Exploring the impact of ending negative interest rates in Japan on yen volatility, Disney's resolution with Florida, and US small-cap stocks facing worst performance relative to large companies in over 20 years.
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Quick takeaways
Ending negative interest rates in Japan may increase yen volatility, impacting carry trades.
Resolution of Disney's Florida legal battle with Governor Ron DeSantis ensures future development plans with updated board.
Deep dives
Disney settles legal dispute over Florida theme parks
Disney ends a long-standing legal battle over its Florida theme parks, arising from Governor Ron DeSantis's attempt to revoke the company's longstanding governmental rights in the area surrounding Walt Disney World. The resolution includes dropping legal disputes and engaging in negotiations with an updated board for future development plans.
Impact of Bank of Japan raising interest rates on the Yen's volatility
The Bank of Japan's decision to lift interest rates from zero could heighten the Japanese Yen's potential volatility and alter its traditional stability. With higher rates, the Yen's movements against other currencies are now more contingent on market changes, impacting carry trades. This change may affect emerging markets relying on the Yen, potentially hindering their ability to repay debts to Japanese entities and reducing the Yen's appeal in adverse economic conditions.
The end of negative interest rates in Japan threatens to bring a new era of volatility for the yen, and Florida and Disney resolve a legal dispute. Plus, US small-cap stocks are suffering their worst run of performance relative to large companies in more than 20 years.
The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help by Ethan Plotkin, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.