International News 24 February 2025
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BOJ at a Crossroads: Japan Inflation Rises to 3.2%, What's Next?
Japan's core consumer price index (CPI) rose by 3.2% in January, the highest level for 19 months and surpassing market forecasts. This increase in inflation, which has exceeded the Bank of Japan's (BOJ) 2% target for nearly three years, further strengthens expectations that the BOJ will continue to raise interest rates from their current low level. Another key indicator, excluding food and fuel prices, also rose by 2.5%, marking the fastest growth rate since March 2024.These inflationary pressures have prompted hawkish statements from BOJ policymakers, suggesting a more aggressive approach to raising rates, and this data has coincided with a steady increase in Japanese government bond yields as the possibility of rate hikes becomes more likely.
Billionaire Ryan Cohen Raises Shareholding in Alibaba to US$1 Billion
Billionaire investor Ryan Cohen has increased his personal stake in the Chinese e-commerce giant Alibaba Group to approximately $1 billion in recent months, representing about 7 million Alibaba shares. Previously, Cohen had built up a stake in Alibaba worth hundreds of millions of dollars and had urged the company to increase and accelerate its share buybacks, arguing that Alibaba's share price was undervalued. The Wall Street Journal has reported that Mr. Cohen has had further discussions with Alibaba recently and expressed interest in a long-term relationship with the company.The performance of Chinese tech stocks has been strong, with the emergence of domestic AI startup DeepSeek and a meeting between Chinese President Xi Jinping and business leaders in the sector.Alibaba reported strong third-quarter earnings and plans for further investment in AI and cloud computing.
Walmart shares plummet 6% after disappointing sales projections
Walmart has announced that its sales and profits for this year are expected to fall short of initial estimates, citing caution in light of geopolitical uncertainty. This announcement led to a 6% decline in Walmart's share value, with shares of Target and Amazon also experiencing a decline.The past two years have seen high interest rates and inflation exerting downward pressure on US consumer spending. The introduction of President Trump's new tariff policy on Chinese goods, as well as the potential introduction of tariffs on products from India, Mexico, and Canada, has further compounded these challenges. Walmart's Chief Financial Officer, John David Rainey, underscored the necessity for a prudent approach in light of the prevailing uncertainties.Despite the disappointing projections, Walmart continues to view the US consumer as resilient and aims to offer more competitive prices. Rainey added that Walmart had not included any new tariff assumptions in its financial projections, but the company believed it could handle the impact of additional tariffs without having to pay for them.
Grab faces stiff competition, 2025 revenue projection missed
Singapore-based Grab Holdings has announced that its annual revenue for 2025 is expected to fall below analysts' estimations. This is due to intensifying competition in the ride-hailing and food delivery industries.Following this news, the company's US-listed shares fell by over 9% in after-hours trading. The projected revenue for fiscal 2025 is expected to be between $3.33 billion and $3.40 billion, which is below the average analyst estimate of $3.40 billion.Grab is facing increased competition from smaller players such as Foodpanda and GoTo Indonesia in the food delivery sector, and this heightened competition is a cause for concern in light of weak consumer sentiment stemming from macroeconomic volatility. There have been reports that Grab is in advanced talks for a merger with GoTo, but Grab has not commented on these rumors and GoTo has emphasized that it is not involved in merger discussions.