Kishida To Fire Starter's Pistol On Busy Parliamentary Session Shortly

Reminder that Prime Minister Fumio Kishida will deliver his policy speech to lawmakers within one hours' time, launching a 150-day regular session of parliament.

• Parts of Kishida's address have been leaked to the press. The Premier is expected to unveil more details on his "New Capitalism" framework, which accentuates the importance of redistribution in promoting economic growth. Kishida's has a history of rattling the domestic stock market by floating his controversial policy proposals, such as raising capital gains taxes or restricting share buybacks. We can see the market react today, should he decide to revisit these ideas.
• The NHK reported that the Prime Minister will outline a plan to contain the spread of the Omicron variant and bolster the national healthcare system, with a focus on severely ill patients. The state-owned broadcaster added that Kishida may commit to raising the average minimum hourly wage above Y1,000 as soon as possible.
• The policy speech marks the start of an intense political period, as the government looks to pass a record-breaking FY2022 budget with eyes on the upcoming House of Councillors election. On July 25, voters will cast their ballots to elect 124 of the 245 upper house lawmakers in a key test of Kishida's ability to deliver as leader of the ruling Liberal Democratic Party (LDP). For now, his Cabinet's approval rating remains relatively solid. If Kishida's LDP clinches a victory in the July poll and there is no snap election in the interim, they will keep control over parliament for at least three more years.