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Trump Victory Excites Japanese Institutional Investors

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Will there be a resurgence of Japanese capital into the United States?

Photo Credit: CNBC

Photo Credit: CNBC

In the 1980s and 1990s, Japan was a major foreign investor into the United States, buying up equities and prized real estate. Japan’s Government Pension Investment Fund (GPIF) earlier indicated that a push for U.S. infrastructure spending would intrigue the public fund into backing such investments. Many Asian wealth funds see the infrastructure spending effect could trickle down and spur U.S. consumption spending. A number of Asian wealth funds have been investing in mezzanine debt in hotel properties in core markets such as the Korean Investment Corporation (KIC).

Japanese conglomerate SoftBank Group has been raising money for its US$ 100 billion technology fund, SoftBank Vision Fund. This technology fund has raised money from Saudi Arabia’s Public Investment Fund (PIF) and other cash-rich investors. The Vision Fund could partake in a number of investments. For example, Foxconn Technology Co. Ltd., a major supplier for Apple Inc., had started studying moving iPhone production to the United States. There was concern that a Trump presidency could force Apple to make a certain number of smartphone pieces in the United States. If such a forced move would come true, entities such as SoftBank could introduce more high-tech manufacturing using robotics and automation into the U.S.

Softbank CEO Masayoshi Son met with U.S. President-elect Donald Trump at Trump Tower. Son indicated that the fund may invest up to US$ 50 billion into the United States.

As journalists circle Trump Tower daily, Trump told the waiting reporters on December 6, 2016, “Ladies and gentlemen, this is Masa from Japan.”

He added, “He’s just agreed to invest $50 billion in the United States and 50,000 jobs. He’s one of the great men of industry, so I just want to thank you very much. Thank you.”

Son responded, “I just came to celebrate his new job.” He added, “This is great, the U.S. will become great again.”

U.S. President-elect Trump later tweeted:
trump_twitter_dec62016_1

Yield-Hungry Korean Insurance Capital Backs TSX Broadway

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Mirae Asset Daewoo Co., Ltd., the Seoul-based investment banking firm, has provided a US$ 375 million loan for a redevelopment in New York’s Times Square. It joins L & L Holding Company, Maefield Development, and Fortress Investment Group who are bringing the development known as TSX Broadway to life. The building is at 1568 Broadway in Manhattan. TSX Broadway, a US$ 2.5 billion project when all equity financing is added in, will allow for renovations and expansion of the 46-storey building. An LED screen, which is not an uncommon sight in the Big Apple, will wrap around the corner of the tower. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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OFFICIALS: Saudi Crown Prince Denies Interest in Acquiring Manchester United

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The Saudi Arabian government dispelled rumors that Saudi Crown Prince Mohammed bin Salman will acquire football club Manchester United. However, Saudi Arabia’s Public Investment Fund (PIF) had talks regarding sponsorship with the football club. Manchester United signed a partnership deal with Saudi Arabia’s General Sports Authority in 2017.

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China’s Central Bank Creates Macro-Prudential Management Bureau

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The People’s Bank of China (PBOC) created a new department to oversee and attempt to eliminate financial risks to the system. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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