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Dollar firm as euro wallows; yuan brushes aside China data
  + stars: | 2024-06-17 | by ( ) www.cnbc.com   time to read: +4 min
The dollar was firm on Monday as the euro hovered near a more than one-month low amid continued concerns about the political outlook in Europe. The yuan held close to a multi-month low after China released a slew of economic data that pointed to an uneven recovery in the world's second-largest economy. A Reuters poll published last week showed 63 of 65 economists thought a first cut would not come until Aug. 1. Elsewhere, the yuan was mostly flat at 7.2550 per dollar after domestic data showed a mixed economic picture in China. China's central bank left a key policy rate unchanged as expected on Monday as the weak yuan continued to hamper policy easing.
Persons: Emmanuel Macron's, Matt Simpson, Neel Kashkari, Index's Simpson, Sterling, Kazuo Ueda, bitcoin Organizations: U.S, Gazprom, European Central Bank, Reuters, Index, . Minneapolis Federal, Bank of England, Bank of Japan Locations: Poland, Bulgaria, Europe, China, U.S
The Bank of Japan is largely expected to hold interest rates steady at the end of its 2-day meeting ending June 14, 2024. The Bank of Japan kept its benchmark interest rate unchanged on Friday, but indicated it's considering the reduction of its purchase of Japanese government bonds. The central bank left short-term rates unchanged at between 0% to 0.1% at the end of its two-day policy meeting, as widely expected. But notably, the bank said in its statement it could reduce its purchases of Japanese government bonds after the next monetary policy meeting, scheduled for July 30 and 31. Purchases of JGBs, commercial paper and corporate bonds will also continue as decided in the March monetary policy meeting.
Persons: Nakamura Toyoaki, Toyoaki, JGB Organizations: Bank of Japan, The Bank of Japan, U.S ., Nikkei Locations: Tokyo
In today's big story, we're looking at how Saudi Arabia is courting Chinese investors for help with its massive, futuristic city facing financial issues. NeomSaudi Arabia's dreams of a futuristic city are turning into a financial nightmare, and one of its solutions could spell trouble for the US. Since 2017, the Kingdom has touted big plans for the desert megacity Neom . AdvertisementThe city plans to heavily use renewable energy, a key area of focus for China as it digs itself out of its economic hole . But a soft real estate market and a trail of angry business partners and customers are threatening to thwart his big plans .
Persons: , Prince Mohammed bin Salman's, Neom's, hasn't, Tom Porter, Prince, Aaron Weiner's, Weiner, Justin Sullivan, it's, they'd, Tyler Le, Giovanna Ventola, Michael Shvo, Shvo, Tesla, Jose Uribe, Sen, Bob Menendez, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, George Glover, Annie Smith, Amanda Yen Organizations: Service, UEFA, Business, Neom, US, International Monetary Fund, Bank of America, Apple, Apple Intelligence, OpenAI, Amazon, Bonnaroo Music, Arts Festival, Post Malone Locations: Saudi Arabia, Neom, Saudi, Kingdom, China, Gaza, New York, London
The Bank of Japan (BOJ) headquarters is seen beyond the cherry blossoms in Tokyo on March 20, 2023. Kazuhiro Nogi | Afp | Getty ImagesAsia-Pacific markets were largely range bound on Friday ahead of the Bank of Japan's rate decision. Economists polled by Reuters expect the BOJ will maintain its benchmark interest rate at 0%-0.1%, but Nikkei reported the central bank is considering reducing its holdings of Japanese government bonds. The BOJ currently aims to purchase about 6 trillion yen ($38.5 billion) in bonds per month, and has informed the market of plans to purchase between 4.8 trillion yen and 7 trillion yen of bonds per month. Hong Kong Hang Seng index futures were at 17,964, lower than the HSI's last close of 18,112.63.
Persons: Kazuhiro Nogi, Kospi Organizations: Bank of Japan, Afp, Getty, Bank of, Reuters, Nikkei Locations: Tokyo, Asia, Pacific, Hong Kong
A sign is displayed outside a Toyota Motor Corp. dealership on Jan. 30, 2024 in Tokyo, Japan. Toyota Chairman Akio Toyoda apologized Monday for massive cheating on certification tests for seven vehicle models as the automaker suspended production of three of them. Toyota took the crown with 10.7% market share, while Germany's Volkswagen came in second with a 6% market share. But for Toyota, the top automaker by market share in the world, the latest safety scandal is not the first time it's being investigated for false test data. In April last year, Daihatsu said it had rigged side-collision safety tests carried out for 88,000 small cars, most of those sold as Toyotas.
Persons: Akio Toyoda, Tomohiro Ohsumi, Germany's Volkswagen, that's, Toyota —, Suzuki, Toyoda, Hino Organizations: Toyota Motor Corp, Toyota, Getty, Germany's, Honda, country's Ministry of Land, Transport, Mazda, Suzuki Motor, Yamaha Motor, Corolla Fielder, Corolla, Daihatsu, Citi Locations: Tokyo, Japan, Infrastructure, Tourism
Yen on guard ahead of BOJ; euro stutters with weekly loss in sight
  + stars: | 2024-06-14 | by ( ) www.cnbc.com   time to read: +4 min
The yen was on the defensive on Friday ahead of a policy decision from the Bank of Japan that could see it further reduce its massive monetary stimulus, while elsewhere the euro, mired in political turmoil, was headed for a weekly loss. The yen was on the defensive on Friday ahead of a policy decision from the Bank of Japan that could see it further reduce its massive monetary stimulus, while elsewhere the euro, mired in political turmoil, was headed for a weekly loss. The yen was a touch weaker at 157.08 per dollar and on track for a marginal weekly loss of about 0.2%, though moves were largely subdued ahead of the conclusion of the BOJ's two-day monetary policy meeting later on Friday. The euro was little changed at $1.0737, and was poised for a weekly loss of roughly 0.6%. Against the British pound, the euro was last languishing near a 22-month low and staring at a weekly decline of 0.9%.
Persons: Ray Attrill, Wall, Powell, Jean Boivin, Emmanuel Macron's, Macron, France's, Erik, Jan van Harn Organizations: Bank of, National Australia Bank, New Zealand, Federal Reserve, BlackRock Investment Institute, Fed, Aussie, Rabobank Locations: Bank of Japan, BlackRock
Yen could be 'bullish' for the second half of the year, FAB says
  + stars: | 2024-06-14 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailYen could be 'bullish' for the second half of the year, FAB saysOliver Kettlewell, executive director of fixed income management at FAB discusses the Bank of Japan's interest rate decision and U.S. PPI.
Persons: Oliver Kettlewell Organizations: FAB, Bank of, PPI
CNBC Daily Open: Mega money Musk, Kitty's stake grows
  + stars: | 2024-06-14 | by ( Abid Ali | ) www.cnbc.com   time to read: +3 min
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Chipmaker Broadcom soared after it delivered better-than-expected second-quarter earnings and announced a 10-for-1 stock split. Mainland China's CSI 300 index fell 0.4%, while South Korea's Kospi rose 0.3%. Broadcom's shares soared 13% after reporting earnings that beat analyst expectations and announcing a 10-for-1 stock split.% after reporting earnings that beat analyst expectations and announcing a 10-for-1 stock split.
Persons: Elon, Musk, Janet Yellen, that's, Yellen, CNBC's Andrew Ross Sorkin, That's, Kitty, Keith Gill, Gill, Australia's, BofA Organizations: CNBC, Dow, Nasdaq, Broadcom, Dow Jones, Musk, Treasury, GameStop, Trade, Nikkei, Bank of Japan's, U.S, China's CSI, Chipmaker Broadcom, Bank of America Locations: U.S, Delaware, Japan, South
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of Japan 'more likely than not' to hike interest rates in July, says strategistPrashant Newnaha of TD Securities says this is "heavily contingent" on the level the Japanese yen is trading at against the U.S. dollar.
Persons: Prashant Newnaha Organizations: Email Bank of Japan, TD Securities, U.S .
Honda has unveiled the N-VAN e, a tiny electric truck costing from $15,500. The diminutive truck is targeted at delivery companies and goes on sale in Japan in October. Japan is famous for its tiny Kei cars, which are ideal for short journeys and city driving. Now, Honda is getting into the tiny EV game. The Japanese automaker has unveiled the N-VAN e, a miniature electric truck that starts at 2.44 million yen ($15,500).
Persons: , Nissan Organizations: Honda, Service, Kei, Bloomberg Locations: Japan, Tokyo
The bank also raised its price target to $160 from $115, suggesting 18% upside from Wednesday's close. — Michelle Fox 7:59 a.m.: KeyBanc raises Netflix price target Netflix's growth isn't going to slow down any time soon, according to KeyBanc Capital Markets. — Pia Singh 7:23 a.m.: Bank America raises price target on Boeing Bank of America is weighing the challenges and opportunities Boeing has to make a turnaround. She kept her $38 price target, which implies shares could drop just slightly from its latest close. — Pia Singh 5:45 a.m.: Jefferies names Microsoft a top pick Microsoft is "going for AI gold," according to Jefferies.
Persons: Jefferies, Christine Cho, — Jesse Pound, Clark, Anna Lizzul, Kimberly, — Michelle Fox, Justin Patterson, Patterson, — Pia Singh, Ronald Epstein, Epstein, Oppenheimer, Ulta, Rupesh Parikh, Parikh, Morgan Stanley downgrades Corning, Corning, Morgan Stanley, Meta Marshall, Marshall, Tom O'Malley, O'Malley, AVGO, JPMorgan's Harlan Sur, Timothy Arcuri, Brent Thill, Fred Imbert Organizations: CNBC, Microsoft, Barclays downgrades NextEra Energy Partners, NextEra Energy Partners, Barclays, Bank of America, Clark Bank of America, KeyBanc, Markets, Netflix, Bank America, Boeing Bank of America, Boeing, Broadcom, VMware, Google, UBS, Jefferies Locations: Kimberly, F2H25
Read previewThe US dollar is in a state of "stealth erosion," the International Monetary Fund, or IMF, wrote in a report on Tuesday. This effect masked the shift of central banks and governments out of dollar reserves. Instead, the shares of "non-traditional reserve currencies" have risen, according to the IMF. These include the Australian dollar, Canadian dollar, Chinese renminbi, South Korean won, Singaporean dollar, and Nordic currencies. AdvertisementThe dollar's decline in FX reserves doesn't appear to be about sanctionsThe IMF's report comes amid ongoing discussions about de-dollarization.
Persons: Organizations: Service, International Monetary Fund, Business, US Federal Reserve, IMF, Canadian, South Korean, greenback Locations: Russia, Moscow, Ukraine
There are currently some "micro pockets" of deflation in the U.S. economy, said Joe Seydl, a senior markets economist at J.P. Morgan Private Bank. Why prices are deflating for goodsConsumers have largely seen prices deflate for physical goods, such as cars, furniture and appliances, economists said. For example, households have seen prices for furniture and bedding fall by 3.7% since May 2023, according to the consumer price index. watch nowThe U.S. dollar's strength relative to other global currencies has also helped rein in prices for goods, economists said. Travelers have also seen deflation for airline fares (-5.9%), hotels (-1.7%) and car rentals (-8.8%) since May 2023.
Persons: Joe Seydl, Seydl, Michael Pugliese, they've, Hayley Berg, Hopper, Olivia Cross Organizations: Getty, Morgan Private Bank, Consumers, Wells, Wells Fargo Economics, Finance, Federal Reserve, of Labor Statistics, U.S, Canadian, Capital Economics Locations: U.S, Wells Fargo, North America
Economists polled by Reuters expect headline consumer price inflation to ease to 0.1% from 0.3% last month, and core price inflation to remain steady on the month at 0.3%. Powell is likely to strike a relatively dovish tone at the press conference, however, given disappointing growth indicators since the last Fed meeting, Williams said. Japanese wholesale prices rose 2.4% in the year to May, Bank of Japan data showed on Wednesday, beating market forecasts for a 2% increase. The yen held steady at 157.16 per greenback after slipping to its lowest since June 3 at 157.40 the previous day. While Japan's central bank will likely discuss bond buying cuts to pre-empt yen selling pressure, dollar/volatility this week largely depend on Wednesday's U.S. CPI and Fed meeting, he added.
Persons: Jerome Powell's, Kieran Williams, Powell, Williams, Emmanuel Macron's, Sterling, Wei Liang Chang, bitcoin Organizations: U.S, Consumer, Fed, Reuters, Asia FX, InTouch, Bank of Japan, Bank of, DBS, CPI Locations: Czech, U.S, Asia, Bank of Japan
Dollar firm ahead of key inflation test, Fed forecast update
  + stars: | 2024-06-11 | by ( ) www.cnbc.com   time to read: +1 min
A person holds banknotes of the Polish Zloty in front of a sticker showing various currencies on July 19, 2022, in Rzeszow, Podkarpackie Voivodeship, Poland. The euro hung below a two-week high to the dollar as investors braced for the European Central Bank's first interest rate increase since 2011 and the scheduled reopening of a key Russian gas pipeline later in the day. The dollar hovered near a one-month peak against the euro and pushed to a one-week high versus the yen on Tuesday as traders braced for crucial U.S. inflation data and fresh Federal Reserve interest rate forecasts the following day. The U.S. currency was supported by higher Treasury yields in the aftermath of surprisingly robust domestic jobs data at the end of last week, which sparked a dramatic paring of bets for Fed rate cuts this year. The dollar added 0.13% to stand at 157.25 yen early in the Asian day, the highest since June 3.
Persons: Emmanuel Macron Organizations: Central, Bank of Japan, U.S Locations: Rzeszow, Podkarpackie Voivodeship, Poland
Toyota Motor Corporation Board Chairman Akio Toyoda bows during a press conference in Tokyo on June 3, 2024. Toyota said on June 3 it had suspended domestic shipments of three car models after falling foul of government certification rules along with its Japanese rivals Honda, Mazda, Suzuki and Yamaha. Shares of Japan's largest carmaker Toyota fell more than 5.4% last week, after the scandal broke on June 3, but is recovering on Monday. The automaker lost 2.45 trillion Japanese yen ($15.62 billion) in market value last week alone. Last week, Honda' s stock fell 5.75%, Yamaha Motor lost 2.2%, while Suzuki Motor inched down 0.3%.
Persons: Akio Toyoda, Suzuki, Honda Organizations: Toyota Motor Corporation, Toyota, Honda, Mazda, Yamaha, Ministry of Land, Transport, Tourism, Yamaha Motor, Suzuki Locations: Tokyo, Infrastructure
Euro slips to one-month low as Macron calls French election
  + stars: | 2024-06-10 | by ( ) www.cnbc.com   time to read: +4 min
It was last down 0.24% at $1.0776 as investors weighed the implications of renewed political uncertainty in the euro zone's second-biggest economy in a key election year. "But the exchange rate is still more likely to be influenced by this week's U.S. inflation data and FOMC meeting." The jobs data led traders to once again shift their expectations of when the Fed will cut rates and by how much. Markets are now pricing in 36 basis points of cuts this year compared to nearly 50 bps — or at least two cuts — before the jobs data. U.S. inflation data is also due on Wednesday.
Persons: Emmanuel Macron, Macron, Mansoor Mohi, Uddin, Ryan Brandham, Jerome Powell, Marc Chandler, Sterling Organizations: European Union, Federal Reserve, Bank Of Singapore, European Central Bank, Reuters, North America, Validus Risk, Bannockburn Global, The Bank of Japan Locations: European, Asia, France's, U.S, ., Bannockburn, New York
Where to Get the Most Bang for Your Buck
  + stars: | 2024-06-10 | by ( Elaine Glusac | ) www.nytimes.com   time to read: 1 min
It’s the backpacker’s call to India, the sunseeker’s attraction to Mexico, and the digital nomad’s drive to get to Thailand: Go where the dollar buys more. The evergreen budget travel strategy is getting a boost this summer: The dollar has surged against a number of foreign currencies, including the Japanese yen, thanks to high interest rates offered by the Federal Reserve — attracting foreign investment, which bolsters the dollar. “A destination’s weaker currency spells greater value for U.S. tourists,” said Erina Pindar, the chief operating officer and managing partner at SmartFlyer, a global travel agency based in New York City. “This economic advantage could make far-flung bucket list destinations in Asia, such as Indonesia, Vietnam and Japan, or in South America, like Peru, Argentina and Chile, more accessible than ever before,” she added.
Persons: , Erina Pindar Organizations: Federal Reserve Locations: India, Mexico, Thailand, New York City, Asia, Indonesia, Vietnam, Japan, South America, Peru, Argentina, Chile
The European Central Bank began easing interest rates on Thursday, cutting its benchmark rate by 0.25%. Investors and economists expect the Federal Reserve to follow suit and cut interest rates in September. This combination means there's a good chance that the September cut Wall Street is praying for may never materialize. The US already has somewhat higher interest rates than other countries — the Fed's benchmark rate is 5.25%- 5.50%. And in Asian economies, where interest rates are already significantly lower than in the US, things could get even messier.
Persons: Tamara, Vasiljev, Peter Schaffrik, Nigel Green, Green, we're Organizations: European Central Bank, Investors, Federal Reserve, Oxford Economics, JPMorgan, UBS, Bloomberg, of International Finance, Markets, RBC Capital Markets, deVere, Fed, We're, ECB, Bank of, EU, Bank of Canada, Bank of Canada's, Bank of England Locations: stagflation, China, Europe, Japan, South Korea, It's, America, United States, EU, Bank of England, Canada, East Asia
More than a year later, she is still in debt and resorting to sex work to pay her bills. But now she would have to repay him – with sex work the only way to raise the cash. Yu is one of hundreds of women coerced to sell their bodies after frequenting Japan’s so-called “host clubs,” experts told CNN. Of those detained, 40% told police they were soliciting to repay debts run up at host clubs, NHK reported. “It’s a romance scam, basically,” said Ayaka Shiomura, a member of Japan’s upper house of parliament, who has unsuccessfully pushed for better safeguards against exploitative host clubs.
Persons: Tokyo CNN — Yu, she’d, Yu, ’ ”, , ” Yu, Daniel Campisi, Behrouz Meheri, , Ayaka Shiomura, Mikami Rui, ” Mikami Rui, Hidemori, Gen, Shiomura, “ let’s, ” –, , ’ ” Yu, , Rui, “ I’m Organizations: Tokyo CNN, CNN, Getty, Tokyo, NHK, Asahi Shimbun, International Association for Suicide Prevention, Befrienders Locations: Japan’s, Kabukicho, Tokyo, AFP, Japan, Okinawa, Macao, Hong Kong
It was updated on July 3 when Japan introduced the new yen notes. The vending machine at Hiroshi Nishitani’s Tokyo ramen restaurant has been reliable for a decade. The food is served within minutes once the customer delivers the order to the pair of cooks at the counter. Japan has introduced a new set of bank notes, something it does every 20 years or so to thwart counterfeiters. The machine, already too old to accept recent coin designs, won’t accept the new bills, Mr. Nishitani said.
Persons: Hiroshi, counterfeiters, won’t, Nishitani Locations: Japan
Tokyo DisneySea's Fantasy Springs port has three themed areas and a new hotel, pictured. Tokyo Disney ResortA few Disney firstsVisitors to the new port first head through a tunnel passage made of rocks shaped like Disney characters from the three film franchises that inspired Fantasy Springs. One of the most anticipated additions inside Fantasy Springs is undoubtedly Rapunzel’s Forest, Disney’s first Tangled-inspired themed area. How to access and stay in the parkThe Tokyo DisneySea Fantasy Springs Hotel offers two options: The Fantasy Chateau and the more luxurious Grand Chateau (pictured here). Tokyo Disney ResortA one-day Fantasy Springs Magic passport is currently included for guests buying one of Tokyo Disney’s hotel vacation packages or available for purchase by those staying at the new Tokyo DisneySea Fantasy Springs Hotel inside the expansion.
Persons: Peter Pan, Flynn Rider, Peter Pan’s, Tinker Bell, John Darling –, Captain Hook, won’t, , , Anna, Elsa, bakehouse Organizations: CNN, Tokyo, Disney, Oriental Land Co ., , Tokyo Disney, Visitors, Resort, Spotify, Springs Hotel, Springs, Tokyo Disney Resort Locations: DisneySea, Tokyo, United States, Corona, Fantasy Springs, Fantasy
Tu Lam, a former Special Forces soldier, rates the fighting techniques Keanu Reeves uses in the "John Wick" movies. He talks about judo and jujitsu, sniper techniques, and the ways public missions are handled in "John Wick" (2014), with Alfie Allen, Willem Dafoe, and John Leguizamo. He explains how suppressors work, the best ways to handle a knife, and how to turn anything in a room into a weapon, as seen in "John Wick: Chapter 2" (2017), with Common, Ruby Rose, and Laurence Fishburne. He compares his own experiences with urban shootouts, working with military dogs, and fighting on a motorcycle to "John Wick: Chapter 3 — Parabellum" (2019), with Halle Berry, Ian McShane, and Anjelica Huston. Finally, he breaks down defensive driving, clearing a room, and fighting on stairs in "John Wick: Chapter 4" (2023), with Bill Skarsgård and Donnie Yen.
Persons: Lam, Keanu Reeves, John Wick, Alfie Allen, Willem Dafoe, John Leguizamo, Ruby Rose, Laurence Fishburne, Halle Berry, Ian McShane, Anjelica Huston, Bill Skarsgård, Donnie Yen Organizations: Special Forces, Business
Dollar finds footing as traders turn to U.S. services data
  + stars: | 2024-06-05 | by ( ) www.cnbc.com   time to read: +3 min
US Dollar notes and euro coins are arranged for a photograph on Sept. 11, 2017. The dollar steadied on Wednesday as traders pared back on riskier bets in emerging markets while waiting on an interest rate decision in Canada and on U.S. services data. Japanese real wages fell for a 25th straight month in April, data on Wednesday showed, as inflation outpaces nominal pay rises. The Swiss franc rose for a fourth straight session on the dollar overnight and at 0.8902 per dollar is close to breaking through its 200-day moving average. The New Zealand dollar was steady at $0.6173, while the Canadian dollar held the middle of a months-long range at C$1.3678 per dollar.
Persons: Jane Foley, Ryozo Himino, Narendra Modi, Chris Weston Organizations: Swiss, Bloomberg News, Bank of, Rabobank, BOJ, Westpac, New Zealand, African National Congress, Morena Locations: Canada, U.S, Bank of Japan, Asia, Japan, Morena
SoftBank Group Corp. is scheduled to announce its earnings figures on May 13. Elliott is lobbying for $15 billion worth of share buybacks, arguing that the buybacks will boost SoftBank's share price and "act as a sign of Son's confidence in his strategy," the Financial Times reported. SoftBank shares hit a high of 9,572 yen on Wednesday, 6.32% higher than its Tuesday closing price, according to LSEG data. Elliott had invested $2.5 billion in SoftBank in 2020 and sought share buybacks worth $20 billion along with governance changes, Financial Times reported that year. SoftBank Group declined to comment.
Persons: Toru Hanai, Elliott, SoftBank, Elliott's, Masayoshi Son Organizations: SoftBank Corp, SoftBank Group Corp, Bloomberg, Getty, SoftBank, Elliott Management, Financial Times, U.S Locations: Tokyo, Japan, SoftBank
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