Group 1: Market Performance - Hong Kong retail funds recorded gross sales of US$82.6 billion in the first three quarters of this year, surpassing the full-year total for 2024, with a year-on-year increase of 35% [1][4] - Net sales reached US$15.7 billion year to date, marking the highest level in the past decade and a 44% increase compared to the previous year, exceeding the US$12.3 billion net inflows recorded for all of 2024 [1][2] Group 2: Fund Categories - Fixed-income funds were the primary driver of growth, attracting US$10.8 billion in net inflows during the first three quarters [3] - Mixed-asset funds saw a reversal in outflow trends, drawing in US$1.7 billion [3] - Money market funds, traditionally favored for their safety and income generation, attracted US$2.9 billion but experienced net outflows for the first time since August [4] Group 3: Market Outlook - Expectations of interest rate cuts have contributed to the recent net outflows from money market funds, as indicated by industry experts [5] - Continued central bank easing throughout 2026 is anticipated to benefit fixed-income markets, with solid support expected from bond markets next year [5][6] - Analysts predict lower interest rates in the US and Europe due to weaker labor market trends and declining inflation [6]

Market Performance - U.S. equity markets experienced gains on November 25, 2025, with the Dow Jones Industrial Average rising 664.18 points, or 1.4%, to close at 47,112.45, marking its largest one-day gain since August 22, 2025 [2] - The S&P 500 increased by 60.76 points, or 0.9%, finishing at 6,765.88, now just 1.8% away from its all-time high [2] - The Nasdaq Composite rose 153.59 points, or 0.7%, closing at 23,025.59, while the Russell 2000 index saw the largest gains at 2.1% [2] Economic Indicators - U.S. retail sales rose by 0.2% in September, below the expected 0.3%, while the Producer Price Index (PPI) increased by 0.3%, with the core PPI rising only 0.1% [4] - November U.S. consumer confidence data was reported at 88.7, the lowest since April [4] - Upcoming economic data includes GDP estimates, wholesale inventories, durable goods orders, and consumer spending metrics [5] Corporate News - Alphabet (GOOGL) shares surged 3.85% following the launch of its AI platform, Gemini 3, seen as a competitor to OpenAI's ChatGPT [6] - Nvidia (NVDA) and Advanced Micro Devices (AMD) shares fell 3.53% and 6.86%, respectively, due to reports of Meta Platforms considering Google's AI chips for its data centers [6] - Best Buy (BBY) shares rose 3.5% after reporting better-than-expected fiscal Q3 2026 earnings and raising its full-year outlook [6] - Abercrombie & Fitch (ANF) shares soared over 30% after a strong fiscal Q3 2026 profit report [6] - Kohl's (KSS) shares surged 36.4% after reporting a surprise profit [6] - Zoom Video Communications (ZM) shares climbed 12.87% following strong Q3 revenue growth and an increased share buyback program [6] Post-Market Earnings - Keysight Technologies (KEYS) shares jumped 8.41% after exceeding quarterly earnings estimates [11] - Alibaba (BABA) reported stronger revenue but fell short on profit forecasts, leading to a 2.1% decline in its U.S.-listed stock [11] - Dell Technologies (DELL) and HP Inc. (HPQ) reported earnings with a focus on AI server solutions and the AI PC market, respectively [11] - Other companies reporting included Autodesk Inc. (ADSK), Workday, Inc. (WDAY), and Nutanix, Inc. (NTNX) [11]

Core Viewpoint - Kevin Hassett is emerging as a frontrunner to be the next Chair of the Federal Reserve, aligning closely with President Trump's economic views and interest rate policies [1][74]. Group 1: Candidate Profile - Kevin Hassett is seen as aligned with President Trump's views on the economy and monetary policy, advocating for interest rate cuts [2][3]. - He has criticized the Federal Reserve for its handling of inflation during the pandemic, suggesting a need for operational changes [3][6]. - Hassett's potential appointment could reshape the Federal Reserve's approach to monetary policy, focusing on job creation and reducing interest rates [5][7]. Group 2: Selection Process - The selection process for the next Fed Chair is being led by Treasury Secretary Scott Bessent, with interviews ongoing for five candidates [4][10]. - An announcement regarding the new Fed Chair could come by Christmas, with the current Chair, Jerome Powell, remaining in position until May 2026 [11][12]. Group 3: Market Reactions - Following the news of Hassett's frontrunner status, equity markets reacted positively, with the S&P 500 rising by 0.8% and the Russell 2000 gaining over 2% [78]. - The two-year yield, sensitive to Fed policy, dropped to approximately 3.46%, indicating market expectations of potential interest rate cuts [78]. Group 4: Economic Implications - The next Fed Chair could adopt a narrative prioritizing job growth over inflation concerns, depending on economic conditions [7][8]. - If inflation trends towards the Fed's 2% target, there may be opportunities to lower interest rates, but persistent inflation could complicate this [8][9]. - The economic outlook remains uncertain, with potential fiscal stimulus from tax cuts expected to impact growth and inflation dynamics in 2026 [25][26].

Core Viewpoint - The U.S. economy requires significant interest rate cuts to alleviate high borrowing costs and support labor market recovery [1][2][7]. Monetary Policy - Federal Reserve governor Stephen Miran advocates for large interest rate cuts to achieve a neutral monetary policy quickly, arguing that current rates are restrictive and detrimental to economic growth [2][5]. - The Federal Open Market Committee (FOMC) is divided on the necessity of further rate cuts, with discussions ongoing about the impact of a softening labor market and persistent inflation [2][3]. Interest Rate Cuts - Miran suggests a series of 50 basis point cuts, citing recent positive job data and low inflationary risks as justification for this approach [5][6]. - The Fed has already implemented two rate cuts this year, bringing the federal funds rate to a range of 3.75% to 4% [3]. Labor Market and Unemployment - The rising unemployment rate is attributed to tight monetary policy, and Miran expresses concern that failure to cut rates could hinder labor market recovery [6][7]. - Miran emphasizes the need for a forward-looking approach in policy-making to address the challenges in the labor market [7]. Housing Market - Miran highlights the importance of easing mortgage rates, noting that while financial conditions may appear loose due to the stock market, the housing market remains tight [8]. - He believes that cutting interest rates will eventually lead to improved financial conditions in the housing market [8].

Core Viewpoint - There is a strong possibility that President Trump will announce a new Federal Reserve Chair by Christmas, as indicated by Treasury Secretary Scott Bessent, who is leading the search for a replacement for Jerome Powell [1][3]. Group 1: Replacement Search - Bessent mentioned that he has one final interview left and is not ready to speculate on potential successors to Powell, who Trump has expressed a desire to fire [1][3]. - Finalists for the Fed Chair position reportedly include Kevin Hassett, Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder [3]. Group 2: Trump's Criticism of Powell - Trump has been critical of Powell for not reducing interest rates quickly enough, stating that Powell has "mental problems" and expressing a desire to "fire his ass" [4][10]. - During a recent event, Trump humorously urged Bessent to address the issue of high rates, indicating urgency in the matter [5][7]. Group 3: Current Monetary Policy Context - The Federal Reserve has recently cut interest rates by a quarter-point in September and October, bringing rates to a range of 3.75% to 4% [7][10]. - Market expectations indicate an 83% probability of another quarter-point cut at the upcoming December 10 meeting [10]. - Fed officials are divided on the future direction of interest rates, with some advocating for a pause while others support further cuts [10][11]. Group 4: Future Vision for the Fed - Bessent expressed a desire for the next Fed Chair to simplify monetary policy and allow the Fed to take a less prominent role, focusing on serving the American people [11].

Core Viewpoint - QXO Inc (NYSE:QXO) is recognized as a leading non-AI stock among Reddit investors, with a focus on roofing solutions and building products, and has seen a 7% increase in value this year [2]. Group 1: Company Performance and Strategy - QXO Inc is positioned to benefit from a projected rebound in the building products distribution sector in the US, driven by declining interest rates [2]. - The company is expected to thrive due to a significant housing shortage of 7.2 million homes in the US and an aging housing stock, with a median age of about 40 years, creating a growing demand for renovation and repair solutions [3]. - Following its $11 billion acquisition of Beacon Roofing in April, QXO has emerged as a top contributor to performance, indicating a successful roll-up strategy in the fragmented building products distribution industry [4]. Group 2: Management and Future Outlook - QXO's management has demonstrated a disciplined approach to acquisitions, notably opting out of a bidding war for GMS Inc., which was acquired by Home Depot, reflecting a long-term focus [4]. - The company aims to achieve over $50 billion in annual revenue over the next decade, showcasing ambitious growth targets under the leadership of Brad Jacobs [4].

Labor Market Insights - The U.S. labor market is showing signs of weakening, with an increase in layoffs reported by ADP, averaging 13,500 jobs lost per week over the past four weeks, up from 2,500 jobs lost in the previous update [1] - The government shutdown is affecting data releases, leading to reliance on alternative data sources like ADP to fill in economic gaps [2] Federal Reserve Policy Outlook - Federal Reserve policymakers will lack usual data for forecasts during their meeting on December 9-10, with several officials advocating for additional interest rate cuts, prompting market expectations for a reduction at the next meeting [3] - Goldman Sachs anticipates that the Fed will implement a rate cut in December, followed by two additional quarter percentage point reductions in 2026 [5] Economic Indicators - The next jobs report is scheduled for December 16, and the Consumer Price Index (CPI) for December 18, with expectations that alternative indicators will show renewed job losses in October despite a reported growth of 119,000 payrolls for September [4]

Core Insights - Mortgage rates have seen fluctuations, with the average 30-year fixed-rate mortgage decreasing by five basis points to 6.06%, marking it as the lowest rate of 2025 [1] Current Mortgage Rates - The current national average for a 30-year fixed mortgage is 6.06% [15] - Other mortgage rates include: - 20-year fixed: 6.06% - 15-year fixed: 5.53% - 5/1 ARM: 6.16% - 7/1 ARM: 6.02% - 30-year VA: 5.55% - 15-year VA: 5.28% - 5/1 VA: 5.09% [5] Refinance Rates - The average refinance rate for a 30-year fixed mortgage is 6.20% [15] - Refinance rates are generally higher than purchase rates [3] Economic Context - Economists do not anticipate significant drops in mortgage rates before the end of 2025, despite recent cuts by the Federal Reserve [13][16] - The Federal Reserve has implemented rate cuts in 2025, with a potential for another cut before the year ends [14] Long-term Projections - Mortgage rates may ease slightly in 2026, but any decreases are expected to be modest, influenced by economic conditions and inflation [17]

Core Viewpoint - The Zacks Utility - Water Supply industry is essential for providing clean drinking water and efficient sewer services, with a focus on infrastructure upgrades to meet growing demand and address aging pipelines [1][2][3]. Industry Overview - The industry consists of companies providing drinking water and wastewater services across a vast network of nearly 2.2 million miles of aging pipelines, requiring continuous investment in infrastructure [3]. - Water utilities benefit from lower interest rates, which reduce financing costs and support infrastructure investments [4]. - The U.S. water industry is fragmented, with over 50,000 community water systems and 14,000 wastewater treatment facilities, leading to inefficiencies that consolidation could address [5]. Investment Needs - The U.S. water infrastructure is deteriorating, with an estimated $1.25 trillion needed over the next 20 years for upgrades, while the Bipartisan Infrastructure Law has committed $50 billion for improvements [6]. - The American Society of Civil Engineers rates U.S. drinking water infrastructure at C- and wastewater systems at D+, highlighting the urgent need for upgrades [6]. Market Performance - The Zacks Utility Water Supply industry has underperformed compared to the Zacks S&P 500 composite and the broader utilities sector over the past 12 months, gaining 6.1% versus 12.5% for the sector and 12.4% for the S&P 500 [11]. - The industry is currently trading at a trailing 12-month EV/EBITDA of 15.89X, lower than the S&P 500's 17.94X and the sector's 15.92X [14]. Earnings Outlook - The Zacks Utility Water Supply industry has a positive earnings outlook, with an aggregate earnings estimate of $2.27 indicating year-over-year growth of 7.1% [9]. - The Zacks Industry Rank 97 places the industry in the top 40% of over 243 Zacks industries, suggesting bullish prospects for the near term [7][8]. Company Highlights - **American States Water Company (AWR)**: Plans to invest $180-$210 million in 2025 for infrastructure upgrades, with a long-term earnings growth rate of 5.65% and a current dividend yield of 2.75% [18][19]. - **American Water Works Company (AWK)**: Aims to invest $3.3 billion in 2025 and $19-$20 billion from 2026 to 2030 for infrastructure strengthening, with a long-term earnings growth rate of 6.77% and a current dividend yield of 2.49% [23][24]. - **Essential Utilities Inc. (WTRG)**: Plans to invest $7.8 billion from 2025 to 2029 for pipeline rehabilitation, with a current dividend yield of 3.42% [27][28].

Market Overview - Major U.S. index futures indicate a higher open on Monday, suggesting a continuation of the rebound seen last Friday [1] - The Nasdaq and S&P 500 reached their lowest closing levels in over two months last Thursday due to concerns about valuations and interest rates [2] - Positive sentiment is emerging from progress in peace talks between Russia and Ukraine [2][3] Economic Indicators - Traders are awaiting the release of delayed U.S. economic data, including retail sales, producer prices, and durable goods orders for September [3][4] - The upcoming reports could influence the outlook for interest rates ahead of the Federal Reserve's December meeting [4] Stock Performance - On Friday, the Dow rose by 493.15 points (1.1%) to 46,245.41, the Nasdaq increased by 195.03 points (0.9%) to 22,273.08, and the S&P 500 climbed by 64.23 points (1.0%) to 6,602.99 [5] - Despite the Friday rebound, all major averages posted significant weekly losses: Nasdaq down 2.7%, S&P 500 down 2.0%, and Dow down 1.9% [5] Interest Rate Outlook - Optimism regarding a potential interest rate cut by the Federal Reserve in December has increased, with the probability rising to 71.5% from 39.1% [6] - New York Federal Reserve President John Williams indicated that monetary policy is "modestly restrictive" and suggested room for further rate adjustments [7] Sector Performance - Housing stocks performed well, with the Philadelphia Housing Sector Index increasing by 4.0% [9] - Airline stocks also showed strength, with the NYSE Arca Airline Index rising by 3.0% [10] - Other sectors, including biotechnology, oil service, healthcare, and computer hardware, experienced upward movements [10] Commodity and Currency Markets - Crude oil futures increased slightly to $58.08 per barrel after a previous drop [11] - Gold futures rose to $4,082.60 per ounce following a prior increase [11] - The U.S. dollar strengthened against the yen and euro, trading at 156.92 yen and $1.1538 respectively [11] Asian Market Activity - Asian stocks ended mixed, with Japanese markets closed for a holiday, but sentiment was supported by hopes for a Federal Reserve rate cut and easing Ukraine-Russia tensions [12] - Hong Kong's Hang Seng Index surged by 2.0%, driven by positive performance in chip-related stocks and Alibaba's growth [15] European Market Activity - European stocks mostly rose, buoyed by hopes for a Federal Reserve rate cut and progress in Ukraine peace talks [18] - The German DAX Index increased by 0.8%, while Bayer's shares rose sharply following positive study results [19][20]