Japan issues fresh warnings after yen hits 38-year low; Elon Musk’s SpaceX ‘valued at $210bn’ – business live | Business

Profits have almost halved at car and bike retailer Halfords.

Halfords blamed the continued decline in the tire and cycling equipment markets as consumer demand for big-ticket purchases wanes.

Pre-tax profits came in at £19.9m over the past year, down 45% from £36.2m in the previous 12 months.

Halfords reports that the bike market has shrunk faster than expected, leading to more promotional activity to restock.

Higher cost inflation continues to be a significant headwind, he adds.

It’s also been a busy morning for UK retailers, with several companies updating the stock market on their performance.

Electrical salesman Curry reported a 10% rise in adjusted profit before tax to £118m.

Curry is hoping for a further boost from artificial intelligence, telling shareholders that the coming wave of AI-led technology could be the most exciting technology cycle since Apple’s iPad in 2010.

Alex Baldock, Curris CEO, says:

Encouraged by our progress, we know we can go further. On the one hand, we expect AI-powered technology to be the most exciting new product cycle since the tablet in 2010. With our partnerships, scale and expert peers to demystify AI, we are best positioned to take advantage.

Elon Musk’s SpaceX is valued at about $210 billion based on the value of domestic shares sold at auction, Bloomberg reports today.

SpaceX will sell domestic shares at $112 apiece in a higher-than-expected tender offer that boosts the value of Elon Musk’s space and satellite technology company above its previous valuation of $180 billion.

SpaceX is considered one of the most profitable startups in the world, Bloomberg says, adding:

The company, which was founded in 2002 by Tesla Inc CEO Elon Musk, is one of the most prominent private manufacturers of spacecraft and satellites. It also offers satellite internet services through its subsidiary Starlink.

The company also holds multiple contracts from NASA to provide spacecraft and crew equipment for orbital missions and support for the International Space Station.

Earlier this month, SpaceX recorded the first fully successful test flight of its powerful Starship space rocket when it successfully landed in the Indian Ocean.

Japanese Finance Minister Shunichi Suzuki promised today that authorities will take the necessary action on currencies after the yen fell to a 38-year low against the dollar.

Japanese authorities are “deeply concerned” about the effect of the yen’s decline on the economy and are monitoring foreign currency movements with a sense of urgency, Suzuki told reporters.

He said:

“It is desirable that exchange rates move stably. Rapid, unilateral movements are undesirable. In particular, we are deeply concerned about the effect on the economy.

We monitor the moves with a high sense of urgency, analyze the factors behind the moves and will take the necessary action.

Good morning and welcome to our ongoing coverage of business, financial markets and the global economy.

Pressure is mounting on Japanese authorities to intervene in currency markets after the yen weakened to a 38-year low against the US dollar.

The yen, which has been struggling for several months, weakened to 160.8 to the dollar for the first time since 1986.

That took the yen below its lowest level in April, when Tokyo was forced to intervene in currency markets, spending 9.8 trillion yen (£48 billion) to prop up its currency.

The yen’s weakness is due to the difference in interest rates between Japan and the rest of the world. While most central banks have raised interest rates aggressively over the past few years, the Bank of Japan (BoJ) ended its negative interest rate policy only this spring and fixed borrowing costs in the 0%-0.1% range.

Yesterday, Japan’s top foreign exchange official, Masato Kandatold reporters the government was “seriously concerned and on high alert” about the yen’s decline and would respond to any “excessive” moves.

This week’s weakness has sparked speculation that another intervention may be needed.

Ipek Ozkardeskayasenior analyst in swissquote bank, says:

The only thing keeping the yen from falling further is the risk of direct intervention. But beyond that, the yen deserves to lose more blood. A one-year risk reversal that shows how traders feel about the yen over the longer term suggests that they are still a kind of excited about the yen against the dollar.

But that excitement is fading fast as the Bank of Japan (BoJ) continues to delay its plans to intervene while the Federal Reserve delays plans to cut interest rates

Another option would be for BoJ to raise interest rates, of course, and try to strengthen the yen organically that way.

That may not be too controversial, as the weak yen is hitting Japanese households hard, he explains Kathleen Brooksscientific director in XTB, add:

They have to deal with rising inflation as import prices rise, which also weighs on consumption. Wage growth is also below inflation, putting additional pressure on Japanese authorities to act.

Some argue that the Bank of Japan should adjust monetary policy and narrow the interest rate differential with the US and the rest of the world, as this is the most effective way to boost the yen. However, this will also require a shift in the BOJ’s priorities, moving from keeping yields low and stable to normalizing monetary policy like that in the US and across Europe.

The agenda

• 8.30am BST: Sweden’s Riksbank interest rate decision 8.30am

• 10.30am BST: Bank of England Financial Stability Report

• 10am BST: Eurozone consumer and economic confidence statistics for June

• 13.30 BST: US Q1 GDP (Final Estimate)