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Business Recorder
3 days ago
- Business
- Business Recorder
Asian stocks, euro gain after Trump delays EU tariffs
SINGAPORE: Stock markets across Asia edged higher on Monday, and the euro rallied after President Donald Trump abruptly extended by more than a month his threat to slap 50% tariffs on EU goods, marking another temporary reprieve as part of his erratic trade policy. On Sunday, Trump agreed to extend his deadline for trade talks until July 9, from the June 1 deadline he set on Friday, after European Commission President Ursula von der Leyen said the bloc needed more time to 'reach a good deal.' Market sentiment had been steadying after a sharp selloff across most assets last month as Trump paused his growth-denting tariffs and investors were keen on fresh trade deals after a pact with UK and a temporary agreement with China. However, Trump's latest policy moves were a reminder to investors how quickly circumstances could change and analysts have been pointing out that investors are shifting their money out of the U.S. to Europe and Asia as they price in a possible U.S. recession and a consequent global slowdown. '(The tariffs are) well above the 20% original reciprocal tariff on the EU. The U.S., EU, and China account for 60% of global GDP and so this escalation bodes ill for the entire world,' analysts at Brown Brothers Harriman said in a note. Apple was also caught in the trade crossfire on Friday, after Trump threatened a 25% levy on all imported iPhones bought by U.S. consumers. On Monday, MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.12%, while Japan's Nikkei was marginally higher. Trading volumes on Monday are expected to be thin given that markets in the United States and the United Kingdom are closed due to public holidays. Japan's Nippon Steel's jumped 4.3% after Trump on Friday expressed support for the company's $14.9 billion bid for U.S. Steel, saying their 'planned partnership' would create jobs and help the American economy. Shares of U.S. Steel soared 21% on Friday. Super-long Japanese bonds will be in focus, with inflation data expected later in the week as investors try to gauge the Bank of Japan's monetary policy outlook. Yields on the tenors hit record levels last week. Ballooning debt levels in developed economies were also brought back into focus following Moody's credit rating downgrade of the United States and weak debt auctions in the U.S. and Japan last week. China's blue-chip index slipped 0.2% in early trading on Monday, while Hong Kong's Hang Seng Index dipped 0.4%. Treasury yields rise, stocks decline on US fiscal outlook worries Among currencies, the euro strengthened 0.3% to $1.1397 to touch its highest since April 30, while the greenback recovered as much as 0.3% to 143.085 yen , after diving 1% on Friday. On Wednesday, an earnings report from artificial intelligence bellwether Nvidia will be in the spotlight - the last of the 'Magnificent Seven' group of growth stocks that had spearheaded a more than two-year U.S. bull market. Analysts said the semiconductor giant's quarterly report could be the next catalyst for markets, given its forecasts are seen as an indication of demand for tech infrastructure. Nvidia's shares are down more than 2% this year after investors took notice of cheaper Chinese AI models in the aftermath of DeepSeek's release, while CEO Jensen Huang has flagged that U.S. export curbs will also hit sales. Reuters reported on Saturday that Nvidia will launch a new AI chipset for China at a significantly lower price, subject to U.S. government approval. On the commodities front, crude prices traded higher, while gold eased marginally from a two-week high.
Yahoo
21-05-2025
- Business
- Yahoo
BBH Greater China ETF Investor Survey reveals that the region continues to outpace global ETF growth as investors manage market risk and volatility
Demand grows for active ETFs as well as for ETFs offering downside protection HONG KONG, May 21, 2025 /PRNewswire/ -- Exchange Traded Funds (ETFs) continue to grow in Greater China in 2025, with the region accounting for 71% of the overall record-breaking inflows of $347 billion in Asia-Pacific in 2024[1]. The findings of the 8th Annual Greater China ETF Investor Survey from Brown Brothers Harriman & Co. (BBH), a global leading ETF custodian and administrator, show that during a time of unprecedented market dislocation and uncertainty, investor appetite for ETFs offering downside protection, such as buffered ETFs, is trending upwards. The region's allocators are also registering increased demand for active ETFs. The Annual Greater China ETF Investor Survey, which is a subset of its Global ETF Investor Survey, represents the opinions of 100 ETF investors from mainland China, Hong Kong, and Taiwan, where 53% of respondents manage over USD$1 billion in assets and of which, 29% have more than 50% of their portfolio invested in ETFs (compared with 24% globally). "The outsized growth in Greater China demonstrates the strength and depth of the market. As the regional ETF markets have matured and developed, investors are deploying an increasing amount of capital to ETFs. While local ETF issuers have a strong position across Greater China, there are opportunities for international ETF issuers too. To thrive in Greater China, international ETF issuers need to understand the local market nuances," said Chris Pigott, Asia Head of ETF Services at BBH. Key findings: Greater China – The region leads the overall Asia-Pacific ETF growth Outsized growth of ETFs in Greater China vs global growth: Appetite for ETFs is particularly pronounced in Taiwan and Hong Kong, where 27% and 23% of allocators respectively have ramped up their ETF holdings by more than 25% in the last five years. Active ETFs gaining traction: All respondents plan to increase their exposures to active ETFs in the next 12 months, 40% of investors in both Hong Kong and Taiwan are planning to bolster their active ETF holdings by more than 25%. Reallocations to fund active ETFs: 22% of ETF investors said they would reduce their exposures to index-based ETFs, followed by actively managed mutual funds (19%) and actively managed SMAs (15%). Reasons for adopting ETFs: 35% of ETF investors are looking for long-term portfolio growth through core exposures. 32% want to provide portfolio outperformance through tactical, niche or narrow/sectors of the market. 20% are looking to manage risks, volatility, and downside protection. Just 13% are buying ETFs in order to generate income. Defined outcome leads the way: 29% of Greater China ETF investors plan to invest in defined outcome – or buffered ETFs – over the next 12 months, rising to 34% in mainland China. 27% plan to invest in fixed income. Increased focus on cryptocurrency ETFs: 26% of investors intend to buy cryptocurrency focused ETFs in 2025, with Taiwan (40%) and Hong Kong (23%) leading the way. Mainland China – Investors are positive on increasing exposure to ETFs Demand for offshore assets remains strong, with mainland China investors being net buyers of Hong Kong listed ETFs through the Southbound channel in 2024 [2]. Mainland investors are most interested in buffered ETFs (34%) and ESG products (20%) if they are going to buy ETFs listed on HKEX in the next 12 months. 40% of investors plan to fund new ETF purchases by redeploying capital from other ETFs. Hong Kong – Tax efficiency is an important component of the total cost of ownership that investors are increasingly evaluating Hong Kong is one of the most diverse ETF markets in Asia, with flows driven by product innovation, both from the local regulator and the stock exchange. While demand for fixed income is on the rise, it is much more sought after in Hong Kong, where 34% of allocators plan to invest in the strategy. 34% of investors expect the dominance of the Magnificent Seven stocks to continue – this is above the overall response of 26% for Greater China. Tax efficiency is the most important consideration for ETF investors (26%) in Hong Kong. Taiwan – One of the fastest growing ETF markets in the world, the launch of active ETFs paves opportunities to asset managers 23% of ETF investors in Taiwan are reallocating from active mutual funds in order to grow their ETF allocations. Demand for the launch of active ETFs is high, with 37% and 27% of investors planning to allocate to equity and liquid alternative active ETFs respectively. Structured products, i.e. Collateralised Loan Obligations (CLOs) are popular, with 23% of allocators planning to gain exposure to the asset class in 2025. Taiwan leads the way for cryptocurrency, with 40% of ETF investors intending to buy cryptocurrency focused ETFs in 2025. Greater China allocators are incredibly bullish on Artificial Intelligence (AI), with 31% saying it will be major investment trend for 2025. This rises to a staggering 60% in Taiwan. Read the full report here: 2025 Greater China ETF Investor Survey. [1] ETFGI Global ETFs industry insights report, December 2024 [2] About Brown Brothers Harriman Brown Brothers Harriman (BBH) is a global financial services firm known for premium service and specialist expertise. We have a 200-year track record helping clients innovate and navigate complex financial markets. Our 6,000 employees serve clients and their investments in over 90 markets across BBH's 18 offices. As a private partnership, we are uniquely built to put clients first and create success that lasts. BBH Investor Services is a leading provider of asset servicing and operating model solutions to global asset managers and financial institutions. Our asset servicing solutions include custody, global tax services, depositary and trustee, accounting, administration, transfer agency, and foreign exchange. Our operating model solutions solve platform, data, and connectivity challenges across open-architecture operating models. We support our clients' growth, enhance operational efficiency and resiliency, and streamline reporting and oversight. For more information, please visit References to specific types of securities and asset classes are for informative purposes only and are not intended to be and should not be interpreted as recommendations. Disclaimer Brown Brothers Harriman & Co. ("BBH") may be used to reference the company as a whole and/or its various subsidiaries generally. This material and any products or services may be issued or provided in multiple jurisdictions by duly authorized and regulated subsidiaries. This material is for general information and reference purposes only and does not constitute legal, tax or investment advice and is not intended as an offer to sell, or a solicitation to buy securities, services or investment products. Any reference to tax matters is not intended to be used, and may not be used, for purposes of avoiding penalties under the U.S. Internal Revenue Code, or other applicable tax regimes, or for promotion, marketing or recommendation to third parties. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed, and reliance should not be placed on the information presented. This material may not be reproduced, copied or transmitted, or any of the content disclosed to third parties, without the permission of BBH. All trademarks and service marks included are the property of BBH or their respective owners. © Brown Brothers Harriman & Co. 2025. All rights reserved. View original content: SOURCE Brown Brothers Harriman
Globe and Mail
14-04-2025
- Business
- Globe and Mail
The U.S. Economy Is ‘Nowhere Near the End of the Storm,' Says Wall Street Investor
The U.S. economy is 'nowhere near the end of the storm,' according to Win Thin, head of currency strategy at Brown Brothers Harriman. Speaking to CNBC, Thin said the idea that the U.S. economy is uniquely strong no longer holds true. He explained that earlier pro-growth policies like tax cuts and deregulation have been replaced with new measures like tariffs, deportations, and layoffs tied to the Department of Government Efficiency. These shifts have added a lot of uncertainty to the markets and made investors nervous. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Thin also pointed out that the market is acting unusually. Normally, when there's economic trouble, the U.S. dollar (UUP) gets stronger, but right now, it is actually getting weaker while Treasury yields are rising, which is not typical. He said that recent Treasury auctions have gone well, but there are growing worries about the U.S. becoming a less attractive place to invest because of unpredictable policy changes. 'Markets like certainty, they hate uncertainty,' Thin said. Interestingly, Thin called the dollar's recent weakness 'cyclical' and 'man-made' and blamed it on three months of unpredictable government actions. As a result, he said that it will take time and more stability from Washington in order to rebuild trust with investors. Thin believes the U.S. is just beginning to deal with these challenges and that the usual market signals are no longer behaving as expected. Is SPY a Buy Right Now? Turning to Wall Street, analysts have a Moderate Buy consensus rating on the SPDR S&P 500 ETF Trust (SPY) based on 412 Buys, 84 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPY price target of $671.82 per share implies 25.2% upside potential. See SPY's holdings
Globe and Mail
01-04-2025
- Business
- Globe and Mail
There's Always a Bull Market Somewhere: US ETF Launches Notch a Record
Q1 2025 featured a more than 25% annual increase in new U.S. ETFs Some of last year's themes remain hot, but new strategies have caught investors' attention We highlight today's growth spots and call out potential risks Investors just can't get enough of ETFs, and issuers are more than happy to oblige. Through the middle of last week—still with a handful of days left in the quarter—208 new U.S. ETFs were launched in Q1, according to Wall Street Horizon data. Easily a record, it tops the 160 total from the first quarter of 2024. Our chart tells the story as the four-quarter moving average has been on the ascent since Q3 2023. We'll get into the details and the drivers later, but the upshot is that, despite volatility running high in recent months and downright bearish investor sentiment, more access to more ETFs has been an enduring theme. A Quarterly Record in U.S. ETF Launches Source: Wall Street Horizon According to a March Brown Brothers Harriman survey, 95% of investors plan to increase their ETF allocations in the next 12 months. 1 Not surprisingly, Bloomberg's Isabelle Lee reported last week that total assets held by U.S. active ETFs crossed the $1 trillion mark for the first time. 2 There's an ongoing boom, one that touches all investor types. Last fall, we called out that yield, protection, and cryptocurrency were among the bullish x-factors for 2024's ETF bull market. Those trends persist, and new ones appear to be gaining steam. ARKK: The Matriarch of Active ETFs TMX VettaFi reports that active ETFs are particularly interesting to investors today. 3 Born out of a surge in mutual fund-to-ETF conversions, active ETFs grew substantially in 2024, a trend that is anticipated to continue in the quarters ahead. Years ago, the ARK Innovation ETF (ARKK) brought active ETFs into the mainstream as the product managed by Cathie Wood soared during the pandemic thanks to significant rises in shares of Tesla (TSLA) and other high-growth stocks. Active ETFs differ from mutual funds for a variety of reasons, but maybe the most important feature is that ETFs must disclose their positions daily. Active fund managers were perhaps initially reticent to adopt the ETF wrapper as a product offering, but they appear to be coming around to what investors seemingly demand more of with each passing quarter. Tom Lee & Ray Dalio Strategies Tip-Off Fundstrat, an independent financial research boutique led by Tom Lee, head of research, got in on the ETF game, too. Fundstrat Capital launched the Granny Shots U.S. Large Cap ETF (GRNY) last November, broadly designed to hold stocks deemed 'granny shots,' or high-reward-potential ideas, and named after the unconventional basketball free-throw method. GRNY has attracted significant inflows—total assets under management are already approaching $1 billion less than five months since its inception. 4 Then, just last month, SSGA Funds launched the SPDR Bridgewater All Weather ETF (ALLW), a multi-asset allocation fund generally intended to follow the investing wisdom and famed principles of Bridgewater Associates founder Ray Dalio. 5 While Tom Lee's granny shots (GRNY) primarily home in on U.S. growth equities, ALLW focuses on macro themes and spreading exposure across asset classes and markets. The fund is marketed as making available hedge-fund-like exposure to retail investors via the efficient ETF wrapper. 6 Word on the Street ETF strategies are getting even more complex. At last week's Exchange Conference in Las Vegas, Bloomberg's Eric Balchunas commented that some of 2024's big themes, though still notable, are not as hot. 7 New niches, like private equity and private credit ETFs, are in the spotlight. ESG Funds: A Second Life? There are also inklings that a less trendy ETF trend—ESG funds—could make a comeback. The environmental, social, and governance movement was all the rage pre-pandemic, but critics contended that some companies went too far. Perceived missteps by companies like Target (TGT) and brands like Bud Light (owned by Anheuser-Busch InBev (BUD)) resulted in consumer backlash. 8 At a macro level, Putin's war in Ukraine and the resulting European energy crisis underscored that ESG for ESG's sake may not have been the best approach. Of course, recent U.S. political developments have made 'ESG' a 'dirty phrase' in some circles. But, as reported, there has been some renewed interest in the movement for some of those very same reasons. 9 It would not be surprising to see new twists on ESG—climate change, equality, and the state of corporate leadership are issues that could be top of mind going forward. 10 On the investment data front, Dr. Ron Dembo, CEO of commented on the lack of collaboration and data sharing within financial institutions and limitations of regulators in the latest TMX podcast ' Financial Institutions Repricing Financial Risk with the Effects of Climate Change. ' The Risks Amid any boom, it's a helpful exercise to consider what could disrupt the trend. ETFs seem to be here to stay but could growth slow? And why might that occur? One potential hurdle is the unknown around regulation. A new administration is in place—one purported to focus on cutting red tape—but it is unclear how the ETF industry may be impacted. Moreover, the sheer volume of new launches has led to a crowded field. With thousands of funds vying for attention, ticker symbol shortages have even emerged, a quirky side effect we noted last year. Third, to circle back to one of the key drivers of 2025's early-year ETF proliferation, active ETFs are almost inherently costlier than their passive peers. Vanguard Group announced a fresh set of fee cuts in February. 11 If so many complicated active ETF strategies don't pan out in the years ahead, dirt-cheap index products could be flocked to at the expense of catchy new funds. We'll just have to wait and see on that front. The Bottom Line US ETFs are already pacing for a record year. New launches come about fast and furious, with many funds being of the active variety. Investors clamored for juicy high-yield, downside protection, and crypto-related products in 2024, but new themes have emerged that issuers are pouncing on. Even with 'uncertainty' being the word of the day and macro jitters aplenty, the ETF freight train keeps chugging. 1 2025 Global ETF Investor Survey, Brown Brothers Harriman, March 24, 2025, 2 Active Management Lives On in ETFs After $1 Trillion Asset Haul, Bloomberg, Isabelle Lee, March 26, 2025, 3 Nearing $1 Trillion: Active ETF Engine Roars On, VettaFi, Kirsten Chang, March 21, 2025, 4 Fundstrat Granny Shots U.S. Large Cap ETF, Fundstrat Capital, March 27, 2025, 5 SPDR® Bridgewater® All Weather® ETF, State Street Global Advisors, March 27, 2025, 6 Access to Bridgewater's Expertise Via ETFs, ETF Trends, Todd Rosenbluth, March 6, 2025, 7 ETF Prime: On the Ground at Exchange in Vegas, ETF Trends, Karrie Gordon, March 25, 2025, 8 Target foot traffic falls for fifth consecutive week after its DEI reversal, Retail Brew, Andrew Adam Newman, March 7, 2025, 9 Impact Investing Firms Say Trump 2.0 Is Renewing Retail ESG Interest, Wealth Management, Patrick Donachie, March 19, 2025, 10 An Interesting Catalyst Could Renew Interest in ESG ETFs, ETF Trends, Todd Shriber, March 26, 2025, 11 Announcing the largest fee cut in Vanguard history, Vanguard, February 3, 2025, Copyright © 2025 Wall Street Horizon, Inc. All rights reserved. Do not copy, distribute, sell or modify this document without Wall Street Horizon's prior written consent. This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this publication, and we are not responsible for any errors or omissions in or your use of, or reliance on, the information. This publication is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. The information provided is not an invitation to purchase securities, including any listed on Toronto Stock Exchange and/or TSX Venture Exchange. TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this publication. This publication shall not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. TMX, the TMX design, TMX Group, Toronto Stock Exchange, TSX, and TSX Venture Exchange are the trademarks of TSX Inc. and are used under license. Wall Street Horizon is the trademark of Wall Street Horizon, Inc. All other trademarks used in this publication are the property of their respective owners.
Yahoo
27-03-2025
- Business
- Yahoo
Norway Krone Volatility Jumps as Traders Pivot to Rate-Hold Bet
(Bloomberg) -- The cost of hedging volatility in the Norwegian krone jumped to the highest level since November after traders pared back expectations for an interest-rate cut this week. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? How SUVs Are Making Traffic Worse Trump Slashed International Aid. Geneva Is Feeling the Impact. Paris Votes to Make 500 More Streets Car-Free Overnight volatility in euro-krone rose to 13.65%, surpassing highs seen ahead of monetary policy decisions in December and January. Traders were fully pricing in a quarter point of easing at tomorrow's policy meeting after Norges Bank Governor Ida Wolden Bache flagged the move as 'likely' at the start of the year. But in the past few weeks, data showing inflation accelerated more than expected in February has tipped the balance in favor of keeping rates on hold, with money markets now assigning just a 30% probability of a reduction. A key survey of corporate sentiment released last week also suggested stable growth in activity in the first half of the year. 'These developments have strengthened the case for delaying the start of easing,' Win Thin, global head of markets strategy at Brown Brothers Harriman, wrote in a note. The repricing has given a boost to returns on the krone, which is close to multi-month highs against the euro and dollar and is the second-best performer in the Group-of-10 currencies this quarter. The currency traded at 11.3283 per euro as of 8:42 am in London on Tuesday, headed for a sixth consecutive day of gains, the longest winning streak since July 2023. Business Schools Are Back Google Is Searching for an Answer to ChatGPT The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers ©2025 Bloomberg L.P. Sign in to access your portfolio
