Saudi Pipeline Repairs Underway; US Approves $24.3B F-35 Sale to Saudi

Summary

The episode centers on the Bank of Japan's second rate hike in three months, which left the yen weaker, and on oil's third straight daily decline as Saudi Arabia repairs its East-West pipeline and Gulf diplomacy builds ahead of the UN General Assembly. BNP Paribas's FX strategist lays out dollar-strength trades in Asia and against the euro as central banks keep tightening, while DBS's CIO stays very bullish on AI, favoring semiconductors now, software later and energy as the power constraint bites. The show also covers the US's $24.3 billion F-35 sale to Saudi Arabia, Turkey's move to contain an asset-manager crisis and momentum in African capital markets, including Ethiopia's exchange expansion.

• BOJ raises rates 25bp for a second time in three months; two dissents leave the yen weaker near 157.
• Oil falls a third day as Saudi Arabia restores its East-West pipeline and traders eye next week's UN meetings on Iran.
• BNP Paribas sees USD/JPY toward 163, a squeeze-driven long dollar-Asia trade led by USD/THB, and EUR/USD toward or below 1.14 if Brent holds near $100.
• DBS's CIO remains very bullish AI: semiconductors in the infrastructure phase, software applications later and energy on AI power demand.
• Turkey's authorities move to contain asset-manager redemptions; bank stocks rebound.
• The US approves a $24.3 billion F-35 sale to Saudi Arabia, and Israel and Morocco agree to deepen ties.
• Ethiopia's exchange approves 11 new listings and sub-Saharan Africa debt issuance runs near recent highs, signaling improving African capital markets.
• The BOE holds rates with a hawkish tilt, while the Fed's tightening path and next week's Trump-Xi summit remain key macro drivers.