Nomura’s McCafferty Sees Rotation Out of U.S Equities Into Japan, China Equities

The video discusses the potential changes in the Federal Reserve's interest rates, considering a 25 or 50 basis point cut. It highlights Trump's realization of the need for collaboration with other governments and central banks, especially in light of strong US dollar impacts on exports. The discussion also covers global events, such as TSMC's capital expenditure increase, and their influence on the Fed's cautiousness. Additionally, the video examines the implications of rate cuts on stock markets, emphasizing the role of share buybacks and potential shifts in equity investments from the US to Japan and China.

What is one reason President Trump is seeking closer coordination with the Federal Reserve?

• To improve US export competitiveness

• To strengthen the US dollar

• To increase interest rates

• To reduce government spending

How has TSMC responded to the global trade war and uncertainty?

• By focusing solely on US markets

• By increasing its capital expenditure

• By reducing its capital expenditure

• By halting all new projects

What is a potential effect of interest rate cuts on US companies?

• Increased cost of equity

• Decreased share buybacks

• Reduced international investments

• Increased use of debt markets for share buybacks

Which markets are expected to see a shift in investment focus due to strong balance sheets and Western-style capital management practices?

• India and Brazil

• Japan and China

• Australia and Canada

• US and Europe

What has been the trend in share buyback activity in Japan in the first half of the year?

• It is twice the level of the whole of last year

• It has been banned by the government

• It has decreased compared to last year

• It has remained the same as last year