[Morning Report] NY Fed President Doesn't Feel the Urgency of Interest Rate Cuts, Interest Rate Hikes TSMC Lowers Semiconductor Market Outlook for 2012

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NY Fed President Doesn't Feel the Urgency of Interest Rate Cuts - Judging Based on Data
The president gave a speech at the Semaphore World Economic Summit held in Washington on the 18th. “Monetary policy is in a good position,” he said. In response to a question about the possibility of interest rate hikes, he said that interest rate hikes are also possible if economic data justifies it in order to achieve the monetary authorities' inflation target, even though it is not his own basic scenario.
Related articles:There is a high possibility that the US will not cut interest rates at all by the end of the year - President Pinto of JP Morgan

The yield on 10-year US bonds is even 5%, and there is a fear that large loss sales will occur - Vanguard
Vanguard pointed out that the US bond market is approaching a level where there is a risk of inducing large-scale sell-offs, and there is a possibility that 10-year bond yields will reach 5%. He said that if even a slight increase in yield exceeds the important level of 4.75%, investors will be forced to resolve positions that anticipate price increases, and there is a possibility that a wave of sales will rush in that will push yields to the high level in 2007.

If the yen depreciates and prices are high, “a policy change is possible” Bank of Japan Governor
Bank of Japan Governor Ueda Kazuo stated at a press conference on the 18th that key prices rise due to the depreciation of the yen and “if it is affected by a magnitude that cannot be ignored, changes in monetary policy are also possible.” Related articles showing recognition that if overall prices rise through an increase in import prices, it may lead to additional interest rate increases:Finance Minister Suzuki says the exchange rate level is not solely based on current interest rate differences
G20 comes to an end, there is no explanation in the era of strong dollar 1, and correcting the depreciation of the yen is a long game

In April, when the prominent stagflation trade, the S&P 500, is soft
Stagflation (inflation under economic stagnation) trade stands out this month, when almost all stock price indices and thematic indices have been softening. Stock prices in the Western sector, which are exposed to inflationary risks such as consumer goods and real estate, are being squeezed, and the S&P 500 stock price index has fallen by more than 4% since the beginning of April. In contrast to this, rising crude oil prices are boosting energy stocks.
Related articles:LME tin rises, signs of tight supply intensifies - other non-ferrous metals other than zinc are also high

TSMC lowers semiconductor market outlook for 2024 - due to sluggish smartphone and PC sales
Taiwan Semiconductor Manufacturing, a major contract manufacturer of semiconductors ( $Taiwan Semiconductor(TSM.US)$), the growth forecast for the semiconductor market this year was revised downward, assuming that smartphone and personal computer (PC) sales are still weak. The growth in the semiconductor market (excluding memory chips) in 2024 was set to about 10%, and it was lowered from the previous forecast, which was at a level higher than this. Chief Executive Officer Wei Zhejia (CEO) also revised downward the growth outlook for the foundry (contract manufacturing) sector, where TSMC is at the top.
Related articles:NY stock highlights TSMC's good financial results, undiscovered buying even if “AI” expectations are rekindled

Netflix increases membership by 9.33 million - growth will slow in the future
Rice for video streaming services $Netflix(NFLX.US)$The number of members showed growth that exceeded expectations, and it was the best start since 2020. It was supported by strong original programs and password sharing measures. Despite this increase in the number of members, Netflix's stock price temporarily fell 7.4% to 565.50 dollars due to overtime trading after normal trading, but then some values returned.

Meta unlocks new generative AI for free, 7 times smarter and collaborates with SNS
paddy $Meta Platforms(META.US)$The latest generative AI (artificial intelligence) infrastructure technology was announced on the 18th. AI learning data has been increased 7 times to make it smarter, and it can be directly called up and used from SNS such as the dialogue application “messenger” or the image sharing application “Instagram.” The technology will be released to the outside free of charge, and it will compete with US Open AI and Google, which are ahead in generative AI.

Tesla abandons EV “Model 2” development? Profit generation is extremely difficult
Are you abandoning the development of “Model 2” ──. rice $Tesla(TSLA.US)$There are reports circulating that development has been discontinued for models whose prices are lower than the current lineup of electric vehicles (EVs). It is a so-called mass-marketed EV of 25,000 dollars (about 3.8 million yen) or less. It is called “Model 2” etc. in some media, and it is a core model as Tesla aims to sell 20 million units per year in 2030.