MONEY MASTER

Japan’s latest 40-year government bond sale delivered  stronger-than-average demand , offering temporary relief to markets after weeks of sharp volatility in long-term yields. Quick Summary 40-year bond auction beat demand expectations Yields eased after last week’s record spike Election-driven fiscal concerns remain unresolved More volatility likely in bonds and yen markets What Happened The  bid-to-cover ratio  came in at  2.76 , above the previous auction ( 2.585 ) and the  12-month average of 2.53 The  40-year yield fell 3.5 basis points to 3.9%  after the auction Demand eased  immediate fears over Japan’s long-term debt , though uncertainty remains elevated Why This Matters The auction followed a turbulent week in Japanese bond markets, triggered by fiscal and political shocks: Long-dated yields  spiked to record highs  after Prime Minister  Sanae Takaichi  proposed a  two-year removal of food sales tax Forty-year yie...

Prime Minister Shigeru Ishiba is set to dissolve Japan’s lower house of Parliament on Wednesday, calling for a snap election on Oct 27 , according to Kyodo News Agency. This move comes just eight days after Ishiba took office , making it the fastest dissolution by a postwar leader . The decision has drawn criticism from opposition parties, who accuse Ishiba of rushing to seek a fresh mandate while his ruling Liberal Democratic Party (LDP) faces a slush funds scandal . The LDP, along with its coalition partner Komeito , holds a majority in the 465-member chamber. Ishiba’s Cabinet approved the dissolution plan on Wednesday morning, finalizing the campaign schedule to begin on Oct 15 , with voting set for Oct 27 . Despite opposition calls for an extra budget to aid recovery efforts after recent natural disasters, Ishiba has prioritized securing a new mandate through the election. This election comes amid backlash over Ishiba's reversal from his previous stance, where he had initia...

US consumer confidence took its sharpest dive in three years this September, driven by growing fears about the labor market , according to the Conference Board’s survey released on Tuesday. Despite this decline, more households indicated plans to buy homes in the coming months, reflecting mixed sentiment about the economy ahead of the November 5 presidential election. The survey also revealed that consumers expect inflation to rise in the coming year, clouding their outlook on the broader economy. However, interest in travel, dining out, and entertainment remains strong, potentially supporting continued consumer spending and economic growth. Last week, the Federal Reserve cut interest rates by 50 basis points, marking the first reduction since 2020, with the rate now in the 4.75%-5.00% range. Fed Chair Jerome Powell indicated that the cut was aimed at maintaining low unemployment, currently at 4.2%. "The plunge in consumer confidence underscores the growing pressure on many...

Fitch Ratings has affirmed the United States' credit rating at "AA+" and stated that the country's fiscal profile is likely to remain largely unchanged regardless of the outcome of the upcoming presidential election. The agency cited structural strengths such as high per capita income and financial flexibility. Key Takeaways: Limited Impact from Election Results : Fitch believes that the underlying US fiscal position will remain stable despite different economic objectives, tax policies, and spending priorities of Democratic Vice President Kamala Harris and Republican candidate Donald Trump. It expects most of the tax cuts from 2017 to be extended under either administration, which would affect revenues and contribute to wider budget deficits. High Deficits and Debt Burden : The US government has not taken significant steps to address large fiscal deficits, a growing debt burden, and increasing expenditures linked to an aging population. These factors place the US bel...

In a contentious debate, President Joe Biden and former President Donald Trump clashed over their economic records and future plans. With critical issues like inflation, employment, climate policy, tariffs, taxes, and social security at the forefront, both candidates presented starkly contrasting visions. Here's a breakdown of their key economic positions and what they could mean for investors. Inflation: Diverging Diagnoses Biden: “There was no inflation when I took office because the economy was flat on its back with 15% unemployment. Trump decimated the economy. That's why inflation was low.” Trump: “Biden’s handling of inflation is disastrous. He inherited almost no inflation, but it skyrocketed under his watch because of reckless spending.” Key Takeaway: Biden attributes low initial inflation to a devastated economy under Trump, while Trump blames Biden's fiscal policies for current inflationary pressures. Investors should consider potential inflationary trends and the...

As we usher in the New Year after the benchmark FBM KLCI closing in the positive zone in 2017  — the first time in three years, many investors would ponder whether the strong momentum could continue into 2018. The following is the list of factors that could possibly swing the market moving forward: Malaysia’s GE14 The much anticipated 14th general election (GE14) did not materialise in 2017, will definitely take place in 2018 before Aug 24 this year as the mandate of the ruling Barisan National (BN) coalition will end in June 2018. Analysts have in general expects the GE14 to be the main driver of investors’ sentiment in early 2018 before a return to fundamentals post GE14. So far, most research analysts view that the poll is likely to be in between February and April. The pre-election rally is expected to lift sentiments and improve the “feel-good” factor, which is important for incumbent governments. The election-play counters, companies that are perceive...