Happy Sunday, it’s officially the first day of February and the headlines are already coming in. From rare elections to heat-wave records, here’s what you need to know, with some fake news.
Japan’s Snap Election is Here
Japan’s Prime Minister Sanae Takaichi called a rare mid-winter snap election for February 8, 2026, throwing the country into full campaign mode. Polls show her Liberal Democratic Party (LDP) poised for a strong majority as voters head to the polls next week.
The Bigger Picture:
An LDP victory = continuity of economic and security policies in Asia
Colder months often have lower voter turnout, which may alter election results
Japanese elections don’t just impact domestic policy as they shape global markets
JPow?
United States Federal Reserve Chair Jerome Powell has informed staff he would resign immediately citing political pressure from Trump and scrutiny with the Fed. Powell’s term as chair ends now and Trump has already appointed Kevin Warsh as Fed Chair. Markets reacted violently to this information with gold and silver prices skyrocketing sharply after the nomination dropped.
The Bigger Picture:
The Fed’s independence is one of the corners of economic policy
If political pressure of legal action alters that balance, mortgage rates, investment behavior, currency markets, and inflation expectations all go nuts
Australia saw one of the hottest Januaries ever
January 2026 ranked among Australia’s hottest Januaries ever, with prolonged heatwaves causing public health warnings, straining power systems, and increasing risk of bush fire across multiple states. Australians saw the fourth hottest January on record, with the average temperature being 35 degrees higher.
The Bigger Picture:
Victoria recorded its hottest day ever on January 27th, with the towns of Hopetoun and Walpeup both reaching 120°F
A major blaze at Carlisle River in Victoria has burnt over 11,000 hectares and destroyed at least 16 buildings.
Organizers of the Australian Open in Melbourne enacted extreme heat protocols, closing roofs and postponing outdoor matches
Taken together, all three (or two) stories all point to the fact that change is happening from different places at once. None of these stories came with a giant breaking news banner, but each one has implications that extend far beyond this week and month.
Two of these stories are happening exactly as described. One of them isn’t.
The lie: Jerome Powell has not stepped down as Chair of the Federal Reserve
that’s all for this week, catch the next one on sunday
Until next time,
the bigger picture
“zoom out, see what matters”
