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Good morning from the Financial Times. Today is Monday, July 31.

And this is your FT News Briefing.

Investors are keeping a close eye on Japan and China's starting to pump stimulus into the economy

just not as aggressively as it's done before.

This is not going to be the bazooka of the past, but we are going to see them taking very

precise and well-tugged measures. Plus, if you haven't noticed, it's super hot out there.

And extreme heat is a real danger to people as well as the economy.

I'm Mark Filipino and here's the news you need to start your day.

The Bank of Japan on Friday announced that it's going to allow bonds to rise more freely,

which sounds kind of wonky, but it's really got the attention of investors.

So, I've got Ethan Wu to help me unpack this. He writes the FT's unhedged newsletter and

hosts the FT's unhedged podcast. I, Ethan.

Hey, Mark. So, what exactly does this move do?

It's a bit of a fiddly change, isn't it? There's a lot of moving parts here,

but just in the simplest, most essential point is that for 10-year yields, which set the cost

of borrowing in financial markets and the economy, in that key policy rate, they're going to let it rise

a little bit higher. So, Ethan, how are investors feeling about this? Are they psyched?

I think investors are excited, or at least at the very least interested.

So, in a vacuum, any incremental move from the Bank of Japan to raise rates is exciting for investors

in Japan who might want to buy Japanese government debt. There's also the context of the rally

...