Aurelia Butler

SYDNEY (Reuters) – The yen remained under pressure on Friday as investors wagered the Bank of Japan (BOJ) would wrap up a policy meeting sounding cautious on further tightening, while the U.S. dollar had its own problems as markets priced in more rapid U.S. rate cuts.It has been a tough week for the yen, with the euro gaining 2.2% to 159.46 as speculators booked profit on recent long yen positions.The euro also firmed to $1.1160, up 0.8% for the week and within striking distance of the August peak of $1.1201. A break there would target a July 2023 top of $1.1275.The dollar was up 1.4% for the week at 142.84 yen, though off an overnight high of 143.95. Resistance was at 144,20, while support lay at the recent trough of 139.58.The BOJ is widely expected to hold its policy interest rate at 0.25% later on Friday and maintain its view the economy will recover moderately as rising wages underpin consumption.Data on consumer prices out on Friday showed core inflation ticked up to 2.8% in August, while overall inflation hit 3.0%.Samara Hammoud, a currency strategist at CBA, noted Japan’s real rate remained deeply negative at about -2.5%, while the BOJ estimated neutral to be in a range of -1% to 0.5%.”As such, there is scope to further raise the policy rate while keeping financial conditions accommodative,” she said. “Our base case remains for the BOJ to next raise rates by 25bp in October, though the risk leans towards a later hike.””The recent financial market ructions and the upcoming Liberal Democratic Party election may make the BOJ more cautious about raising.”The BOJ’s policy statements can sometimes be rather opaque, so investors will be focused on any hints from Governor Kazuo Ueda on the timing and pace of tightening at his post-meeting news conference.DOLLAR DECLINEMuch of the rest of the world is heading in the other direction, with markets expecting China’s central bank to trim its longer-term prime rates by 5-10 basis points on Friday.China has also been hinting at other stimulus measures, enabled in part by the U.S. Federal Reserve’s aggressive easing which shoved the dollar to a 16-month low on the yuan.Markets imply a 40% chance the Fed will cut by another 50 basis points in November and have 73 basis points priced in by year-end. Rates are seen at 2.85% by the end of 2025, which is now thought to be the Fed’s estimate of neutral.That dovish outlook has bolstered hopes for continued U.S. economic growth and sparked a major rally in risk assets. Currencies leveraged to global growth and commodity prices also benefited, with the Aussie topping $0.6800.The U.S. dollar index was stuck at 100.69 and just above a one-year low.Sterling was another gainer after the Bank of England kept rates unchanged on Thursday, while its governor said it had to be “careful not to cut too fast or by too much”.The pound was up 1.1% for the week so far at $1.3276, having hit its highest since March 2022. More

“It really is a political move. Most people thought it was going to be half of that number, which probably would have been the right thing to do,” Trump said in an interview with Newsmax.The Federal Reserve on Wednesday kicked off what is expected to be a series of interest rate cuts with an unusually large half-percentage-point reduction.Trump said last month that U.S. presidents should have a say over decisions made by the Federal Reserve.The Fed chair and the other six members of its board of governors are nominated by the president, subject to confirmation by the Senate. The Fed enjoys substantial operational independence to make policy decisions that wield tremendous influence over the direction of the world’s largest economy and global asset markets. More

TOKYO (Reuters) -The Bank of Japan is set to keep monetary policy steady on Friday, but signal its confidence that solid wage growth and consumption will allow the central bank to raise interest rates again in coming months.Such hawkish communication would contrast with many other central banks that are now shifting to a rate-cut cycle, including the U.S. Federal Reserve, which delivered an oversized reduction in borrowing costs on Wednesday.The divergence may cause more turbulence in markets with expectations of narrowing U.S.-Japan interest rate differentials already helping the yen rebound to around 143 versus the dollar, off the nearly three-decade low of 161.99 hit in early July.Markets are focusing on any hints from Governor Kazuo Ueda on the timing and pace of future rate hikes at his post-meeting news conference.”Having just raised rates in July, the BOJ will likely prefer to scrutinise market developments for the time being,” said former BOJ official Nobuyasu Atago.”It’s natural to think the next rate hike will come in December” so the BOJ can gauge the impact of the Fed’s rate cut as well as political events such as Japan’s ruling party leadership race and the U.S. presidential election, he said.At a two-day policy meeting concluding on Friday, the BOJ is widely expected to keep short-term interest rates steady at 0.25%, and maintain its view the economy will continue to recover moderately as rising wages underpin consumption.A majority of economists polled by Reuters expect the BOJ to raise rates again this year with most betting on a December hike. None in the poll projected a rate increase this month.The BOJ ended negative interest rates in March and hiked short-term rates to 0.25% in July, in a landmark shift away from a decade-long stimulus programme aimed at firing up inflation.Governor Ueda has stressed the BOJ’s readiness to raise rates further if inflation remains on track to durably hit its 2% target, as the board currently projects.Core consumer inflation hit 2.8% in August to accelerate for the fourth straight month, data showed on Friday, keeping alive expectations for further interest rate hikes.The chance to check data against its projections more carefully would come at the BOJ’s Oct. 30-31 meeting, when the board will conduct a quarterly review of its forecasts.Japan’s economy expanded an annualised 2.9% in April-June and real wages rose for two straight months in July, easing fears that rising living costs will dent consumption.But soft demand in China, slowing U.S. growth and the yen’s recent rebound cloud the outlook for the export-reliant country.Market volatility remains a key concern for BOJ policymakers after the July rate hike and hawkish remarks from Ueda triggered a yen spike and sharp falls in equity prices.Several BOJ policymakers have called for scrutinising market moves in setting policy. But they also reiterated the bank’s readiness to keep raising rates, with one hawkish board member saying short-term rates must eventually go up to around 1%. More

BENGALURU (Reuters) – Australia’s central bank will keep its key policy interest rate unchanged on Tuesday and for the rest of the year amid elevated price pressures, according to economists polled by Reuters, with most expecting the first reduction early next year.Inflation slowed to 3.5% in July but was still above the Reserve Bank of Australia’s 2%-3% target range. Along with a strong job market, that leaves little to no room for policymakers to cut rates next week.The RBA is set to lag well behind other major central banks that have already begun cutting, including the Reserve Bank of New Zealand, Bank of England, Bank of Canada, and the U.S. Federal Reserve, which cut by 50 basis points on Wednesday.All 45 economists surveyed Sept. 12-19 expected the RBA to keep its official cash rate on hold at 4.35% at the conclusion of its two-day meeting on Tuesday. A strong majority, 40 of 44, predicted rates would remain unchanged through end-year, while interest rate futures were pricing in a slightly greater than 50% probability of a rate cut by then.”There is no possibility of the RBA easing at this meeting,” said Robert Carnell, regional head of research, Asia-Pacific, at ING.”The risk is slightly to the upside: the RBA never really tightened rates that much to bring the economy slow enough to get inflation under control, and I think that’s a question that has yet to be answered,” he said. Among major local banks, ANZ, NAB, and Westpac predict rates will stay unchanged this year, while CBA expects one cut before year-end.Major domestic banks contacted after the Fed’s rate decision on Wednesday did not change their views. “We don’t think the Fed’s decision to ease by 50bps will directly influence the RBA’s decision,” said Catherine Birch, senior economist at ANZ.”We expect it (the RBA) will retain much of the hawkish language of the August meeting.” The RBA was expected to start its easing cycle next year with 25 basis point cuts in Q1, Q2, and Q3, followed by a pause, bringing the cash rate to 3.60% in the last quarter of 2025.(Other stories from the Reuters global economic poll) More

SANBAGAWA, Japan (Reuters) – Benmou Suzuki’s dilapidated 420-year-old temple, located deep in the forest near a tiny Japanese mountain village, hardly looks like prized real estate.Yet the monk was recently approached by two men, who said they were real estate brokers and wanted to know if he was interested in selling.He suspects they weren’t really interested in the ornate building at the trailhead of a sacred mountain, but the special tax status that comes with running a religious property. “There are people out there who want a temple, even a mountain temple like this. In fact, considering the value of the religious corporation status, this temple could fetch quite a lot of money,” said 52-year-old Suzuki.As Japan’s population falls and interest in religion declines, there are fewer people to contribute to the upkeep of the country’s numerous temples and shrines. Suzuki’s Mikaboyama temple, for example, is located in Sanbagawa – an area three hours drive from Tokyo with only 500 residents and which also has three other Buddhist temples, one Shinto shrine and a church. A surge in religious properties coming up for sale has Japanese authorities worried that prospective buyers are not interested in them for heavenly purposes. Rather they fear many are out to dodge taxes or possibly even launder money. “It’s already a sense of crisis for us and the religious community,” said an official at Japan’s Agency for Cultural Affairs, which oversees religious sites. Cases of temple or shrine properties being extensively repurposed have triggered public outrage. In Osaka, a temple sold in 2020 was later razed and dozens of graves were relocated to make way for a property development. In Kyoto, a case about a temple that was demolished and turned into a parking lot made headlines this year. Owning a temple, shrine or church recognised as a religious corporation in Japan can confer sizeable tax benefits. Businesses under such corporations that offer religious services such as funerals do not have to pay taxes while other non-religious businesses also enjoy preferential tax rates. A wide range of undertakings are allowed from restaurants to hair salons to hotels.Japan had about 180,000 religious sites with corporation status as end-2023, according to the agency’s data. The number of so-called inactive corporations – such as those with no religious events for more than a year – jumped by a third to more than 4,400. When monks or priests die without a successor, the overseeing religious group will usually appoint someone to take over or voluntarily relinquish the site’s corporation status.However, there are around 7,000 religious sites that operate independently of these groups and are considered easy to acquire, according to the agency and specialist brokers. The cultural affairs agency said it has stepped up efforts to dissolve the corporation status of inactive religious sites to stop them from being targeted by dubious buyers. And when big earthquakes hit, often damaging temples and shrines, agency officials visit religious groups in those areas, warning them about falling prey to such buyers.Last year, 17 religious corporations were voluntarily dissolved and six were ordered to dissolve. The agency said the number would increase this year and next year as it ratchets up scrutiny. It might seem easier for Japan to change its laws to more strictly control the criteria for purchasing religious sites. But the agency said the government is wary about amending laws related to religion as that could be seen as impinging on religious freedom which is guaranteed by Japan’s constitution. Reuters checks of six websites specialising in brokering the sale of religious properties showed hundreds on the market. Most are only obliquely described online with brokers saying sellers prefer to conduct sales as privately as possible. Osaka-based broker Takao Yamamoto told Reuters interest is surging. A religious corporation licence alone can fetch 30 million yen ($210,000), he adds. Some religious sites, especially those with profitable graveyards, are advertised for millions of dollars.”Anyone can buy independent sites as long as you have money…even foreigners can buy them. Recently, a lot of Chinese people are trying to buy them,” Yamamoto said.For his part, Suzuki says he has no intention to sell Mikaboyama temple and is working on ideas to raise funds to maintain it. “Temples are places for local people to gather and forge connections. We just can’t get rid of them,” he said. More

The company has lost about a quarter of its stock market value this year and is down more than 21% since Donahoe joined as the top executive in 2020.Shares of rivals Adidas (OTC:ADDYY), Hoka owner Deckers and On Holding have risen 23.3%, 36.5% and 84.4%, respectively, this year.Donahoe began his stint as CEO in 2020 with a plan to drastically grow e-commerce and to boost sales at its roughly 1,000 Nike stores. But Nike forecast a drop in its fiscal 2025 sales following at least four consecutive quarters of poor sales.Here are some other major events for Nike on Donahoe’s watch:Oct. 22, 2019 Nike named Donahoe, a former eBay (NASDAQ:EBAY) chief executive officer, as its new CEO, effective Jan. 13, 2020, replacing long-time chief Mark Parker.    June 25, 2020 Nike swung to a quarterly loss for the first time in two years. Donahoe laid out Nike’s long term plan for its digital channel to account for 50% of its overall business.  Donahoe said at the time that Nike intentionally shifted away from its prior focus on selling shoes through department stores and third party retail chains.  He said it now focused on giving consumers “a more premium shopping experience” at Nike.com and Nike stores.    June 26, 2020 Nike warns of jobs cuts.     July 24, 2020 Donahoe’s pay was about $53.5 million, according to a filing. Dec 13, 2021 Nike bought virtual sneaker company RTFKT for an undisclosed sum, in what Donahoe said was a key step in Nike’s digital transformation.    March 21, 2022 Revenue from Nike’s mobile app was up more than 50% in the third quarter. “Growing participation in new digital platforms” gave Nike “innovative ways to connect with consumers, letting them unlock virtual experiences, products and rewards,” Donahoe said.   June 23, 2022 Four months after Russia invaded Ukraine, and two months after rival Puma suspended operation of all its stores in response to Moscow’s invasion, Nike said it would exit Russia.   Rival Adidas said in October 2022 that it had decided to permanently halt business in Russia.   Dec 20, 2022 Nike reported record digital results, as well as strong store traffic with COVID restrictions lifting. “We directly connect with the consumer no matter where they shop,” Donahoe said, referring to its direct sales. June 29, 2023 Nike warned of a weak start to fiscal 2024 as shoppers in the U.S. turned cautious. “We’ll continue to expand our marketplace strategy to … drive growth,” Donahoe said.  Dec 21, 2023 Nike cut the number of Nike products in a $2 billion cost savings program due to weak sales across its channels. CFO Matthew Friend said Nike’s direct-to-consumer focus had “added complexity and inefficiency.” Feb 15, 2024 Nike cuts about 2% of its total workforce of about 80,000 employees to lower expenses.    March 21, 2024 Donahoe said Nike must “lean in” with its retail partners. It also warned of weak sales in first half of fiscal 2025. June 27, 2024 Nike forecast a surprise drop in sales for fiscal 2025, which Donahoe said would be a “transition year” as digital sales tanked.    June 28, 2024 Nike’s stock tumbles to its worst day ever, wiping out $28.41 billion from its market valuation.     July 25, 2024 Donahoe’s annual compensation was $29.2 million, according to a filing.  Aug. 14, 2024  Billionaire investor William Ackman built new stakes in Nike. Other shareholders and at several Wall Street analysts begin to speculate about the possibility of executive changes.  Sept. 19, 2024 Nike said President and CEO Donahoe will retire, and former senior executive Elliott Hill will succeed him, effective Oct. 14. After hours share gains added $9 billion in market cap. More

(Reuters) – A look at the day ahead in Asian markets.A bumper week of central bank meetings that included the U.S. Federal Reserve on Wednesday and the Bank of England on Thursday rounds off on Friday with attention fixed on Asia, and policy decisions from the Bank of Japan and People’s Bank of China. Investors in Asia go into these meetings in buoyant mood, fired up by the Fed’s half percentage point rate cut and signal that rates will continue to fall over the next couple of years. Concerns over the U.S. labor market, the nature of the U.S. economy’s ‘landing’, and the wisdom of easing policy so much when financial conditions are already the loosest in years will surely return at some point. But that’s for another day. Right now, animal spirits are coursing through markets, and risky assets in Asia are set to close the week on a high. The MSCI World, S&P 500 and Dow all hit new highs on Thursday, the Nasdaq jumped 2.5%, and the Russell 2000 index of U.S. small caps rose for a seventh day to register its longest winning stretch since March, 2021. Nikkei futures are pointing to a rise of 1.6% at the open on Friday, and the MSCI Asia ex-Japan index is 1.5% away from its highest level since April 2022.The BOJ is widely expected to stand pat and wait to see how inflation dynamics play out before deciding when to raise rates again, and as fate would have it, Japanese consumer inflation figures for August will also be released on Friday. Economists expect the annual core rate to tick up to 2.8% from 2.7% in July. That would mark the fourth consecutive rise and lift inflation further above the BOJ’s 2% target.Political influence may be factoring into BOJ officials’ thinking. Sanae Takaichi, Japan’s minister in charge of economic security and a leading candidate in the ruling party’s leadership race, has warned the BOJ against raising rates. The PBOC, meanwhile, is expected to trim its main policy and benchmark lending rates on Friday, emboldened by the Fed’s outsized rate cut that removed some of the risks around sharp yuan declines.The economic challenges facing Chinese authorities are well known by now. They include a property sector crash that may take years to play out, fanning flames of deflation, and GDP growth that will probably fall well short of Beijing’s 5% target.For growth, investor sentiment and asset prices to meaningfully recover, huge monetary and fiscal stimulus will be needed. But the signs are that won’t happen, and Beijing is opting for piecemeal efforts over any ‘bazooka’.Shanghai stocks are set for a rare weekly rise – only the fourth of the last 18 – but are barely 1% away from falling to levels last seen in January 2019. Here are key developments that could provide more direction to Asian markets on Friday:- Japan central bank decision – Japan inflation (August)- China central bank decision More

WASHINGTON (Reuters) – Missouri-based airline executive Farhad Azima said on Thursday he had settled with the law firm Dechert and two of its former senior attorneys over allegations they took part in a scheme to hack his emails and use them in court to destroy his business.Lawyers’ use of hackers to win cases has drawn increasing attention. A 2022 Reuters investigation showed how a group of mercenary hackers had targeted more than 1,000 different attorneys at more than 100 law firms around the world. In a statement, Azima said he was “extremely pleased” to announce that the New York lawsuit against Dechert and former Dechert lawyers Neil Gerrard and David Hughes had been settled.The terms of the settlement were not disclosed and a lawyer for Azima declined to say what they were. Representatives for Dechert, Gerrard, and Hughes did not immediately return messages seeking comment. A court filing in Manhattan court showed the case against the three parties had been dismissed.The settlement marks another victory Azima, who in April was able to get British judgments against him worth more than $4 million thrown out after a court ruled that Dechert’s client, the Gulf emirate of Ras Al Khaimah, had covered up the use of hackers to win the case. In February, Dechert announced it was paying Azima 3 million pounds ($3.8 million) plus unspecified costs to settle a separate British legal action. The firm said it did so “without any admission of liability.”Last year Dechert settled with another hacking victim, the journalist Jay Solomon, who had accused the firm of using hackers to steal his messages. In his statement, Azima said he is still suing other parties alleged to have participated in the hacking, including Israeli private eye Amit Forlit, who is currently fighting extradition to the United States on hacking charges. Forlit’s lawyer did not immediately return a message seeking comment. More