Navigating Economic Currents: Japan’s Private Sector PMIs and the Impending BoJ Verdict
Investing.com - Traders turned towards Japan's private sector earlier today as preliminary PMI statistics for July took center stage. This attention was magnified due to the impending monetary policy verdict from the Bank of Japan (BoJ) set for this Friday.
Despite these developments, it seems unlikely that the recent flash private sector PMIs will prompt any significant deviation from ultra-loose by the BoJ. While national inflation figures might suggest otherwise, macroeconomic uncertainties persist.
The services PMI dipped marginally from 54.0 to 53.9, while its manufacturing counterpart saw a more pronounced drop from 49.8 to 49.4—contrary to economists' predictions that expected stability in manufacturing at around 49.8 and a steeper decline in services to approximately 53.4.
A sluggish pace marked new orders within the service domain, whereas manufacturers witnessed their new orders shrink even further.
Labor market conditions deteriorated with an observable slowdown in hiring rates among manufacturers alongside reduced employment within service-oriented firms.
July experienced heightened inflationary pressures, with output prices escalating noticeably across both sectors - services and manufacturing alike.
Correspondingly, input costs surged too; higher input prices reported by service-sector companies balanced out weaker pricing trends prevalent among manufacturers.
As we ushered in Q3, optimism seemed sparse as both manufacturers and service providers projected less buoyant prospects.
Two specific elements may pique interest at BoJ headquarters – subdued output prices coupled with softer labor market dynamics could provide enough reason for delaying any adjustments on their part yet hinge heavily on Tokyo's imminent inflation data this Friday.
Reacting to these initial July PMIs, USD/JPY ticked 0.1% higher at 141.66.
FTX Founder's Legal Team Rebuts Witness Tampering Accusations
Attorneys representing Sam Bankman-Fried, founder of FTX, have refuted allegations by prosecutors that his interactions with a journalist from The New York Times constituted witness tampering. They conceded to comply with a gag order as stated in their letter submitted to the presiding judge over this criminal fraud lawsuit.
This correspondence was made public on Sunday following attempts by prosecutors to prohibit Bankman-Fried and his associates from making any public remarks that may impede the ongoing case proceedings.
FTX, a cryptocurrency exchange previously valued at an impressive $32 billion, filed for bankruptcy protection last November due to its inability to pay back depositors. In response to these fraud accusations, Bankman-Fried maintains his innocence.
Bankman-Fried's legal representative confirmed in this letter that he had indeed engaged in conversation and shared personal documents with The New York Times reporter. These documents contained writings by Caroline Ellison, a former coworker who has since then been collaborating with federal authorities.
The defense counsel asserted unequivocally that there were no violations committed by Bankman-Fried regarding protective orders related to this case or conditions set upon him during bail release; nor did he break any laws dictating appropriate conduct.
A recent article published in The New York Times titled "Inside the Private Writings of Caroline Ellison - Star Witness in the FTX Case" featured extracts from Ellison's personal Google (NASDAQ:GOOGL) documents dated before FTX’s downfall where she expressed her dissatisfaction and feelings of being overwhelmed at work along with emotional distress resulting from her split up with Bankman-Fried.
Having headed Alameda Research hedge fund under Bankman-Fried’s leadership before pleading guilty herself for deceiving investors and agreeing to cooperation terms with prosecutors is none other than Caroline Ellison. Last December saw revelations from Bankman Fried about having had a romantic involvement with Ellison without divulging further information.