At a glance:
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Tokyo core CPI slipped below 2%, but core-core inflation firmed
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Yen traded in subdued ranges despite inflation dip
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PBOC cut FX risk reserve ratio to 0%, trimming RMB support; yuan eased
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Block shares surged ~25% after announcing AI-driven workforce cuts
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Netflix walked from Warner bid; shares rallied
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Pakistan–Afghanistan tensions escalated with airstrikes on Kabul
Inflation in Japan’s capital moderated in February, with core prices slipping below the Bank of Japan’s 2% target for the first time in 16 months, though underlying momentum remained firm. The core-core measure, which strips out fresh food and energy, continued to track above 2%, broadly consistent with the BOJ’s guidance that inflation would temporarily slow before reaccelerating on steady wage gains.
The yen traded in a subdued range session, mirroring broader calm across major FX pairs.
The Chinese yuan, however, was more active. The People’s Bank of China cut the FX risk reserve ratio to 0%, reversing a tool previously used to support the currency. Raising the ratio makes it more expensive to short the RMB via forwards, while today’s move removes some of that support at the margin. By lowering hedging costs, the decision may encourage greater forward activity and modestly trim appreciation pressure, prompting the yuan to ease. In another move the Bank set the refernce rate more than 800 points away from the modelled estimate, a record wide gap.
In corporate news, Block announced it will cut more than 4,000 roles, reducing headcount from over 10,000 to just under 6,000. Management framed the move as a deliberate shift toward smaller, AI-enabled teams. Investors welcomed the restructuring alongside earnings, sending shares roughly 25% higher after hours.
Meanwhile, Netflix said it would not raise its offer for Warner Bros. Discovery’s studio and streaming assets, effectively clearing the way for Paramount Skydance’s revised bid. Netflix shares rallied on the decision.
Geopolitical tensions intensified. Pakistani airstrikes reportedly hit Kabul hours after Afghanistan-linked attacks on Pakistan, with Islamabad’s defence minister declaring the two neighbours at “open war,” adding another fault line to an already fragile global backdrop.
In UK politcs the Greens won a by-election, the result is being described in media as a blow to PM Starmer. Indeed, the governong party candidate came in third place in what was once a traditional stronghold.
