Microsoft launches Surface Laptop Ultra with a starting price of $2,599

(1) A branch manager of the Bank of Japan stated on Thursday that cost-push price increases in Japan are spreading from inter-company transactions to consumer-facing sectors, indicating that nationwide inflationary pressures are expanding. (2) According to a statement from the Bank of Japan, fueled by Middle East conflicts and a weaker yen, energy and raw material costs are rising, and transport and labor costs are also increasing. Many companies are raising B2B business prices to pass on higher costs. (3) The central bank noted that these cost pass-through practices are expanding to consumer-facing businesses. More companies are raising retail prices to reflect input costs, while also assessing consumer confidence. However, as consumers remain price-sensitive, some companies are striving to limit price increases and are expanding their line of low-priced goods. (4) In its quarterly regional economic report also released Thursday, the Bank of Japan upgraded its assessment for two of the country's nine regions, while maintaining its view for the other seven. The central bank noted that while there are some weak spots in local economies, recovery is underway. (5) After raising policy rates to 1.25% last month, the Bank of Japan is expected to hike rates again soon to address persistent inflation. The overnight index swap market currently puts the probability of a rate hike by the Bank of Japan in December at over 80%. (6) Earlier this week, Bank of Japan Governor Kazuo Ueda pointed out that there is a risk that underlying inflation could exceed the bank's 2% target, and reiterated the intention to continue tightening monetary policy. The policy board is scheduled to hold its next meeting from October 29 to 30.

(1) According to Kyodo News, several informed sources revealed that the Japanese government is coordinating to study a plan to provide subsidies equivalent to 5.4% of tax-exclusive sales to small and medium-sized farmers who will face decreased income due to the reduction of the consumption tax rate on food and beverages from 8% to 1% starting April 2027. (2) The aim is to compensate for income loss according to business scale and thus prevent farmers from abandoning agriculture. (3) The policy will cover about 800,000 farmers nationwide, and those working in forestry and fisheries will also receive subsidies. (4) The required funding is expected to be approximately 200 billion yen, which will be included in the initial budget for fiscal year 2027. (5) This will further increase the fiscal burden, adding to the annual 5 trillion yen tax revenue shortfall caused by the consumption tax cut, and will further intensify fiscal pressure.

BYD Executive Vice President Li Ke stated that Nvidia (NVDA.US) remains a highly capable chip partner.

Strategists at State Street Global Advisors stated that the yield curve may not be as attractive as it appears on the surface. In a report, they remarked: "If we are indeed entering a market environment more similar to that of the 2000s, it is notable that the current yield curve does not seem particularly steep." They pointed out that if the market starts to price in a higher term premium, yields may face further upward pressure. In their view, the rise in government bond yields is one of the most significant developments in the fixed income market in recent years. They stated: "Nevertheless, although bond yields have become more attractive, we do not believe that the case for extending duration has become significantly more compelling."