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Investors nearing the end of a volatile week on Wall Street witnessed a fall in benchmark equity averages on Friday. 

At the time of writing, the Dow Jones Industrial Average fell 0.6%, losing 272 points, while the S&P 500 also fell 0.4%. The Nasdaq Composite dropped slightly by 0.2%.

“This has been an unusual week for markets,” said David Morrison, senior market analyst at Trade Nation. 

Equities and bonds were closed on Monday for Presidents’ Day. Then the next two sessions were extremely slow, although this didn’t stop the S&P 500 inching, almost unnoticed, to two successive record closes.

The Dow was negatively impacted by UnitedHealth’s stock price, which fell over 10% following a Wall Street Journal report about a Justice Department investigation into the insurer. 

This decline put the stock on track for its worst performance since March 2020.

Thursday’s session was a losing one for traders, with the Dow shedding 450 points. 

“All four major US stock indices sold off sharply, although they managed to recover from their lows before the close. Nevertheless, all suffered losses, this time led by the Dow, which closed 1% lower, closely followed by the Russell 2000 which lost 0.9%,” Morrison added. 

Investors attributed the market sell-off to a number of factors, including lingering inflationary concerns, Walmart’s 6.5% dip, and declines in Palantir shares.

Celsius Holdings surges

Celsius Holdings, an energy drink manufacturer, saw its stock price surge by over 31% following the release of its fourth-quarter earnings report. 

The company exceeded analysts’ expectations in terms of both earnings per share (EPS) and revenue. 

Celsius reported an adjusted EPS of 14 cents, surpassing the consensus estimate of 11 cents per share.

Additionally, the company generated $332 million in revenue, exceeding the projected $326 million by LSEG.

The significant jump in stock price can also be attributed to Celsius’s announcement of a strategic acquisition. 

The company entered into an agreement to acquire Alani Nutrition, another player in the health and wellness beverage market. 

The deal involves a combination of cash and stock, and it is expected to further strengthen Celsius’s position in the industry.

UNH’s stock slumps

UNH stock fell by approximately 9% on Friday following a Wall Street Journal report that the Justice Department is investigating the insurer’s Medicare billing practices. 

Sources familiar with the matter revealed that the investigation is focused on UnitedHealth’s practice of recording diagnoses that can result in additional payments on Medicare Advantage plans, according to the report.

Meanwhile, Block, a prominent fintech company, experienced a 6% decline in its stock value following the release of its fourth-quarter financial results. 

The company reported adjusted earnings of 71 cents per share, accompanied by total revenue of $6.03 billion. 

This earnings report seemingly fell short of investor expectations, leading to the subsequent drop in stock price.

Dropbox falls over 11%

Dropbox experienced a decline in shares exceeding 11% due to their mixed quarterly results. 

While the company’s non-GAAP gross margin of 83.1% in the fourth quarter aligned with analysts’ expectations according to StreetAccount, their adjusted earnings and revenue for the same period surpassed consensus forecasts. 

This suggested that despite the drop in share value, Dropbox’s overall financial performance was positive, with stronger than anticipated earnings and revenue. 

The mixed results likely stem from specific areas of underperformance that impacted investor confidence, leading to a decrease in share price.

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Amid growing scrutiny and a shifting political landscape, Coca-Cola is making a bold statement about the importance of diversity, equity, and inclusion (DEI).

The beverage giant has explicitly warned that any changes to its policies designed to diversify its workforce could have adverse effects on its business.

Diversity as a business imperative: Coca-Cola’s firm stance

In a recent annual filing, the company asserted that its business could be negatively impacted if it were “unable to attract or retain specialized talent or top talent with diverse perspectives, experiences, and backgrounds.”

“Our diverse, high-performing global employee base helps drive a culture of inclusion, innovation, and growth,” Coca-Cola stated.

We aspire to develop a global workforce with diverse perspectives, experiences, and backgrounds that reflect the broad range of consumers and markets we serve around the world.

The company further emphasized its commitment to “providing access to equal opportunities and fostering belonging both in our workplaces and the local communities we proudly serve,” underscoring that these efforts are “critical” to its growth and success.

Coca-Cola cautioned that a failure to maintain a corporate culture that “fosters innovation, collaboration, and inclusion” could disrupt its operations and “adversely affect our business and our future success.”

This strong declaration signals the company’s deep conviction in the value of DEI.

DEI under scrutiny

Coca-Cola’s statement comes as a growing number of major companies announce rollbacks of DEI initiatives following recent executive orders, which ended federal diversity programs and placed federal DEI staffers on leave.

Notably, Coca-Cola’s industry rival PepsiCo has already rolled back some of its DEI policies this month.

These changes included removing a breakdown of workforce demographics from a recent filing and deleting a statement about how a “culture of diversity, equity, and inclusion is a competitive advantage” that retains talent and strengthens its reputation. Coca-Cola and PepsiCo are both government contractors and therefore directly impacted by changes to federal policy.

Balancing compliance and commitment

While the executive orders primarily targeted DEI efforts in the public sector, they also call for encouraging the private sector to end “illegal DEI discrimination and preferences.”

When asked last week whether the company would be altering its DEI policies to comply with the executive order, Coca-Cola’s chief financial officer, John Murphy, told BI that it was “focused on having the best talent around the world,” according to Bloomberg.

However, Murphy added that Coca-Cola would “follow any change in regulations at the national level,” suggesting a willingness to adapt to evolving legal requirements while maintaining its core commitment to diversity.

The situation presents a delicate balancing act for the company as it seeks to reconcile its business goals with evolving political pressures.

The post Why Coca-Cola says DEI is essential for business success appeared first on Invezz

B3 reported a recurring net profit of R$1.2 billion ($208 million) for the fourth quarter of 2024, reflecting a 13.6% increase compared to the same quarter in 2023 but a 2% decline from the previous quarter.

Total revenue came in at R$2.67 billion, marking a 7.0% year-over-year rise but a 1.6% drop from the previous quarter.

Recurring EBITDA reached R$1.60 billion, up 9.5% from the prior year but down 6.4% sequentially.

B3 earnings deep-dive

B3 said in the statement:

In another quarter marked by a volatile macroeconomic scenario, B3’s diversified business model proved to be effective.”

In the listed derivatives segment, the average daily volume (ADV) totaled 6.1 million contracts, remaining in line with the same period last year.

A key highlight was the continued growth in Bitcoin Futures, which closed the quarter with an ADV of 206,000 contracts, contributing R$42.8 million in revenue.

In the OTC segment, the issuance of fixed-income instruments rose 13.8% year-over-year, while the outstanding balance increased 23.9%.

This growth was primarily driven by a 16.2% rise in corporate debt issuance, reflecting the expansion of the local debt market.

In Treasury Direct, investor participation continued to rise, with the number of investors increasing 15.5% YoY, while the outstanding balance grew 13.0% compared to the previous year.

The cash equities market saw a strong performance, with the average daily traded volume (ADTV) reaching R$25.6 billion, marking a 5.5% year-over-year increase.

Within this segment, ETFs grew by 39.1%, BDRs surged by 91.5%, and Listed Funds increased by 43.1%, highlighting the success of B3’s efforts to strengthen its core business through the continuous launch of new products.

In the Infrastructure for Financing Unit, revenue would have grown by 11.7% if excluding the Desenrola program.

This increase was primarily driven by a 14.9% rise in the number of financed vehicles, reflecting strong demand in the segment.

Meanwhile, revenue from the Technology, Data, and Services segment saw a 9.7% increase.

This growth was supported by a 7.0% rise in users of the OTC platform and a 4.7% increase in revenues from Data and Analytics.

B3 performance on key metrics

In the quarter, B3 invested R$111.0 million, primarily in technological upgrades across all business segments.

These investments focused on capacity expansion, security enhancements, and the development of new functionalities and products to strengthen the company’s infrastructure and service offerings.

At the end of 4Q24, B3’s gross debt stood at R$13.4 billion, with 84% classified as long-term and 16% as short-term. This debt level corresponds to 2.0 times the company’s recurring EBITDA over the last 12 months.

Total expenses for the quarter amounted to R$908.2 million, reflecting a 15.3% decline.

This decrease was mainly attributed to the completion of the amortization of intangible assets recognized during the Cetip merger.

Excluding this effect, expenses would have increased by 0.8%, remaining in line with 4Q23.

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“Magnificent Seven” were the standout performers last year but a Piper Sandler analyst is not entirely convinced they’re positioned for a repeat telecast in 2025.

Other than Meta Platforms Inc, none of them has significantly outperformed the benchmark S&P 500 index year-to-date. In fact, four of those mega-cap tech stocks are actually in the red.

Therefore, the firm’s senior analyst Michael Kantrowitz recommends bailing on the “Magnificent Seven” in 2025.

He has a list of other large-cap tech stocks instead that he expects will outperform this year.

Two names that top his list are Qualcomm and Fortinet.  

Qualcomm Inc (NASDAQ: QCOM)

Qualcomm stock is already outperforming the benchmark index with a 15% year-to-date gain.

But it’s not too late to invest in QCOM yet, according to the Piper Sandler analyst. Kantrowitz expects the semiconductor giant to extend its gains through the end of 2025.  

Part of his optimism about Qualcomm shares is based on the company’s recent earnings release.

The multinational topped Street estimates on the top and bottom lines in its recently concluded quarter on strong smartphone demand.

The company also provided stronger-than-expected guidance for its first quarter, projecting revenue of $10.6 billion and earnings of $2.80 per share.

This exceeded analyst estimates of $10.34 billion in revenue and $2.69 per share in earnings.

Piper Sandler sees Qualcomm stock as a great AI play as well. Note that Statista forecasts the artificial intelligence market to grow at a compound annualised rate of more than 27% through the end of this decade.  

Finally, QCOM shares currently pay a dividend yield of 1.94% which makes them all the more attractive to own at writing.

Fortinet Inc (NASDAQ: FTNT)

Another top name that Piper Sandler thinks is a better pick than “Magnificent Seven” for 2025 is the California-based cybersecurity company Fortinet.

Its shares have already rallied more than 20% this year – far more than the S&P 500 index, and are poised to unlock further upside in the coming months, according to Kantrowitz.

The analyst is bullish on FTNT as it’s a leader in Unified Secure Access Service Edge (SASE) and Security Operations markets.

Its strategy of investing in high-growth areas and strengthening its position in secure networking is well-received by customers and investors alike.

Last week, the Nasdaq-listed firm reported better-than-expected results for its fiscal Q4.

Fortinet provided revenue guidance in the range of $6.65 billion to $6.85 billion, surpassing analyst expectations of $6.62 billion.

Piper Sandler currently has a $135 price target on FTNT shares that indicates potential for another 20% upside from current levels.

On the downside, however, Fortinet stock does not currently pay a dividend. So, it’s not a suitable pick for income investors.  

The post Top 2 ‘Magnificent Seven’ alternatives to own in 2025 appeared first on Invezz

Microsoft announced a significant milestone in quantum computing with the unveiling of its Majorana 1 chip, a development that sent shares of quantum computing companies higher on Thursday.

The breakthrough marks a key step in Microsoft’s 17-year research effort and aims to accelerate the path toward building large-scale quantum computers.

According to Microsoft, the Majorana 1 chip will “realize quantum computers capable of solving meaningful, industrial-scale problems in years, not decades.”

D-wave (QBTS), Rigetti (RGTI), Quantum Computing (QUBT) rally

The announcement lifted shares of several quantum computing companies, with D-Wave Quantum rising 9.79%, Rigetti Computing up 3.91%, and Quantum Computing gaining 4.77%.

IonQ saw an initial increase in premarket trading but was trading in the red by 1.04% at 2:29 pm.

The broader market, however, declined, with the S&P 500 slipping 0.8% and the Nasdaq Composite falling 0.9%.

Unlike conventional computers that rely on binary bits, Majorana 1 is a quantum processing unit (QPU) designed to leverage quantum mechanics for vastly more complex calculations.

Microsoft described its approach as “radically different,” using topological qubits that are “small, fast, and digitally controlled.”

A step toward industrial-scale quantum computing

Microsoft framed the Majorana 1 announcement as a turning point, shifting from scientific discovery to technological application.

The company published its latest findings in the journal Nature, emphasizing that its architecture could enable a million qubits to fit on a single chip.

The race for quantum dominance remains highly competitive.

IBM, a key player in the sector, has set a target to build a “quantum-centric supercomputer” with 100,000 qubits by 2033.

However, Microsoft believes its approach offers a clearer path to scaling quantum systems beyond that milestone.

Quantum computing proponents argue that the technology could revolutionize industries, from pharmaceuticals to cybersecurity, enabling optimization of complex systems in minutes rather than hours.

The ability to train more advanced artificial intelligence models is another key potential advantage.

Investor optimism meets skepticism

Despite the enthusiasm, experts remain cautious about quantum computing’s near-term prospects.

Nvidia CEO Jensen Huang recently warned that meaningful applications of quantum computing could still be decades away.

His concerns were echoed by Meta Platforms CEO Mark Zuckerberg, who described the technology as being “quite a ways off” from large-scale practical use.

Nevertheless, some quantum firms have made commercial progress.

D-Wave Quantum, for example, began selling quantum computers in 2011, with Lockheed Martin as an early customer.

The company recently secured a deal with Germany’s Jülich Supercomputing Centre, marking a significant milestone in quantum adoption.

Investors continue to grapple with the uncertainty surrounding quantum stocks.

While Microsoft’s achievement bolstered market confidence, experts such as Mahoney Asset Management CEO Ken Mahoney advised caution.

“Some companies may outright fail,” he noted, emphasizing the speculative nature of the sector.

Wall Street analysts suggest that while quantum computing has long-term potential, its commercial viability remains uncertain.

As Microsoft and other firms advance their research, investors will closely watch for signs of real-world applications and profitability in the sector.

The post Microsoft unveils Majorana 1 chip, boosting quantum stocks: here’s what you need to know appeared first on Invezz

The Central Intelligence Agency (CIA) is undergoing its most significant restructuring in nearly five decades, with a focus on dismantling diversity initiatives and reassessing personnel involved in recruitment efforts.

The move, first reported by The New York Times, follows a broader shift in federal policy, raising concerns about the future of intelligence operations and workforce representation.

The decision has already triggered legal challenges, with a federal court temporarily halting dismissals until a hearing takes place in the Eastern District of Virginia.

While the CIA has seen policy changes with new administrations, mass firings of career officers are uncommon.

The last comparable overhaul occurred in 1977 when CIA Director Stansfield Turner dismissed nearly 200 covert operations officers under President Jimmy Carter.

The latest restructuring suggests a deliberate rollback of diversity-driven hiring and recruitment strategies that gained traction under previous leadership.

CIA shake-up targets recruitment and diversity personnel

The CIA has reportedly begun notifying officers who had been reassigned to recruitment and diversity-related roles during the Biden administration that they must resign or face termination.

The move follows a directive issued by the Trump administration restricting diversity programs across federal agencies.

According to court filings, CIA Director John Ratcliffe has initiated the dismissal of personnel aligned with recruitment strategies that emphasized workforce diversity.

Attorneys representing intelligence officers argue that these dismissals extend beyond policy compliance and may violate employment protections.

Legal representatives claim that at least 51 officers are currently under review, none of whom were originally hired as diversity specialists.

Instead, many were intelligence officers reassigned to recruitment roles due to their expertise in persuasion and intelligence gathering.

The controversy has sparked debates over the CIA’s commitment to maintaining a diverse workforce capable of operating effectively in global intelligence environments.

Federal court intervenes, halting immediate dismissals

The restructuring has not gone unchallenged. A federal court has temporarily paused the dismissals after intelligence officers filed a lawsuit contesting the move.

A hearing scheduled for Monday in the Eastern District of Virginia will determine whether a temporary restraining order remains in effect.

Government attorneys have argued that blocking the dismissals could interfere with the CIA director’s authority over personnel decisions.

They also stated that maintaining the current workforce structure could hinder operational priorities.

The Supreme Court has historically deferred to executive discretion in matters of national security, making the outcome of the legal battle uncertain.

Shift marks departure from prior CIA leadership priorities

Efforts to diversify the intelligence community were a major priority under former CIA Director William J. Burns and former Director of National Intelligence Avril Haines.

These initiatives received congressional support, with bipartisan endorsements recognizing the role of diversity in intelligence operations.

Critics of the dismissals argue that reducing diversity-focused recruitment could undermine the agency’s ability to operate in global intelligence environments that require officers with diverse backgrounds and language skills.

Others believe the shake-up reflects a broader effort to realign the CIA with new national security priorities, shifting focus away from previous workforce policies.

As the legal battle unfolds, the agency faces questions over whether the restructuring will impact intelligence capabilities and recruitment strategies.

With the largest personnel shift since 1977, the CIA’s approach to workforce management could reshape its operations for years to come.

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A seemingly ordinary lunch between President Donald Trump and a then Japanese politician Shigeru Ishiba this month peeled back the curtain on a bold vision: to reshape Asia’s energy landscape with American natural gas, a vision that has been long overdue.

The conversation quickly gravitated toward how Tokyo could breathe life into a decades-old proposal to unlock Alaska’s gas reserves and ship it to US allies across the Pacific.

Fueling alliances: LNG as a cornerstone of Trump’s Asia strategy

According to two officials privy to the closed-door discussions, Trump and his energy advisor Doug Burgum, framed the venture as an opportunity for Japan to diversify its energy sources away from the Middle East and rectify its trade imbalance with the United States.

Eager to make a positive first impression and sidestep potentially damaging US tariffs, Ishiba struck a note of optimism regarding the $44 billion Alaska LNG project, despite lingering doubts within Tokyo about its economic feasibility.

The officials, who requested anonymity due to the sensitivity of the talks, confirmed that Ishiba expressed hope for Japanese participation in the ambitious project.

While Trump repeatedly touted the project in his public remarks following the lunch, Ishiba remained silent on the matter, and it was conspicuously absent from the official readout of the discussions.

Behind the scenes: a push for US energy dominance

Reuters’ interviews, involving conversations with over a dozen current and former US and Asian officials, unveils the Trump administration’s concerted effort to redefine economic relations with East Asia by forging stronger ties through increased investment in American fossil fuels, with a particular emphasis on LNG.

Reuters revealed that the US sales pitch strategically taps into Asian capitals’ concerns about tariffs and the security of sea lanes vital for their energy imports.

This behind-the-scenes maneuvering and the intricacies of the US approach have not been previously reported.

While the Alaska LNG proposal grapples with cost and logistical hurdles, Japan, South Korea, Taiwan, and other nations are increasingly receptive to the idea of expanding US gas imports.

This shift could not only bolster the US economy but also temper the growing influence of China and Russia in the region.

Japan’s pivotal role: a hub for US LNG distribution

Japan’s participation is vital for Trump’s strategy.

As the world’s second-largest LNG importer, a major investor in energy infrastructure, and a trading hub with a surplus of LNG, Japan could unlock new markets for US gas in Southeast Asia.

“If the Trump administration were to have its way, US LNG would flow in massive quantities to Japan and South Korea and then would flow downstream…so that Southeast Asia would become economically dependent on the United States,” Kenneth Weinstein, Japan chair at Hudson Institute, a conservative think tank, told Reuters.

It’s redrawing the map of energy dependence.

In a joint statement with US Secretary of State Marco Rubio recently, Japanese and South Korean foreign ministers pledged to bolster energy security by “unleashing” America’s “affordable and reliable energy,” particularly LNG, yet they made no mention of Alaska.

White House National Security Spokesman Brian Hughes told Reuters the US “produces some of the cleanest LNG in the world and we believe the Japanese can play an even bigger role in purchasing America’s abundant oil and gas”.

Japan’s foreign ministry declined to comment on the accounts of the Ishiba-Trump meeting.

However, Japanese media reported that Japan’s trade minister intends to visit Washington to seek exemptions from Trump’s tariffs and explore avenues for Japan to purchase more US LNG.

Overcoming obstacles: the Alaska LNG challenge

The concept of constructing an 800-mile pipeline to connect gas fields on Alaska’s North Slope to an export terminal on its Pacific coast has been plagued by high costs and challenging terrain.

Expecting that Trump would bring up a project he has personally championed, Japan was preparing to voice tentative support at the meeting with Ishiba to secure his favor and prevent trade disputes.

The US delegation urged Japan to consider infrastructure investments in Alaska LNG and long-term purchase agreements.

They highlighted the project’s geographical proximity to Japan compared to the Middle East and the fact that shipments would bypass vulnerable chokepoints such as the Straits of Hormuz and Malacca, and the South China Sea.

US Senator Dan Sullivan of Alaska, who was briefed on the discussions, emphasized that increased purchases of US LNG could help Asian allies reduce their dependence on Russian gas.

Sullivan told Reuters that Alaska LNG “was a big part of the discussion” with Ishiba. Sullivan and another official stated that at one point during the meeting, US officials used maps to illustrate the strategic advantages of the Alaska project.

“Having a president who’s forceful and tenacious, spending this much time on this project, I’m sure made an impression on the Japanese,” Sullivan said.

Project developers are actively seeking investment from companies such as Inpex, a Tokyo-listed oil and gas exploration company whose largest shareholder is the Japanese government, sources confirmed.

Inpex declined to comment on “discussions or dealings with specific stakeholders”.

Japan currently sources approximately one-tenth of its LNG from the US, with similar proportions coming from Russia and the Middle East, according to Japan’s finance ministry. Australia accounts for roughly 40%.

Hiroshi Hashimoto, senior analyst at the Institute of Energy Economics, Japan, projects that LNG imports from the US could account for 20% of Japan’s total over the next five to ten years as existing contracts, including those with Russia, expire.

US LNG is primarily shipped to Japan from the Gulf of Mexico via the Panama Canal or past Africa and through the Indian Ocean.

There are currently no LNG export terminals on the US West Coast, which would offer a more direct route to Asia.

However, Sempra’s Costa Azul project in Mexico, supplied by US gas, is expected to commence commercial operations next year.

According to LSEG data, the US shipped 119.8 billion cubic meters of LNG last year, with over a third destined for Asia.

Securing Asian allies through energy ties

Beyond Japan, Trump’s argument for energy security appears to be gaining traction in other parts of Asia, particularly in light of looming trade tariffs.

Indian Prime Minister Narendra Modi made a similar pledge regarding gas in a meeting with Trump.

Taiwan is also considering increasing its purchases of US energy, including LNG from Alaska.

Landon Derentz, who served as a senior US energy official during Trump’s first term, believes that increasing Taiwan’s reliance on US energy could deter China from taking aggressive measures such as naval blockades.

He stated that with US supplies, “in some ways you’re contracting for a security guarantee that the United States is going to be an advocate in the event of a conflict in making sure that supply arrives”.

South Korean officials also confirmed that South Korea is considering investing in Alaskan LNG and other US energy projects.

One official noted that Seoul hopes to gain concessions from Trump in return.

A spokesperson for South Korea’s industry ministry stated that Seoul is exploring avenues to strengthen energy security with the US.

Bill Hagerty, a US senator for Tennessee who served as ambassador to Tokyo in the first Trump administration, expressed his desire for Japan to become the primary distribution hub for US-origin LNG.

He commented that “Whether it’s from Alaska, Louisiana or Texas, America can work very closely with Japan to create the type of energy security bonds that will be great for our nations’ economies and for our national security”.

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Bitcoin has consolidated in recent weeks but the long-term upward trajectory of the world’s largest cryptocurrency by market cap remains intact, according to Adam Back – the chief executive of Blockstream.

Back attributes the recent pullback in BTC to profit-taking and is convinced that it’ll resume its rally in the coming weeks as Bitcoin is only “in the early stages of a bull market” at writing.

As Bitcoin continues to hit new milestones this year, it’s reasonable to believe that its peers, even from the meme coins space, including the recently launched Bitcoin Pepe, will benefit as well.

That’s because Bitcoin tends to set the overall direction for the crypto market at large.

BTC tailwinds that could benefit Bitcoin Pepe

Adam Back is bullish on Bitcoin as it’s seeing significant inflows from retail as well as institutional investors in 2025.

MicroStrategy and other BTC treasury companies continue to load up on the crypto king which further paints a rosy picture of what the future holds for Bitcoin.    

On top of it, there have been talks of setting up strategic Bitcoin reserves globally.

“As soon as one of the bigger countries jump in, the others will feel forced to follow suit,” which would unlock unprecedented demand for BTC, as per the Blockstream executive.

That’s why the likes of Michael Saylor now see Bitcoin hitting $0.5 million in the near term and as much as $5.0 million in the long run.

Understandably, even if a fraction of that forecast plays out, it will likely prove to be a major tailwind for the crypto market, including Bitcoin Pepe.

You can learn more about this new meme coin on this link.

Presale signals bright future for Bitcoin Pepe

Bitcoin Pepe is marketing itself as the world’s first Bitcoin meme ICO and a project that’s building “Solana on Bitcoin”. That makes it a close relative of the crypto pioneer.

According to Adam Back, the BTC funds will eventually start to pull money out of the Gold ETFs – adding to the positive sentiment that may particularly benefit Bitcoin Pepe.

Investors should note that Bitcoin Pepe has already raised more than $2.8 million in the presale, indicating strong demand, which typically signals the future potential of a crypto asset.

If the meme coin is generating such buzz in the presale, imagine the kind of demand it may attract once it lists on a crypto exchange after the presale.

The subsequent greater access to Bitcoin Pepe will likely translate to a higher price in the medium to long term.

Interested in finding out more about Bitcoin Pepe before finalizing your decision to invest in it? Click here to visit its website now.

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The USD/JPY exchange rate remained under pressure on Friday after Japan released the latest consumer inflation data. It rose slightly to 150.55 on Friday morning, a few points above this month’s low of 149.3. So, what next for the Japanese yen?

Japan inflation and PMI data

The USD/JPY exchange rate rose slightly after the latest Japanese inflation numbers raised the odds of higher Bank of Japan (BoJ) hikes.

According to the statistics agency, the headline consumer price index (CPI) rose from 3.6% in December to 4.0% in January, the highest point in years.

Core inflation, which excludes the volatile food and energy prices, rose from 3.0% in December to 3.2% in January, beating the median estimate of 3.1%.

These numbers mean that Japan’s inflation is rising at a faster pace than expected, which may put the BoJ to embrace more hawkish view.

More data showed that Japan’s economy was improving as the flash services PMI rose from 53 to 53.1 and the manufacturing figure rose from 48.7 to 48.9. While the manufacturing PMI figure was lower than estimates, it is a sign that it is making improvements.

BoJ interest rate hikes

The latest Japan inflation and PMI data is a sign that the BoJ may maintain its higher interest rate policy for longer. 

The bank has been highly hawkish this year as it boosted interest rates by 0.25% in the last meeting. It did that because inflation was much higher than expectations and that the economy was doing relatively well.

The hawkish BoJ explains why the USD/JPY exchange rate has pulled back in the past few weeks. It has dropped from 158 earlier this year to sub-150 onn Thursday.

A currency gains when interest rates rise because they incentivize investors to move to local government bonds. In Japan’s case, the 10-year Japan Government Bond yield has moved from the negative zone to 1.4%. 

A key concern for the Japanese economy is the potential tariffs by Donald Trump. He has already signaled that steel and aluminum tariffs will start in March and that more were coming.

Hawkish Federal Reserve

The USD/JPY exchange rate’s sell-off has been offset by the hawkish Federal Reserve and the strong US inflation data.

Minutes released this week showed that most officials supported the decision to pause interest rate cuts. These officials worried that Donald Trump’s tariffs would affect the US economy substantially by stimulating inflation. 

The minutes were notable because the meeting happened before the US published the latest inflation data. According to the Bureau of Labor Statistics (BLS), the headline consumer price index (CPI) rose from 2.9% in December to 3.0% in January, while the core CPI rose from 3.2% to 3.3%.

Therefore, the USD/JPY crash has been moderated because some analysts expect the Fed to either maintain rates steady. Other analysts see the bank hiking interest rates by 0.25% later this year.

USD/JPY forecast

USDJPY chart by TradingView

The daily chart shows that the USD/JPY pair has been in a steady downward trend after peaking at 158 earlier this year. This decline was in line with our previous USDJPY forecast.It briefly moved below the key support at 150 on Thursday and then crawled back after the Japan inflation and manufacturing data. 

The pair has slipped below the 50-day and 200-dat Exponential Moving Averages (EMA), a sign that bears are in control. Further data shows that the Relative Strength Index (RSI) and the MACD indicators have pointed downwards.

Therefore, the pair will likely continue falling as sellers target the key support at 145. A crash below 145 will point to further USD to JPY drop to the important support level at 139.50. The bearish view will become invalid if the USD/JPY pair moves above the 200-day EMA level at 152.

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Japan’s inflation surged in January, with consumer prices rising 4% year over year—the highest level since early 2023.

This has intensified pressure on the Bank of Japan (BOJ) to tighten its ultra-loose monetary policy.

With inflation consistently exceeding the central bank’s 2% target for nearly three years, analysts are increasingly convinced that rate hikes may be imminent.

Core inflation, which excludes volatile fresh food prices, climbed to 3.2% from 3% in December, surpassing economists’ forecasts of 3.1%, according to a Reuters poll.

The so-called “core-core” inflation measure—stripping out fresh food and energy and closely tracked by the BOJ—also increased to 2.5% from 2.4% a month earlier.

Meanwhile, headline inflation remained elevated at 3.6% in December, marking its 34th consecutive month above the central bank’s target.

The inflation data fueled a slight strengthening of the yen, which gained 0.15% against the dollar to trade at 149.39.

Market sentiment suggests growing expectations of policy tightening, especially as BOJ officials have repeatedly signaled concerns over prolonged monetary easing.

The central bank’s summary of opinions from its January meeting underscored inflation risks and warned against the yen’s depreciation, noting,

“It will be necessary for the Bank to adjust the degree of monetary accommodation to avoid overheating financial activities and excessive reliance on loose policy.”

Adding to the rate hike debate, Japan’s latest GDP figures painted a mixed picture.

While fourth-quarter economic growth exceeded expectations—expanding 0.7% quarter on quarter and 2.8% on an annualized basis—full-year GDP growth for 2024 slowed to just 0.1%, a sharp drop from 1.5% in 2023.

Despite this slowdown, analysts argue that sustained inflation and a weak yen could push the BOJ toward its first rate hike in decades.

The Commonwealth Bank of Australia noted ahead of the inflation report that recent strong economic data has strengthened the case for an earlier rate hike.

Similarly, Bank of America analysts believe the BOJ is “likely growing more concerned” about inflation risks, which could accelerate policy shifts.

They predict the central bank will raise rates in June and December, ultimately lifting its terminal rate to 1.5% through additional hikes in 2026 and early 2027.

With inflationary pressures persisting and economic indicators reinforcing the case for policy tightening, markets are watching closely for the BOJ’s next move.

If inflation continues its upward trajectory, Japan’s historic era of negative interest rates could soon come to an end.

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