EUR/USD 1.16348
0.253%
Gold 4549.67
0.919%
Oil 91.158
-4.313%
USD/JPY 158.881
-0.177%
GBP/USD 1.34754
0.267%
GBP/JPY 214.103
0.098%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On May 25th, Japanese financial regulators are urging domestic listed companies to allocate more of their cash reserves to long-term business investments, rather than rewarding shareholders through share buybacks and increased dividends. Tatsufumi Shibat, a senior official at the Financial Services Agency, stated in an interview that, in addition to cash, executives should consider using cross-shareholdings and real estate assets to promote growth. He pointed out that regardless of where Japanese companies are on their growth curve, they tend to prioritize shareholder returns. "I dont think investors would make that demand of companies in a rapid growth phase," he said in the interview. Shifting the vast wealth held by businesses and households to fund future expansion is one of the core pillars of Prime Minister Sanae Takaichis efforts to revitalize the Japanese economy. She has long criticized the cash reserves on corporate balance sheets.On May 25th, US Secretary of State Marco Rubio, who was visiting India, told the media on the 24th that a draft agreement between the US and Iran had gained the support of several Middle Eastern countries. Rubio said that seven to eight countries in the region currently support the draft, and the US is prepared to continue pushing it forward. Rubio also stated that nuclear negotiations are highly specialized, and "its impossible to settle a nuclear matter in 72 hours by writing it on the back of a napkin," but President Trumps commitment to preventing Iran from acquiring nuclear weapons should not be questioned. Earlier that day, Trump posted on social media that negotiations with Iran were "going in an orderly and constructive manner," and that he had informed US representatives that there was no need to rush into an agreement with Iran.On May 25th, European Central Bank (ECB) President Christine Lagarde stated that the ECB is likely to raise its inflation outlook when policymakers meet next month. She said on Sunday that the March forecast of 2.6% inflation this year "may be revised," adding that the situation "has changed" since then. Her comments confirm recent signals from policymakers, including Governing Council member Demarco. Demarco, in an interview, suggested that the forecast, released shortly after the outbreak of the Iran-Iraq conflict, might have been overly optimistic. Lagarde declined to elaborate on whether such a revision would lead to a rate hike by the ECB on June 11th. "The current situation is so uncertain that we must examine all available data, assess how the economy will develop in the coming quarters, determine whether action is needed, and what the medium-term impact will be," she said. "Our target is 2% in the medium term."On May 25th, Kevin Hassett, US President Trumps chief economic advisor, stated that he believes the eventual drop in oil prices will create room for the Federal Reserve to cut interest rates. "We again expect that once an agreement is reached, energy prices will plummet," Hassett said. "When that happens, the Fed will have ample room to take the right action and lower interest rates." He emphasized his respect for the Feds independence and praised Kevin Warsh, who was sworn in as Fed chairman last Friday. While the surge in US fuel prices caused by Irans closure of the Strait of Hormuz poses a growing political risk to Trump and his Republicans in the November midterm elections, Hassett believes that accelerating inflation is primarily driven by energy prices. "If you look at the recent data reports, energy prices are absolutely worrying, but core prices have hardly changed," he said. "I think once we see energy prices fall, you might actually see negative inflation because of the drop in energy prices."European Central Bank President Christine Lagarde: The current situation is too uncertain to make a commitment on interest rates; inflation forecasts may be revised in June, at which time the ECB will assess the economic situation by taking all data into account.

While examining global development expectations, the WTI price falls below $72

Alina Haynes

Mar 15, 2023 11:38

 截屏2023-01-13 下午5.17.06.png

 

WTI is experiencing a corrective decline that began around $81 and is currently trading just below $72. The diminishing expectation of cumulative global development is depressing oil demand. WTI price struggles to remain elevated despite restricted oil supply from the Organization of the Petroleum Exporting Countries (OPEC).

 

The Organization of the Petroleum Exporting Countries (OPEC) desires to maintain oil prices above the $80 threshold; consequently, a number of voluntary adjustments have been enacted; however, oil prices are more interested in the global economic slowdown than the law of supply and demand.

 

The global outlook for inflation, which is a major driver of commodity prices, is deteriorating as a result of rising global borrowing costs. This effect has been observed in numerous commodities, including copper and iron ore.

 

The recent failures of Silicon Valley Bank (SVB) and Signature Bank have dampened investors' sentiment regarding underlying financial conditions. The global development outlook is clouded by recent unemployment in numerous developed countries.

 

Recent data demonstrated that the Chinese reopening narrative is less optimistic than previously believed. China was one of the countries that contributed to rewriting the global development narrative following the 2008 Great Financial Crisis (GFC). This time, however, is not the case.

 

Meanwhile, on Tuesday, the US Consumer Price Index (CPI) was released in accordance with expectations, with the headline MoM figure coming in at 0.4% as expected, from 0.5% previously, and the YoY figure coming in at 6% as expected, from 6.5% previously. The MoM core reading came in marginally higher than anticipated, at 0.5% versus 0.4% expected, from the previous 0.4%, and the core YoY reading was in line with expectations, at 5.5% from 5.6%.


Suggestion