Finance
Japan keeps mum on forex intervention as yen jumps
Japan on Friday left markets guessing on whether it had intervened to shore up the yen against the U.S. dollar, as senior officials neither confirmed nor denied another foray to reduce excessive volatility.
The officials remained silent after the dollar tumbled more than 4 yen from 161 yen over a short span of time in New York overnight, soon after data showed inflation in the United States had continued to slow, strengthening the market view that the Federal Reserve will cut interest rates in September.
Finance Minister Shunichi Suzuki, in a similar vein, did not confirm a media report that the Bank of Japan had conducted a “rate check” on the euro-yen pair, a practice seen by markets as a harbinger of actual intervention. In a rate check, the Japanese central bank contacts market participants to inquire about foreign exchange rates.
Japanese Finance Minister Shunichi Suzuki holds a press conference at the ministry in Tokyo on July 12, 2024. He declined to comment on whether Japan had intervened in the currency market overnight to shore up the yen against the U.S. dollar. (Kyodo) ==Kyodo
“I do not comment on whether we have intervened or not,” Suzuki told a press conference, a remark echoed by Japan’s top currency diplomat Masato Kanda and government spokesman Yoshimasa Hayashi.
Suzuki said foreign exchange levels should be determined by market forces but rapid fluctuations are undesirable. “In particular, we are concerned about one-sided movements,” he added.
The yen’s precipitous fall has raised concern about the negative impact on the Japanese economy, particularly the inflation of import costs for everything from energy to raw materials at a time when households are struggling with a cost-of-living crisis.
The Japanese currency has fallen to an over 37-year low against the dollar near 162, while also hitting its lowest level against the euro since the 1999 launch of the single European currency.
Market analysts say the yen’s rapid appreciation came as market players flocked to the currency as the interest rate differential narrowed following the release of the U.S. inflation data.
Others say Japanese authorities apparently joined the flow and pushed the yen higher, sparking intense yen-buying in a chain reaction as markets players were caught off guard.
“The government will closely monitor currency market developments and take all necessary steps,” Chief Cabinet Secretary
Hayashi told a separate press conference.
Japanese authorities had kept markets vigilant with a series of verbal warnings in recent weeks that they could act to rectify volatile currency movements that do not reflect fundamentals. But they largely let the yen weaken slowly toward 162 to the dollar.
The major factor behind the feeble yen is the wide interest rate differential between Japan on one hand and the United States and Europe on the other.
Kanda said only a handful of officials would have direct knowledge of a market intervention if the government stepped in.
“That being the case, it’s inconceivable that government officials would have commented on it,” Kanda, vice finance minister for international affairs, said about some media reports citing government sources as confirming a foray on Thursday.
The Finance Ministry is scheduled to release market intervention data at the end of July.
When Japan spent 9.79 trillion yen ($61 billion) between April and May to slow the yen’s rapid decline, the foray came after the yen fell to 160.24 on April 29.
At the time, Japanese authorities adopted a strategy known as a “stealth intervention,” meant to amplify market jitters by keeping mum about their action.
Related coverage:
Dollar firms to near 160 yen on receding U.S. rate cut expectations
Japan warns of appropriate action any time against rapid yen moves
U.S. puts Japan back on currency manipulator watch list after 1 year
Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
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