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Market Chatter: BOJ Rate Hike and Stronger Yen Could Curb Inflation, Says Japan Trade Minister

-- Japan's trade minister Ryosei Akazawa said the Bank of Japan could tame inflation by boosting the yen, as the central bank considers a rate hike this month to counter price pressures from the Iran war, Reuters reported Monday, citing the official.

Akazawa - who serves as both Japan's top trade negotiator and head of the Ministry of Economy, Trade and Industry- made these remarks on a television talk show in reply to an economist's argument that a stronger yen would ease the higher expenses of importing crude oil, the news wire said.

On the same NHK program, Hideo Kumano, chief economist at Dai-ichi Life Research Institute, stated that if the BOJ used policy to lift the yen by roughly 10% to 15%, it could curb price increases across the economy, including for food, which represents a large portion of household spending.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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Research Alert: CFRA Keeps Hold Opinion On Adss Of Nio Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our target to USD7.00 from USD6.50, which implies a 2026 P/S of 1.0x (below its five-year mean of 2.7x), on our projected slower two-year revenue CAGR of 29% (vs. its historical five-year CAGR of 40% through 2025). We project NIO's revenue to grow 33%/25% in 2026/2027, assuming the number of car deliveries will increase by 40%/30% in 2026/2027, led by demand for upcoming new models (including the ONVO L80, ES9, and five-seat ES7). We expect non-GAAP net losses to narrow, supported by an improved product mix and enhanced scale efficiencies. Nevertheless, intensifying price competition, policy headwinds, and elevated costs are likely to delay profitability improvement, with breakeven unlikely to materialize before 2028. Improved delivery growth and margin trajectory are encouraging, but insufficient to warrant a more constructive stance until the company demonstrates a clear path to profitability. We revise our non-GAAP LPADS forecast to CNY0.42 (from CNY0.51) for 2026 and set 2027's LPADS at CNY0.09.

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