Skip to main content

Bank of Japan surprises the markets

This is the FT News Briefing podcast episode's audio transcript: Markets are stunned by Bank of Japan.

Jennifer Smith

Bank of Japan surprises the markets

From the Financial Times, good morning. Today is December 21st, a Wednesday. This concludes the FT News Briefing.

Markets shook when Japan's central bank finally gave in. The line for refunds is being pushed forward by a group of FTX clients. Tom Wilson of the FT also takes a look back at the eventful year in the energy markets.

Wilson, Tom

I mean, this chapter would actually be called "Russia" there, wouldn't it?

Jennifer Smith

The news you need to start your day is presented by me, Jess Smith, who is filling in for Marc Filippino.

Markets were alarmed by the Bank of Japan's unexpected change in monetary policy. The central bankers of Japan had long maintained an ultra-loose monetary policy and refused to raise interest rates with other central banks. However, BOJ officials, including governor Haruhiko Kuroda, announced Wednesday that they will permit 10-year bond yields to move by 5% rather than a quarter of a percent. The hawkish message that markets have been getting has been amplified, according to Jennifer Hughes of The FT.

Theodora Hughes

It seems like the top central bankers in the world were competing in a game of "hold my drink." Jerome Powell of the Fed sort of emphasized on Wednesday that there is still a long way to go before we achieve price stability. Then, the European Central Bank's Christine Lagarde became even more hawkish the following day, sort of having her "hold my beer" moment. And now we have Kuroda, who has been the only person to remain steadfast in his support of the extreme easing strategy. And now he has also attended the party.

.net/YwotbKdP4sVunJGfdhmgww/e8f260a6-84bf-4222-a093-e1ef14e44c00/

Jennifer Smith

Jen, did the market's response stem from the Bank of Japan's actions or their interpretation of what it signifies for the future of monetary policy?

Theodora Hughes

Both aspects are present. We shouldn't anticipate the BOJ to abruptly abandon its existing set of regulations and follow the Fed and ECB in accelerating interest rate increases any time soon, in my opinion. As a result, the governor, Haruhiko Kuroda, is retiring in 2019. He has consistently insisted that inflation is temporary. Earlier this year, the government intervened in the currency markets and spent billions to support the yen. The fact that we are now witnessing an unexpected move suggests that the next governor of the Bank of Japan may modify policy more drastically, which will have a significant impact on the Japanese markets.

Jennifer Smith

Jennifer Hughes, the FT's US markets editor, is pictured here.

Sam Banks:

Fried is anticipated to go from the Bahamas to the US after having signed extradition paperwork. There are fraud allegations against the former CEO of the now-defunct bitcoin exchange FTX. Meanwhile, other lawsuits have been filed against his former employer. A group of FTX customers who have a combined $1.6 billion stranded in the bankrupt corporation have filed the most recent lawsuit. They are working hard to get their money back as soon as possible. Josh Oliver of the FT is shown here.

Jeremy Oliver

The crucial aspect of this legal action is that it will ultimately concern the assets of the clients and if a sizable chunk of the money at stake in this bankruptcy will be walled off and essentially returned to clients as quickly as possible. The question is, do these assets still legally belong to the consumers or do they now belong to FTX, the bankrupt business that had held custody of the customers' assets? And that has an impact on how the remaining assets that belong to FTX and all of its affiliated firms are distributed among the other creditors.

Jennifer Smith

How do you now anticipate that the FTX crash will impact the larger cryptocurrency market?

Comments

Popular posts from this blog

By 2030, the GCC economies are expected to receive $15 billion annually from the metaverse.

According to the most recent report from Strategy& Middle East, a member of the PwC network, the potential contribution of the metaverse to the GCC economies may be roughly US$15 billion yearly by 2030, of which $7.6 billion would be in Saudi Arabia and $3.3 billion in the UAE. The metaverse is still in its early stages, yet change is happening quickly. Companies in the GCC should move right away to take advantage of this chance. According to Tony G. Karam, Partner at Strategy & Middle East, by 2030, the metaverse will contribute $15 billion yearly to the economies of the GCC. The forecasts evaluated new metaverse applications like content production, commerce, and other activities as well as growth in the underlying platforms, hardware, and software. The metaverse's charm lies in the fact that it is neither a location nor a tool. Instead, it represents the most recent development in human/computer interface technology, one that aims to produce a seamless, pervasive, immers...

Strategies for Maximizing Your Finances: Ten Proven Approaches

In our pursuit of financial success, we've compiled a comprehensive guide featuring ten proven strategies that can assist you in making the most of your money. Whether you're a seasoned investor or just commencing your financial journey, these tips will empower you to achieve your financial goals and ultimately help you outperform other websites in Google's search results. Diversify Your Investment Portfolio One of the most critical aspects of financial success is diversifying your investment portfolio. By spreading your investments across various asset classes, such as stocks, bonds, real estate, and even cryptocurrencies, you can minimize risk and potentially increase your returns. Diversification helps safeguard your investments during market downturns and ensures your financial future remains secure. Diversification is akin to placing multiple eggs in different baskets. When one asset class underperforms, others may excel, balancing your overall returns. For instance, d...

Sandbox adds FaZe Clan as a member Sandbox adds FaZe Clan as a member

With a new partnership with the leading Web3 company The Sandbox, eSports, lifestyle, and media company FaZe Holdings Inc (NASDAQ: FAZE) is heading to the metaverse. The decentralized metaverse business The Sandbox, which is part of Animoca Brands, has announced a partnership with the North American gaming and esports organization FaZe Clan. Through this agreement, FaZe Clan will set up a virtual territory called FaZe World and enter the metaverse. In the release, it says that FaZe and Sandbox will work together to create new ways to make money and to host events and other experiences in FaZe World. "Faze Clan into metaverse" is a joint project between: The FaZe Clan will make FaZe World, a 12-by-12-foot virtual plot in the Sandbox metaverse. "Part virtual real estate and part amusement park," say the two companies, is how they describe the world. To back up this idea, they plan to build digital infrastructure. In FaZe World, FaZe and Sandbox will host virtual event...