US equity funds record $140bn of inflows after Trump’s election win

Good morning. At the moment’s e-newsletter will cowl:

• The billions of {dollars} poured into US shares in anticipation of Trump’s sweeping tax cuts

• How the taking pictures of a UnitedHealth Group government has triggered considerations round company safety

• A Texas decide rejecting Boeing’s responsible plea settlement stemming from twin crashes of the 737 Max

Buyers have pumped almost $140bn into funds made up of US shares. The frenzy of shopping for made November the busiest month for inflows on data stretching again to 2000.

Driving the shopping for spree are merchants betting Donald Trump’s administration will unleash sweeping tax cuts and reforms in a boon to company America.

The president-elect has additionally vowed that his authorities will search to chop rules and taxes as a part of an agenda geared toward boosting progress.

The S&P 500, Wall Avenue’s fundamental equities barometer, has risen 5.3 per cent since election day, bringing its features for this 12 months to twenty-eight per cent. Smaller firms, that are seen as extra delicate to fluctuations within the US financial system, have carried out even higher for the reason that election, with the Russell 2000 final week hitting a file excessive for the primary time in three years.

Power within the US disguised weak point elsewhere, with buyers pulling cash from different markets seen as extra susceptible to a possible commerce struggle. 

Funds that put money into rising markets have suffered web withdrawals of $8bn for the reason that election, together with about $4bn exiting China-focused funds. Those who put money into western Europe have misplaced about $14bn and Japan-focused funds have misplaced round $6bn, in response to knowledge supplier EPFR.

“When there’s geopolitical threat on the planet the US is a secure haven, even when they’re the reason for that geopolitical threat, satirically,” mentioned Dec Mullarkey, managing director at fund supervisor SLC Administration. Read more about the rally here.

For extra on markets from Rob, join the Unhedged e-newsletter here for those who’re a premium subscriber or improve your subscription here. Right here’s what else we’re conserving tabs on as we speak and over the weekend:

• Financial knowledge: The Bureau of Labor Statistics releases jobs knowledge for November

• Elections: Ghana holds presidential and parliamentary polls tomorrow. Romania has a presidential run-off vote the subsequent day, tainted by official accusations of Russian meddling.

• Fedspeak: Michelle Bowman is because of communicate on the Missouri Bankers’ Affiliation government administration convention

Be part of us subsequent Wednesday as Monetary Occasions editor Roula Khalaf and different FT consultants focus on their predictions for the world in 2025. Register here.

5 extra high tales

1. The taking pictures of a UnitedHealth government in Manhattan has triggered broad considerations about company safety, with giant firms speeding to evaluate whether or not their high workers have adequate safety. Safety chiefs of teams on either side of the Atlantic are sharing intelligence and making inquiries with specialist companies on how to shield top executives.

• ‘Deny’, ‘defend’, ‘depose’: New York detectives are investigating inscriptions of words on bullet casings left on the scene of government Brian Thompson’s homicide.

2. A US decide has rejected Boeing’s responsible plea settlement stemming from twin crashes of the 737 Max, citing variety, fairness and inclusion concerns in choosing a company monitor to supervise compliance with the deal. A decide in Texas mentioned utilizing the standards would “undermine confidence” that the selection was based on competency.

• DEI pullback: US firms are accelerating their retreat from such initiatives amid an all-out assault from conservatives emboldened by the election of Donald Trump.

• ‘Anti-woke’ ETF: A brand new fund aiming to punish firms targeted on DEI is making Starbucks its first target.

3. The chief of South Korea’s ruling get together Han Dong-hoon has referred to as for President Yoon Suk Yeol to step down instantly after saying he’s fearful Yoon may try to impose martial regulation once more. Han had beforehand pledged to help Yoon in an impeachment vote scheduled for Saturday however mentioned he had modified his stance. Read more here.

4. Donald Trump has named enterprise capitalist David Sacks because the White Home’s synthetic intelligence and cryptocurrency tsar. Sacks, a confidant of Elon Musk, was one of many earliest and most vocal Silicon Valley supporters of Trump, internet hosting a fundraiser for the candidate in San Francisco in June. Here’s what we know about the former PayPal executive.

5. Emmanuel Macron has vowed to not step apart earlier than the top of his time period, saying opposition events “selected chaos” by bringing down his premier in a historic no-confidence vote. The French president’s time period runs till 2027, however the ousting of Michel Barnier’s authorities is fuelling opposition calls for him to step down early.

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The Large Learn

Is China’s manufacturing juggernaut working out of highway? Donald Trump’s return will pose one of many sternest exams but for the nation’s formidable export sector. As home demand suffers from a deep property droop, Beijing is beneath strain to rethink the financial system’s increasing dependence on outbound trade.

We’re additionally studying . . . 

• International chip struggle: The race for semiconductor dominance has entered murky waters because the trade ponders tariffs and extra beneath Trump 2.0, writes Chris Miller, creator of Chip Conflict.

• ‘Chancellor of peace’: Because the struggle in Ukraine drags on, Germany’s Olaf Scholz is making an attempt to paint his rivals as warmongers forward of a snap vote in February.

• Sick man of Europe? Knowledge exhibits a story about Britain’s illness-related inactivity disaster appears wrong or at best overrated, writes John Burn-Murdoch.

• Intel turmoil: After a riotous week at one of many world’s main chipmakers, is the corporate’s ambitious transformation plan an excessive amount of?

Chart of the day

Donald Trump, a self-described “Tariff Man”, will discover import taxes a slipshod and infrequently ineffective means of asserting American energy, writes Alan Beattie. Fairly merely, the US just isn’t that big in global trade any extra.

The FT’s Ladies of 2024

From Charli XCX of “brat” fame to Europe’s former competitors commissioner Margrethe Vestager, we rejoice the ladies who’re remaking the world we dwell in as we speak. Learn FT Weekend’s checklist of 25 of the world’s most influential women, written by the world’s most influential ladies.