A day of significant developments is underway across the globe, as a worrying signal from the Japanese bond market puts investors on high alert, the financial world mourns the sudden passing of a top executive, and a new chapter begins for one of the world’s most scrutinized airplanes.
Here’s your one-stop stand to catch up on all the headlines you may have missed.
A Japanese bond auction sees its weakest demand since 2009, fueling rate hike fears
A closely watched auction of 2-year Japanese government bonds has drawn its weakest demand since 2009, a powerful and worrying signal that comes amid intense speculation that the Bank of Japan is on the verge of raising interest rates.
The bid-to-cover ratio, a key measure of demand, came in at a dismal 2.81.
The poor result is a direct reflection of investor anxiety, with the country’s ruling party set to vote on a new leader on October 4 and the BOJ potentially raising its benchmark rate as early as this month.
The 2-year yield, which is highly sensitive to monetary policy, has already hit its highest level since 2008.
Fortress Investment Group’s Co-CEO, Josh Pack, has died at the age of 51
The alternative asset management firm Fortress Investment Group has confirmed that its Co-Chief Executive Officer, Josh Pack, has died at the age of 51.
The firm did not give a cause of death. “We are devastated by this loss,” Fortress said in a statement.
“Josh was a gifted investor, a thoughtful strategist, a compassionate leader — and a deeply cherished friend to many.”
Pack, who joined the 53 billion dollar firm 23 years ago, was in the process of moving to London as part of a major push to expand the company’s European operations.
Boeing has begun early-stage development of a successor to the 737 Max
Boeing Co. has started working on a next-generation single-aisle aircraft that could eventually replace the troubled 737 Max, the Wall Street Journal reported.
The new narrowbody jet is in its early stages of development, which includes internal design efforts and exploratory talks with engine makers.
The report comes as concerns over the safety of the 737 Max continue to linger, following a terrifying incident last year when a panel flew off an Alaska Airlines jet in mid-air.
That crisis was the biggest for Boeing since its entire Max fleet was grounded worldwide in 2019 after two fatal crashes.
GSK’s female CEO to depart, leaving FTSE 100’s leadership ranks stagnating
Emma Walmsley’s departure as the chief executive officer of the British drugmaker GSK Plc will bring an end to a near nine-year tenure, but it will also mark another setback for female leadership in the UK.
After Walmsley steps down, the number of female CEOs in the benchmark FTSE 100 index will remain at just nine.
The stagnation comes despite a concerted effort to boost female representation at the highest levels of corporate Britain.
“Unfortunately the trickle-down effect we had hoped for hasn’t materialized,” said Pavita Cooper, who chairs the 30% Club in the UK.
Italy on the cusp of meeting the EU’s deficit cap in a major win for Meloni
Italian Prime Minister Giorgia Meloni is on the verge of a crowning fiscal achievement, as her annual budget, set to be unveiled this week, will show the country’s deficit falling back below the European Union’s 3-percent-of-output ceiling by next year at the latest.
There is even a tantalizing prospect that the 2025 shortfall could come in under the threshold.
Finance Minister Giancarlo Giorgetti said such an outcome is “possible,” a touch-and-go matter that would represent a major political victory for Meloni as her government simultaneously seeks to deliver tax cuts to the middle class.
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