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Shares in Japanese train operators Keisei Electric Railway Co. and Keikyu Corp. surged on reports that activist investor Yoshiaki Murakami's fund has acquired stakes in both companies. Keisei's stock rose over 18%, marking its largest intraday increase since October 2008, while Keikyu climbed more than 16%, the highest since 1987. The fund holds nearly 5% of Keikyu and less than 1% of Keisei.
UBS Global Wealth Management anticipates a positive outlook for US equities in 2025, driven by resilient growth and lower interest rates, with a focus on tech, utilities, and financial sectors. The firm also sees opportunities in AI-linked semiconductors and emphasizes the potential of diversified exposure to Asia, particularly India and Indonesia, amid geopolitical tensions. Additionally, UBS GWM projects the S&P 500 could reach 6,600 by year-end 2025, while gold is expected to hit new highs due to ongoing economic uncertainties.
Trump has appointed hedge fund manager Scott Bessent as Treasury Secretary, leveraging his investment expertise to navigate a slowing global economy and the dollar's status. Bessent advocates for bank deregulation and supports a friendlier approach to cryptocurrency, earning praise from Republicans and Wall Street figures, while facing criticism from Democrats and progressive groups for his ties to the financial elite.
The USD/JPY exchange rate may see a pullback as Japanese inflation raises expectations for a Bank of Japan rate hike, with a 76% probability of a 25 basis point increase in December. Additionally, a potential Fed rate cut could further pressure the dollar, influencing the currency pair's movement. Technical analysis indicates a stabilization at a four-month high, with key support levels at 152 and 150.
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India is unlikely to import Shinkansen bullet trains from Japan due to stalled price negotiations and changes in project norms. Instead, the focus has shifted to a Make-in-India approach, with a contract awarded to BEML Ltd and Medha Servo Drives in September 2024. Ongoing discussions with Japan have not reached a consensus on pricing or test run timelines, complicating the project further.
Infineon Technologies AG is a leading semiconductor manufacturer, specializing in power semiconductors, sensors, microcontrollers, and various integrated circuits. The company's net sales are primarily driven by the automotive sector (50.5%), followed by power systems and sensors (23.3%), industrial power control (13.5%), and secure connected systems (12.6%). Geographically, sales are concentrated in China/Hong Kong/Taiwan (32.3%) and Europe, with significant contributions from Germany (12.4%) and the United States (12.1%).
Infineon Technologies AG is a leading semiconductor manufacturer, specializing in power semiconductors, sensors, microcontrollers, and various integrated circuits. The company's sales are primarily driven by the automotive sector (50.5%), followed by power and sensor systems (23.3%), industrial power control (13.5%), and secure connected systems (12.6%). Geographically, the largest markets include China-Hong Kong-Taiwan (32.3%) and Europe-Middle East-Africa (14.4%).
UBS has rated Infineon Technologies AG as 'Buy' with a target price of 41 euros. As a leading semiconductor manufacturer, Infineon's diverse product range serves various sectors, with 50.5% of sales from the automotive industry and significant contributions from power and sensor systems, industrial power control, and networked secure systems. Geographically, the company generates substantial revenue from China, Europe, and the USA.
Chinese stimulus is expected to have a less favorable impact on base metals compared to previous years. While emerging markets show positive earnings and policy changes, risks from U.S. tariffs under the Trump administration loom. The U.S. dollar is seen as a strong hedge against these uncertainties, with a generally overweight stance on global equities and specific currencies like the JPY, while Europe remains underweight due to disappointing economic data.
Kioxia Holdings Corp., backed by Bain Capital, has set its indicative IPO price at ¥1,390 per share ahead of its debut on the Tokyo Stock Exchange on December 18. This move aims to leverage the renewed interest in Japan's stock market, following Tokyo Metro Co.'s successful $2.3 billion listing in October.
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