Japan Carmakers Put Squeeze on Households With Higher Loan Rates
More than a year after the Bank of Japan's first interest rate increase in 17 years, the volatile march higher in super-long bonds is raising the cost of servicing loans, including car repayments — making the auto sector one of the first key pain points as households look to tighten their belts.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
an hour ago
- CNBC
Asia markets set to fall as U.S. trade talks with China hang in the balance
Asia-Pacific markets are expected to fall as U.S. Commerce Secretary Howard Lutnick affirmed that President Donald Trump's upcoming Friday deadline to impose major tariffs on a slew of trading partners will not be delayed further. However, Lutnick noted that trade negotiations with China are progressing on a separate timeline, he said on CNBC's "Squawk Box." Happy mid-week from Singapore. Asia markets are poised for a lower open. Futures for Hong Kong's Hang Seng Index stood at 25,344, pointing to a weaker open compared with the HSI's last close of 25,524.45 Similarly, Australia's S&P/ASX 200 was set to start the day lower with futures tied to the benchmark at 8,662, compared with its last close of 8,704.6. Japan's benchmark Nikkei 225 was set to open lower, with the futures contract in Osaka last traded at 40,650 against the index's last close of 40,674.55. — Lee Ying Shan Stocks closed lower on Tuesday, as investors turn their attention to the Federal Reserve's interest rate decision. The S&P 500 slipped 0.30% to close at 6,370.86, while the Nasdaq Composite lost 0.38% to 21,098.29. The Dow Jones Industrial Average slipped 204.57 points, or 0.46%, to finish the session at 44,632.99. — Brian Evans Investors should remain vigilant and not look past the potential risks of tariffs, according to UBS. "The impact of tariffs can't be overlooked even though recent deals have provided greater clarity. While the 15% tariff rate on most EU and Japanese goods was lower than earlier threats from the U.S., the higher levies will still create headwinds for growth," said Ulrike Hoffmann-Burchardi, chief investment officer for the Americas and global head of equities at UBS Global Wealth Management. "While our base case is that the resilience of the US consumer should help the U.S. economy avoid recession, a larger-than-expected impact on inflation or more severe hit to corporate margins could quickly change the current optimistic market narrative," she added. — Brian Evans
Bloomberg
4 hours ago
- Bloomberg
BOJ to Hold Rate Steady With Likely Upgrade to Price View
The Bank of Japan is expected to keep its benchmark interest rate steady and boost its inflation outlook Thursday, as investors look for hints of another rate hike this year after a US-Japan trade deal reduced some uncertainty. All 56 economists forecast Governor Kazuo Ueda's board will leave the central bank's interest rate unchanged at 0.5% at the end of a two-day policy meeting, according to a Bloomberg survey this month. In the bank's quarterly economic outlook report, the inflation projection for this fiscal year is likely to be revised higher, they said.
Yahoo
4 hours ago
- Yahoo
PayPal Stock Crashes Nearly 10%--Even After Beating Wall Street Expectations
Shares of PayPal (NASDAQ:PYPL) dropped nearly 10% this morning todaythe sharpest slide in nearly six monthsafter the company reported a slowdown in branded checkout volume and flagged weaker U.S. retail spending tied to tariff pressures. CFO Jamie Miller pointed to a slight deceleration in consumer demand, especially for goods sourced from China. CEO Alex Chriss echoed those concerns, saying spending was softer at businesses most exposed to Asia-based supply chains. Checkout volume rose just 5% in the quarter, down from 6% in Q1, underscoring the impact of uneven macro conditions. Warning! GuruFocus has detected 4 Warning Sign with PYPL. Still, PayPal raised its full-year outlook, leaning on stronger margin performance and growth in key products like Venmo. Adjusted EPS is now projected to hit $5.15$5.30 this year, up from the prior $4.95$5.10 range. Transaction margin dollars rose 7% year-over-year to $3.84 billion, prompting an upgrade to the company's full-year profitability forecast. Net income climbed 10% to $1.37 billion, with EPS of $1.40 beating Wall Street estimates. Chriss called it another quarter of profitable growth, driven by his broader effort to unify and streamline the business. Venmo revenue jumped 20% in Q2, and total payment volume hit $443.5 billion, beating consensus estimates. PayPal is also leaning into global and in-person expansion: a new platform now supports cross-border payments via local digital wallets, and the company recently added a credit card to strengthen physical checkout. Businesses using PayPal can now accept over 100 cryptocurrencies. While near-term spending trends remain patchy, management is positioning the company to capitalize on long-term shifts in digital commerce and payment infrastructure. This article first appeared on GuruFocus. 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
