The Economist (May 4)
“It is easy for investors to lose a fortune in the financial markets—and even easier for governments.” When Japan tried to prop up the yen in 2022, the nation “spent more than $60bn of its foreign-exchange reserves,” but supporting a currency “is expensive and futile.” Since breaking the ¥160/$1 barrier, there are rumors of another intervention. As long as the giant interest rate gap exists with the U.S., Japan would be “wrong to try to prop up the yen.”
Tags: $60bn, ¥160/$1, 2022, Currency, Expensive, Financial markets, Forex, Futile, Governments, Interest rate, Intervention, Investors, Japan, Reserves, Yen
Wall Street Journal (May 4)
“Evidence is stacking up that the U.S. economy has slowed, led by the formerly red-hot services sector. Yet overall activity levels remain healthy, and some cooling is welcome news to investors because it opens the door back up to possible rate cuts by the Federal Reserve.”
Tags: Cooling, Economy, Evidence, Federal Reserve, Healthy, Investors, Rate cuts, Red-hot, Services sector, Stacking up, U.S.
WARC (May 3)
“Political leaders in France and the US have been publicly critical of companies for making products smaller while maintaining the existing price, but South Korea’s government is one of the first to legislate against it.” The Korea Fair Trade Commission “will now require producers that downsize products to put notices on packages, websites, or at stores for the three months following the change.”
Tags: Companies, Critical, Downsize, France, FTC, Legislate, Notices, Packages, Political leaders, Price, Products, Smaller, South Korea, Stores, U.S., Websites
The Guardian (May 1)
“As the declining population continues to impact Japan’s society and economy, the number of vacant houses has topped nine million – enough to accommodate the entire population of Australia at three people per dwelling.”
Tags: Accommodate, Australia, Declining, Dwelling, Economy, Impact, Japan, Population, Society, Vacant houses
Bloomberg (April 30)
“Regardless of how pragmatic propping up the yen after such a poor run may sound, the question is whether it would be wise…. With US rate sentiments weighing heavily on the yen, an intervention would be no lasting solution in the event of a hawkish Fed pivot.”
Tags: Fed, Hawkish, Intervention, Lasting, Pragmatic, Propping up, Rate, Sentiments, Solution, U.S., Wise, Yen
The Week (April 29)
“Sometimes booms go bust. That may be happening with artificial intelligence.” OpenAI, Microsoft, Google and other tech companies “have unveiled gaudy new products with fanfare,” but AI hasn’t revolutionized the way people live, work or communicate. Profits are also “turning out to be elusive.”
Tags: Artificial intelligence, Booms, Bust, Communicate, Fanfare, Gaudy, Google, Live, Microsoft, OpenAI, People, Products, Profits, Revolutionized, Tech companies, Work
Wall Street Journal (April 27)
Exxon and Chevron “are still printing big profits, but their postpandemic run of record earnings is slowing down.” After gyrating with Russia’s invasion of Ukraine, “oil-and-gas supplies have largely stabilized… and analysts say companies such as Exxon—the western world’s largest oil refiner—will have to prove it can keep costs down and production up if the benefits of external market forces continue to ebb.”
Tags: Analysts, Chevron, Costs, Earnings, Exxon, Gas, Gyrating, Invasion, Oil, Postpandemic, Production, Profits, Record, Refiner, Russia, Stabilized, Supply, Ukraine
Institutional Investor (April 26)
“This may have been the first presidential primary debates season where BlackRock’s investment strategy was a talking point! Twenty-two states have introduced some form of ‘anti-ESG’ regulations, with more than 75 bills pending in various legislatures…. Prominent hedge fund managers, amid very public social media meltdowns, are waging war against diversity, equity and inclusion.”
Tags: Anti-ESG regulations, BlackRock, Debates, DEI, Hedge-fund, Investment strategy, Legislatures, Meltdowns, Prominent, Social media, War
Investment Week (April 26)
“Managers have expressed confidence in the performance of sterling and its future potential, but the uncertainty surrounding the UK and global economies, as well as the upcoming general election, could pose headwinds to the asset’s performance.”
Tags: Asset, Confidence, Future, General election, Global economies, Headwinds, Managers, Performance, Potential, Sterling, UK, Uncertainty
Investment Week (April 25)
In the U.S., “sustainable funds suffered their “worst-ever quarter” for redemptions, shedding a record $8.8bn in the first quarter of 2024…. This marked the sixth consecutive month of outflows… and was over five-fold the withdrawals from Japanese sustainable funds, the only other region to record overall redemptions.” The ongoing politicization of ESG investing in the U.S. was among the drivers of the outflows.
Tags: $8.8bn, Japan, Outflows, Politicization, Q1, Redemptions, Suffered, Sustainable funds, U.S., Withdrawals, Worst-ever quarter
