The essay discusses the implications of recent talks between U.S. Treasury Secretary Yellen and Bank of Japan Governor Ueda, suggesting a shift towards yen appreciation due to unnatural interest rate increases in Japan. It highlights the historical context of U.S.-Japan interest rate differentials and their effects on currency values.

The essay compares stablecoins with traditional dividend-yielding bank stocks. While stablecoins represent an innovative investment, they lack the historical reliability of established banks like Commerce Bankshares, TD Bank, and Scotiabank, which offer solid dividends and proven resilience.

The recent surge in the Nikkei index may prompt the Bank of Japan to accelerate interest rate hikes, influenced by market trends and external pressures, particularly from the U.S. Meanwhile, potential U.S. rate cuts could lead to synchronized policy adjustments in both countries.

Customs negotiations settled, reducing uncertainty about the future.
This time I will discuss the impact of the Trump tariffs. On July 23, Japan time, the Japan-U.S. tariff negotiations that had taken four months came to a conclusion. The negotiations made significant progress when U.S. President Trump posted on social media that "Japan's tariffs are 15%."
Due to the lack of a formal agreement document, there was an uncertain atmosphere regarding the tax rate for about two weeks, but it has been formally confirmed that the agreement with the United States is "15% as the upper limit." Japan will receive the same level of most-favored-nation treatment as the EU, which reached an agreement around the same time.
When will the application start, and what is the scheme for the 550 billion dollar loan (investment) from Japan to the United States, and how will the profits be distributed?

The U.S. stock market experienced an increase across major indices, with the Dow, NASDAQ, and S&P500 reaching new highs. Factors included expectations of interest rate cuts and solid performance in various sectors, despite some declines in individual stocks.

On August 12, the Nikkei Index reached a record high fueled by eased trade concerns and a breakaway gap formation. Although there is short-term overheating risk, momentum indicators show strong upward trends, warranting careful monitoring for future trading.

Current fundamentals: Consolidation continues after a round of materials.
The range and closing price for last week (week of August 4) (Bid rate of Manex Trader FX)

・USD/JPY: 146.616 JPY - 148.088 JPY 147.747 JPY

・Euro/USD: $1.15275 to $1.16984 $1.16412

- Euro/Yen: 169.817 yen - 172.337 yen 172.010 yen
USD/JPY for the week of August 4: trading sideways with a narrow range for USD/JPY.
The Japan-U.S. monetary policy meeting comes after a week when major events were lined up, including the significantly revised U.S. employment statistics and the week leading up to July 28.

The Tokyo Stock Exchange Prime Market's fluctuation ratio (25 days) is showing strong signs of overheating.
This week (the week of August 11), the Tokyo stock market is likely to show resilience, although a short-term sense of overheating is becoming apparent. In the U.S. market, sentiment is improving due to growing expectations of future interest rate cuts. For Japanese stocks, U.S. rate cuts may lead to a weaker dollar and stronger yen, which can act as a cap on prices; however, expectations of fund inflows from overseas investors will support the rotation into leading stocks.
On the other hand, as of August 8, the TSE Prime Market's advance-decline ratio (25 days) was 146.85%, indicating a strong sense of overheating, and it has risen to the highest level since 2024. The advance-decline ratio is generally considered overbought when it exceeds 120% (ceiling zone), with 100% being neutral.

The S&P 500 stock price index (hereinafter referred to as "S&P 500") is reaching new highs.

As the market rises to this point, a certain number of investors start thinking, "It probably won't go up much more from here," and "Let's sell for now and buy back when it drops." This mindset is understandable, and the idea of "selling high and buying low" seems rational at first glance.
However, looking back at the history of investment, it is often found that this approach does not work well.

There is some interesting data. According to a study by Hartford Funds, the average annual return of the S&P 500 was 10.92% over the 30 years from 1992 to the end of 2021, while the average American individual investor...

Last week (week of August 4) review = The "employment statistics shock" has temporarily eased the plummet of the Dollar.
The rapidly shrinking interest rate differential between Japan and the U.S. slightly widened last week.
Last week, the Dollar/Yen traded in a back-and-forth manner around the 147 yen level. Following the plummet of about 3 yen triggered by the U.S. employment statistics announcement at the end of the week of July 28, there were moments when it continued to decline to the 146 yen level, but it did not reach further declines (see Chart 1).
[Figure 1] Daily chart of Dollar/Yen (from June 2025)
Source: Manex Trader FX
The plummet of the Dollar/Yen triggered by the release of the US employment statistics was called the "employment statistics shock." Last week (the week of August 4), it eased due to the rapid contraction from the "employment statistics shock."

Despite uncertainties such as tariffs and changes in the Federal Reserve's leadership, the U.S. stock market rose strongly last week, with major tech stocks leading the charge, notably Apple, which saw a significant increase after announcing substantial domestic investment plans.

The essay discusses expectations for a rise in the Nikkei average following its record high, the significance of upcoming US economic data, particularly the CPI, and the implications of an impending US-Russia summit. It highlights caution due to inflated stock prices and profit-taking after reaching new highs, while also noting potential positive momentum in semiconductor stocks, particularly Nvidia, and its effect on Japanese stocks.

The August 2025 report on Japan's economy shows mixed consumer trends. While real consumption spending increased, disposable income fell, indicating potential future challenges. Sustained consumer strength may rely on basic wage growth amidst global trade pressures.

The U.S. stock market saw declines on August 11 after a prior upswing. Investors were cautious ahead of the July CPI release, leading to profit-taking in tech stocks. The Dow, NASDAQ, and S&P 500 all fell, while some individual stocks saw notable gains or losses.

Bitcoin experienced a brief decline due to weak U.S. employment data but was supported by growing expectations of interest rate cuts. Next week, it is expected to fluctuate due to a lack of strong catalysts, with the U.S. CPI being a key indicator for potential buying opportunities.

The Swiss franc recently dropped sharply due to an increase in mutual tariffs from the U.S., raising concerns over Switzerland's trade surplus with the U.S. Despite low inflation and a fiscal surplus, the Swiss government faces ongoing negotiations to reduce tariffs that are affecting its economy.

The "employment statistics shock" led to a significant drop in the USD/JPY exchange rate, with the decline in US interest rates temporarily stabilizing after initial volatility. The possibility of early rate cuts may further affect the currency dynamics.

The essay discusses using a smart remote control to protect an elderly parent from heatstroke while living apart. It highlights its benefits and potential pitfalls, such as inadequate room cooling due to poor insulation, accidental remote operation by the parent, and possible system failures of the smart remote. The importance of monitoring and backup solutions is emphasized to ensure effective temperature management and safety.

Motley Fool US Headquarters – From the article posted on August 3, 2025
A prominent consumer goods giant known for its high reliability and long-standing high dividend yield.
If you aim to build assets, one of the easiest methods is to purchase reliable dividend stocks. One of the best sectors to find such dividend stocks is the consumer staples sector. Currently, some well-known consumer goods stocks such as General Mills [GIS], Clorox Company [CLX], and PepsiCo [PEP] are trading at undervalued stock price levels. Now, let's take a look at each of these stocks.
1. General Mills [GIS] is facing headwinds, but there should be no problem.
Wall Street is very short-term.