International News 02/08
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Tightening Monetary Policy, Bank of Japan (BOJ) Cuts Bond Purchases
The Bank of Japan (BOJ) has announced plans to reduce its purchases of Japanese government bonds (JGBs) as part of a policy to tighten monetary stimulus. This follows the BOJ's decision to raise interest rates and indicate its intention to scale back its substantial monetary stimulus programme. The BOJ plans to reduce the total monthly purchases of JGBs to 3 trillion yen by January-March 2026, down from the current purchase value of around 6 trillion yen. In particular, the BOJ will purchase 400 billion yen of 5-year-10-year JGBs at each bond purchase operation, which is below the previous offering range of approximately 400 billion yen to 550 billion yen. The BOJ's decision to reduce bond purchases in the 5-10 year maturity range demonstrates its willingness to accept an increase in 10-year JGB yields. As a consequence of this policy change, yields on shorter-term JGBs are anticipated to increase.
Airbus profit fell sharply to US$ 879.7 million in the second quarter of 2024
Airbus Europe has announced a reduction in profits for the second quarter of 2024, attributed to elevated investment costs associated with jetliner production and expenses pertaining to its Space Systems operations. Adjusted operating profit for the quarter was down by over 50% at €814 million, while revenue increased slightly to €15.995 billion. Furthermore, the company incurred a charge of €989 million for term losses in its space business, which exceeded previous estimates. Nevertheless, the company exceeded analysts' expectations for adjusted operating income in the quarter. Furthermore, Airbus has recently written off approximately 1.6 billion euros on its balance sheet, reflecting potential losses in its Space Systems business, particularly in the OneSat and EGNOS satellite projects. Airbus CEO Guillaume Faury has expressed his commitment to finding a solution to the current situation.
Chips Business was a key driver of Samsung's performance in the second quarter
The share prices of domestic cement issuers are influenced by the Government's Public Housing Savings Programme (Tapera), which is expected to have a positive impact on the cement sector due to increased demand from the property industry. Furthermore, the overall potential for cement sales in 2024 is considered favourable, with an estimated increase of 65.6 million tonnes driven by the IKN Nusantara project and the government's infrastructure budget. The sector is expected to benefit further from economic growth and controlled inflation rates. However, the industry is facing challenges, including an oversupply caused by the addition of new competitors and intense pricing competition. In order to gain further insight into SMGR's long-term targets, additional information is required.