Latest news with #PhilipMcNicholas
Business Times
08-08-2025
- Business
- Business Times
Indonesia's benchmark yield falls to lowest in almost two years
[JAKARTA] Indonesia's 10-year bond yield fell to the lowest level since September 2023 due to rising interest-rate cuts expectations, overseas inflows and a soft US dollar. The benchmark yield slipped three basis points on Friday (Aug 8) to 6.42 per cent, extending its decline from a high in January to almost 90 basis points. Emerging Asian sovereign bonds, including Indonesia's, have rallied this year as global funds diversified their investments away from US dollar assets. July's weaker-than-expected US payroll data boosted bets that the US Federal Reserve will cut rates at its September meeting, improving sentiment towards bonds and weighing on the greenback. 'Monetary policy settings in Indonesia have consistently been on the tight side as Bank Indonesia grapples with the foreign exchange management component of its mandate,' said Philip McNicholas, Asia sovereign strategist at Robeco in Singapore. 'With the US dollar embarking on a secular decline, that should allow for a more domestically supportive policy stance via rate cuts and should support some downward pressure on yields overall.' Expectations that Bank Indonesia will deliver more policy easing this year has also helped fuel the rally in local bonds. Improving sentiment towards the nation's finances also bolstered demand, after Finance Minister Sri Mulyani Indrawati pledged to keep the state budget deficit at below 3 per cent of gross domestic product and to use cash reserves to plug this year's shortfall. Overseas investors have bought about US$3.5 billion of Indonesian government bonds this year, already surpassing last year's total inflows. 'Global local-currency-investor positioning is relatively light in Indonesia, especially versus other high-yielding markets,' Robeco's McNicholas said. 'Moving back towards more historically normal positions in Indonesia is likely supportive for the government bonds, pushing yields lower still.' BLOOMBERG
Yahoo
25-06-2025
- Business
- Yahoo
TSMC Unit to Issue $10 Billion of Stock to Counter Forex Swings
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co.'s overseas unit is set to issue $10 billion worth of new stock to shore up its forex hedging operations, making its biggest such move to counter a volatile local currency. Bezos Wedding Draws Protests, Soul-Searching Over Tourism in Venice US Renters Face Storm of Rising Costs US State Budget Wounds Intensify From Trump, DOGE Policy Shifts Commuters Are Caught in Johannesburg's Taxi Feuds as Transit Lags TSMC Global Ltd. is poised to issue the shares to help it hedge against forex swings, the company said in a statement. It's the third such deal since 2024, and by far the largest. They occurred during periods when the Taiwan dollar tended to appreciate. The moves grant TSMC Global — the vehicle responsible for managing overseas investments and hedging — more capital flexibility in managing exchange rate risks. Recent gains by the Taiwan dollar have caused worries in Taipei about the economy's heavy reliance on exports. In May, the currency notched its biggest single-day gain since the 1980s, spurring calls from the central bank to curb speculation. 'Generally speaking, the heightened forex volatility would mean that banks may be adjusting their margin requirements,' said Philip McNicholas, Asia sovereign strategist at Robeco based in Singapore. 'Issuing new shares, and bringing in an immediate cash injection, may help companies manage the margin requirements on both existing and new hedges.' TSMC, the main chipmaker to Apple Inc. and Nvidia Corp., is by far the island's biggest company and exporter because the majority of its production is domestic. A stronger Taiwan dollar hurts exporters because the US dollars they earn from sales abroad would translate into less of the local currency, or they would need to raise their prices overseas and risk denting demand. In June, Chief Executive Officer C. C. Wei told shareholders the company's operating margin has fallen several percentage points because of a stronger local currency. Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? ©2025 Bloomberg L.P. 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
Business Times
25-06-2025
- Business
- Business Times
TSMC unit to issue US$10 billion of stock to counter forex swings
[TAIPEI] Taiwan Semiconductor Manufacturing Co's overseas unit is set to issue US$10 billion worth of new stock to shore up its forex hedging operations, making its biggest such move to counter a volatile local currency. TSMC Global is poised to issue the shares to help it hedge against forex swings, the company said in a statement. It's the third such deal since 2024, and by far the largest. They occurred during periods when the Taiwan dollar tended to appreciate. The moves grant TSMC Global – the vehicle responsible for managing overseas investments and hedging – more capital flexibility in managing exchange rate risks. Recent gains by the Taiwan dollar have caused worries in Taipei about the economy's heavy reliance on exports. In May, the currency notched its biggest single-day gain since the 1980s, spurring calls from the central bank to curb speculation. 'Generally speaking, the heightened forex volatility would mean that banks may be adjusting their margin requirements,' said Philip McNicholas, Asia sovereign strategist at Robeco based in Singapore. 'Issuing new shares, and bringing in an immediate cash injection, may help companies manage the margin requirements on both existing and new hedges.' TSMC, the main chipmaker to Apple and Nvidia, is by far the island's biggest company and exporter because the majority of its production is domestic. A stronger Taiwan dollar hurts exporters because the US dollars they earn from sales abroad would translate into less of the local currency, or they would need to raise their prices overseas and risk denting demand. In June, chief executive officer CC Wei told shareholders the company's operating margin has fallen several percentage points because of a stronger local currency. BLOOMBERG
Yahoo
25-06-2025
- Business
- Yahoo
TSMC Unit to Issue $10 Billion of Stock to Counter Forex Swings
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co.'s overseas unit is set to issue $10 billion worth of new stock to shore up its forex hedging operations, making its biggest such move to counter a volatile local currency. Bezos Wedding Draws Protests, Soul-Searching Over Tourism in Venice US Renters Face Storm of Rising Costs US State Budget Wounds Intensify From Trump, DOGE Policy Shifts Commuters Are Caught in Johannesburg's Taxi Feuds as Transit Lags TSMC Global Ltd. is poised to issue the shares to help it hedge against forex swings, the company said in a statement. It's the third such deal since 2024, and by far the largest. They occurred during periods when the Taiwan dollar tended to appreciate. The moves grant TSMC Global — the vehicle responsible for managing overseas investments and hedging — more capital flexibility in managing exchange rate risks. Recent gains by the Taiwan dollar have caused worries in Taipei about the economy's heavy reliance on exports. In May, the currency notched its biggest single-day gain since the 1980s, spurring calls from the central bank to curb speculation. 'Generally speaking, the heightened forex volatility would mean that banks may be adjusting their margin requirements,' said Philip McNicholas, Asia sovereign strategist at Robeco based in Singapore. 'Issuing new shares, and bringing in an immediate cash injection, may help companies manage the margin requirements on both existing and new hedges.' TSMC, the main chipmaker to Apple Inc. and Nvidia Corp., is by far the island's biggest company and exporter because the majority of its production is domestic. A stronger Taiwan dollar hurts exporters because the US dollars they earn from sales abroad would translate into less of the local currency, or they would need to raise their prices overseas and risk denting demand. In June, Chief Executive Officer C. C. Wei told shareholders the company's operating margin has fallen several percentage points because of a stronger local currency. Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? ©2025 Bloomberg L.P. 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
