Core Viewpoint - The Bank of Japan's committee member, Naoki Tamura, anticipates that the impact of tariffs will begin to reflect in data starting from July [1] Group 1: Economic Policy - There are currently no plans to reduce holdings in exchange-traded funds (ETFs) [1] - The committee member emphasizes the need for time to carefully consider how to manage ETF holdings [1] - The impact of interest rate hikes on the economy is perceived to be weaker than in the past [1]

Core Viewpoint - Japan's inflation rate has exceeded 3%, surpassing the government's and Bank of Japan's target of 2%, leading to market speculation about the timing of interest rate hikes [1][4]. Group 1: Monetary Policy and Inflation - The Bank of Japan is committed to a monetary normalization path, gradually reducing its bond purchases starting from April 2026 while decreasing its holdings of Japanese government bonds [1][3]. - The current inflation rate in Japan is over 3%, prompting market attention on the timing of potential interest rate increases, with the Bank of Japan monitoring the impact of U.S. tariffs and domestic political developments [1][4]. Group 2: Government Bond Holdings - The Bank of Japan holds approximately 560 trillion yen in government bonds, with internal consensus indicating that this amount is considered "excessive" [3]. - The Bank of Japan plans to exclude government bond purchases from its monetary policy tools, actively pursuing a quantitative tightening route to reduce its bond holdings [3][4]. Group 3: Future Rate Hikes and Economic Indicators - The Bank of Japan's President, Ueda, indicated that the timing for future interest rate hikes will be based on a comprehensive assessment of various data and information, without providing a clear stance [4][5]. - Market expectations for interest rate hikes are increasing, with probabilities of 9% for July, 20% for September, and 24% for October [4]. Group 4: Political and Economic Context - The upcoming Japanese Senate elections in late July and geopolitical developments may influence the Bank of Japan's decisions regarding interest rate hikes [5].

Group 1 - Betashares has surpassed AUD 50 billion in assets under management and is actively pursuing growth through acquisitions of Drummond Capital Partners and InvestSense to enter the lucrative managed accounts market [1][2] - The company has a smaller but rapidly growing managed accounts business with AUD 3 billion in assets under management, which has been operational for over seven years [2] - The acquisitions are strategically significant as Betashares aims to transition from being a provider of passive investment products (ETFs) to becoming a gatekeeper in the managed accounts space [2][3] Group 2 - Drummond and InvestSense offer ready-made investment portfolios to financial advisors, known as managed accounts or outsourced Chief Investment Officer (CIO) models, which help advisors save time and reduce risk [3][5] - Betashares has primarily relied on organic growth in the ETF market but is now shifting towards strategic acquisitions, having previously made cautious acquisitions only when necessary [6] - The company is backed by Temasek, the Singapore government investment agency, which invested AUD 300 million in a minority stake in Betashares last year [7]

Group 1 - Trump Media & Technology Group (TMTG) plans to raise $3 billion to invest in cryptocurrencies, including Bitcoin, supported by the U.S. government [1] - TMTG aims to raise $2 billion through a new stock issuance and $1 billion through convertible bonds, with the announcement expected at a major cryptocurrency investor conference in Las Vegas [1] - The financing size has been increased due to strong demand, although specific terms and timing may still be adjusted [1] Group 2 - TMTG's stock closed at $25.72 last week, with a market capitalization of nearly $6 billion [2] - The Trump family has engaged in the cryptocurrency sector through NFT trading cards, meme coins, and stakes in cryptocurrency mining company American Bitcoin and stablecoin supporter World Liberty Financial [2] - TMTG plans to launch a cryptocurrency-focused exchange-traded fund (ETF) [2] Group 3 - A SPAC led by Brandon Lutnick has reached a $3.6 billion deal with Tether and SoftBank to create a Bitcoin investment platform named "Twenty One Capital" [3] - Ripple acquired a top brokerage focused on digital currencies for $1.25 billion, betting on increased institutional investment in the cryptocurrency market during the Trump administration [3] - A wave of similar mergers and acquisitions in the cryptocurrency sector is expected in the coming weeks, particularly among special purpose acquisition companies [3]

Group 1 - European and Asian investors have injected a record $2.5 billion into non-U.S. global equity funds from December last year to April this year, with over $2.1 billion flowing in during the last three months alone, marking a reversal of a three-year trend of net outflows [1][4] - The surge in demand for non-U.S. equity funds has prompted institutions like BlackRock, DWS, and Amundi to launch new ETFs, indicating a shift in investor sentiment towards non-U.S. markets [3][4] - Kenneth Lamont from Morningstar noted that the role of the U.S. in the global economy is being questioned, with sustained outflows from the U.S. market for the first time in years [3][4] Group 2 - Historically, U.S. stocks attracted foreign investors, but from 2022 to 2024, there was a net withdrawal of $2.5 billion from non-U.S. equity funds, while the MSCI World ex-USA index rose only 7% compared to a 25% increase in the S&P 500 [4] - Concerns over Trump's proposed tariffs have led to a rapid recovery of funds into non-U.S. equity funds, reversing previous outflows within five months [4][6] - The inflow into non-U.S. equity funds is partly attributed to European investors' "patriotic rebalancing" and the relatively high valuations of non-U.S. stocks, as well as a desire for portfolio diversification [6]

Core Viewpoint - The U.S. stock market experienced a dramatic reversal on Monday, with retail investors engaging in record "buying the dip" actions, which quickly turned around the initial decline in the S&P 500 index caused by Moody's downgrade of the U.S. credit rating, leading to gains across all three major indices [1]. Group 1: Market Performance - The S&P 500 index initially fell nearly 1.1% but rebounded to close up 5.22 points, or 0.09%, at 5963.60 points [3]. - The Dow Jones Industrial Average rose by 137.33 points, or 0.32%, closing at 42792.07 points, while the Nasdaq increased by 4.36 points, or 0.02%, to finish at 19215.46 points [3]. Group 2: Retail Investor Activity - Retail investors demonstrated significant buying power, with net purchases of U.S. stocks reaching a record $4.1 billion by noon, marking the first time this figure surpassed $4 billion before midday [3]. - Retail trading volume accounted for 36% of total market trading volume, setting a new historical high, surpassing the previous peak in late April [3]. Group 3: Investor Sentiment and Strategy - Retail investors are showing a strong belief in the market, avoiding past hesitations that led to missed opportunities during rebounds [4]. - The recent buying trend among retail investors follows a pattern seen in April when they bought stocks at record speeds during a market downturn [4]. - Wall Street strategists, including Morgan Stanley's Michael Wilson, view the market pullback triggered by Moody's downgrade as a buying opportunity, especially after the U.S.-China tariff truce reduced recession risks [4]. - HSBC's multi-asset strategy head, Max Kettner, also sees declines in risk assets as opportunities for increased investment [4]. Group 4: Specific Stock Preferences - On Monday, retail investors allocated $2.5 billion to individual stocks and $1.5 billion to exchange-traded funds (ETFs) [5]. - Tesla and Palantir were particularly favored, attracting net inflows of $675 million and $439 million, respectively [5]. - Retail investors actively increased their holdings in Bitcoin-related ETFs while continuing to reduce their positions in Nvidia [5].