Tokyo Governor Yuriko Koike, the main challenger to Prime Minister Shinzo Abe in this month’s general election, has questioned the stability of U.S. President Donald Trump’s administration.
Koike, who was elected last year as Tokyo’s first female governor, is the leader of the opposition Party of Hope – a new political party formed shortly after Abe announced a snap election, which is to take place on October 22. In an interview with Bloomberg , Koike said that numerous personnel changes since Trump took office is not stable, in contrast to the Prime Minister who has courted the U.S. in order to bolster ties between the two countries:
“I am not yet sure whether the Trump administration is stable,” Koike said on Monday in Tokyo. “There are extremely dynamic personnel changes in the main White House posts. Alongside the American people, I want to look carefully to see what kind of administration this will be.”
She added, however, that she has no argument that the basis of Japan’s security is the alliance with the U.S. “I have no differences with the Liberal Democratic Party or the Abe administration in terms of diplomacy and national security,” she said referring to Abe’s ruling party.
The soaring market capitalization of emerging market technology stocks such as Alibaba and Tencent is creating a headache for fund managers who are under pressure to buy the tech stocks to keep up with the gains made by exchange traded funds. Reuters cites Ed Kerschner, chief portfolio strategist at Columbia Threadneedle, as saying that the performance of the tech stocks mostly reflects that of their U.S. peers rather than providing exposure to developing countries :
“The question is are you buying emerging markets or are you buying technology?” Kerschner said. “The risk of buying EM benchmarks is that you are not diversifying away from the S&P.”
As a result of the tech rally, the conventional market-cap weighted emerging equity index, with bigger weightings in companies with the largest market caps, has begun strongly outperforming the index where all companies are assigned the same weighting.
Bitcoin hit one-month high of USD4,867 on Monday, its highest since Chinese authorities cracked down on the crypto-currency. Aurélien Menant, founder and CEO of Gatecoin, told CNBC that the rally is down to ” more certain regulatory environment across the world, most notably in Japan. ” Menant, who has predicted that bitcoin could get close to $6,000 by the end of the year, warned of short-term volatility ahead. Here’s more from CNBC :
That’s because earlier this year, bitcoin underwent a split or “fork” which created another cryptocurrency called bitcoin cash.
That split happened due to technical changes in the underlying technology behind bitcoin, known as the blockchain. But that change, which is currently being implemented, could be rejected by a large section of the bitcoin community, which could actually lead to another fork.
“The forthcoming bitcoin fork in November will result in greater volatility and risk for this new asset class,” Menant said.
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