Inflation Trends in Japan - Japan's headline inflation rate decreased to 2.1%, the lowest since March 2022, down from 2.9% in November [2] - Core inflation, excluding fresh food prices, is at 2.4%, matching analysts' expectations and the lowest since October 2024, significantly lower than November's 3% [2] - The "core-core" inflation rate, which excludes fresh food and energy prices, eased to 2.9% from 3% the previous month [3] Rice Price Dynamics - Rice inflation for December was recorded at 34.4%, marking a decline for the seventh consecutive month year-on-year, yet prices remain near record levels [4] - The average price of a 5-kilogram bag of rice was reported at 4,267 yen for the week ending January 11 [4] - In May 2025, rice inflation reached its highest level in over 50 years, with prices soaring to record highs [3] Political and Economic Implications - The rising rice prices and subsequent political fallout led to the resignation of then-farm minister Taku Eto in 2025, highlighting the political sensitivity surrounding food prices [5] - Former Prime Minister Shigeru Ishiba took personal responsibility for addressing the rice price crisis amid a shortage [5]

Market Overview - The S&P 500 rose 0.54% to 6,912.54, the Nasdaq Composite gained 0.91% to 23,436.02, and the Dow Jones Industrial Average added 0.63% to 49,384.00 as tariff fears eased and risk appetite firmed [1] Market Movers - FuelCell Energy and Enphase Energy jumped 6.10% and 12.54%, respectively, due to relief over scrapped Greenland-linked tariffs, while strength in Meta Platforms and a rebound in Tesla helped extend the Nasdaq's tech-led advance [2] Investor Implications - President Trump's agreement on a framework for a deal related to Greenland and U.S. security contributed to stock market gains, with new European tariffs temporarily off the table, prompting investors to re-enter equities [3] - November personal consumption expenditures (PCE) data showed tame inflation readings, which could support lower interest rates [3] Clean Energy Sector - Clean energy stocks performed strongly as the relief on new tariffs removed a significant overhang, although caution is advised as many renewable energy companies still face challenges from a U.S. administration that has opposed the sector at times [4] - Long-term investors are encouraged to maintain their positions and not react to short-term market fluctuations driven by headlines [4]

Crypto asset manager Bitwise debuted an exchange-traded fund on Thursday that offers exposure to cryptocurrency and precious metals, positioning the product as a way for investors to capitalize on the debasement of fiat currencies, including the U.S. dollar. The Bitwise Proficio Currency Debasement ETF, which trades on the NYSE under the ticker symbol BPRO, is issued in partnership with Proficio Capital Partners, a Boston-based investment advisory firm that manages around $5 billion in assets, according to ...

What is Bitcoin’s role in the global monetary system? That question sparked a tense exchange between Coinbase CEO Brian Armstrong and French central bank governor François Villeroy de Galhau at the World Economic Forum in Davos, Switzerland this week. “Bitcoin is the greatest accountability mechanism on deficit spending,” said Armstrong. “If we lose public control over money, you lose a key function of democracy,” returned Villeroy. The rapid-fire exchange between Armstrong and Villeroy de Galhau at D ...

Core Insights - The article discusses the latest trends and developments in the investment banking sector, highlighting key financial metrics and market movements. Group 1: Financial Performance - Investment banks have reported a significant increase in revenue, with an average growth of 15% year-over-year, driven by strong trading volumes and advisory fees [1]. - The total assets under management (AUM) in the sector have reached $5 trillion, reflecting a 10% increase compared to the previous year [1]. Group 2: Market Trends - There is a growing trend towards digital transformation within investment banks, with 70% of firms investing in technology to enhance operational efficiency [1]. - The demand for sustainable investment products is rising, with a reported 25% increase in ESG (Environmental, Social, and Governance) fund inflows [1]. Group 3: Regulatory Environment - Recent regulatory changes are impacting the investment banking landscape, with new compliance requirements expected to increase operational costs by approximately 5% [1]. - The article notes that firms are adapting to these changes by enhancing their risk management frameworks [1].

US stocks rose on Thursday as investors breathed a continued sigh of relief that President Trump called off his threatened tariffs on European allies over his pursuit of Greenland. The tech-heavy Nasdaq Composite (^IXIC) led the advance, rising nearly 0.9% as Tesla (TSLA) shares surged over robotaxi optimism. The blue-chip Dow Jones Industrial Average (^DJI) gained roughly 0.6%. Meanwhile, the benchmark S&P 500 (^GSPC) added 0.5% on the heels of Wall Street's sharp rally on Wednesday. Gold (GC=F) also cr ...

Economic Indicators - The dollar index (DXY00) fell by -0.42% due to a stock rally that reduced liquidity demand for the dollar and euro strength following eased European tensions [1] - US weekly initial unemployment claims rose by +1,000 to 200,000, indicating a stronger labor market than the expected 209,000 [2] - Q3 GDP was revised upward by 0.1 to 4.4% (quarter-over-quarter annualized), surpassing expectations of no change at 4.3% [3] - November personal spending increased by +0.5% month-over-month, aligning with expectations, while personal income rose by +0.3% month-over-month, below the expected +0.4% [3] - The November core PCE price index rose by +0.2% month-over-month and +2.8% year-over-year, meeting expectations [3] Market Reactions - The euro (EUR/USD) rose by +0.54% amid dollar weakness, supported by President Trump's decision to refrain from imposing tariffs on European nations opposing his Greenland acquisition efforts [7] - The Eurozone January consumer confidence index rose more than expected to an 11-month high, contributing to the euro's gains [7] Federal Reserve and Interest Rates - The Federal Open Market Committee (FOMC) is expected to cut interest rates by about -50 basis points in 2026, while the Bank of Japan (BOJ) is anticipated to raise rates by +25 basis points in the same year [5] - The dollar is under pressure as the Fed increases liquidity in the financial system, having started purchasing $40 billion a month in T-bills since mid-December [6] - Concerns exist regarding President Trump's potential appointment of a dovish Fed Chair, which could negatively impact the dollar [6]

Inflation remains a hot topic, directly impacting everything from your grocery bill to interest rates. As of the latest data, two key inflation gauges — the Personal Consumption Expenditures (PCE) Price Index and the Consumer Price Index (CPI) — show that prices are still above the Federal Reserve's 2% target, with the core PCE at 2.8% and core CPI at 2.6%. Note: PCE data is through November 2025 and CPI data is through December 2025. The Fed's Preferred Inflation Gauge The Fed is on record as using PCE dat ...

Inflation Data - Consumer prices rose 2.8% in November from a year earlier, up from a 2.7% annual pace in October, indicating persistent inflationary pressures [1][5] - Core prices, excluding food and energy, also increased by 2.8% year-over-year in November, slightly higher than October's 2.7% [1][4] Consumer Spending - Consumer spending climbed 0.5% in November from the previous month, suggesting a healthy economic growth pace in the final quarter of the year [2] - The economy expanded at a robust 4.4% annual rate in the July-September quarter, marking the fastest growth in two years [6] Federal Reserve Implications - The latest figures suggest that the Federal Reserve is less likely to reduce its key interest rate in the upcoming meeting, as the economy shows solid footing despite a cooling labor market [3][7] - Economists believe there is little urgency for the Fed to cut rates if growth remains strong and inflation continues above target levels [4]

What’s curious is that bond investors don’t appear to share these concerns. In the world’s largest public debt market, U.S. Treasury yields have been falling at the short end. At the long end of the curve, yields have been stable even after the recent sell-off in Japanese government bonds (Figure 4). While it’s understandable that short-term yields are falling, given the pressure on the Federal Reserve (Fed) to cut rates in the face of softening core inflation and weak employment growth, it is curious that ...