News

According to a Japanese Financial Services Agency (FSA) official, the FSA has expressed concern about "50-year mortgage loans" and has strengthened its oversight of personal loans.

The tail demand indicator for Japan's two-year government bond auctions is the weakest since 2016.

The bid-to-cover ratio for Japan's 2-year government bond auction was 2.97, down from 3.63 in July.

The yield on India’s benchmark 10-year government bond rose to 6.9136%, its highest level since June 12.

At the close of the morning session, most domestic futures contracts rose, with SC crude oil and lithium carbonate rising nearly 4%, apples rising over 3%, coking coal rising nearly 3%, coke and asphalt rising over 2%, and live hogs and paraxylene rising nearly 2%. On the downside, rapeseed fell over 4%, ethylene glycol (EG) fell over 1%, and soybean futures fell nearly 1%.

On Tuesday, Indian Defense Minister Rajnath Singh approved the transfer of technology developed by the Defence Research and Development Organisation (DRDO) to Indian defense companies for the domestic production of all conventional missile systems. The DRDO is the research and development agency under the Indian Ministry of Defence. This move is part of New Delhi's "Aatmanirbharta" (Self-Reliance) initiative, aimed at strengthening India's defense manufacturing sector, reducing reliance on overseas suppliers, and enhancing defense export capabilities and deterrence against Pakistan. However, analysts say that achieving self-sufficiency in India's defense manufacturing sector remains a distant goal, as its missile supply chain still relies on imported components, and whether private companies can independently produce complex weapon systems in the short term remains to be seen.

A Reuters poll shows that more than two-thirds of forecasters expect the Reserve Bank of New Zealand to raise interest rates at least once more after September, with the cash rate expected to reach 3.00% or higher by the end of the year.

A Reuters poll showed that 27 out of 31 economists expect the Reserve Bank of New Zealand to raise the cash rate by 25 basis points to 2.75% on September 2.

Goldman Sachs strategist Rich Privorotsky believes that oil prices may be more important than the Jackson Hole symposium. In other words, Goldman Sachs believes the market may be overemphasizing Warsh's speech while underestimating the impact of oil prices on inflation and financial markets. Goldman Sachs argues that if oil prices fall: oil prices ↓ → inflation expectations ↓ → consumer pressure ↓ → long-term US Treasury yields ↓ → equity valuation pressure ↓ → risk assets benefit. Therefore, oil prices may be more important than Warsh's speech itself. Privorotsky believes that unless Warsh significantly deviates from his previous policy stance, Jackson Hole itself may not pose a "major event risk."

South Korea's National Security Advisor: South Korea is seeking to strengthen cooperation with the United States on current issues including investment, Coupang, and national security.

U.S. Treasury Secretary Bessant: Blockades and economic isolation will destroy Iran's already collapsing economy. In the past 14 days, the U.S. has diverted 130 million barrels of oil out of the Strait of Hormuz, while Iran has exported zero crude oil.

According to Nikkei Asia: South Korea's Ministry of National Defense announced that Japan, South Korea, and the United States will hold the annual "Freedom Blade" trilateral defense exercise from September 7 to 11 in waters near Jeju Island in southern South Korea.

JPMorgan Chase raised its price target for Workday from $190 to $225.

Japanese Finance Minister Satsuki Katayama: Enhancing international competitiveness will strengthen the credibility of the yen.

Morgan Stanley's Chief U.S. Economist Michael Gapen and Global Head of Macro Strategy Matthew Hornbach offered a clear core assessment of Warsh's Jackson Hole speech: Don't expect Warsh to provide much short-term interest rate guidance in this speech, because Warsh has repeatedly stated that the Fed should reduce communication and forward guidance. Therefore, Morgan Stanley believes that Warsh is unlikely to focus on: what to do at the September meeting, what the December interest rate will be, how many times to cut or raise rates this year, or short-term balance sheet policy. However, they believe Warsh may use the Jackson Hole platform to begin discussing several longer-term "big issues": ① the Fed's balance sheet ② the inflation framework ③ the Fed's communication style ④ AI and productivity ⑤ the quality of U.S. economic data. These correspond precisely to the working groups Warsh previously established. Therefore, Morgan Stanley's core prediction can be summarized as: This may not be a speech about "whether or not to cut rates in September," but rather Warsh's first relatively systematic explanation of the direction he wants to take the Fed.

Japanese Finance Minister Satsuki Katayama: Economic and financial management is not aimed at foreign exchange trading.

Japanese Finance Minister Satsuki Katayama: The joint US-Japan foreign exchange statement is of great significance.

Japanese Finance Minister Satsuki Katayama: Exchange rates are determined by a variety of factors.

Japanese Finance Minister Satsuki Katayama: The government under Prime Minister Sanae Takaichi is determined to boost the economy and competitiveness, therefore the credibility of the yen will increase.

Japanese Finance Minister Satsuki Katayama: Will attend the G20 finance ministers' meeting in Asheville, North Carolina.