Bank of Japan Tankan Survey Shows Mixed Results Amid Rate-Hike Speculation.

Bank of Japan Tankan Survey Shows Mixed Results Amid Rate-Hike Speculation. By Hardika Singh

The Bank of Japan Tankan survey of manufacturers showed mixed results amid speculation about the potential for interest-rate increases. Meanwhile, American manufacturing rebounded, Treasury yields rose and few banks will work with cannabis upstarts-but some lawmakers hope to change that this year. Read on for this news and more.

Top News Bank of Japan Tankan Survey Shows Mixed Results Amid Rate-Hike Speculation

Sentiment among large Japanese manufacturers worsened for the first time in four quarters in a Bank of Japan survey. But economists say that the survey still shows some bright signs for the Japanese economy, justifying the central bank's decision last month to end negative interest rates and other easing policies.

U.S. Economy American Manufacturing Rebounds, Treasury Yields Rise

After 16 straight months of contraction, the American manufacturing sector is bouncing back. The latest Institute for Supply Management report showed manufacturing activity expanded in March for the first time since September 2022. The data helped drive the 10-year Treasury yield to its biggest one-day climb in nearly seven weeks.

Financial Regulation Roundup The Big Problem for Marijuana Companies? What to Do With All That Cash

Clayton Taylor recently received an urgent call: A marijuana distributor needed him to pick up $400,000 and move it across California. Taylor runs a company that provides security services to legal cannabis companies.Though marijuana is now legal in some form in most U.S. states, many banks won't do business with cannabis companies because the drug remains illegal at the federal level. Major credit-card networks such as Visa and Mastercard say they don't process marijuana-related transactions for the same reason.

Forward Guidance Tuesday (all times ET)

4 a.m.: Eurozone manufacturing PMI

4:30 a.m.: S&P Global U.K. Manufacturing PMI

10 a.m.: U.S. manufacturing, shipments and orders

10 a.m.: Job openings and labor turnover survey

12 p.m.: New York Fed's Williams in moderated discussion at Economic Club of New York

12:05 p.m.: Cleveland Fed's Mester speaks to Cleveland Association for Business Economics and Team NEO Luncheon

1:30 p.m.: San Francisco Fed's Daly in Southern Nevada Fireside Chat

Wednesday

12 p.m.: Chicago Fed's Goolsbee at Preventing Elder Financial Exploitation event

Research Canada Firms to Curtail Capex In Another Blow to Improving Productivity

Canadian companies indicate they will curtail capital-expenditure plans for the next 12 months, an indication the country could continue to record dismal levels of productivity growth. One-third of firms surveyed by the Bank of Canada said in 1Q they planned lower spending on machinery-and-equipment over the next year, up from 19% in the previous quarter. BOC business-outlook survey said they are responding to higher borrowing costs and weak demand. Last week, the BOC's No. 2 official, Carolyn Rogers, said productivity had reached emergency status, and this needed to be reversed to protect the economy from future bouts of inflation. - Paul Vieira

Basis Points South Korea's headline inflation topped 3% for a second consecutive month in March, remaining sticky and well above the central bank's 2% target. - Kwanwoo Jun Much of the insurance loss stemming from the collapse of Baltimore's Francis Scott Key Bridge is expected to fall on the reinsurers that backstop insurers. It could also strengthen the industry's case as they push for higher rates. - Telis Demos Feedback Loop

This newsletter is compiled by Hardika Singh in New York.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

04-02-24 0716ET