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Vikas Khemani, founder of Carnelian Asset Management, downplays concerns over a slowdown in earnings, predicting a 14-15% growth over the next two years despite potential short-term dips. He notes that the narrative of foreign investors pulling out of India due to economic worries is misleading, as much of the capital reallocation to China has already occurred. Khemani emphasizes the importance of fund managers' strategies in market performance, explaining the shift of capital towards China during its market surge.
China's yuan is projected to weaken to record lows as U.S. tariff threats escalate, with major investment banks forecasting an average of 7.51 per dollar by the end of 2025. The yuan's depreciation poses challenges for Chinese authorities, who aim to stabilize the currency while reviving the economy. The People's Bank of China is expected to implement measures to prevent excessive declines, balancing currency control with economic growth.
Citadel Advisors, Pimco, and Western Asset Management are set to acquire stakes in Spirit Airlines following the airline's bankruptcy restructuring. These firms, which hold Spirit's 8% senior secured notes due in 2025, will exchange these notes and convertible bonds for equity once the company exits bankruptcy next year.
Actively managed exchange-traded funds (ETFs) are emerging as a significant trend in investment, attracting $603 billion from investors while active mutual funds faced $2.2 trillion in outflows since 2019. With lower fees and tax efficiency, active ETFs are seen as a growth engine for active management, despite representing only 8% of ETF assets. The conversion of active mutual funds to ETFs has further bolstered this trend, with funds experiencing a notable increase in inflows post-conversion.
Diego Megia's Taula Capital Management is set to reopen its hedge fund to raise an additional $1 billion, following a successful $5 billion launch earlier this year. The new capital is expected to be sourced from existing investors between December and March.
Australia's largest pension fund, AustralianSuper, has expanded its international equities team in London by hiring three senior investment managers. Steve Kelly from AXA Investment Managers will co-head high growth global equities with Anu Narula, who joins from Mirabaud Asset Management. Colin Moar, previously with Barings, has been appointed as senior portfolio manager for technology stocks.
KKR has officially opened a permanent office in Zurich, enhancing its Global Wealth Solutions team with key hires Derya Kara and Mattia Castrovillari. This expansion aims to strengthen ties with private banks and wealth managers in Switzerland, reflecting the growing demand for KKR's investment expertise in the region.
Donald Trump has appointed Kevin Hassett to lead the National Economic Council, enhancing his economic team as he prepares for his inauguration on January 20. Hassett, who previously chaired the Council of Economic Advisers, will play a key role in shaping policies on trade, taxes, and deregulation. Alongside this, Trump has nominated Jamieson Greer as U.S. Trade Representative and indicated plans to raise tariffs on Chinese goods and products from Mexico and Canada.
Jim Cramer advocates for cryptocurrency as a hedge against government spending and the growing national debt, stating that concerns over fiscal issues are persistent. He acknowledges the lack of a proven track record for crypto but believes assets like bitcoin and ethereum could be valuable in a diversified portfolio. Cramer remains skeptical about the government's ability to address the debt crisis effectively, citing a lack of political will for unpopular decisions.
Asia markets are set to open mixed as Wall Street reaches new record highs, with the Dow and S&P 500 closing up 0.3% and 0.6%, respectively. A London hedge fund has taken a bearish stance on Cargojet, citing concerns over its aging fleet and leadership. Meanwhile, consumer confidence rose in November, with expectations for the stock market hitting a record high, driven by optimism in the labor market and improved inflation outlook.
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