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☆ Exclusive: BOJ plans to exit from easy policy next year but needs some good fortune
▼ + stars: | 2023-11-02 | by ( Leika Kihara | ) www.reuters.com time to read: +6 min

Ueda's intentions are based on interviews with six sources familiar with the BOJ's thinking, including government officials with direct interaction with the bank. "Given uncertainty over the economic outlook, the BOJ probably wants to wait at least until spring next year in normalising policy," said another source. If the yen continues to fall, that could heighten political pressure on the BOJ to exit sooner than it wants, some analysts say. The risk of sharp yen falls and an inflation overshoot may leave the BOJ with less time than it wants to exit. "The BOJ doesn't have much time left, a point governor Ueda is probably mindful of."

Persons: Kazuo Ueda, Ueda, Kuroda, it's, Robert Samson, Ueda hasn't, Hiromi Yamaoka, Leika Kihara, Anisha, Shri Navaratnam Organizations: Japan, Kyodo, REUTERS, Bank of Japan, Nikko Asset Management, Thomson Locations: Tokyo, Japan, BOJ, YCC, TOKYO, U.S, Bengaluru

☆ Reaching 2% inflation goal necessary for BOJ easy policy exit, says ex-board member Kataoka
▼ + stars: | 2023-09-04 | by ( Divya Chowdhury | ) www.reuters.com time to read: +2 min

MUMBAI, Sept 4 (Reuters) - The Bank of Japan (BOJ) will be able to gradually shift away from its easy monetary policy only after ensuring its 2% inflation goal has been sustainably achieved, former board member Goushi Kataoka said on Monday. Kataoka expected the Spring 2024 wage negotiations to be key for the BOJ's inflation mission, Kataoka, currently chief economist at PwC Japan, told the Reuters Global Markets Forum. Once it begins exiting policy, Kataoka expects the BOJ to first remove the peg on the 10-year Japanese government bond (JGB) yield, then exit its negative interest rate policy, and finally scrap the YCC policy. "Allowing the guide rate to effectively go as low as 1% would not be possible until the 2% (inflation) target is achieved," Kataoka said. "I'm worried about the stance of Kishida cabinet," he said, describing the previous administrations' tax hikes in 2014 and 2019 as undermining the Kuroda's bold monetary policy experiment.

Persons: Goushi Kataoka, Kataoka, Haruhiko Kuroda, BOJ, I'm, Divya Chowdhury, Savio Shetty, Anisha, Christina Fincher Organizations: Bank of Japan, Reuters Global Markets, Thomson Locations: MUMBAI, Mumbai, Bengaluru

[1/3] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 24, 2023. Benchmark 10-year yields reached 4.312% in trading and tested October's 4.338%, before moving lower to 4.29%. Tighter credit conditions will eventually dampen economic activity and markets are choppy from the uncertainty," said Jeffrey Roach, chief economist for LPL Financial. Wall Street was mixed in the first half of the trading day before accelerating losses as the session ended. Brent crude was up over 1% earlier in the day before settling up 0.35% at $83.74 a barrel.

Persons: Brendan McDermid, Yen, Jeffrey Roach, Bill Adams, Brent, Ankur Banerjee, Alun John, Anisha, Sonali Paul, Angus MacSwan, Chizu Nomiyama, Nick Macfie, Cynthia Osterman Organizations: New York Stock Exchange, REUTERS, Treasury, Federal, LPL Financial, Dow Jones, Nasdaq, U.S . Labor Department, Comerica Bank, Zhongzhi Enterprise Group, Thomson Locations: New York City, U.S, CHINA, China, China's, Singapore, London, Bengaluru

Benchmark 10-year yields reached 4.312%, testing October's 4.338%, a break past which would be its highest since 2007. "What's interesting is usually when you have volatility around rates that's the market trying to price in a higher fed funds rate. "The impact of higher yields is standard: a dollar that is well supported and equities under pressure," he added. MSCI's world index (.MIWD00000PUS) was down 0.1% on Thursday, having dropped to its lowest level since July 6 early in the session. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) slid to its lowest since late November in early trading Thursday.

Persons: Brendan McDermid, Samy Chaar, der Linde, Van der Linde, Shunichi Suzuki, Brent, Ankur Banerjee, Alun John, Anisha, Sonali Paul, Angus MacSwan Organizations: New York Stock Exchange, REUTERS, Lombard, Atlanta Federal, Nasdaq, Zhongzhi Enterprise Group, HSBC, Reuters Global Markets, Finance, Thomson Locations: New York City, U.S, SINGAPORE, CHINA, China's, Asia, Pacific, Japan, Hong Kong, China, Singapore, London, Bengaluru

☆ Australia holds rates steady, might be done tightening
▼ + stars: | 2023-08-01 | by ( Stella Qiu | ) www.reuters.com time to read: +4 min

Markets had leaned toward a steady outcome given recent data showed inflation had eased for a second quarter and consumer spending was softening. However, economists were more split on the outcome, with 20 out of 36 polled by Reuters expecting a hike. Swaps now implied a risk of around 13 basis points of tightening by year end. In a relief for policymakers, headline inflation slowed more than expected in the second quarter while retail sales posted their biggest fall this year in June. "While the RBA retains a tightening bias, we expect the hurdle to another rate hike is high.

Persons: Philip Lowe, Lowe, Michele Bullock, Belinda Allen, Goldman Sachs, Hebe Chen, Stella Qiu, Wayne Cole, Anisha Sircar, Sam Holmes Organizations: SYDNEY, Reserve Bank of Australia, Reuters, Commonwealth Bank of Australia, CBA, National Australia Bank, IG, Reuters Global Markets, Thomson

Investors now expect China markets to stage a recovery in the second half of 2023. "(China) markets have baked in a lot of the doom and gloom in the economy given the declines since January's peak," said macroeconomist Aidan Yao. If it is the case, spreads will start to tighten across the board," said Monchau, adding that China is under-represented in portfolios. Franklin Templeton expects the recovery in Chinese markets to happen in stages, with opportunities in the industrial equipment and banking sectors. "China (is) at the nadir of its business and profits cycle, but also offering what we consider compelling valuations."

Persons: Aidan Yao, Yao, Goldman Sachs, Charles, Henry Monchau, Mark Haefele, Franklin Templeton, Anisha, Divya Chowdhury, Hugh Lawson Organizations: Investors, Reuters Global Markets, Syz, UBS, Thomson Locations: COVID, U.S, Japan, Germany, China, Asia, Bengaluru

☆ Stocks fall, U.S. dollar up as investors assess U.S. rate outlook
▼ + stars: | 2023-06-20 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

Investors also were digesting China's move to cut its benchmark loan prime rates (LPR) for the first time in 10 months on Tuesday. Among Beijing's moves to stimulate the country's slowing recovery, the People's Bank of China lowered the medium-term lending facility rate on Thursday. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 11, 2023. Against a basket of six major currencies, the dollar was up 0.22% on the day, with the euro down 0.14% to $ 1.0907 . The Australian dollar fell after its latest central bank meeting minutes showed that keeping interest rates unchanged had been under consideration.

Persons: Dow, Brendan McDermid, Jerome Powell, Powell, Joe Manimbo, Brent, Caroline Valetkevitch, Saqib Iqbal Ahmed, Joice Alves, Selena Li, Anisha, Susan Fenton, Jason Neely, Richard Chang Organizations: Treasury, People's Bank of, Federal Reserve, Dow Jones, Nasdaq, Traders, New York Stock Exchange, REUTERS, . House, Representatives, Financial Affairs, Thomson Locations: U.S, People's Bank of China, New York City, China . U.S, New York, London, Hong Kong, Bengaluru

☆ China's modest rate cut sends stocks lower
▼ + stars: | 2023-06-20 | by ( Joice Alves | ) www.reuters.com time to read: +4 min

LONDON, June 20 (Reuters) - European stocks and U.S. futures fell on Tuesday after China cut interest rates by less than expected and the market awaited more detail on Beijing's plans to shore up a stuttering economic recovery. The People's Bank of China lowered the medium-term lending facility rate on Thursday last week. "The meeting helped improve sentiment, but the market also understands that there's strategic competition between the U.S. and China," said Redmond Wong, Greater China market strategist at Saxo Markets. A central banker on Tuesday also hinted there was room for policy adjustment from the current path of aggressive rate hikes. Gold edged up 0.1% to $1,951.74 as the dollar index eased at 102.45 but lacked clear momentum as traders awaited U.S. Federal Reserve Chair Jerome Powell's testimony later this week for more direction on the interest rate path.

Persons: Susannah Streeter, Hargreaves Lansdown, Xi, Rodrigo Catril, Issei Kato, Antony Blinken's, Redmond Wong, Jerome Powell's, Brent, Joice Alves, Selena Li, Anisha, Susan Fenton, Jason Neely Organizations: Hargreaves, People's Bank of, National Australia Bank, REUTERS, Citi, U.S, Saxo Markets, Reserve Bank, Australia's, Bank of England, Federal, Thomson Locations: China, Asia, U.S, Beijing, People's Bank of China, Tokyo, Japan, United States, Greater China, German, London, Hong Kong, Bengaluru

China cut its benchmark loan prime rates (LPR) for the first time in 10 months on Tuesday, with a smaller-than-expected 10-basis point reduction in the five-year LPR. China's benchmark CSI (.CSI300) slipped 0.17%, with the real estate index (.CSI931775) falling 1.9%, its biggest daily decline in a month. "I don't think they (the LPR cuts) are going to move the needle at all," said Redmond Wong, Greater China market strategist at Saxo Markets. He said a 15 basis-point cut would have sent a "stronger message" that could boost sentiment in China's property sector. The People's Bank of China lowered the medium-term lending facility rate on Thursday last week.

Persons: Redmond Wong, Xi, Rodrigo Catril, Antony Blinken's, Saxo's Wong, Brent, Selena Li, Joice Alves, Anisha Sircar, Susan Fenton Organizations: CSI, Saxo Markets, People's Bank of, National Australia Bank Senior, Citi, U.S, Reserve Bank, Australia's, Bank of England, Thomson Locations: HONG KONG, China, Asia, Pacific, Japan, Greater China, Beijing, People's Bank of China, United States, Hong Kong, London

May 18 (Reuters) - Equity markets in North Asia will outperform the broader region this year, buoyed by China's reopening and a post-pandemic recovery-led earnings rebound, investors and strategists said. Liquidity from easing monetary and fiscal policy, along with Asian central banks' early victory on inflation, is expected to defend against an incoming downtrend, keeping North Asian equities resilient. Grace Tam, chief investment officer-Asia at BNP Paribas Wealth Management, expects North Asia to outperform this year following a strong 2022 from South Asian equities. Goldman Sachs sees the north versus south disparity in Asia as a top investment theme in 2023. "China's growth recovery and North Asia's earnings rebound in 2024 remain our key investment themes and overweight areas," it said in its second-quarter outlook.

Jan 17 (Reuters) - EY Global expects favourable market conditions by the end of this year or early 2024 to list its consulting and a part of the tax business if a proposed split of its accounting and consultancy arms is approved, a company official said on Tuesday. "(The split) will involve a debt raise, and a form of capital transaction - both of those are influenced by market conditions," said Andy Baldwin, global managing partner-client service at EY. The vote, which will take place in around 77 countries, is "probably one of the most complex in corporate history", Baldwin said. He also said that the exchanges to list the business were still under consideration, adding that it was expected to be a "$25 billion plus start-up from the get go". Reporting by Divya Chowdhury in Davos, Savio Shetty in Mumbai and Anisha Sircar in Bengaluru; Editing by Nick MacfieOur Standards: The Thomson Reuters Trust Principles.

With 73% of chief executives around the world expecting global economic growth to decline over the next 12 months, this gloomy view is the most pessimistic CEOs have been since PwC began the survey more than a decade ago, it said on Monday. The survey also found that companies are cutting costs, even as many do not plan to reduce headcount or compensation in the fight to retain talent. Separately, two-thirds of private and public sector chief economists surveyed by the World Economic Forum (WEF) expect a global recession in 2023. Other highlights from the PwC survey include:- Half the CEOs reported reducing operating costs, 51% said they were raising prices, and 48% were diversifying product and service offerings. - Climate risk did not feature as prominently as a short-term risk over the next 12 months relative to other global risks.

Nov 7 (Reuters) - Shares of Digital World Acquisition Corp, the blank-check company looking to take Donald Trump's social media venture public, rallied on Monday over the former president's possible run for the 2024 presidential election. The rally in DWAC, which was also the top trending ticker on retail investor focused social media forum Stocktwits, helped lift shares of other Trump-linked companies. Trump's social media venture Truth Social announced it would join Rumble's new ad platform as its first publisher in August. Artificial intelligence solutions company Remark Holdings (MARK.O), which has been linked to the former president on social media sites, gained 6%. Reporting by Shreyashi Sanyal, Akash Sriram and Anisha Sircar in Bengaluru; Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ Commodity stocks boost UK shares to near seven-week high
▼ + stars: | 2022-11-01 | by ( Anisha Sircar | ) www.reuters.com time to read: +2 min

SummarySummary Companies FTSE 100 up 1.6%, FTSE 250 adds 1.6%Ocado surges on partnership deal with Lotte ShoppingUK house prices fall after 'mini-budget' turmoilNov 1 (Reuters) - UK's FTSE 100 hit its highest level in nearly seven weeks on Tuesday as commodity stocks rallied ahead of a key U.S. Federal Reserve verdict, while BP turned choppy after hitting a 2-1/2 year high following its results. The blue-chip FTSE 100 (.FTSE) jumped 1.6%, while the domestically oriented FTSE 250 (.FTMC) rose 1.6%. UK's energy (.FTNMX601010) and mining shares (.FTNMX551020) climbed 1.0% and 3.9%, respectively, tracking stronger commodity prices. Focus was on U.S. and UK policy decisions on Wednesday and Thursday, respectively, with both central banks expected to raise rates by 75 basis points. read moreOcado Group (OCDO.L) jumped 32.7% after the online supermarket group announced a partnership deal with Lotte Shopping (023530.KS).

U.S. consumer spending has remained strong, rising more than expected in September, despite underlying inflation pressures continuing to bubble. "If you look at stocks and asset prices, you would probably expect the Fed to be already easing by now," Gurevich said. read moreHowever, Anita Gupta, head of equity strategy at Emirates NBD, told the forum it was "too early" to draw conclusions for other central banks from this move. "If you're going downhill and pushing your foot on the accelerator, it's going to be very hard to break," Gurevich said. "I feel it's already too late for them to stop deflation and a recessionary cycle."

☆ China tech shares sink as U.S. export curbs raise chip sector hurdles
▼ + stars: | 2022-10-10 | by ( ) www.reuters.com time to read: +7 min

The most immediate impact is likely to be felt by Chinese chipmakers, they said. The new regulations will now pose major hurdles for the two Chinese memory chipmakers, analysts said. A steep decline in tech shares led China's market down on its first post-Golden Week holiday trading on Monday. An index measuring China's semiconductor firms (.CSIH30184) tumbled nearly 7%, and Shanghai's tech-focused board STAR Market (.STAR50) declined 4.5%. SMIC dropped 4%, chip equipment maker NAURA Technology Group Co (002371.SZ) sank 10% by the daily limit, and Hua Hong Semiconductor plunged 9.5%.

☆ Turkey's lira at fresh record low after surprise rate cut
▼ + stars: | 2022-09-22 | by ( ) www.reuters.com time to read: +3 min

Turkish lira banknote is displayed on U.S. Dollar banknotes in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/IllustrationLONDON, Sept 22 (Reuters) - The Turkish lira sank to a fresh record low on Thursday after the central bank delivered yet another surprise interest rate cut, this time of 100 basis points. IPEK OZKARDESKAYA, SENIOR ANALYST, SWISSQUOTE BANK"The CBRT cut the policy rates by 100 bps for the second month. As an economist, it's hard to comment on this decision, because normally, higher inflation requires higher interest rates. Every rate cut gets the Turkish rates away from the fair value, and weigh on the country risks and the FX rates.

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