Group 1: Pagaya Technologies Ltd. (PGY) - The company has a Zacks Rank 1 and a Momentum Score of A [1] - The Zacks Consensus Estimate for its current year earnings increased by 12.3% over the last 60 days [1] - Pagaya's shares gained 31.2% over the last three months, outperforming the S&P 500's advance of 7.8% [1] Group 2: InterDigital, Inc. (IDCC) - The company has a Zacks Rank 1 and a Momentum Score of A [2] - The Zacks Consensus Estimate for its current year earnings increased by 6.8% over the last 60 days [2] - InterDigital's shares gained 50% over the last three months, significantly outperforming the S&P 500's advance of 7.8% [2] Group 3: Sumitomo Mitsui Financial Group, Inc. (SMFG) - The company has a Zacks Rank 1 and a Momentum Score of B [3] - The Zacks Consensus Estimate for its current year earnings increased by 7.2% over the last 60 days [3] - Sumitomo Mitsui's shares gained 11.3% over the last three months, slightly outperforming the S&P 500's advance of 7.8% [3]

Group 1: Government Shutdown and Market Reactions - The U.S. government shutdown has entered another week, with potential layoffs for federal employees if negotiations do not progress [2][3] - Despite the shutdown, U.S. equities are expected to continue their strong performance, driven by optimism regarding artificial intelligence and historical resilience during past shutdowns [9][10] - The ongoing shutdown is contributing to expectations of further interest rate cuts by the Federal Reserve, which is positively impacting gold prices, now nearing $4,000 per ounce and up almost 50% year-to-date [6][7] Group 2: Political Changes in France and Japan - In Japan, the election of Sai Takayi as the leader of the ruling Liberal Democrats is expected to lead to increased fiscal stimulus, resulting in a surge in Japanese stocks and a weakening yen [4][5] - Conversely, France's political instability is highlighted by the resignation of Prime Minister Sebastian Lo, leading to declines in French stocks and rising bond yields, raising concerns about economic confidence [5][6][13] - The differing political climates in Japan and France are impacting market sentiment, with Japan seen as more favorable for investment due to anticipated fiscal measures [15][16] Group 3: Corporate Developments and Market Trends - Fifth Third Bankcorp is acquiring Coma in an all-stock deal valued at $10.9 billion, creating one of the largest banks in the U.S. by assets [19] - AMD's shares are rising following a significant partnership with OpenAI, which includes a 10% stake acquisition and a commitment to purchase six gigawatts of AMD's Mi450 chips [21][22] - Tesla's shares are also set to rise ahead of a product launch event, with expectations for a lower-cost version of the Model Y to boost sales momentum [23][24]

Core Points - Treasury Secretary Scott Bessent has appointed Frank Bisignano, the current commissioner of the Social Security Administration, to also lead the Internal Revenue Service (IRS) as its chief executive, allowing him to avoid the Senate confirmation process [1][2] - Bisignano is expected to focus on upgrading IRS technology and enhancing electronic tax filing capabilities, aligning with the administration's goals for the agency [2][4] - An immediate challenge for Bisignano will be managing the IRS operations during the current government shutdown while preparing for the early 2026 tax filing season [3][4] Group 1 - The IRS is reportedly operational for the first five business days of the shutdown due to funds outside of annual appropriations, but future operations remain uncertain [4] - Bessent highlighted that both the IRS and Social Security Administration share similar technological and customer service goals, making Bisignano a suitable choice for the IRS role [4][5] - Bisignano's previous experience includes leadership roles at Fiserv, JPMorgan Chase, and Citigroup, which may contribute to his effectiveness in the new position [5][6]

Core Insights - Galaxy Digital Inc. is launching a new banking platform aimed at everyday investors, led by Zac Prince, the former CEO of BlockFi, which filed for bankruptcy after the FTX collapse [1][4] Company Overview - BlockFi was a prominent digital-asset firm that offered high returns through its BlockFi Interest Accounts, reaching a peak of approximately $14.7 billion in investor assets and nearly 400,000 US-based clients before its downfall [2][3] - Galaxy Digital, founded in 2018 by Mike Novogratz, has evolved into a significant player in the digital asset space, providing trading, lending, and advisory services to institutional clients [6] New Offerings - The new cash account from Galaxy Digital advertises a 4% annual percentage yield (APY) with the option to auto-invest interest into cryptocurrency, significantly higher than traditional savings and checking account rates [7] - Galaxy is also introducing a crypto trading platform supporting Bitcoin, Ethereum, Solana, and Paxos Gold, along with brokerage accounts that allow fractional share trading and stock lending [8] - A premium yield product is being launched for accredited investors, offering an 8% APY with a minimum investment of $25,000 and a total cap of $250 million [9] Strategic Positioning - Galaxy Digital sees a strong business opportunity in providing financial services to retail clients in the US, especially following its NASDAQ listing and improved regulatory clarity in the crypto market [10][11] - The company has significantly increased its risk management team, indicating a more conservative approach to risk compared to BlockFi [5]

Core Insights - UBS has launched "Icons of Time," a unique exhibition celebrating the artistry and innovation of watchmaking, in partnership with Hodinkee, taking place on October 9-10 in New York City [1][2][5] - The exhibition features twelve landmark timepieces from iconic brands, representing nearly one hundred years of craftsmanship and design ingenuity [2][4] - UBS House of Craft aims to deepen cultural exchange and celebrate excellence across various disciplines, including horology [4][7][10] Company Overview - UBS is a leading global wealth manager and universal bank based in Switzerland, managing $6.1 trillion in invested assets as of Q4 2024 [6] - The firm operates in over 50 markets worldwide and is listed on the SIX Swiss Exchange and the New York Stock Exchange [6] Exhibition Details - "Icons of Time" will showcase watches from renowned brands such as A. Lange & Söhne, Audemars Piguet, Cartier, and Rolex, among others [2][4] - The exhibition includes on-site demonstrations of horological craftsmanship, such as the assembly of iconic timepieces [4] - Registration for the event is free and open to the public [5] Initiative Background - UBS House of Craft is a global initiative that celebrates excellence in various crafts, including horology and gastronomy, with events planned in the US and Asia [7][9] - The initiative reflects UBS's commitment to mastery and cultural exchange, connecting clients with the worlds of luxury and craft [8][10]

Economic Outlook - The markets are currently showing resilience despite concerns over government shutdowns and valuations, driven by strong underlying economic factors [1][2] - Key drivers include significant capital expenditure (capex) tailwinds from AI and a dovish stance from the Federal Reserve, which has maintained rates for 9 months [2][3] Manufacturing Sector - The ISM manufacturing index has been below 50 for 31 months, indicating a prolonged contraction, which is historically the longest stretch [4][5] - A potential rise above 50 in the ISM index could signal a return to expansion, positively impacting financials, small caps, and the tech sector [5] Federal Reserve's Influence - The Federal Reserve is expected to adopt a more dovish approach due to the economic disruptions caused by the government shutdown, which could further support stock market rallies [7][8] - The Fed's dovish stance is anticipated to boost economic activity and positively affect the manufacturing sector [6][12] Seasonal Trends - Historically, the fourth quarter has seen an average rise of about 5% in stock prices since 1950, although this year may present unique challenges due to ongoing trade tensions and government shutdowns [8][9] - Investor sentiment remains muted despite a 30% rally in stocks, leading to the characterization of the current market as a "most hated V-shaped rally" [10] Financial Sector Insights - Financials are viewed as a favorable investment due to the Fed's dovish outlook and the potential for AI to enhance profitability and operational efficiency [11][12] - The integration of blockchain technology in financial services is expected to drive efficiency, with examples like Tether demonstrating significant valuation advantages compared to traditional banks [14][15]

Economic Overview - The US national debt has reached $37.88 trillion as of October 2, 2025, increasing by $2.2 trillion since October 2024, which translates to $283,098 per household [1] - The average interest rate on total marketable debt is 3.415%, leading to $241.26 billion in interest payments over the past year [1] Asset Movements - Bitcoin surpassed $125,000 and gold reached a record $3,924.39 per troy ounce, indicating a significant shift towards alternative assets [2] - The US dollar has declined over 10% year-to-date, losing 40% of its purchasing power since 2000, prompting investors to seek safety in Bitcoin, gold, and silver [2] Debt Projections - If the current growth rate continues, the US national debt is projected to hit $38 trillion by December 9, 2025, with each additional trillion accumulating in approximately 169 days [3] - The Congressional Budget Office forecasts net interest as a share of outlays to rise to 13.55% in fiscal year 2025 and 14.11% by 2027 [3] Market Correlation - The correlation coefficient between gold and the S&P 500 reached a record 0.91 in 2024, indicating that these assets moved in tandem 91% of the time [4] - The S&P 500 has increased by 40% over six months, adding $16 trillion in market capitalization, while the Nasdaq 100 has seen six consecutive monthly gains [4] Precious Metals Rally - Gold has increased nearly 47% year-to-date in 2025, driven by over 1,000 tons of central bank purchases, particularly from China and India, alongside Federal Reserve rate cuts [5] - Analysts note a pattern of dollar debasement against alternative reserve assets, similar to trends observed after the global financial crisis [5]

Hong Kong will host its first summit among female financial leaders next month, the Women Chief Executives Hong Kong (WCE HK) announced on Monday. The November 3 event is set to become the city's largest gathering of senior women leaders in finance, bringing together more than 200 C-suite senior executives, including global CEOs and chief financial officers (CFOs). "This unparalleled gathering underscores Hong Kong's pivotal role in fostering international dialogue on leadership and its global calibre," ...

Core Insights - Hong Kong is reaffirming its role as a financial hub and a bridge for China's Belt and Road Initiative, facilitating direct equity connections between China and Central Asia that are not available through other cities like Shanghai or Shenzhen [1][5][11] - The city is experiencing a surge in cross-border financial activities, highlighting its importance as a financial springboard for China amid shifting trade dynamics [4][5] - Recent innovations in Hong Kong's financial market, such as dual-currency counters and frameworks for digital assets, position it as a testing ground for financial innovations that may not be feasible on the mainland [6][7][10] Financial Market Developments - Jiaxin International Resources' dual listing in Hong Kong and Astana marks a significant milestone as the first yuan-denominated deal on the Kazakh exchange, showcasing Hong Kong's financial innovation capabilities [2] - Trading activity under the Stock Connect program has seen substantial growth, with northbound turnover tripling and southbound turnover increasing more than fivefold in August compared to the previous year [15] - The Hong Kong stock market is witnessing a revival, with nearly 60 IPOs this year, predominantly from mainland firms, and around 200 more awaiting approval [17] Policy and Strategic Shifts - Beijing is recalibrating its trade and investment strategies away from the US, positioning Hong Kong as a launch pad for its global ambitions [5][8] - The China Securities Regulatory Commission has introduced measures to deepen connectivity and broaden Hong Kong's product base, reinforcing its unique role in supporting renminbi internationalization [17][18] - The focus on wealth management in the Greater Bay Area is highlighted as a strategic priority for financial institutions leveraging Hong Kong's position [19][20]

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Former Fiserv Chief Executive Frank Bisignano, who left the payments processor earlier this year after President Donald Trump tapped him to lead the Social Security Administration, has been appointed as CEO of the Internal Revenue Service as well. Treasury Secretary Scott Bessent, who is acting commissioner for the IRS, announced Bisignano’s appoin ...