Japan Tax & Fiscal Push: Prime Minister Sanae Takaichi pledged to cut the consumption tax on food to 1% for two years, pairing it with cash support for low- and middle-income households while insisting the plan won’t rely on new deficit bonds. Monetary Policy Watch: Bank of Japan Deputy Governor Shinichi Uchida said the AI boom could shift where interest rates “end up,” potentially lifting the neutral rate and changing the rate path markets expect. AI, Chips & IP: Huawei and Qualcomm signed a broad multi-year patent license covering 5G, computing and AI, while Japan’s JAL and Nippon Express launched a weekly 747F cargo route targeting AI and semiconductor shipments across Asia and North America. Cyber & Data Security: Japan’s Times Car disclosed a data breach affecting 6.6 million people after a ransomware attack hit Keio’s systems, and Microsoft’s report flagged Japan among the most targeted countries by cyberattacks. Trade & Regional Outlook: AMRO raised its ASEAN+3 2027 growth forecast to 4.1% on stronger AI-related exports and investment, but warned the outlook remains sensitive to AI demand and energy disruptions. Business Moves: Denso will end its spark plug and exhaust sensor transfer to Niterra, while Toys “R” Us Asia is moving its Japan operations under Pan Pacific International.