EUR/USD
1.15853
0.151%
Gold
4396.99
0.478%
Oil
81.226
-0.318%
USD/JPY
159.062
-0.184%
GBP/USD
1.35526
0.135%
GBP/JPY
215.574
-0.050%
Real-time News
August 17th - Japanese automakers are facing a double whammy from the impact of the Iran war and the potential for a stronger yen. Toyota, Honda, and Nissan have recently benefited from the historically weak yen, with Toyota and Honda raising their full-year earnings forecasts and Nissan achieving its first profit in nearly two years. However, this positive effect may reverse as the yen strengthens. Vincent Sun, senior equity analyst at Morningstar, stated that a stronger yen will force automakers to choose between raising prices overseas and sacrificing profits. The former could lead to a decline in market share, while the latter would compress the yen value of overseas profits. Bernstein predicts that for every 1% appreciation of the yen, Japanese automakers operating profits will typically be affected by about 2%, with some companies potentially experiencing an impact of up to 4%. Analysts also believe that the ongoing conflict in the Middle East could drive up the costs of key raw materials such as naphtha, resins, aluminum, copper, steel, and semiconductors, and increase shipping risks in the Strait of Hormuz and the Red Sea, further squeezing automakers profit margins.Japans 20-year yield rose 6.5 basis points to 3.815%.August 17th - The upcoming New Zealand general election in November may complicate the Reserve Bank of New Zealands (RBNZ) monetary policy tightening, but ANZ senior strategist David Croy believes the RBNZ is still very likely to raise interest rates in October. The RBNZ has clearly stated its intention to return monetary policy to a neutral level. ANZ estimates the neutral interest rate to be around 3% or slightly above 3%, while the current policy rate is 2.50%. Croy stated that with policy remaining stimulative and inflation above target, there is no reason for the RBNZ to pause rate hikes. He believes the current situation is that the RBNZ needs to find a reason not to raise rates in October.On August 17, Belgorod Oblasts acting governor, Shuvaev, posted on social media that a village in the Valuisky district of the oblast was attacked by Ukrainian forces, resulting in 6 deaths and 4 injuries.On August 17th, a consumer posted on social media that brown particulate matter was found in Feihe milk powder, sparking market concern. The information posted on social media indicated that a consumer in Yunnan found multiple brown particles, ranging in size from 1 to 2 millimeters, in Feihe milk powder while preparing it, expressing concern about its ingredients and filing a complaint with the consumer rights protection department. Feihe responded that after testing with a micro-infrared spectroscopy instrument and a starch-iodine colorimetric reaction, the substance was confirmed to be starch. They stated that neither the formula nor the production process of their milk powder contains any added starch; furthermore, multiple foreign object prevention devices are in place during production, ruling out the possibility that the foreign object was generated or introduced during the production process. They speculate that the starch-like substance originated from an external source.
