Nippon Steel got a life-saving reprieve when the Biden White House backpedaled from its intention to formally announce that it was blocking NS' purchase of US Steel on national security grounds. Biden did so in response to an unexpected level of protest not only from business leaders and the security community (including the State and Defense Departments) but also electorally vital communities in Western Pennsylvania that welcome the merger as a job-saver. That moves the deadline for a decision from September 23 to a little while after the November election.

Almost no one was surprised when the Bank of Japan (BOJ) decided not to raise the overnight interest rate from 0.25% to 0.5% when it met last Friday, Sept. 20th. However, almost everyone was surprised when BOJ Governor Kazuo Ueda justified the decision by telling a news conference that the BOJ would adopt a wait-and-see stance before making any further moves. This was partly because there is so much uncertainty, particularly regarding US economic prospects, and partly because a strengthening yen makes additional moves less urgent. Market players now believe the BOJ won't move again until next January or even March.

For details, see https://richardkatz.substack.com/p/bojs-next-rate-hike-not-until-early

Richard Katz

The Contest For Japan's Economic Future