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1. Japan.
For the first time in 15 years, the Liberal Democratic Party and its ruling coalition partner, Komeito, have lost their Lower House majority, following a clear rout in Sunday’s general election — a shift that opens up a potential path for the opposition to steer the lower chamber’s agenda if they can act cohesively.
The loss of its majority was likely to prompt Prime Minister Shigeru Ishiba to seek a third party to join the coalition in order to remain in power — a move that would necessitate negotiations, or even concessions.
Negotiating with a third party for its backing in parliament for every bill would exacerbate political instability and drastically reduce the LDP’s authority over the coalition, making Ishiba’s administration even shakier. The policymaking process would inevitably become more fragmented and laborious, requiring a great deal of political capital from the government.
Within the LDP, calls are now growing for accountability among the party leadership in the wake of the electoral drubbing. More from The Guardian here. (Source: japantimes.co.jp)
2. The Japanese yen weakened to the upper-153 level today after the ruling coalition lost its majority in Sunday's general election, casting uncertainties over the country's fiscal and monetary policies. The yen depreciated past 153.80 per dollar on Monday, a low since late July, in reaction to the election results. The yen started falling past 153 overnight as the defeat of the ruling coalition became more imminent, and then rebounded to the mid-152 level before weakening again. (Source: asia.nikkei.com
3. As they signaled enduring support for Ukraine last week, European leaders worried about how long they can sustain it. The White House announced Wednesday that the Group of Seven wealthy countries is committed to giving Ukraine $50 billion in loans, backed by windfall profits from frozen Russian assets. Finalizing the hefty loan before the end of the year has been part of an effort to “Trump proof” aid ahead of the U.S. election. But even as they vow continued funding and weapons for Kyiv, leaders in Europe are apprehensive that a second Donald Trump presidency could fracture alliances. They are also contending with internal forces that could jeopardize their security commitments to Ukraine. More than 2½ years into Russia’s war, public fatigue risks taking hold in some countries. Some European leaders are now in politically precarious positions and more constrained in what they can do. And across the continent, parties from the hard right to the hard left are pushing narratives against sending cash or arms. “As long as it takes” remains the European line on support for Ukraine, but many of the continent’s leaders and policymakers acknowledge that the longer it takes, the harder it gets.
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