Yen Diplomacy at G20: Japan’s Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent agreed “orderly” yen moves are vital for global markets, as Bessent pressed for further steps and markets leaned toward a BOJ rate hike in September. Defense Modernization: Japan is set to field Australia-made Drone 40 for infantry “small attack” missions, while Tokyo’s record defense budget push continues to spotlight drones, AI and missile upgrades. Opposition Politics: Three centrist opposition parties have scrapped their merger plan, with the CRA, CDPJ and Komeito signaling a search for a “new framework” instead. Economic Signals: Japan’s April–June corporate capital spending rose 1.6% year-on-year, supporting GDP revisions, while Asian bond yields climbed on global selloff pressures. Education for the AI Age: Japan’s education ministry released draft curriculum guideline revisions that bring generative AI into all subjects and shift assessment toward deeper learning. Disaster Aftershocks: One month after the Kumamoto earthquake, evacuees still face repair delays and harsh living conditions, and Kumamoto Castle’s reopening is drawing only about half last year’s visitor levels. Regional Security: North Korea condemned the planned “Freedom Edge” trilateral drills with the U.S. and Japan, warning against easing tensions.