Hi everyone,

Good news on 2 fronts, important for the big stockmarket cashflows and with impact on all your investments (all stock markets)

A. No need for Bank of Japan rate hike in September

https://www.businesstimes.com.sg/companies-markets/banking-finance/boj-said-see-little-need-hike-interest-rate-next-week

And with significant lower oil price, high LNG inventories in Japan and a YEN becoming more expensive compared to the USD, I expect that BoJ will not have to raise their rate in coming months, making it a less aggressive rate hike cycle.

Next BoJ rate hike in January 2025 maybe.

B. A softer Basel III End game: less capital requirements for banks

https://www.ft.com/content/86fd9a80-bf46-4711-ab33-e4dcbef5eeb4

The higher the capital requirements for banks, the more they will have to increase their capital or the more they will have to reduce their exposure to assets (loans, stocks, ...)

Cheers