Natsumu Tsujino: Okay. Understood. So Japan is almost flat, easy to understand. EMEA was good and Americas went to less than half Q-on-Q big decline. And AEJ Q2 was too good. So there has been a decline. And you’ve been saying that October was the bottom and things are recovering, and you’re almost asking us to forget about October. Yes, in terms of risk taking, perhaps you were not taking the risks and the hedging works in an adverse manner perhaps. But this going forward, is that going to repeat itself? Is there a list chance of something like that happening? How can we have more comfort in believing that? And the mortgage business is still slow. And early January, there were a lot of loan applications, but overall, the mortgage business remains slow and is expected to continue to be slow.
And you talked about restructuring earlier and you said you don’t need to do the restructuring and the wages has gone — competition has gone up quite a bit Q-on-Q. Is it really okay, especially when we think about the FIG (ph) Americas, agency mortgage, could you cover those topics, please? That’s my first point. Second, again, FIG, your Americas FIG is, there are deals which are related to Asia and also Japan and you are getting a lot of orders related to the Asian region. And with short-term interest rates moving in that way in the U.S. in October, the yen depreciation shifted to yen appreciation. So that had an effect on the Japanese financial institutions and various companies changing their investment policy. Did that lead to a decline in your revenue opportunity and are things going to be slow for a while going forward.
Thank you.
Takumi Kitamura: This is Kitamura. Your first point. And for agency mortgage, I can’t go into details about each individual product. But for agency mortgage, October was tough, and that is true. And you can see that in all sorts of data, mortgage-backed securities issuance. There was a big decline. And so environment was quite tough as you know. However, I’d like you to recall how there’s been a big decline. So the market has — it’s almost frozen and almost no volume. And so in terms of market outlook, if there is more clarity in the market outlook and if the FRB’s monetary policy becomes more clear, then there could be some improvements in the businesses, which were weak last year. And one of those businesses is the agency mortgage business.
At Nomura, we have the top share in agency mortgage. And so we have the strong platform or base to capture the upside. And we’re not expecting a recovery overnight, but we are not expecting the current situation to continue forever either. So when things improve, we will make sure to capture that upside. And your second point, Americas and the relationship with Asia and Japan in some of the deals. If we look at the clients’ activities, yes, it is starting to change, especially recently with the BOJ’s policy actions and changing its monetary policy. So international investors, Japanese investors are focused more on the JGB market and client activity will remain high and strong for a while. So I’m just talking about expand at the moment, but there hasn’t been much action in this part of the market for quite a long time.
And the market share, our market share is quite high in this area. So the JGBs have started to move, and that’s quite significant. Meanwhile, in the U.S., the yield curve in the U.S. at the moment, it’s a negative yield in Brazil, but if that changes, there could be a shift from Japan to the U.S. partly because of the interest rates. So yes, we are expecting some movements. And Japanese investors are, as I said earlier, they are interested in JGBs at the moment, but the size of the market, the depth of market is much bigger in the U.S. So when things stabilize, then I think there will be a flow of money from Japan to the U.S. Thank you.
