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Oppenheimer raised its price target for Marwell Technology (MRVL.O) from $250 to $300.On August 21, the Ministry of Finance issued a notice on further improving fiscal and financial coordination policies to boost domestic demand. The notice stipulates that the annual maximum amount of interest subsidies for loans to small and micro enterprises that a single borrower can receive from a single lending institution will be increased from 50 million yuan to 75 million yuan. The annual maximum amount of interest subsidies for loans to service industry operators that a single borrower can receive from a single lending institution will be increased from 10 million yuan to 20 million yuan. The annual maximum cumulative interest subsidy for personal consumer loans and credit card installment payments that each borrower can receive from a single lending institution will be increased from 3,000 yuan to 5,000 yuan.The Ministry of Finance announced that the scope of agencies handling the loan interest subsidy policy for small and micro enterprises and the loan interest subsidy policy for service industry operators will be expanded to 21 national banks and city commercial banks, rural cooperative financial institutions, private banks and foreign banks with a financial regulatory rating of 3A or above.On August 21, the Ministry of Finance issued a notice on further improving fiscal and financial coordination policies to boost domestic demand. The notice stipulates that newly issued working capital loans to eligible small and medium-sized private enterprises will be included in the scope of the SME loan interest subsidy policy, with the central government providing an annualized interest subsidy of 1 percentage point on the principal of the working capital loan for a period not exceeding two years. New credit card installment businesses, including special installment plans, consumer installment plans, and cash advance installment plans, will also be included in the scope of the personal consumer loan fiscal interest subsidy policy, with a subsidy rate of 1 percentage point per annum.On August 21, Liao Min, Vice Minister of Finance, introduced that this year, the Ministry of Finance, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Commerce, the General Administration of Customs, the State Taxation Administration, and the State Administration for Market Regulation, has established a nationally unified negative list management mechanism for local government subsidies. This mechanism clearly defines the specific circumstances of illegal subsidies, resolutely prevents the increase of illegal subsidies, and classifies and standardizes the existing stock of illegal subsidies.

Even as the BoJ vs. Fed Difference Remains in the Spotlight, USD/JPY Tracks Below 134.00 on Lackluster Yields

Alina Haynes

Apr 17, 2023 14:02

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As Monday begins in Tokyo, USD/JPY falls from its intraday high and stabilizes around 133.80. As a consequence, the Yen pair is unable to extend its previous day's gains due to lax market conditions preceding this week's key data/events. In addition to a paucity of significant data or events, USD/JPY traders have recently struggled with inconsistent triggers and sluggish returns.

 

The previous day, USD/JPY reached its highest level in a week as primarily positive US data dampened expectations for a policy shift and rate cut by the Federal Reserve (Fed) in 2023. Despite this, US retail sales decreased by 1.0% in March compared to the predicted -0.4% decline and February's -0.2% decline. As opposed to the 0.2% market consensus and previous reading, Industrial Production increased by 0.4% in the month in question. The preliminary result of the University of Michigan's (UoM) Consumer Confidence Index for April, which increased to 63.5 from 62.0 analysts' expectations and previous readings, was also encouraging. In addition, inflation forecasts for the next year increased from 3.6% in March to 4.6% in April, while inflation forecasts for the next five years decreased by 2.9% during the same month.

 

Previously, the USD/JPY pair increased due to hawkish Fed discussions. In an interview with Reuters on Friday, Raphael Bostic, president of the Atlanta Federal Reserve (Fed), stated that "recent developments are consistent with one more rate hike." According to Reuters, Fed Governor Christopher Waller discussed this topic and stated that additional rate hikes are necessary because the Fed has not made significant progress toward its inflation objective. In an interview with CNBC on Friday, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, stated that he still needs to examine the statistics. The lawmaker said, "However, let's keep in mind that we've raised a lot of money; some of the delay may be reflected in today's retail sales number."

 

In contrast, the USD/JPY pair was able to maintain its strength due to the new Governor of the Bank of Japan (BoJ), Kazuo Ueda, who supports the Japanese central bank's easy-money policy.

 

Recent geopolitical tensions between China and the United States over Taiwan, as well as China's desire to collaborate with Russia to enhance regional and global security, have weighed on the USD/JPY pair and agitated the market.

 

S&P 500 Futures struggle to find a clear direction amidst these wagers following Wall Street's pessimistic close, as bond yields remain neutral despite weekly gains.

 

The preliminary readings of the US PMIs for April and the Japanese National Consumer Price Index (CPI) for March will be crucial to monitor going forward. The previously mentioned risk factors and central banker comments are also significant.


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