[Morning Report] US and European stocks hit a high, and interest rate cuts are expected due to CPI. Mr. Buffett discloses Chubb's holdings in the latter half of the 154 yen range

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US bond yields fell sharply, and the probability of interest rate cuts until September was over 80% - in response to CPI
The US bond exchange rate rose sharply on the 15th, and 10-year bond yields temporarily hit their lowest level in over a month. The US Consumer Price Index (CPI) announced on the same day showed calm in price increases, and observations of interest rate cuts within the year intensified as retail sales fell below market expectations.

US and European stocks hit new highs Expectations for interest rate cuts as inflation decelerates
Major stock price indices in the US and Europe hit their highs one after another in the stock market on the 15th. A slowdown in inflation was confirmed in the April US Consumer Price Index (CPI) announced on the same day. In addition to “soft landing expectations,” where the US economy does not stall and inflation calms down, have increased, observations of the economy bottoming out are intensifying in Europe as well. Expectations for early interest rate cuts have increased in the US and Europe, leading to optimism in the stock market.

First confrontation between Biden and Trump, TV debate on CNN on 6/27
US President Biden and former President Trump will face a TV debate on 6/27. Each one made it clear. The stage was set for the first confrontation in this year's election campaign a few months earlier than expected.

The yen rose to the latter half of the 154 yen range against the dollar, and US interest rates are expected to fall due to CPI and retail sales
The yen exchange rate of the Tokyo Foreign Exchange Market on the morning of the 16th was in the latter half of the $1 = 154 yen range, rising drastically from the evening before. Expectations for September interest rate cuts increased in response to a slowdown in consumer price index (CPI) growth and retail sales that fell below expectations in the United States, and the dollar depreciated across the board. While there is a possibility that yen buybacks will continue in the Tokyo market, yen sales in response to a trend of risk appetite are likely to weigh on the market price.

Berkshire discloses $6.7 billion shareholding in Sompo Chubb
US investment and insurance company led by famous investor Warren Buffett $Berkshire Hathaway-A(BRK.A.US)$ Is the 15th, non-life insurance company $Chubb Ltd(CB.US)$The share equity equivalent to 6.7 billion dollars (approximately 1.36 trillion yen) was revealed. It was disclosed in a notification to regulatory authorities, and reflects positions as of the end of January-March (1st quarter).

Cisco's Strong Sales and Profit Outlook - Suggests Customers Resume Investment
The largest network equipment manufacturer, US $Cisco(CSCO.US)$showed a strong outlook for sales and profits from May to July (fourth quarter). It was suggested that some customers are resuming investing in computer networks.

Meme Stocks, Individual vs. Pro Battle Act 2 (NY Express)
What is the background of interest rate cut observations in the US market on the 15th $NVIDIA(NVDA.US)$The rise in high-tech stocks with high interest rate sensitivity was conspicuous, such as stocks rising 4%, leading major stock price indices. Meme stocks (popular stocks) have not lost to the trend of large stocks and have continued to be a topic of conversation in the market recently. Typical game sales $GameStop(GME.US)$ The stock price soared 2.8 times in the 2 days from the 13th to the 14th. Movie theater management's $AMC Entertainment(AMC.US)$It also increased 2.4 times during the same period. On the 15th, the sharp rise took a break, with Game Stop stocks closing at 39 dollars 55 cents, which is 19% lower than the previous day, but intraday price movements were rough, showing how buying and selling intersected.

Listed companies forecast a 4% decline in profit for the current fiscal year - brace for China's deceleration and exchange rate trends, and make upfront investments in growth fields
Listed companies are strengthening their cautious stance on the future of business performance. Net profit for the fiscal year ending 2025/3 is expected to decrease 4% from the previous fiscal year, for the first time in 5 years. Demand in China and Europe, mainly in the manufacturing industry, has sluggish, and sales are sluggish. Another factor is that the estimated exchange rate of yen is higher than the actual situation. The issue is whether upfront investment in growth fields and price increases due to increased value of products and services can be promoted.

Net profit for the current fiscal year of 3 mega silver is 3.3 trillion yen - the highest profit is updated due to interest rate hikes
The total net profit of the 3 megabank group for the current fiscal year (fiscal year ending 2025/3) is 3.31 trillion yen, up 5.7% from the previous fiscal year, and it is expected that the highest profit will be updated for 2 consecutive terms following the previous fiscal year (fiscal year ending 24/3). The interest rate hike effect by the Bank of Japan penetrates into the main business lending operations, etc., and boosts earnings. Plans for the current term that came out on the 15th $Mitsubishi UFJ Financial Group(8306.JP)$1.5 trillion yen, up 0.6% from the previous fiscal year, $Sumitomo Mitsui Financial Group(8316.JP)$ A 10% increase of 1.6 trillion yen $Mizuho Financial Group(8411.JP)$A 10% increase of 750 billion yen. Total net profit for the previous fiscal year was 3,132.7 billion yen.
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Today's stock price materials (newspapers, etc., 16th) recruitment, highest profit for the previous fiscal year
▽ $Recruit Holdings(6098.JP)$Net profit increased 31% due to strong domestic sales in the previous fiscal year, and the current fiscal year was in a range of expectations, and there was a sense of deceleration in US jobs (Nikkei)