FirstFT: Japanese yen falls to 20-year low

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The Japanese yen fell to a new 20-year low against the dollar on Wednesday, pushed lower by expectations that the Bank of Japan will defy global trends and maintain loose monetary policy.

The yen lost up to 1.4% against the US currency, exceeding 134 yen per dollar. It has fallen about 4% this month and in recent days has approached its lowest level since the start of 2002.

The move came after the BoJ governor said consumers had become “more tolerant” of price hikes, comments he later retracted. Speaking at the FT’s Global Boardroom event, Haruhiko Kuroda said a weaker yen would boost profits for Japanese companies.

Unlike other major central banks, the BoJ has decided not to tighten monetary policy in recent months.

“The dollar has seen a meteoric rise against the Japanese yen over the past three months as the Bank of Japan maintains a dovish policy towards the Federal Reserve,” strategists at Bespoke Investment Group said on Wednesday.

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1. SEC chief launches ‘uneven’ US stock market review Gary Gensler outlined plans for an overhaul of what he described as an “unequal” and unfair US stock market, drawing fire from traders who have thrived under the current system. Gensler said he asked agency staff to consider significant changes, including a possible auction process to increase competition between services for retail investors.

2. Twitter to share data with Musk Twitter has agreed to share a vast trove of content data on its platform with Elon Musk, after the billionaire entrepreneur threatened to drop his $44 billion acquisition of the social media company unless it provided no more information about fake accounts and bots. A shareholder vote on the deal is expected in early August, according to a person familiar with the matter.

3. Iran removed UN cameras from nuclear facilities The board of governors of the UN’s nuclear watchdog voted overwhelmingly in favor of a resolution criticizing Iran for not cooperating enough at its undeclared sites after it emerged yesterday that Iran had removed two cameras belonging to the UN’s atomic watchdog from one of its nuclear facilities.

4. The UN warns of the risk of hunger Hundreds of millions of people are at risk of ‘hunger and misery’ due to war-induced food shortages in Ukraine, the UN chief warned, as talks bogged down over the end of the Russian blockade of grain shipments from the Black Sea.

5. Moderna Reports Positive Data for Omicron Covid Booster Moderna said its new two-strain Covid-19 booster boosts people’s immunity against the dominant Omicron variant, bolstering the company’s hopes of rolling it out as a fourth dose in late summer. The American biotechnology company is the first to announce the preliminary results of a clinical trial of a vaccine targeted at Omicron.

People prepare to receive a Covid vaccine

Many governments are still debating who should get a fourth dose of a Covid vaccine © Micah Green/Bloomberg

The day ahead

China’s Trade Balance Figures May data is expected to be released today. Earlier this week, data showed the US trade balance has shrunk the most in more than nine years. The decline in imports is likely, at least in part, caused by lockdowns in China due to Covid-19. (Reuters)

The ECB ends the era of easy money When Christine Lagarde outlines the European Central Bank’s plans to end eight years of bond buying and negative interest rates, she can count on the support of the vast majority of her fellow rate setters. .

January 6 committee hearings On Thursday, the House committee investigating the January 6, 2021, attack on the Capitol will share what it learned. Here’s how to watch. (Wapo)

  • Opinion: The spirit of Watergate will be absent from the audience for the January 6 television hearings, writes Edward Luce.

What else we read and listen to

How space debris could threaten modern life After 65 years of spaceflight, the area around Earth is littered with 9,000 metric tons of debris, according to NASA, all spinning uncontrollably at 25,000 km/h. Check out our impressive interactive graphic on the growing threat posed by space waste.

ESG Whistleblowing On this week’s episode of FT’s Behind the Money podcast, host Michela Tindera talks to a former executive who has raised red flags over DWS’ misleading claims about its ‘green’ financial products. FT’s Patrick Temple-West joins us in explaining what this moment means for the future of environmental, social and governance investing. register here to receive our newsletter on sustainable finance, Moral Money.

Is the global real estate market heading for a slowdown? Interest rate hikes are slowing house price growth in Europe and the United States, but experts cite several reasons for relative optimism. Experts expect the rate hikes to end the rapid two-year run-up in house prices and cause price growth to slow sharply.

A house price growth chart

Japan and South Korea seek to reset their relationship Quiet talks are underway to arrange what would be the first meeting of a Japanese prime minister and a South Korean president since late 2019, and a chance to put aside historic differences to focus on the pressing challenges of an emboldened China and a nuclear-armed North Korea. .

New pop song represents Iran’s efforts to embrace young people “Hello Commander! Hello from this fearless and left behind generation. The Islamic Republic’s latest revolutionary anthem may lack something in terms of artistic merit, but the government seems hopeful that it will help create a loyal new generation.

Technology

As global economic forces wreak havoc with stocks, Leo Lewis recounts his fight with his family over a PS5 and weighs in on the family debate over getting a new console.

A PS5 console

© Akio Kon/Bloomberg

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