[Morning Report] Bank of Japan Decision Meeting Today Establishes Special Zone to Inspect Market Trends After YCC Revision - Prime Minister Kishida in NY

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Bank of Japan to check market trends after YCC revisions decided on the 22nd
The Bank of Japan will inspect market, economy, and price trends after the July policy revision at the monetary policy meeting to be held on the 22nd. Due to prolonged price increases, re-revisions of long and short interest rate operations (yield curve control, YCC), cancellation of negative interest rate policies, and changes in forward guidance (forward guidelines) on policy interest rates can be considered as options. Currently, few market participants predict major policy changes.
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Bank of England leaves interest rates unchanged for the first time in 2 years - policy committee decides by a close margin
The Bank of England (British Central Bank) left the policy interest rate unchanged at 5.25% on the 21st. Amid concerns about falling inflation and economic recession, we stopped the interest rate hike cycle, which had been promoted most aggressively in the past 30 years or so.
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The next move for the ECB is probably to cut interest rates, not raise interest rates - Mr Strunalas

The FRB is stuck in soft landings, and unexpected developments are also there - Mr. Summers
Former US Treasury Secretary Summers pointed out that policy officials are too optimistic about the latest economic forecasts shown by the US Federal Open Market Committee (FOMC). They expressed a sense of alarm that there is a possibility that both inflation acceleration and growth slowdown will progress more than expected by officials.
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Establishing a special zone for asset management, calling for overseas players to enter - Prime Minister Kishida in NY
Prime Minister Fumio Kishida, who is visiting the United States, gave a lecture at the “New York Economic Club” where people involved in finance from around the world gather on the 21st, and called for new entry into the Japanese asset management business. It was stated that regulatory reforms would be carried out based on the establishment of a special zone, and the business environment would be prepared.

US Economic Index
The US Leading Economic Index fell 0.4% in August and was negative for 17 consecutive months
US second-hand housing sales fell 0.7% from the previous month in August to a low level since January
US mortgage interest rates rise 7% for 6 consecutive weeks - 2 weeks in a row
201,000 new US unemployment insurance claims at 8-month low
Philadelphia Fed manufacturing index, minus 13.5 for September - forecast minus 1

Mr Gross warns that bond investors face an unprecedented third consecutive year of losses
Bill Gross, who served as the chief investment officer (CIO) at major US bond management company Pacific Investment Management (PIMCO), said that even if the US interest rate hike is over, the pain for bond investors is not over yet.

Asset management companies such as BlackRock closed ESG funds one after another
paddy $Blackrock (BLK.US)$Asset management companies such as these have spent years setting up sustainable funds in an attempt to take advantage of growing interest in ESG (environment/social/corporate governance) investments. However, now, in the midst of political backlash and exposure to severe investor scrutiny, these products are being shut down one after another.

Full-scale development of US MS and generated AI = on Windows from 26th
paddy $Microsoft (MSFT.US)$(MS) announced on the 21st that it will develop full-scale support functions using generative AI (artificial intelligence) that automatically creates sentences and images. It has switched from conventional test provision, and provision with basic software (OS) “Windows 11” will begin on the 26th. Productivity of work using a browser (browsing software), compatible applications, etc., can be increased.
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Toshiba considers re-integration of 4 main businesses, power generation, railways, etc.
$Toshiba (6502.JP)$will consider the restructuring of its four main business subsidiaries, such as power generation and railways. It was spun off in 2017 during the management restructuring process, but the adverse effects were conspicuous due to overlapping functions such as sales and development. It was announced on the 21st that a TOB (public tender offer) was established between the investment fund Japan Industrial Partners (JIP) and the domestic union. Efficiency will be improved through integration into Toshiba's main body, and growth strategies after unlisting will be accelerated.