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Marketplace All-in-One

Record stocks welcome Japan’s first female prime minister

Marketplace All-in-One

Marketplace

News, Business

4.51.4K Ratings

🗓️ 21 October 2025

⏱️ 7 minutes

🧾️ Download transcript

Summary

From the BBC World Service: Japan elected its first female prime minister, Sanae Takaichi, and the Nikkei 225 index surged to a record high. But the conservative leader, who models herself after former British Prime Minister Margaret Thatcher, will have to tackle a range of economic challenges: a falling population, a rise in the cost of living, and sluggish growth. Plus, a federal green tech funding pullback in the U.S. is hitting Vice President JD Vance’s hometown.

Transcript

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0:00.0

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0:02.8

We are building the tech workforce, who deliver results fast, accelerated by top-tier content.

0:08.6

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0:11.1

Visit us at Pluralsight.com to tap in and learn more.

0:16.4

Japan stocks hit an all-time high as the country's first female prime minister takes office.

0:21.7

Live from the UK, this is the Marketplace Morning Report from the BBC World Service.

0:26.0

I'm William Lee Adams, good morning.

0:28.8

A historic moment in Japan as it swears in its first woman Prime Minister, Sana'e Takaiichi. The Khaeich, Sanaik, K'u, and we're taking the tenor-to-he. Applaus from her peers there, but also it seems from investors too. Japan's Niki-2-25 index surged as much as 1.5% to a record high. But the conservative leader, who's known to admire the former British Prime Minister Margaret Thatcher will have to tackle an aging population and the rising cost of living in the

0:59.0

country. The BBC's Nick Marsh joins me now, Nick High. Hello. The new Prime Minister

1:04.4

has a big to-do list. What's top of the agenda? From an economic perspective, it would probably

1:10.4

be inflation. Historically,

1:13.0

Japan has been a country with very low inflation, which also means low economic growth,

1:18.8

and that's a different, more long-term structural problem that Japan faces. But over the past year or so,

1:25.2

food prices have really shot up, and wages haven't gone up to match that.

1:31.0

So people in Japan are basically thinking about these bread and butter issues.

1:35.7

How the new prime minister is going to be able to deal with that is a different matter.

1:41.9

We know that she's a big fan of tax cuts, of increased fiscal spending, low interest rates. That doesn't really go well with the idea of combating inflation.

1:52.7

Takiichi will also have to deal with China, which is increasing its assertiveness in the region. How large does that loom?

2:01.3

It looms very large indeed, not least because China is, as we know, locked in a trade war with the United States, which has always been a close ally of Japan.

2:12.3

In fact, Japan is the largest foreign investor in the United States. So, you know, Japan follows

2:18.1

U.S. economic fortunes incredibly closely. Takaichi is seen as someone who takes a bit of a harder

2:25.3

line on China and also on South Korea, interestingly. That's going to be music to the ears

...

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