Daily Brief - 25 Apr 2024

Yen approaches intervention point as BOJ meeting starts

Yen traders brace for echoes of 2022's intervention as Japan considers stepping in to support its weakening currency. With the yen sliding and US interest rates stagnant, even a lack of hawkish comments from the Bank of Japan could spark action.

Analysts eye 157.60 yen against the dollar as a pivotal mark. Despite the currency's decline, the finance ministry has yet to make any yen purchases. Traders await BOJ announcements and US inflation data for potential market shifts, over yen volatility concerns.

Finance Minister Suzuki stays vigilant on currency moves, as the yen's sharp depreciation prompts international consultations.

UK banks face 5% asset hit by 2030 due to environmental risks

A study by the Green Finance Institute warns UK banks of potential 5% asset losses by 2030 due to nature-related shocks like water scarcity and pollution. The failure to address these risks could lead to broader economic decline.

The UK's high level of ecosystem degradation exacerbates the situation, making it one of the most nature-depleted countries. Signatories of a 2022 agreement aim to halt and reverse nature loss, emphasizing the need for financial institutions to assess and disclose their risks.

The study, involving various institutions, highlights the significant financial consequences of neglecting environmental risks.

Meta shares plunge by 19% after AI push

Meta CEO Mark Zuckerberg seeks investor patience as the company announces increased spending on artificial intelligence, leading to a 19% share plunge.

Zuckerberg highlights long-term benefits of AI investments despite slower sales growth projections. The company aims to dominate the AI race but faces skepticism over the hefty costs.

Meta's mixed report follows President Biden's signing of a bill potentially impacting TikTok, Meta's competitor. Despite turbulent years, Meta sees record revenue, buoyed by its AI-driven initiatives.