Summary of Key Points from the Conference Call Industry Overview - The focus is on the Japanese economy and its fiscal policies under the new Finance Minister, Takaichi, and the implications for the foreign exchange market, particularly USD/JPY. Core Insights and Arguments 1. **Fiscal Policy Direction**: Takaichi's fiscal stance is characterized as "responsible and aggressive," though its specifics remain ambiguous. There is anticipation for her upcoming policy speech on October 24, which may provide more clarity on her fiscal expenditure plans, expected to exceed last year's JPY 13.9 trillion [6][7][8]. 2. **Government Spending Increase**: Reports suggest that Takaichi's economic policy package will likely involve higher government spending than in previous years, with a focus on expediting defense spending to reach 2% of GDP by FY2025, two years ahead of the original target [7][8]. 3. **Exchange Rate Stability**: The USD/JPY exchange rate has been consolidating around the 151.50-152.00 range after a significant rise above 152. The new Finance Minister has not provided strong verbal interventions regarding the current JPY weakness, indicating a preference for stability in line with fundamentals [5][8]. 4. **Impact of US Tariffs**: Trade statistics for September show no significant negative impacts on the Japanese economy from US tariffs, with a 3.8% month-over-month increase in goods exports to the US. However, there is a noted decline in transportation equipment exports, including automobiles, attributed to preemptive exports before higher tariffs were imposed [10][11]. 5. **Market Sentiment**: The current market sentiment regarding USD/JPY remains modestly upward, influenced by Japanese fundamentals, despite the lack of strong interventions from the Finance Minister [8][9]. Additional Important Content 1. **Upcoming Events**: Attention is drawn to a potential meeting between Finance Minister Katayama and Bessent, which could influence market perceptions regarding the USD/JPY exchange rate [9]. 2. **Corporate Feedback**: The latest trade statistics align with corporate feedback from the October 2025 Tankan survey, indicating a significant decline in projected operating profits for the automotive sector due to rushed demand and subsequent declines from US tariff increases [11]. This summary encapsulates the key points discussed in the conference call, focusing on the implications of fiscal policies and trade dynamics on the Japanese economy and currency market.