Economic and Foreign Exchange Volatility Driven by Geopolitical Risks, Overseas Monetary Policy and Tariff Concerns

「During the interim consolidated accounting period, consumer concerns about protecting household finances intensified against the backdrop of a tense international situation, including the United States' high-tariff policy and attacks on Venezuela and Iran, as well as the impact of a weaker yen and higher prices for gasoline, food and other necessities.」

「Outside Japan, concern about a global economic recession has intensified as credit contraction caused by inflation and financial instability has placed downward pressure on the real economy, among other factors.」

「During the consolidated fiscal year under review, the risk of a global economic recession spread as credit contraction caused by inflation and financial instability placed downward pressure on the real economy, among other factors.」

「During the first three quarters of the fiscal year under review (1 September 2023 to 31 May 2024), the risk of a global economic recession spread as credit contraction caused by inflation and financial instability placed downward pressure on the real economy, together with uncertainty surrounding the U.S. presidential election.」

「During the first half of the fiscal year under review (1 September 2023 to 29 February 2024), the risk of a global economic recession spread due to escalating tensions in the situation involving Russia and Ukraine, a slowdown in the Chinese economy caused by weakness in the real estate market, and uncertainty surrounding the U.S. presidential election.」

「During the first quarter of the fiscal year under review (1 September 2023 to 30 November 2023), concern about a slowdown in the global economy intensified due to monetary tightening by the central banks of the United States, Europe and other countries, as well as escalating tensions in the Middle East.」

「Geopolitical risks in international relations, including bilateral relations between the United States and China and multilateral relations concerning the situation in Russia and Ukraine, have intensified. If war or conflict occurs, events such as impacts on business partners and logistics may arise, potentially affecting the company's financial position and business performance.」

「During the first half of the fiscal year under review, concern about a slowdown in the global economy intensified due to the effects of sharp monetary tightening by the central banks of the United States and Europe and the prolonged uncertainty surrounding the crisis in Ukraine.」

「During the first quarter of the fiscal year under review (1 September 2022 to 30 November 2022), energy and food prices rose markedly as central banks around the world successively raised policy rates to curb rapid inflation, while the prolonged Russian invasion of Ukraine caused the risk of a global economic recession to spread.」

「Industrial production declined due to higher crude oil and raw material prices resulting from Russia's invasion of Ukraine, which began in February 2022, and the impact of China's stringent zero-COVID policy, including city lockdowns. Supply chains were disrupted, and inflationary pressures increased in countries around the world.」

「During the first half of the fiscal year under review, Japan's economy faced increasing concern about the outlook for international conditions due to a global economic slowdown stemming from concerns about the changing real estate market in China and monetary tightening in the United States and other countries, as well as the situation in Ukraine.」

「During the first quarter of the fiscal year under review (1 September 2019 to 30 November 2019), Japan's economy saw consumer spending stagnate temporarily due to the October 2019 consumption tax increase and the effects of typhoons that caused major natural disasters across eastern Japan through record rainfall and strong winds, amid growing uncertainty about the outlook for international conditions, including the prolonged U.S.-China trade friction and the United Kingdom's withdrawal from the EU.」

「During the first three quarters of the fiscal year under review, Japan's economy faced increasing uncertainty about overseas conditions due to the intensification of U.S.-China trade friction, the United Kingdom's withdrawal from the European Union (EU), and the United States' comprehensive ban on imports of Iranian crude oil, among other factors」

「Amid growing concern over overseas conditions, including a slowdown in the Chinese economy against the backdrop of U.S.-China trade friction and the confused course of the United Kingdom's withdrawal from the European Union (EU)」

「During the first quarter of the fiscal year under review (1 September 2018 to 30 November 2018), Japan's economy continued to expand moderately, although uncertainty about the economic outlook increased due to the intensification of U.S.-China trade friction and other factors.」

「While concern over geopolitical risks stemming from changes in U.S. tariff policy and the resulting trade friction, as well as political instability on the Korean Peninsula and in the Middle East, intensified further」

「As concern over geopolitical risks stemming from the political situation in Europe and instability on the Korean Peninsula and in the Middle East intensified, the domestic economy continued to expand moderately, supported by the recovery of overseas economies and monetary easing. More recently, however, risk aversion has advanced amid efforts in the United States to devise an exit strategy from monetary easing and concerns about higher tariffs, resulting in a shift toward a stronger yen and lower stock prices.」