stocks - A moderate yen appreciation is expected, with a cross-asset view assuming dollar strength and yen weakness [10][8] Theme 4: Corporate Reform and ROE Improvement - More companies are committing to balance sheet reforms, with total payout ratios over 100% and management restructuring initiatives [10][8] Theme 5: Fund Flow - Fund flow trends indicate a shift towards buying European and Japanese stocks post-tariff shock, with NISA purchases continuing for both foreign and domestic stocks [10][8] Political Landscape - The report highlights key political events in 2025, including the Upper House election and potential impacts on the ruling coalition's status [11][19] - The consumption tax cut is a hot topic ahead of the Upper House election, with various party pledges regarding tax policies [21][28]

Geopolitical Landscape - Iceland, a founding member of NATO, has historically depended on the United States for its defense [1] - Europe is rearming, and the United States is pressuring countries that are lagging in defense spending [1] - Iceland is feeling increased pressure related to defense contributions [1]

Geopolitical & Defense - The US government plans to send more weapons to Ukraine [1] - The weapons are primarily defensive [1] - The US government acknowledges Ukraine is getting hit very hard [1] Political Commentary - The speaker expresses dissatisfaction with President Putin [1] - The speaker believes the situation would not have occurred under their presidency [2]

特朗普在接待以色列总理内塔尼亚胡的晚宴上表示，美国将对乌克兰输送更多武器。特朗普还补充说，乌克兰需要实现其自卫。特朗普说：“我们将不得不提供更多武器，主要是防御性武器。” ...

Geopolitics & Defense - Stretching the definition of defense to the breaking point won't fortify Europe [1]

Defense Industry Focus - Europe's new defense pledges made headlines [1] - Meeting deadlines is more important than just making pledges [1]

I'd like to get your reaction from what we got over the weekend from Donald Trump air strikes over Iran. I would like to get an idea if you have an appraisal of how imminent the threat from the Iranian nuclear program was. Was it was the American action in violation of international law as a matter of a consequence.Well, the international law says, you know, gives you good to reasons where you can use force. One is self-defense and the other one is by the mandate of the Security Council. So those who use fo ...