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Russian Deputy Foreign Minister Ryabkov: Whats important now is how Washington can influence decision-making in Kyiv and Europe.Indias preliminary composite PMI for August was 54.6, below the expected 54.4 and the previous reading of 54.3.Indias preliminary services PMI for August was 54.5, below the expected 53.8 and the previous reading of 53.3.Indias preliminary manufacturing PMI for August was 52.9, below the expected 54 and the previous reading of 53.5.On August 21st, Bank of America Securities issued a report stating that Pop Marts (09992.HK) half-year results fell short of expectations. The bank lowered its adjusted earnings per share forecasts for 2026/2027 by 22%/24%, and its target price by 4% from HK$160 to HK$153. Bank of America forecasts adjusted net profit of RMB10.65 billion for fiscal year 2026, implying a 36% year-on-year decline in the second half. The current price represents a forward P/E ratio of approximately 13 times for 2026, close to historical lows, and the compound annual growth rate of adjusted net profit from 2025 to 2028 is only in the low single digits, making the valuation seem reasonable. Therefore, the bank maintains a "neutral" rating and believes that the downside potential for the share price is limited. Key supporting factors include: 1) a share buyback plan of RMB2 billion to RMB5 billion over the next six months (equivalent to 1.1% to 2.8% of market capitalization); 2) a reduced impact of exchange rate losses in the second half of the year (exchange rate losses in the first half were approximately RMB700 million); and 3) the increase in shareholding by prominent investor Duan Yongping to 7.7%, which may provide support for market sentiment. Overall, the bank believes that the risk-reward ratio is roughly balanced between the current growth pains and the long-term prospects.

As BoJ Udea Mentions the Appropriateness of Current Monetary Policy, EUR/JPY Exhibits a V-Shaped Movement

Daniel Rogers

Feb 24, 2023 14:30

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When Kazuo Ueda, the nominee for Governor of the Bank of Japan (BoJ), addresses the Japanese parliament, the EUR/JPY currency pair exhibits a V-shaped movement. The commentary of Haruhiko Kuroda's successor as Governor of the Bank of Japan has increased the volatility of the Japanese Yen.

 

As he describes the current monetary policy as appropriate and necessary to sustain 2% inflation, BoJ Ueda's speech appears more diplomatic. Moreover, he stated that rising import prices are the cause of Japan's rising inflation. Domestic demand is still insufficient, but the central bank is attempting to achieve pre-pandemic growth rates. The neighborhood has descended into lunacy as a result of his speech's absence of Yield conversion control (YCC) discussions.

 

Despite current discussions about the expansion of the YCC, the economic outlook for the Japanese Yen is positive, as the Bank of Japan is working to increase labor costs, which will confidently support a revival in overall demand.

 

Nordea economists continue to be optimistic about the Japanese Yen: "We remain fairly sanguine on JPY due to our expectations of a change in Bank of Japan monetary policy later this year." According to a note from Nordea, the time is ripe for a normalization of the Bank of Japan's stimulative monetary policy, "with inflation reaching its highest level in decades and a prognosis for higher wage growth."

 

Despite the easing of inflationary pressures, investors are concerned that the normalization of the Eurozone economy will take a significant amount of time. In order to maintain a ceiling on the price index, the European Central Bank (ECB) is anticipated to continue raising interest rates.


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