Jane Street's Cash Machine Comes to an Abrupt Halt in India
That bonanza may be coming to an end. On Friday, nine months after the nation's securities regulator tightened restrictions on options trading to protect retail investors, it accused Jane Street Group — one of the market's biggest players — of manipulating prices to generate hundreds of millions of dollars in ill-gotten profits.
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Yahoo
33 minutes ago
- Yahoo
Japan must reduce reliance on US trade, opposition head says
By Leika Kihara and Takaya Yamaguchi TOKYO (Reuters) -Japan must diversify trade ties beyond the U.S. market to mitigate risks and focus on partnerships with countries favouring free trade, Hirofumi Yoshimura, co-representative of the opposition Japan Innovation Party, said on Monday. Tokyo should seek a "win-win" situation in trade negotiations, however, tariffs imposed by President Donald Trump show how the U.S. is a country risk for Japan - or a source of uncertainty that could hurt its economy, Yoshimura said. "Japan should expand trade ties with countries that focus on free trade," such as Europe, and leave itself more options to protect its economy, he told Reuters in an interview. "Instead of standing on just one, big pillar like the U.S., Japan should stand on, say, five to 10 smaller pillars. That's a better approach to avoid its roof from falling off." The remarks came as Japan faces the risk of sustained, steep U.S. tariffs after stalled trade talks led to criticism by Trump that Japan was engaging in "unfair" automobile trade. The views of small, opposition parties such as the Japan Innovation Party could gain importance after an upper house election on July 20, where Prime Minister Shigeru Ishiba's ruling Liberal Democratic Party (LDP) faces an uphill battle. Recent media polls including one by the Yomiuri newspaper showed the LDP and its coalition partner Komeito may lose their majority in the upper house - an outcome analysts say could force Ishiba to step down or seek an alliance partner. The LDP-Komeito ruling camp is already a minority coalition in the lower house, forcing Ishiba to seek the cooperation of opposition parties to pass some bills through parliament. Ishiba maintained his hard-line stance on trade talks with Washington in a television programme on Sunday, saying Japan will continue to demand the elimination of U.S. automobile tariffs and "won't make concessions easily." U.S. tariffs would add to woes for Japan's economy, which contracted in the first quarter as consumption took a hit from rising living costs. Yoshimura said Japan must focus on deregulation to revitalise the economy and reforms to rein in its ballooning social welfare costs that are straining its finances. On monetary policy, Yoshimura said the Bank of Japan (BOJ) should continue to phase out its ultra-loose policy but at a slow, cautious pace. "Japan has a huge public debt and relies on debt issuance in guiding policy," he said. "In light of this situation, the BOJ must tread carefully in raising interest rates." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Entrepreneur
33 minutes ago
- Entrepreneur
Commercial Vehicle Sales Volume to See Moderate Growth in FY26: CareEdge Ratings
The report said that it expects the Light Commercial Vehicle (LCV) segment to grow by 2-4 per cent in FY26, while the Medium and Heavy Commercial Vehicle (MHCV) segment is projected to grow by 4-6 per cent during the same period. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. After two consecutive years of subdued growth, Commercial Vehicle (CV) wholesale volumes are expected to recover by around 2-5 per cent in FY26, according to CareEdge Ratings. The report said that it expects the Light Commercial Vehicle (LCV) segment to grow by 2-4 per cent in FY26, while the Medium and Heavy Commercial Vehicle (MHCV) segment is projected to grow by 4-6 per cent during the same period. Arti Roy, Associate Director, CareEdge Ratings, said, "The commercial vehicle (CV) industry is expected to experience moderate growth, with overall sales volume likely to improve by around 2-5 per cent y-o-y in FY26. The recovery will be driven by increased infrastructure activity, improved rural sentiment on the back of normal monsoon forecast, more attractive vehicle financing due to recent interest rate cuts, and ongoing fleet replacement—particularly in the bus segment—spurred by ageing vehicles, road tax concessions available for new vehicles under the scrappage policy for older vehicles and the transition to electric vehicles (EVs)." CareEdge Ratings also noted that muted growth in FY25 was largely attributed to a slowdown in demand across both the Medium and Heavy Commercial Vehicle (MHCV) and Light Commercial Vehicle (LCV) segments, wherein MHCV volumes saw a modest increase of 1.2 per cent. In comparison, LCV volumes declined by 0.3 per cent. MHCV volumes had witnessed subdued growth in FY25 due to lower government spending on infrastructure, given the general elections last year and an extended monsoon delaying/disrupting construction work. The LCV segment was also impacted by increased competition from the electric cargo three-wheeler segment and a cautious financing sentiment among small fleet operators. Hardik Shah, Director, CareEdge Ratings, said that the Indian CV industry had witnessed its highest sales volume in FY19, and after being adversely impacted by the Covid-19 pandemic, the industry appeared to be on track to surpass the all-time high on the back of significant growth in sales volumes in FY22 and FY23. "However, it experienced a cyclical decline in FY24 and a largely flat volume in FY25 due to a multitude of factors, including higher channel inventory, a slowdown in infrastructure projects amid the general elections, the impact of the transition to BS-VI norms, rising vehicle costs, and high interest rates. Looking ahead, the sales volume is expected to grow marginally in FY26 with many of the issues behind us," said Shah. The report also noted that in FY25, the Indian commercial vehicle (CV) industry faced a challenging environment marked by election-related disruptions, a slowdown in infrastructure spending, and elevated interest rates. Within the MHCV segment, buses (which constitute ~20 per cent of the total MHCV) exhibited a strong growth trajectory, registering a 21.6 per cent increase in FY25, driven by rising demand for public transport, government fleet replacement initiatives, and the ongoing transition to electric buses. In contrast, MHCV trucks (which constitute ~80 per cent of MHCV) recorded a decline of 2.7 per cent, primarily due to subdued freight activity, delayed infrastructure projects during the election period, and high interest rates. After experiencing marginal volume degrowth of 1 per cent and 3 per cent in FY24 and FY25, the MHCV truck segment is expected to recover in FY26. This rebound will be supported by increased infrastructure activity in the country, the replacement of aged vehicles, and cumulative repo rate cuts of 100 bps in CY25 until June 2025, which is likely to boost vehicle financing. Additionally, rising volumes in the bus segment, driven by ongoing fleet replacement spurred by ageing vehicles, will further contribute to overall growth in MHCV sales. As a result of recovery in the trucks segment and continued growth in the bus segment, the MHCV segment is estimated to grow by 4-6 per cent during FY26.
Forbes
37 minutes ago
- Forbes
Bond Vigilantes Give ‘Worse Than Greece' Japan A Reprieve
getty Global bond markets can breathe a little easier following Japan's successful sales of 30-year debt on Thursday. A low bar, perhaps, but then Japanese government bond (JGB) auctions over the last six weeks have tended to make global headlines for all the wrong reasons. Weak demand for a 20-year JGB sale in mid-May rocked markets everywhere. That auction attracted the fewest bids since 2012. The fact it happened at a moment when U.S. yields were spiking higher thanks to President Donald Trump's tariffs amplified the reaction in markets. By some measures, it was the sloppiest Japanese sale since 1987. The 'tail,' the gap between the average and lowest-accepted price, was the widest in 38 years. Japan's sale of 40-year bonds later that month didn't exactly pull in the bids either. Clearly, Prime Minister Shigeru Ishiba didn't help things by saying in May that Japan's deteriorating finances are 'worse than Greece.' Talk about putting Japan in global headlines for all the wrong reasons. Hence the relief this week. The so-called bid-to-cover ratio, a key barometer of demand, was the best since February — 3.58. Last month, the Ministry of Finance announced plans to curtail the size of auctions given the risk of more flops. It reduced its offerings of 20-, 30-, and 40-year debt by about $22 billion from now until March 2026. To further smooth things over, the Bank of Japan is scaling back its 'quantitative tightening' ambitions. Yet, a bull market in uncertainty plagues not just the JGB and U.S. Treasury markets but debt bourses everywhere. That's because no one knows whether Trump's trade war is winding down or about to kick into a higher gear. On July 9, the globe will wait with bated breath for Trump's decision on 'reciprocal' tariffs. That's the day his delay on imposing huge import taxes on foes and friends alike expires. Much of the turmoil in debt markets is related to worries that tariffs will send global inflation sharply higher Tokyo is already grappling with a 3.7% year-on-year inflation rate, nearly double the Bank of Japan's 2% target. Anything that exacerbates inflation will put more pressure on the BOJ to continue tightening. Yet with growth contracting 0.2% in the first quarter year on year — and likely to shrink further in the second — big hiking rates could do more harm than good. For all the talk of stagflation in the U.S., Japan may be even more susceptible to this most dreaded of dilemmas. If so, the odds of increased government spending rise exponentially. That could put upward pressure on bond yields, boosting borrowing costs for the developed nation with the biggest debt burden. There's an argument that JGBs are less vulnerable than peers because about 88% of outstanding issues are held domestically. This gives rise to a mutually-assured destruction dynamic. If JGB yields rose to 2% or 3%, banks, insurance companies, pension funds, endowments, the postal system and the growing ranks of retirees would suffer painful losses. So, the collective incentive is to hold onto debt issues rather than selling. Yet with Trump mulling new shocks to the global financial system, the JGB market is decidedly in harm's way. So is, by extension, the so-called 'yen carry trade.' A quarter century of zero rates has made Japan into the top creditor nation. It became common practice for investment funds everywhere to borrow cheaply in yen to bet on higher-yielding assets around the globe. That's why this trade going awry has been known to blow up hedge funds here and there. The good news is that Japan's debt auctions are now attracting enough demand to calm nerves — and placate the bond vigilantes. The bad news is that all bets could be off if Trump decides to make trade wars great again.
