Several QatarEnergy LNG plants suffered missile strikes early Thursday, resulting in major fires and heavy damage

Escalation of conflict in the Middle East has sparked a sharp increase in volatility in global financial markets, following a period of benign market conditions. Volatility has been particularly pronounced in energy and other commodity markets, and this has spilled over to other asset classes. Just prior to the escalation of the conflict, some firms had experienced sharp equity price declines as investors reassessed the prospects for AI to affect business models. Conditions for private credit markets had also become more challenging. Yet risk premia in global equity and credit markets have remained fairly low by historical standards. Additionally, even after an increase in government bond yields in several advanced economies, measures of sovereign bond term premia were well within historical ranges and markets remained functional. Resilience in the global financial system prior to the escalation of the conflict had been supported by systemically important banks remaining profitable and well capitalised, and growth in the global economy over the past year exceeding most analyst expectations, with trade flows adjusting relatively quickly to changes in tariffs. Corporate and household balance sheets in advanced economies have remained strong, although pockets of stress persist among non-prime borrowers. Reserve Bank of Australia observes that the likelihood of a major negative shock to Australia’s financial system has risen recently. RESERVE BANK OF AUSTRALIA CAUTIONS THAT THE MIDDLE EAST CONFLICT MAY TRIGGER A SIGNIFICANT INTERNATIONAL FINANCIAL DISRUPTION. ... Reserve Bank of Australia states that Australian banks are equipped to handle loan losses even during a severe economic downturn. RESERVE BANK OF AUSTRALIA INDICATES THAT HOUSEHOLDS AND BUSINESSES ARE GENERALLY IN SOLID FINANCIAL SHAPE AND UNLIKELY TO DESTABILIZE THE SYSTEM. ...

Israel, out of anger for what has taken place in the Middle East, has violently lashed out at a major facility known as South Pars Gas Field in Iran. A relatively small section of the whole has been hit. The United States knew nothing about this particular attack, and the country of Qatar was in no way, shape, or form, involved with it, nor did it have any idea that it was going to happen. Unfortunately, Iran did not know this, or any of the pertinent facts pertaining to the South Pars attack, and unjustifiably and unfairly attacked a portion of Qatar’s LNG Gas facility. NO MORE ATTACKS WILL BE MADE BY ISRAEL pertaining to this extremely important and valuable South Pars Field unless Iran unwisely decides to attack a very innocent, in this case, Qatar - In which instance the United States of America, with or without the help or consent of Israel, will massively blow up the entirety of the South Pars Gas Field at an amount of strength and power that Iran has never seen or witnessed before. I do not want to authorize this level of violence and destruction because of the long term implications that it will have on the future of Iran, but if Qatar’s LNG is again attacked, I will not hesitate to do so. Thank you for your attention to this matter. President DONALD J. TRUMP Trump says Qatar was in no way involved in the attack. Just in | Trump Claims U.S. Was Unaware of Israeli Attack on Iranian Facility Trump states the United States will respond if there is another attack on Qatar’s LNG.

At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided, by an 8-1 majority vote, to set the following guideline for money market operations for the intermeeting period: The Bank will encourage the uncollateralized overnight call rate to remain at around 0.75 percent. Japan's economy has recovered moderately, although some weakness has been seen in part. Overseas economies have grown moderately on the whole, although some weakness has been seen in part, reflecting trade and other policies in each jurisdiction. Exports and industrial production have continued to be more or less flat as a trend. Corporate profits have remained at high levels on the whole, although downward effects due to tariffs have been seen in manufacturing. In this situation, business fixed investment has been on a moderate increasing trend. Private consumption has been resilient against the background of an improvement in the employment and income situation, although it has been affected by price rises. On the other hand, housing investment has been on a declining trend. Meanwhile, public investment has continued to be more or less flat. Financial conditions have been accommodative. On the price front, with moves to pass on wage increases to selling prices continuing, the year-on-year rate of increase in the consumer price index (CPI, all items less fresh food) had been above 2 percent, partly due to the effects of the rise in food prices, such as rice prices; however, the rate of increase has recently fallen to around 2 percent due to factors such as the effects of the government's measures to reduce the household burden of higher energy prices. Inflation expectations have risen moderately Just in | Bank of Japan Votes 8-1 on Key Policy Decision Just in | Bank of Japan Signals Potential Rate Hikes if Economic and Price Trends Align with Forecast BOJ reports moderate economic recovery in Japan, while noting certain weaknesses. Just in | The Bank of Japan highlights potential risks to the country's economic outlook, citing geopolitical developments in the Middle East, fluctuations in oil prices, and foreign exchange market trends.