Yen Slide, beige book, iPhone 14

© Reuters.

By Jeffrey Smith – The yen fell to a new 24-year low against the dollar as Chinese trade figures cast doubt on the economic outlook for Asia. The Federal Reserve releases its Beige Book survey as the Bank of England prepares to fight for its independence from new British Prime Minister Liz Truss. Apple unveiled its new phone that supports the fifth generation network, the iPhone, and Vladimir Putin, in the face of the United States. Here’s what you need to know in the financial markets on Wednesday, September 7.

1. The yen contraction is incredible

Japan’s recession deepened after Tokyo warned of “rapid one-sided” currency moves – without doing anything to stop them.

It rose to a new 24-year high of 144.38 after the Chinese month showed a sharp slowdown in both growth and growth, suggesting that the slowdown in global demand for goods made in China is fueling Chinese demand for Japanese capital goods.

The dollar has now risen more than 31% against the yen over the past 12 months, and the pace of the slide this week has sparked talk of BoJ intervention, possibly in coordination with other central banks. However, Reuters quoted former Japanese currency diplomat Hiroshi Watanabe as saying that Japan should not intervene or change its monetary policy in response as it would be ineffective in stopping the dollar’s rise.

2. Central banks on alert again

It’s a big day for central banks around the world again, as both central banks are expected to raise interest rates and are expected to raise them again. Poland’s rate-raising cycle appears to be coming to an end, with NBP expected to rise by only 25 basis points this time after a series of larger cycles in recent months.

However, analysts are expecting a massive 75 basis point rise from the Bank of Canada, in what will be an echo of the latest move and – perhaps – in anticipation of tomorrow’s action in.

The Fed itself releases its survey, while the MBA releases weekly numbers on mortgage and . There will be early speeches from the Federal Reserve and (only Meester has a vote at the FOMC this year), and later, from the vice president.

Meanwhile, in the UK, Bank of England Governor Andrew Bailey is set to meet new Treasurer Kwasi Quarting to discuss, among other things, the Bank of England’s plans to start selling bonds again in the market – just like the new government of Prime Minister Lees. Truss appears ready to embark on a significant increase in government borrowing to fund its energy package.

3. Set the arrows to open up

US stock markets are set to open with a modest bounce after falling to two-month lows on Tuesday on concerns about the global economic slowdown and its impact on earnings.

By 06:30 ET (10:30 GMT), it was up 50 points, or 0.2%, while it was up.

Apple (NASDAQ:) will likely dominate the session, unveiling the new iPhone 14, though modest incremental changes to its design and capabilities are expected. Overnight, Spanish oil and gas company Repsol (BME:) said it would sell 25% of its upstream business to energy and infrastructure experts EIG, with an eye to listing the business in New York within four years or so.

4. Europe Eyes Caps Energy Price

The European Commission is set to propose capping the wholesale electricity price for most types of generation in a bid to stave off a collapse of European industry during the winter.

The Financial Times reports that the Commission will propose a cap on the price of non-gas-generated power at €200 per megawatt-hour when EU energy ministers meet on Friday. The current spot price of German electricity in Germany, the regional standard, is above 450 euros/MWh, while French prices reached 1,000 euros last week.

Wholesale electricity prices have risen because gas is usually the energy source for marginal energy production, which determines wholesale prices. Gas prices are close to 10 times the level of the past ten years.

5. Oil prices go higher while Putin pulls back

Crude oil prices continued to trade near seven-month lows as the latest Chinese trade data did nothing to reassure the global demand picture.

Fiery warnings from Russian President Vladimir Putin that he would withhold all forms of Russian energy from “unfriendly” countries were only able to raise prices by about half a percent, leaving futures contracts at $87.42 a barrel and at $93.44 a barrel.

“We will absolutely not supply anything if it is against our interests, in this case economic [interests]”No gas, no oil, no coal, no fuel, nothing,” Putin told a conference in Russia’s Far East.

The US supply and demand balance will be updated at 16:30 ET, one day later than usual due to the Labor Day holiday, which usually marks the end of peak summer demand in the US.

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