Early morning news: The three major US indexes are significantly higher, reaching record highs, with expectations of a Trump trade leading the way. There is a possibility of a clear victory for the Republican Party with a 'Triple Red' strategy.

On the 6th, the US stock market continued to rise significantly with Mr. Trump's victory. The Dow Jones Industrial Average, S&P 500, and Nasdaq indices all closed at record highs. The daily gains and percentage increases of the Dow Jones Industrial Average and S&P 500 were the largest in the past two years. The Trump administration, which is friendly to businesses, was expected to further boost corporate profits, which have been strong in recent years, by implementing deregulation and tax cuts. In the S&P 500, finance rose by 6%. Deregulation and the expected recovery of M&A (mergers and acquisitions) activities. Energy rose by over 3.5%. Deregulation of exploration and drilling was expected. Defensive industries such as real estate and consumer staples fell as investors factored in risks.
In individual stocks, the electric vehicle (EV) giants $Tesla (TSLA.US)$soared by 14.8%. Trump's social media "Truth Social" operated by $Trump Media & Technology (DJT.US)$ (TMTG) closed 5.9% higher.
On the 7th, although the bullish sentiment continued in the Tokyo stock market, the upside of the Nikkei average is expected to be sluggish. After a sharp increase of over 1000 yen the previous day, profit-taking selling pressure is likely to surface today.

Top News
Mr. Biden promises "smooth transition of power" to Mr. Trump
On the 6th, US President Joe Biden had a phone call with former President Donald Trump, whose victory in the presidential election was confirmed, and congratulated him. The White House revealed that Mr. Biden emphasized the importance of ensuring a smooth transition of power and working towards unity in the United States.

Trump trade accelerates
Strong dollar buying on Trump's victory, USD/JPY rises to the mid-154 yen level
Bitcoin hits all-time high, with Trump's victory
FRB moves towards a neutral policy stance, even with Trump's victory certain
The Federal Reserve Board (FRB) is likely to transition to a neutral policy stance. Analysts from UBS have pointed out that due to the considerable uncertainty surrounding Trump's economic policies, the FRB's economic outlook is unlikely to change as mentioned by analysts.
US iron & steel stocks sharply up on Trump's victory
Ahead of the start of Trump's second term, shares of US iron & steel manufacturers soared. The closing price on the 6th was up 15.99% from the previous day. $Nucor (NUE.US)$up 15.99% from the previous day's close. $Cleveland-Cliffs (CLF.US)$Rose 20.07%. $Nippon Steel (5401.JP)$Trump opposes the acquisition proposal. $United States Steel (X.US)$Closed up 8.27%. In his first term, Trump imposed tariffs on steel imports to protect employment in the US steel industry. These policies were repealed under the Biden administration, but if Trump returns to the White House, it is widely expected that he will promote more extensive protectionist policies.
The trading industry is bracing for the tariff policy of the ‘Second Trump Administration’.
Companies relying on global trade from major shipping companies to retailers are preparing for new tariffs expected to be introduced under the Second Trump Administration. A series of tariffs could reshape the global flow of goods and potentially accelerate the shift away from manufacturing in China.

Will the Republican Party maintain control in the House following the majority recapture in the Senate?
Following the recapture of the majority in the Senate, the Republican Party may also maintain a narrow lead in the House. Personnel appointed by the incoming President Donald Trump are more likely to be approved, enabling the enforcement of priority policies such as tax reform.

半導体設計の $Arm Holdings (ARM.US)$Down after hours. Following the announcement of the July-September earnings (Q2), which exceeded profit per share and revenue expectations, but apprehensions are arising due to lower-than-expected revenue forecast for the third quarter. It suggests the potential impact of the smartphone market recovery on AI growth. Furthermore, regarding the full-year guidance, the CEO of Haas stated, 'We do not intend to rush ahead too quickly' and left the expectations unchanged.

Qualcomm rises 7% in after-hours trading following earnings, hints at demand recovery.
Semiconductors for mobile phones $Qualcomm (QCOM.US)$Rising after hours. Following the announcement of the October-December earnings (Q4) after the market close, it exceeded profit per share and revenue expectations. Guidance was also provided, showing that profit per share and revenue for the first quarter are both expected to exceed expectations. Brightness is visible in the mobile device industry.

US iRobot plunges due to disappointing earnings, workforce reduction, and executive resignations.
In the US stock market on the 6th, American manufacturer responsible for robot vacuum cleaners such as 'Roomba' $iRobot (IRBT.US)$Experienced a significant drop of nearly 35% compared to the previous day. Disappointment arose as the July-September (Q3) earnings fell below company expectations, and the resignation of two executives next month was announced. Following the regular trading on the 5th, iRobot revealed plans to cut about 105 employees, approximately 16% of its workforce. This marks the second workforce reduction this year.

French and Dutch financial authorities had conducted a home search at the Paris and Amsterdam locations of Netflix on suspicion of tax evasion.
On the morning of the previous day, as part of an investigation into tax evasion and violations of labor laws, the financial authorities of France and the Netherlands had conducted a home search. $Netflix (NFLX.US)$It is reported that the Financial Times relayed information from sources that the home search was carried out at Paris and Amsterdam locations.