On July 29, Louis Chua, an economist at Swiss private bank Julius Baer, stated that Japan's planned reduction of the food consumption tax is expected to benefit retailers and restaurant operators. In response to rising concerns over the cost of living—which have undermined public approval of inflation management—the administration of Prime Minister Shigeru Ishiba has pledged to lower the food consumption tax from 8% to 1%, effective from April 2027. Chua expects that retailers, particularly supermarket operators, discount chains, and food-focused pharmacies, will benefit the most. Restaurant operators that have pricing power and can maintain prices or pass on higher costs without hurting sales may also benefit. Julius Baer added that increased market volatility could accelerate the rotation of funds from technology stocks into defensive sectors and companies focused on domestic demand in the near term. (Jin Shi)