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Yesterday, European Central Bank cut rates by 0.25%, and the president of the European Central Bank is even suggesting that it will likely be cut by 0.25% again next month.
Next week, the US FOMC will meet, and it is clear that interest rates will be cut down but opinions are still divided on the extent. As of today, the possibility of a 0.5% rate cut is increasing, with a probability of about 43%.
The one to watch is Japan again this time.
Mr. Naoki Tamura, a director at the Bank of Japan, insists that Japan’s base interest rate should be raised to at least 1% in the first half of next year. Mr. Tamura also added that rates should not be raised suddenly and drastically, but rather gradually.
In the end, they are saying that they will start raising interest rates within this year. US is known to have invested the most in yen-carry capital. US is saying that they will lower rates, but Japan is constantly mentioning the possibility of raising interest rates, and is getting on America’s nerves.
People who borrow money are generally wary of those who lend them money, right? Japan showed a strong will to start raising interest rates this year. Debtors have no choice but to prepare.
US stock market rose today. Expectations for the FOMC meeting next week supported the market’s upward trend.
DJ Index was up by 0.7%, S&P 500 index was up 0.5%, and NASDAQ index was up 0.7%.
It is clear that rates will be lowered at the FOMC meeting next week, but the extent of the cut is unclear.
Brian Niccol, the new CEO of Starbucks, posted an open letter on the Starbucks homepage. It seems necessary to watch how he will run Starbucks as a star CEO.
