AGP Executive Report
Last update: 9 hours agoCentral Banking Watch: Sri Lanka’s central bank kept its Overnight Policy Rate at 8.75% as inflation rose to 6.8% y/y in June, citing Middle East-driven commodity risks and a need to cool credit growth. FX & Trade Shock: The Japanese yen slid to about 163 per dollar for the first time in decades, while Japan logged a 1.01tn yen trade deficit in H1 as oil import costs climbed and the Strait of Hormuz disruption fed inflation pressure. Energy & Markets: Brent pushed back above US$92 amid renewed US-Iran strikes and Red Sea/ Hormuz shipping anxiety, lifting crude-linked costs across Asia. AI & Regulation Pressure: China’s Moonshot AI and Alibaba rolled out new open-weight models (Kimi K3 and Qwen 3.8 tMax), reigniting US policy pressure over AI model theft and regulation. India Flows & Consumer Strain: Foreign portfolio investors returned to India in early July, buying sectors like consumer services, metals and healthcare, even as brokerages warn consumer margins may stay squeezed by Iran-war input costs. Regional Diplomacy: India’s Jaishankar urged deeper India-ASEAN cooperation in Manila, stressing energy, food and health security and the need to protect maritime trade under international law. Banking & Capital Markets: Hong Kong is set to consider hedge-fund tax breaks to attract investment and talent, while HSBC Sri Lanka won Euromoney awards for international banking and securities services.
Note: AI summary from news headlines; neutral sources weighted more to help reduce bias in the result. Feedback is welcome. Please let us know if you have any comments or suggestions about the AGP Executive Report.
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