[Morning Report] Long-term US interest rates rise to 4.63%, Japan falls to 1.075%, yen falls in the latter half of the 157 yen range 4.6 times the net profit of the semiconductor world's largest

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U.S. Regional Federal Reserve Economic Report, Growth “Slight or Slow” - Sensitive to Prices
The Regional Federal Reserve Economic Report (Beige Book) published by the US Federal Reserve (FRB) on the 29th pointed out that the US economy expanded at a “slight or slow” pace in most regions after the beginning of April. It is said that private consumption was suppressed due to rising prices.

The NY Dow continues to fall, 411 dollars lower, long-term interest rates rise to 4.63%, and be wary
The Dow Jones Industrial Average continued to fall in the US stock market on the 29th, and ended at 38,441 dollars 54 cents, which was 411 dollars 32 cents (1.05%) lower than the previous day. There is a strong view that the US Federal Reserve (Fed) interest rate cut period will shift later. Long-term US interest rates rose, and sales spread because people were aware of the relative high value of stocks.

Long-term interest rate, sharp rise pitch of 1.075% is at the level for the first time in 12 and a half years
The rise in long-term interest rates is unstoppable. In the domestic bond market on the 29th, yields on new 10-year government bonds, which are indicators of long-term interest rates, rose (bond prices fell). It set a high level of 1.075% for the first time in 12 and a half years since 2011/12. In addition to speculation that the Bank of Japan will raise interest rates early, there is a growing sense of uncertainty surrounding government bond purchases. It is becoming difficult for market participants to read the upper limit of interest rates.

The yen declined and expanded against the dollar, returning to the level before the sharp rise in the latter half of the 157 yen range
The yen exchange rate in the New York Foreign Exchange Market fell to 1 dollar = 157 yen 71 yen on the 29th. The yen returned to the level before the sharp rise in the early morning of the 2nd Japan time. The trend of appreciation of the dollar and depreciation of the yen against the backdrop of the still large interest rate difference between Japan and the US is deep-seated, and as the possibility that yen buying intervention has been implemented increases, there is strong skepticism about its effects in the market.
Related articles:Euro is high against yen for the first time in a month, and the pace of ECB interest rate cuts is slowing down

Net profit of the world semiconductor giant increased 4.6 times from January to March, expansion for AI
The performance of major semiconductor companies is improving. The net profit for the fiscal year ending 2024/1-3 (some for the fiscal year ending 23/12 to 24/2, and the fiscal year ending February/April) of the 10 major companies was 32.9 billion dollars (about 5.2 trillion yen), 4.6 times the same period last year. Demand for semiconductors for artificial intelligence (AI) is strong, and the United States $NVIDIA(NVDA.US)$The performance of rapidly expanded and led the whole. Demand for smartphones and computers has also recovered.

Salesforce stocks plummet, first single-digit forecast due to increased sales rate - concerns about presence
Rice that handles cloud-based customer management (CRM) software $Salesforce(CRM.US)$The stock price temporarily fell by about 16% due to overtime trading on the 29th. It showed the forecast that sales growth from May to July (2nd quarter) would be the sluggish ever. As the industry shifts to artificial intelligence (AI) tools, concerns have intensified about whether the company can maintain its presence.

Sony negotiates to acquire rights to “Queen” music - there is also a possibility of a scale of 1 billion dollars
Sony Music, a major global record company, is in negotiations to acquire music rights for the English rock band “Queen,” which includes hit songs such as “Bohemian Rhapsody.” If realized, there is a possibility that it will be the largest transaction of this kind ever. $Sony Group(6758.JP)$We are working on this deal with another investor, and there is a possibility that the total amount will be 1 billion dollars (about 160 billion yen).

Container freight rates of 10,000 dollars are once again a reality, and transportation capacity is tight due to increased demand and Red Sea turmoil
According to fee information exchanged between shipping companies and importers, it seems that companies that transport products from Asia will incur a maximum cost of 10,000 dollars (about 1.57 million yen) for emergency transportation in full-size containers over the next month.