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On October 23, a presentation from Heineken revealed that the company has urged UK pubs and restaurants to adapt to the surge in the use of weight-loss drugs, or risk losing customers and revenue. This is a rare admission from a major alcohol producer that GLP-1 inhibitors pose a threat to beer sales. Research by JPMorgan Chase shows that approximately 10 million people in the US used Novo Nordisks semaglutide drugs Ozempic and Wegovy last year. The widespread use of these drugs is having a ripple effect on the consumer goods industry, including reducing consumer cravings for sweets and snacks, increasing demand for clothing alterations, and prompting companies to rush into launching products that alleviate drug side effects. Heineken is the worlds second-largest beer manufacturer, after Anheuser-Busch InBev. Heineken told its catering and pub industry clients that GLP-1 inhibitors may reduce the willingness to drink and put pressure on beer and cider sales by making consumers feel full more easily and reducing consumption. The company also warned that the traditional consumption scenario of drinking multiple pints of beer at a time may become increasingly unsustainable.Bank of Japan: Rising raw material and energy prices appear to be putting downward pressure on profits, especially for small and medium-sized enterprises (SMEs). Some companies are relatively sensitive to rising crude oil prices.Bank of Japan: Ultra-long-term mortgages with maturities exceeding 35 years are increasing.Rio Tinto: Invests $1.9 billion in Conway South bauxite project.Bank of Japan: The possibility of increased concentration in private equity fund portfolios warrants attention.

USD/JPY Bulls compete for easy pickings while bears lurk nearby

Daniel Rogers

Sep 29, 2022 14:27

截屏2022-09-29 上午10.25.29.png 

 

Because US yields fell overnight in response to the Bank of England's unexpected move to purchase bonds, the USD/JPY fell to 143.90 in late New York trading. As a result, bulls gave up in the last trading days of the month, sending global bond yields lower, stock prices higher, and the US currency plunging. Following a rise from the 144.04 level, the USD/JPY is currently targeting that level again.

 

In its first daily decline since September 19th, the US dollar index (DXY) is up 0.36 percent on the day but has reversed from a 20-year high. The yield on the 10-year gilt dropped over 50 basis points to 4.00% while the yield on the 10-year treasury plummeted 21.4 basis points to 3.733% overnight after the BoE's announcements. In reaction, European stocks increased in value, pushing the S&P 500 up by 2.0%.

 

Beginning September 28th, the central bank has announced that it will initiate short-term purchases of long-term UK government bonds in an effort to restore market equilibrium. BoE said in a statement, "The purchases will be made in whatever quantity is necessary to achieve this aim." After the Old Lady got involved, the yield on the 30-year benchmark gilt dropped by more than 50 basis points, and this was despite the BoE putting most of its attention on the July 2051 bond and buying only GBP1 billion.

 

In the wake of a severe drop, the USD/JPY exchange rate could be heading for a further correction of the rapid increase from 140.35 a week ago. However, USD/JPY has upward potential so long as the policy gap between the Federal Reserve and the Bank of Japan exists.

 

"The Japanese Ministry of Finance, however, will be aware of the currency's current vulnerability and will likely aim to generate sufficient fear of further intervention to discourage speculators. On the other hand, our goal for the next three months remains USD/JPY147.00 "According to Rabobank research.


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