Japan Forms First Double-Minority Upper House Government

Japan's recent Upper House elections resulted in the ruling LDP-Komeito coalition losing its majority, creating a rare 'double-minority' government without control in either chamber of the Diet. This political shift may lead to instability, increased pressure on government spending and borrowing, and a narrowed scope for concessions in U.S. trade negotiations. President Marcos of the Philippines plans to meet U.S. President Trump to negotiate lower tariff rates, while U.S.-Mexico trade talks continue amid threats of 30% tariffs on non-compliant imports under the USMCA framework. Additionally, tensions between Brazil and the U.S. are rising, and political developments are ongoing in countries like Poland, Greece, South Africa, and Ghana. In the U.S., President Trump intends to issue an executive order promoting artificial intelligence development and may designate July 23 as "AI Action Day." Regulatory updates include the Federal Reserve's upcoming meetings on bank capital and digital assets, and Thailand's SEC is soliciting public input on new crypto asset listing rules emphasizing market transparency and insider trading prevention.