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Investors are increasingly favoring emerging market funds that exclude China, driven by concerns over geopolitical tensions and the perceived risks associated with the Chinese economy. This shift has led to a surge in "ex China" funds, which have attracted $10bn in net inflows this year, as clients seek greater exposure to markets like India and Taiwan. Political motivations, particularly among US investors, are influencing this trend, with some pension funds divesting from Chinese assets due to national security concerns.
Exchange-traded funds (ETFs) offer significant tax advantages over mutual funds, particularly for investors in taxable accounts, due to their unique structure that minimizes capital gains distributions. This efficiency is especially beneficial for U.S. growth stocks, which derive over 95% of their returns from capital gains. However, bond ETFs provide less of a tax edge, as their returns are primarily from income, and during market volatility, bond ETFs may disconnect from their underlying asset values more than mutual funds.
Lone Pine Capital rebounded in the third quarter, with its long-short fund, Lone Cypress, gaining 5% and its long-only fund, Lone Cascade, rising 8%, bringing year-to-date increases to 23% and 25%, respectively. Despite these gains, the firm, founded by Stephen Mandel Jr., remains below its high-water mark due to a modified fee structure that allows partial performance fees while waiting for full recovery of losses. Currently managing about $17 billion, Lone Pine's portfolio focuses on major tech stocks and beneficiaries of artificial intelligence.
Apple Inc. focuses on designing, manufacturing, and marketing computer hardware and music media, with telephony products, primarily the iPhone, accounting for 52.3% of sales. Other segments include peripherals (10.4%), computers (7.7%), music media (7.4%), and various services (22.2%). Geographically, sales are led by the Americas (42.4%), followed by Europe-India-Middle East-Africa (24.7%) and China-Hong Kong-Taiwan (18.9%).
Apple Inc. focuses on designing, manufacturing, and marketing computer hardware and music support products. Its net sales are primarily driven by telephone products, particularly the iPhone, which accounts for 52.1% of revenue, followed by peripheral devices, computers, and music support. Geographically, sales are strongest in the Americas, followed by Europe and Asia.
UBS has maintained a "Neutral" rating for Apple, setting a target price of $236. Analyst David Vogt noted that weak customer figures from Verizon indicate a potential decline in iPhone demand. Apple's revenue is primarily driven by phone products, which account for over 52% of net sales.
AI chip startup Kneron Inc. is seeking to raise $300 million in a funding round that could value the company at approximately $1 billion. The funds will support product innovation and expansion, including plans to open a regional office and establish a research and development lab in Saudi Arabia.
The Philippines is seeking assistance from Taiwanese semiconductor leaders, including Taiwan Semiconductor Manufacturing Co. and United Microelectronics Corp., to enhance its chip fabrication capabilities. Dan Lachica, head of the country's main electronics industry group, indicated that discussions are underway with potential partners to acquire necessary equipment and expertise.
An ex-official of Taiwan's central bank has criticized the island's monetary policy as chaotic and unclear, attributing the issues to Governor Yang Chin-long's failure to effectively communicate policy intentions. Chen Nan-kuang, former deputy governor, argues that the reliance on numerous indicators leads to confusing and illogical decisions within the monetary policy framework.
The global shadow banking market is projected to grow from USD 72 billion in 2024 to USD 120 billion by 2032, reflecting a CAGR of 6.5%. Key players include BlackRock, JPMorgan Chase, and Deutsche Bank, with Europe dominating the market and Asia-Pacific emerging as the fastest-growing region. Shadow banking, which encompasses non-bank financial intermediaries, offers credit and liquidity outside traditional banking systems, presenting both opportunities and risks due to its regulatory environment.

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