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3 Must Read Stories: Koike Questions Trump Stability, Alibaba a Headache for Fund Managers, Bitcoin Volatility

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. Reuterscites 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 equi...
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