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According to Iranian media reports, Iran stated that shipping will return to normal once the instability in the Strait of Hormuz ends.On May 16, in response to the first round of widespread heavy rainfall this year, the State Flood Control and Drought Relief Headquarters Office and the Ministry of Emergency Management continued to organize joint consultations, working with the China Meteorological Administration, the Ministry of Water Resources, and the Ministry of Natural Resources to assess the development of rainfall, flood conditions, and geological disasters. They guided key provinces to take targeted measures to prevent and respond to flash floods, geological disasters, floods in small and medium-sized rivers, and urban flooding. They demanded that flood control and disaster reduction responsibilities be firmly implemented, early warning and response coordination be strengthened, key areas and important infrastructure be closely monitored, evacuation and shelter be decisively organized, and all preparations for rescue and relief be effectively carried out. Based on the consultation and assessment, the State Flood Control and Drought Relief Headquarters activated a Level IV emergency response for flood control in Hubei and Chongqing at 12:00, and maintained the Level IV emergency response for flood control in Guangdong and Guizhou, requiring relevant provinces to make every effort to prevent and respond to heavy rainfall.According to Yonhap News Agency, Samsung Electronics Chairman Lee Jae-yong expressed his deepest apologies for the public concerns caused by internal issues.On May 16th, media outlets reported that SpaceX proposed one of the most radical corporate governance proposals in US history, ensuring Musk wouldnt be fired and offering a trillion-dollar compensation package related to establishing a colony on Mars. In response, Musk stated on social media: "Yes, I need to make sure SpaceX focuses on achieving humanitys transformation into a multiplanetary species and extending consciousness to the stars, not on catering to certain peoples quarterly bonuses. If SpaceX succeeds in achieving this incredibly difficult goal, its value will far exceed the entire global economy by orders of magnitude. This process shouldnt be expected to be smooth sailing."May 16 – The government of the Democratic Republic of Congo (DRC) issued a statement on May 15 saying that the death toll from a new Ebola outbreak in Ituri province in eastern Congo has risen to 80. The DRC Ministry of Health stated that as of that day, a total of 246 suspected cases and 80 deaths had been reported nationwide, with four deaths confirmed by Ebola virus testing. The statement said the DRC National Institute of Biomedical Research confirmed that the outbreak was caused by the Bundibugyo strain of Ebola virus. The first suspected case was a nurse who died in April after receiving treatment at a medical facility in Ituri province. The patient had symptoms including fever, bleeding, vomiting, and severe fatigue.

AUD/JPY Retains Its Position At 89.00 As Demand For The Yen As A Safe Haven Wanes

Alina Haynes

Mar 17, 2023 13:51

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The risk proxy AUD/JPY was pummeled earlier this week in a risk-averse environment, sending the pair to 87.50. The emergence of the US banking sector's liquidity crisis revealed who was swimming naked.

 

This week was a roller coaster, with several banks experiencing liquidity shortages that prevented them from conducting regular market operations. Among the institutions are SVB, Signature Bank, Credit Suisse, and The First Republic Bank. Following the SVB's failure, nobody anticipated such a rapid rate of banks falling into the liquidity trap.

 

It appears that rising interest rates and quantitative tightening have stifled global liquidity and exert pressure on banks. Wednesday was a difficult day for the AUD/JPY pair due to Credit Suisse's problems, which prompted significant risk aversion. Credit Suisse is a crucial participant in global operations.

 

Several significant central banks took action as the media focused on Credit Suisse. The Bank of England (BoE) held extensive discussions with international counterparts, and the Swiss National Bank (SNB) proposed a CHF50 billion covered loan facility.

 

First Republic Bank encountered similar difficulties in the United States, but prominent institutions including JPMorgan, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley contributed a pool of liquidity.

 

During the previous trading session, the AUD/JPY exchange rate was bolstered by these contingency plans and prompt actions to address the emerging liquidity crisis. This week, despite positive Australian employment data, the AUD/JPY traded predominantly in accordance with risk sentiment.