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Falling production hit Japanese factory activity in September

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© Reuters. FILE PHOTO: A worker checks machinery at a factory in Higashiozaka, Japan on June 23, 2022. REUTERS/Sakura Murakami

TOKYO (Reuters) – Japan’s manufacturing activity grew at the slowest pace since the beginning of last year in September as production slumped and new orders intensified due to weak demand from China, the United States and other trading partners.

Japan’s au Jibun Bank Manufacturing PMI fell to a seasonally adjusted 50.8 in September from a final 51.5 the previous month.

That represented the weakest growth rate since January last year when it last contracted and was below the flash reading of 51.0.

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“Weakness in Japan’s manufacturing sector continued in September and got worse,” said Joe Hayes, chief economist at S&P Global (NYSE::) Market Intelligence, which compiles the survey.

He added that while high inflation has eroded customers’ purchasing power, slowing global economic growth has hurt exports.

“A weak yen does little to support export demand and instead drives imported inflation significantly higher and pushes domestic price pressures higher,” Hayes said.

The bleak reading contrasts with the strong official manufacturing data released on Friday. That data showed factories in the world’s third-largest economy boosted production by 2.7% in August thanks to firmer machinery production, and production is expected to rise in September and October as well.

The PMI survey showed new orders contracted at the fastest rate in two years, while production posted its biggest drop in a year.

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“Forward-looking indications from the survey indicate that the downward trend in production appears to continue into the fourth quarter,” Hayes said.

“The increases in inventories, which, according to committee members, were due to poor sales performance, (highlight) just how weak underlying demand conditions for Japanese goods are.”

A sharp contraction in overseas economies is likely to increase Japan’s dependence on consumption, investment, and broader economic activity at home for growth.

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.