Bloomberg Daybreak: Asia Edition Takaichi and Japan Inflation, Nvidia's S&P Gains Evaporate
11 snips
Nov 21, 2025 
Masa Takeda, Portfolio Manager at the Hennessy Japan Fund, explores Japan's rising inflation and discusses Prime Minister Takaichi's economic package aimed at addressing it. He predicts gradual BOJ rate hikes and notes the potential benefits of corporate governance reforms for Japanese equities. Adam Coons, CO-CIO at Winthrop Capital Management, weighs in on the S&P's market reversal post-Nvidia earnings, raising concerns about inventory and AI revenue quality. He also addresses crypto volatility and a defensive strategy as year-end approaches.
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Negative Real Rates Drive Yen Weakness
- Yen weakness partly reflects Japan's deeply negative real interest rates, which raises import prices and feeds inflation.
- Masa Takeda expects the BOJ to hike gradually to avoid past mistakes of premature tightening that triggered recessions.
Tokyo-Beijing Tensions Seen As Manageable
- Rising geopolitical tension with China is notable but historically manageable, and Chinese consumers still value Japanese goods.
- Masa Takeda downplays long-term economic damage from current Tokyo-Beijing friction, citing enduring demand for Japanese quality products.
Corporate Governance Is Japan's Longer-Term Catalyst
- Masa Takeda is constructive on Japan over the mid-to-long term due to rising inflation, rate normalization, and corporate governance reform.
- He argues improved capital efficiency and stronger governance are key drivers beyond cyclical factors.