Latest news with #marketVolatility
Bloomberg
5 days ago
- Business
- Bloomberg
UBS's Khan Sees Rich Customer Demand for Alternative Assets
Wealthy customers of UBS Group AG are looking to buy more alternative assets as they seek to diversify investments during a volatile period for markets and global trade, according to the firm's Asia Pacific chief. 'We see continued demand' for alternatives, Iqbal Khan, the bank's regional president, said in an interview with Bloomberg TV in Hong Kong at the UBS Asian Investment Conference on Wednesday.
Yahoo
24-05-2025
- Business
- Yahoo
Morning Movers: Apple slips following President Trump tariff threat
Stock futures are trending lower, reflecting investor concerns over escalating trade tensions and fiscal uncertainties. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter President Donald Trump's recent announcements have heightened market apprehensions. He proposed a 25% tariff on iPhones not manufactured in the U.S., causing Apple shares to decline nearly 4% in pre-market trading. Additionally, he recommended a 50% tariff on European Union goods, leading to a drop in European stocks and a weakening euro. On the legislative front, the House narrowly passed a $3.8T tax and spending bill, which now awaits Senate approval. The bill includes a $4T debt ceiling increase, raising concerns about long-term U.S. debt sustainability. As the markets approach the Memorial Day weekend, trading volumes may decrease, potentially leading to increased volatility. In pre-market trading, S&P 500 futures fell 1.48%, Nasdaq futures fell 1.9% and Dow futures fell 1.31%. Check out this morning's top movers from around Wall Street, compiled by The Fly. HIGHER AFTER EXPECTED TRUMP EXECUTIVE ORDER TO JUMPSTART NUCLEAR – Uranium Energy (UEC) up 14% Oklo (OKLO) up 10% Energy Fuels (UUUU) up 10% Nuscale Power (SMR) up 10% ASP Isotopes (ASPI) up 4% UP AFTER EARNINGS – Frontline (FRO) up 1% Intuit (INTU) up 7% Autodesk (ADSK) up 1% DOWN AFTER EARNINGS – Deckers Outdoor (DECK) down 20% Ross Stores (ROST) down 11% Booz Allen (BAH) down 15% The Buckle (BKE) down 1% LOWER – Apple (AAPL) down 4% after President Donald Trump posted on Truth Social: 'I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.' Xerox (XRX) down 9% after cutting its quarterly dividend to 2.5c per share from 12.5c Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on OKLO: Disclaimer & DisclosureReport an Issue Oklo (OKLO), Uranium Energy (UEC) & NuScale Power (SMR) Surge on Trump EO Reports Oklo price target raised to $55 from $45 at Wedbush Closing Bell Movers: Deckers falls 15% on weak guidance; Nuclear names rally Oklo up 10% on Reuters report regarding EOs boosting nuclear power use Trump to sign executive order boosting nuclear power use, Reuters says Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economy ME
24-05-2025
- Business
- Economy ME
Portfolio resilience vital as investors face heightened uncertainty, changing asset class returns: J.P. Morgan
J.P. Morgan Private Bank has revealed its 2025 Mid-Year Global Investment Outlook , titled Comfortably Uncomfortable . As foundational elements once considered stable—such as a thriving economic expansion, minimal new trade barriers, and consistent investment in artificial intelligence—are reassessed, the outlook reveals opportunities in a world where returns across various asset classes have dramatically changed compared to the previous year. 'Portfolio resilience emerged as a key theme in our 2025 Outlook, underscoring its heightened relevance as investors navigate a new reality,' said Grace Peters, co-head of Global Investment Strategy at J.P. Morgan Private Bank. 'Investors must contend with deep policy uncertainty, still elevated valuations and concentration in U.S. equity markets, and persistent volatility as they anticipate whether the U.S. administration's more market-friendly proposals will come to fruition in the latter half of 2025.' 'Given the balance of risks, and the possibility of a downtrend for the U.S. dollar, a resilient and globally diversified portfolio can help give investors the confidence to stay anchored to their long-term plan. With the likelihood of continued market volatility, it's time to get comfortable being uncomfortable,' said Stephen Parker, co-head of Global Investment Strategy. To navigate the global economic landscape, J.P. Morgan Private Bank's 2025 Mid-Year Global Investment Outlook addresses four key themes: Diversified strategies for better returns Today, investors face dual risks related to growth and inflation, along with ongoing policy uncertainty and geopolitical changes. In our view, resilient portfolios composed of assets with low or negative correlations, each capable of outperforming cash, are more crucial than ever. 'Diversified hedge fund strategies are expected to deliver returns and volatility that are slightly higher than core fixed income, with very low correlation,' said Nur Cristiani, Latin America head of Investment Strategy. 'Equity-linked structured notes can provide investors with an additional lever to generate income uncorrelated to fixed income, with twice as many clients utilizing these notes this year compared to 2024.' 'Beyond U.S. equities, Europe's economic outlook has been brightening as investors focus on the headwinds to U.S. growth,' stated Erik Wytenus, Europe, Middle East, and Africa head of Investment Strategy. 'Europe is decisively pursuing self-reliance in security, with Germany loosening the tight fiscal faucet in long-neglected areas like defense and infrastructure. This seismic shift could boost annual Eurozone growth from a tepid 0.5 percent pace in 2025 to over 1 percent, possibly as much as around 1.5 percent in 2026.' Read more | Dollar diversification: Why now? Central banks and alternative reserves As U.S. exceptionalism wanes, the dollar faces pressures from rising protectionism and potential deficit-increasing fiscal policies, likely leading to a gradual erosion of its value rather than a collapse of its reserve currency status, as per the report. 'For U.S. investors, diversifying currency exposure through equities denominated in Euro or Yen can help mitigate potential losses associated with dollar depreciation,' said Jacob Manoukian, U.S. head of Investment Strategy. 'We are focused on the Euro, Japanese Yen, and gold due to their size, liquidity, and historical role as alternative reserve assets.' Central banks, with nearly $13 trillion in reserves, have already increased allocations to these currencies, reflecting their deep, liquid markets and potential for preserving purchasing power. Gold also continues to stand out against geopolitical risks and dollar weakness, with demand expected to rise as emerging market central banks increase their gold reserves. Enduring rise of AI Amid investor focus on tariff policy, the transformative advance of Artificial Intelligence (AI) persists, defying initial skepticism from disruptive news, as Chinese startups and tech companies challenge assumptions about the resources required for high-performing AI models. 'We are increasingly confident that AI is likely to drive significant productivity gains, particularly in sectors poised to benefit such as software and financials,' shares Alex Wolf, Asia head of Investment Strategy. 'As the AI race hits a pivotal moment, research labs are driven to secure funding and innovate self-improving models, while heightened competition is set to lower prices, foster differentiation, and accelerate adoption.' Agentic AI, with human-like intelligence, is poised to lead the next global software wave, potentially surpassing cloud and mobile transitions by targeting employee compensation costs. While the ultimate winners of the AI race may not yet exist, the market shows resilience, with stock prices rising alongside earnings and capital expenditures not reliant on traditional financing. Uncertainty clouds dealmaking outlook While there were green shoots to start the year, the elevated probability of prolonged uncertainty has created a cloudier outlook in the near term for dealmaking, J.P. Morgan noted. However, there are signs that the private equity ecosystem is finding better balance, as 2024 saw capital calls align with distributions, reversing the negative cash flow trend of 2022 and 2023. 'This slower pace coupled with aging assets in existing private equity portfolios could create a compelling opportunity for secondary managers,' said Sitara Sundar, head of Alternative Investment Strategy. Evergreen funds, currently 5 percent of private markets and projected to reach 20 percent in the next decade, offer new liquidity options as the median IPO age nears 11 years and 87 percent of U.S. companies over $100 million in revenue remain private. This year alone, more than 4,500 clients have made their initial investments in evergreen structures. 'While private market dealmaking continues at a reasonable pace, the public market arena, particularly IPOs, remains notably quiet, making exposure to private markets critical to ensure proper exposure to the real economy,' added Sundar.
News.com.au
15-05-2025
- Business
- News.com.au
Investors must expect ‘turmoil' across their ‘investment horizon'
La Trobe Financial Chief Executive Chris Andrews discusses how volatility in global markets changes investor behaviour. 'If you think back to the late 80s, we had a Republican in the White House, turmoil in Russia, and we had Labor in government here in Australia,' Mr Andrews told Sky News Business Editor Ross Greenwood. 'So, people talk about turmoil, but look, 25 years later, what do we have? Turmoil in Russia, a Republican in the White House, and we have Labor in government here in Australia. 'So every investor needs to think of turmoil being the consistency, the one thing that will continue to happen across their investment horizon.' In partnership with LaTrobe Financial.
Irish Times
10-05-2025
- Business
- Irish Times
Paschal Donohoe on How Feminist Economics Can Change Our World; Making Sense of Chaos; and Why We're Getting Poorer
Deficit: How Feminist Economics Can Change Our World Author : Emma Holten, tr. Sherilyn Nicolette Hellberg ISBN-13 : 978-0753561461 Publisher : WH Allen Guideline Price : £18.99 Making Sense of Chaos: A Better Economics for a Better World Author : J Doyne Farmer ISBN-13 : 978-0141981208 Publisher : Penguin Guideline Price : £10.99 Why We're Getting Poorer: A Realist's Guide to the Economy and How We Can Fix It Author : Cahal Moran ISBN-13 : 978-0008637958 Publisher : William Collins Guideline Price : £22 When US president Donald Trump announced a pause in his tariff plan, he said 'people were jumping a little bit out of line – they were getting yippy' . This 'yippy' behaviour referred to the volatility in the markets for US government debt. This is a reminder of the famous observation of James Carville, the great campaign strategist of president Bill Clinton. He said that if he was reincarnated, he 'would like to come back as the bond market. You can intimidate everybody'. These books examine this power; the influence that economics have on our societies. They seek to further understand the behaviour of economies and how it can be altered for the benefit of citizens. Cahal Moran writes, 'The emergence of capitalism and the market economy is a historically unique and curious phenomenon, and managing it is not at all easy.' With this, his work, Why We're Getting Poorer, begins to describe the many economic challenges confronted by citizens. READ MORE They include the costs of inflation, the lack of affordable homes and the consequences of extreme inequality. To his credit, the author does not just diagnose difficulties, he proposes solutions. He aims to be, as the subtitle notes, a 'realist'. His proposals mostly advocate a stronger and bigger State and a scepticism of the claims of free markets. An important quality of this book is that Moran does not suggest that his solutions are perfect or lacking in trade-offs. He warns that 'notions of abolishing the system make good rallying calls, but they need to be translated into concrete proposals for a better future'. In an era of certain and loud claims, this is welcome. The accessible tone of this work will allow any reader to evaluate both his analysis of the problems and his solutions. An important theme is to refute the suggestion that the economy is autonomous, that it is independent of choices made by societies. The first and last chapters passionately, and correctly, make this argument. [ Becoming Irish American: The Making and Remaking of a People from Roanoke to JFK Opens in new window ] Moran reminds the reader that 'most settled civilisations did not believe there was a separate economic sphere'. He calls for a revival of a 'demos' that is more considerate of how economies are shaped by political decisions. This approach is then used to examine a variety of challenges. The chapter on housing considers very familiar problems and relates them to underlying issues of the value of land and its use in the construction of homes. Moran argues for rent controls but acknowledges the debate regarding the impact of this policy on the supply of rental accommodation. The strongest section of this book is an evaluation of the origins of money and the role of central banks in our economies. This is explained through a simple book-keeping exercise that leads to an analysis of the relationship between central banks and governments. Claims that central banks should print more money to assist governments are considered. The author acknowledges that this could cause prices to rise. There is an anger in Why We're Getting Poorer. The anger about injustices is real. In the last line of the acknowledgment, the author thanks his enemies for the energy that keeps him going! Many readers of this review have lived through two crises in the global economy – the financial crisis and the pandemic. At the time of writing, it is unclear whether we are in the early stages of a historic transition in the global economy or a disorderly moment of fracture Anger, however, does not prevent the acknowledgment of nuance in policy choices. This may frustrate some activists but it will reward more readers. Making Sense of Chaos by J Doyne Farmer also aims to explain how modern economies work. Moran does so as a social scientist, Farmer as a physicist. He explains complexity economics, a framework for studying economic behaviour that draws upon the progress of modern physics and biology. A good example of this approach is the comparison made between forecasting the weather and predicting the performance of economies. He compares the progress made in predicting our weather systems with the difficulties in modelling economic behaviour. These and other examples allow the contrasting of different approaches to understanding economies. Standard economic theory assumes that every individual aims solely to maximise their satisfaction and has perfect access to all available information about every single decision. [ The Great Betrayal: The Struggle for Freedom and Democracy in the Middle East by Fawaz A Gerges – engaging read for seasoned observers Opens in new window ] In this world, every decision is made perfectly rationally. Complexity economics contends that economic decision makers have access to limited information and that decisions are imperfectly made. Individuals are 'boundedly rational' with 'a limited ability to reason'. Standard economics assumes that transactions occur only when the supply of a good or service is equal to the demand for it. Complexity theory is more generous in recognising the inherent messiness of economic life. This new approach models how the decisions of a group of individuals can cascade to influence the behaviour of the group. A nonlinear system is one where 'the whole is different from the sum of its parts'. That recognition is critical because this 'is the norm in the real world and economics is no exception'. Early chapters clearly explain these different approaches. They are lucid and authoritative. Hints of a personal memoir are lightly sprinkled throughout, describing an academic and business career devoted to exploring new concepts. As economies change we must work harder to understand them, without which we have little hope of influencing them for the benefit of societies A chapter summarising the key principles of more traditional economics is an eloquent and extremely clear summary of a huge canon of thinking. Other sections of this book are less accessible. The chapters explaining different financial market theories will be of less use to the general reader, and more to students or professionals. The chapter on the economics of climate change are difficult, but worth the effort. This book concludes by reminding the reader of how research drives progress in physics. Farmer notes, 'Progress in fundamental physics over the last 50 years illustrates how science succeeds when we have the right data to test theories, and how it is stymied when this is lacking.' The sizzle of the early part of this book lessens as the author explains the potential of more effective research that will develop better economic policies. The practicality of these proposals is a little mundane after the thrill of diagnosing a different approach to the study of economies. However, if this work only slightly reduces the possibility of a financial crisis, it is overwhelmingly worth doing. The goal of complexity economics is ambitious and necessary, the development of theories to 'guide us toward greater prosperity, make our planet healthier and help humanity thrive'. Making Sense of Chaos demonstrates the promise of economics. As economies change we must work harder to understand them, without which we have little hope of influencing them for the benefit of societies. This book explains ideas that were outside the boundaries of mainstream economics for too long. It is a compelling, though not an easy or even, read. [ Careless People: The controversial book is shocking and reveals Facebook is far worse than we could have suspected Opens in new window ] Emma Holten also grasps the power of economics in Deficit, describing it as 'the mother tongue of politics. It is the language of power'. This language is used to exclude the value of caring. It is not priced by the market and not included in the calculation of income, for individuals or for countries. In this world, if something is not priced then it has no value. That is why the core belief of feminist economics is that 'caring is the work that makes all other work possible'. Holten powerfully identifies the limitations of economic theory. She argues that economists fail to adequately recognise needs that are intrinsic to our humanity: 'being looked after when ill, receiving respect, love and recognition, performing child rearing or education'. This work argues that economics became too preoccupied with self-interest and freedom. It misses the importance of interdependence, of how we care for each other within families and communities. [ Life in Spite of Everything by Victoria Donovan: A sad and angry history of Donbas Opens in new window ] That dimension is explored in chapters on work within the home and on the evaluation of performance in the workplace. The author is correct to conclude that these issues have not received the attention that they merit from economic science. There has, however, been progress. Most democracies now support caring through their social insurance systems. The difficulties in the measurement of national income, and the exclusion of the vital intangibles, beloved by societies, are now well acknowledged by many economists. This, for example, is recognised in publications and analysis that accompany the annual Irish Budget. Improvements have been made, but it is unwise to assume that they are permanent. That is why the arguments in this book have such value. The strongest chapters describe the impact of the valuation of care on our politics and public service. The author concludes, 'A consumer cannot evaluate the utility of care in the moment of purchase.' Care is rarely purchased. If it has a monetary value, it is one that is determined by the State, not the care recipient. The rising size of health and social care budgets do demonstrate the value that societies place upon care. However, this book reminds the reader of the power of the marketplace in determining value within a society. A paradox of care is described; care 'makes all other work possible' but it is not recognised by economists like other forms of work. Most economists now accept the need to improve the foundations of their work. That work is well under way but, as with any branch of social science, it will never be complete. Likewise, the growth of the state in most democracies is a reminder that the shortcomings of free markets are well appreciated. This is not acknowledged in Deficit, but there is a wisdom that is well summarised in the final sentence of this book: 'We create so much value for each other. It's difficult to measure, but it isn't difficult to feel.' Many readers of this review have lived through two crises in the global economy – the financial crisis and the pandemic. At the time of writing, it is unclear whether we are in the early stages of a historic transition in the global economy or a disorderly moment of fracture. We must therefore be ambitious in deepening our understanding of modern economies and of the political choices shaping them. These books share that quest. They all deserve consideration in the urgent and loud debates about how we shape our economies. Paschal Donohoe is the Minister for Finance and president of the Eurogroup
