Core Viewpoint - Tokyo inflation has cooled but remains at a high level, supporting the Bank of Japan's policy normalization [1] Group 1: Inflation Trends - Tokyo's core inflation pressure remains high despite government measures to stabilize prices [1] - The recent decline in Tokyo's inflation is not sufficient to alter the Bank of Japan's current policy stance [1] Group 2: Monetary Policy Outlook - The Bank of Japan is expected to maintain its current policy and not raise interest rates in the immediate future [1] - The focus is shifting towards the quarterly outlook report and comments on the US-Japan trade agreement [1] - The Bank of Japan is likely to revise its core inflation forecasts for fiscal years 2025 and 2026, excluding energy [1] Group 3: Trade Agreement Implications - The US-Japan tariff agreement is viewed as a negative for the economy, but it may reduce uncertainty, which the central bank could welcome [1] - The decision regarding interest rate hikes remains challenging, but October is still seen as the most likely time for an increase [1]

Group 1 - Trump shortens G7 summit trip to return to Washington for important matters, stating it is unrelated to the Israel-Iran ceasefire [1] - The U.S. will delay sanctions against Russia in hopes of reaching an agreement [1] - A trade agreement between the U.S. and the U.K. has been finalized, with Lutnik deciding on steel and aluminum tariff exemptions [1] Group 2 - Trump expresses hope for a complete resolution of Iran's nuclear issue, aiming for Iran to fully abandon nuclear weapons [2] - Trump denies any intention to negotiate peace talks with Iran, labeling related information as fake news [2] - Upcoming drug tariffs are anticipated as announced by Trump [2] Group 3 - Trump indicates a potential separate agreement with Canada regarding the Iron Dome project, with Canada expected to cover costs [2] - Negotiations with Japan on tariffs remain unresolved, with Japan's stance described as "hard" [2] - The Trump Organization launches the T1 smartphone, priced at $499, expected to be released in September, claiming it will be "Made in America" [2] Group 4 - The Environmental Protection Agency under Trump is directing staff to cease regulation of the oil and gas industry [3]