Nomura's CEO sees more scope to get business from Japanese investors who are looking to private markets as a way to diversify their assets https://t.co/cMTVt11a4e ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **Asia Pacific** region, particularly the economic impacts of **China's deflationary pressures** on other Asian economies. Core Insights and Arguments 1. **China's Deflationary Environment**: - China's economy has been experiencing deflation for 10 consecutive quarters, with a GDP deflator of -1.0% as of Q3 2025, indicating persistent deflationary pressures [2][4][44]. - The non-commodity Producer Price Index (PPI) in Asia excluding China is also declining, influenced by China's trade surpluses and excess capacity [1][10]. 2. **Impact on Asia Ex China**: - The report identifies **Thailand, Malaysia, and Korea** as the most exposed economies to China's deflationary pressures, while **Australia and Japan** are the least exposed [3][76][80]. - The PPI for Thailand is at -1.2%, Malaysia at -5.0%, and Korea at 0.7%, indicating varying levels of exposure to deflation [76]. 3. **Central Banks' Response**: - Central banks in Asia are likely to continue easing monetary policy, as inflation is within or below comfort zones for eight out of ten economies in the region [5]. 4. **Trade Dynamics**: - China's trade surplus has increased significantly, from **US$890 billion** in September 2024 to **US$1,174 billion** currently, with exports to the US declining by **27%** year-on-year [56][62]. - The share of Asia ex China in China's exports has risen from **39%** to **41%** [10]. 5. **Sectoral Analysis**: - Sectors most affected by China's deflation include **motor vehicles, electronics, and battery manufacturing**. These sectors are experiencing significant pricing pressures due to competitive dynamics with China [67][70]. - The report highlights that **13 out of 14 non-commodity manufacturing sectors** in China are seeing price declines, with pharmaceuticals and automotive sectors being particularly impacted [47][52]. Additional Important Insights 1. **Risks to the Economic Outlook**: - Potential risks include stronger global growth or intensified anti-involution efforts in China, which could alter the current deflationary trajectory [6]. 2. **Framework for Assessment**: - A scorecard approach is introduced to assess the exposure of Asian economies to China's deflation, considering factors like PPI weight, correlation with China's PPI, and export similarity [3][75]. 3. **Long-term Implications**: - Without significant stimulus to boost demand, achieving a sustained exit from deflation in China remains challenging, which will continue to affect the broader Asian economic landscape [4][43]. 4. **Sector-Specific Pricing Trends**: - Pricing trends in key sectors such as **autos and batteries** remain weak, with significant price declines noted in recent months [52][54]. 5. **Comparative Analysis of Economies**: - Japan and Australia show resilience with positive PPI growth, indicating lower exposure to deflationary pressures compared to their Asian counterparts [80][81]. This summary encapsulates the critical insights from the conference call, highlighting the interconnectedness of China's economic conditions and their implications for the broader Asia Pacific region.

Core Points - Univest Securities, LLC announced the closing of an initial public offering for AMBITIONS ENTERPRISE MANAGEMENT CO. L.L.C, raising gross proceeds of US$6.9 million by offering 1,725,000 Class A ordinary shares at a price of US$4.00 per share [1][2] - The Class A Ordinary Shares began trading on the Nasdaq Capital Market under the ticker symbol "AHMA" on October 21, 2025 [2] Company Overview - AMBITIONS ENTERPRISE MANAGEMENT CO. L.L.C is a UAE-based provider of MICE (meetings, incentives, conferences, and exhibitions) and tourism services, offering event management and travel solutions globally [7] - The company is supported by an experienced management team and partnerships across the tourism and hospitality sectors in the Middle East, Europe, Africa, and the Americas [7] Investment Banking Details - Univest Securities, LLC and AC Sunshine Securities LLC acted as joint bookrunners for the offering, with legal counsel provided by Hunter Taubman Fischer & Li and Ortoli Rosenstadt LLP [3] - A registration statement on Form F-1 was filed with the SEC and declared effective on September 30, 2025 [4]

Investment Rating - The report indicates a negative sentiment for US equities with a sentiment indicator reading of -0.6, suggesting a cautious outlook for the market [5]. Core Insights - Despite recent market anxiety driven by de-grossing and tariff concerns, the positioning in the market has returned to a more favorable state, with elevated panic indicators that are not widespread. The medium-term growth outlook into 2026 remains positive, supported by policy, strong balance sheets, and increased investment in AI [2][6]. - The sentiment indicator data shows that 2025 stands out in terms of US equity positioning and sentiment, particularly when compared to 2024 [6][7]. - The report highlights that while certain sectors of the equity market appear well-subscribed, the overall market sentiment remains relatively unloved due to past policy uncertainties [14]. Summary by Sections Sentiment Indicator Analysis - The sentiment indicator tracks investor positioning across over 80% of the US equity market owned by institutional, retail, and foreign investors [13]. - Historical data shows that the best years for sentiment readings include 2024 with +1.00 and a 23% increase in the S&P 500, while the worst year was 2022 with -1.20 and a 19% decrease in the S&P 500 [10][11]. Technical Analysis - Trend-following funds are heavily net long across major equity futures, with only a marginal reduction in exposure recently, estimated at $2 billion globally. The model-implied flows remain modest, indicating limited risk of liquidity issues unless a significant market shock occurs [15][18].

Financial Performance Highlights - Net revenue for 3Q25 reached $1429 million, with Year-To-Date (YTD) revenue at $3969 million[4] - GAAP net earnings for 3Q25 were $202 million ($1.84 EPS), and non-GAAP net earnings were $214 million ($1.95 EPS)[4] - Year-to-date GAAP net earnings reached $391 million ($3.56 EPS), while non-GAAP net earnings were $454 million ($4.13 EPS)[4] - The company's book value per share is $49.74, with a tangible book value per share of $34.99[4] Global Wealth Management (GWM) - GWM net revenue for 3Q25 was $907 million, a 10% increase year-over-year[15] - Transactional revenue within GWM reached $203 million, up 5% year-over-year[20] - Asset management revenue in GWM was $431 million, a 13% increase year-over-year[20] - Total client assets in GWM reached $544010 million, a 10% increase year-over-year[22] Institutional Group - Institutional Group revenue for 3Q25 was $500 million, a 34% increase year-over-year[15] - Advisory revenue within the Institutional Group was $179 million, up 31% year-over-year[36] - Capital raising revenue in the Institutional Group was $138 million, a 38% increase year-over-year[36] Expenses and Capital - Compensation expense for 3Q25 was $829 million, a 17% increase year-over-year[43] - Non-compensation expense for 3Q25 was $298 million, a 7% increase year-over-year[43]

Core Insights - OpenAI is conducting a unique experiment called "Mercury," hiring over 100 former investment banking employees to train its AI models in financial modeling and other core skills [1][2] - The project aims to teach AI how to perform tasks typically done by junior bankers, raising concerns about the future job security of entry-level positions in the finance industry [1][2] Group 1: Project Details - The "Mercury" project has recruited professionals from top financial institutions, including JPMorgan, Morgan Stanley, and Goldman Sachs, as well as talent from Brookfield Corp., Mubadala Investment Co., Evercore Inc., and KKR & Co. [2] - Participants are paid $150 per hour and are required to submit a financial model each week, using simple language to write prompts and executing them in Microsoft Excel [2] - The application process for participants involves minimal human intervention, including a 20-minute interview with an AI chatbot and tests on financial statement knowledge and modeling skills [3] Group 2: AI Learning Focus - The project emphasizes the importance of attention to detail, as junior analysts often work long hours and handle tedious tasks, such as building complex merger models in Excel [4] - According to Bloomberg columnist Matt Levine, the meticulous nature of investment banking is crucial for AI to learn, as even minor formatting errors can lead to significant trust issues [5] - Levine describes the current generative AI as "smart but careless," suggesting that the project is a form of reinforcement learning to instill the necessary attention to detail in AI [5] Group 3: Implications for the Industry - The direct goal of the "Mercury" project is to enable AI to replace the work of junior employees, raising questions about the future of the traditional apprenticeship model in investment banking [6] - Historically, junior analysts have learned skills through foundational work, but if AI takes over these tasks, it may hinder the development of future leaders in the industry [6] - The high turnover rate in investment banking means that many former analysts may not feel burdened by the prospect of training AI to replace their previous roles [6] Group 4: OpenAI's Strategic Focus - The "Mercury" project reflects OpenAI's broader commercialization strategy, targeting the lucrative financial services sector to demonstrate the value of its technology in complex business environments [7] - Despite its high valuation, OpenAI has yet to achieve profitability, prompting the company to actively explore enterprise markets [7] - The initiative indicates OpenAI's ambition to develop specialized AI tools that can be deeply integrated into corporate workflows, aiming for a significant position in the global business landscape [7]

NEW YORK, Oct. 22, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Jefferies Financial Group Inc. (NYSE: JEF) and Point Bonita Capital for potential violations of the federal securities laws. If you invested in Jefferies or Point Bonita, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/jefferies-financial-group-inc-class-action. Why are Jefferies and Point Bonita being Investigated? Jefferies is an i ...

Core Insights - OpenAI is planning to automate entry-level finance tasks, but experts suggest this may not lead to immediate workforce reductions [1][3] - The initiative involves over 100 former investment bankers who are training AI models to handle financial modeling and other repetitive tasks [2] Group 1: Automation and Workforce Impact - The automation is expected to transform entry-level roles rather than eliminate them, with a shift in the skill sets required for these positions [3] - A "first wave of automation" will target structured, repeatable tasks that junior analysts currently perform, such as spreadsheet management and financial modeling [4] - Firms may automate 60% to 70% of the time analysts spend on lower-level tasks within the next year, allowing senior analysts to focus on more complex work [5] Group 2: Industry Perspectives - Experts caution against overestimating the impact of AI on workforce size, noting that similar technologies in the past have streamlined work without significant job losses [6] - A McKinsey report indicates that only 38% of organizations using AI expect generative AI to significantly affect their workforce size in the next three years [6]

Core Insights - The capital markets in Hong Kong are experiencing significant activity, driven by international capital inflows into IPOs and refinancing deals, particularly due to the perceived value and quality of Chinese assets [1][3]. Group 1: Market Activity - Citic Securities International is a major player in the Hong Kong IPO market, sponsoring approximately one-third of the companies with IPO applications as of October 7 [2]. - In the first nine months of the year, 66 companies raised a total of US$23.3 billion from the Hong Kong stock exchange, marking a year-on-year increase of over three times and solidifying Hong Kong's status as the leading capital-raising venue globally [5]. Group 2: Financial Performance - Citic Securities reported a rise in fee and commission income from investment banking to 2.13 billion yuan (US$300 million) in the first half of the year, up from 1.8 billion yuan the previous year [4]. - The company achieved the highest investment banking fees in the Asia-Pacific region, excluding Japan, totaling US$1.06 billion in the first three quarters of 2025 [3]. Group 3: Future Outlook - The continued interest from international capital is expected as long as there are profitable opportunities, particularly in high-quality deals involving mega-cap blue chips [3]. - Citic Securities is expanding its team to meet the growing demand in the thriving market, with an IPO pipeline that includes companies from various regions including China, Europe, the US, and Southeast Asia [4].

Core Viewpoint - Goldman Sachs projects a 30% upside for Chinese stocks by the end of 2027, indicating a positive outlook for the Chinese equity market in the coming years [1] Summary by Relevant Categories Market Outlook - The firm anticipates that Chinese stocks will experience significant growth, with a target of 30% increase by 2027 [1] Investment Strategy - Investors are encouraged to consider Chinese equities as a viable option for capital appreciation, given the projected upside [1] Economic Indicators - The analysis suggests that underlying economic factors in China will support this growth trajectory, although specific indicators were not detailed in the summary [1]