Kuwait sovereign wealth fund head says investors reduce US exposure at their 'own risk'
Some global investors have ditched U.S. assets in recent weeks on fears that U.S. President Donald Trump's overhaul of global trade may hurt the U.S. economy, and could cause deeper long-term damage.
The trend looks set to continue given a record number of managers said they planed to keep cutting their exposure to U.S. assets, according to BofA research.
Oil-rich Kuwait has been investing in the U.S. market for a "long time" and that "won't change", KIA Managing Director Sheikh Saoud Salem Abdulaziz Al-Sabah said at an investment conference in the Qatari capital on Wednesday.
"I would say it very bluntly, underweight America at your own risk," he said.
Last week, Moody's downgraded the U.S. sovereign credit rating by one notch citing concerns about the nation's growing $36 trillion debt pile, which could make investors more cautious and drive up borrowing costs across the economy.
"They (investors) are merely looking at equity markets, but they're not taking into fact the U.S. has the largest fixed income market, the U.S. has the largest private equity market, the real estate market, infrastructure and credit," Al-Sabah said.
"I think the U.S. has the breadth and depth to sustain its exceptionalism and it has the rule of law as well," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BBC News
2 hours ago
- BBC News
New Paisley bridge and roads plan to boost Glasgow Airport links
Work is set to begin on a £59m project to improve transport connections between Paisley town centre and Glasgow Airport.A harbour bridge, new roads and dedicated walking and cycling routes are included in the they do not include a long-called for rail link to the airport. It is hoped the network will bring millions of pounds of investment to Renfrewshire by improving access to the Advanced Manufacturing Innovation District Scotland (AMIDS). Renfrewshire Council's AMIDS South project received £38.7m from the UK government's Levelling Up Fund, with further investment from the council and Transport Scotland. The project is expected to be complete by local authority has committed £18.8m to create a new road bridge across Paisley harbour and a 1.7km (1.1 mile) gateway route along the White Cart river.A network of roads, cycling and walking links from the town centre train station and bus interchange to AMIDS, Glasgow Airport and Inchinnan also feature in the a new road from Renfrew Road to the bridge crossing will connect the new Paisley Grammar School Community Campus. Transport Scotland has also provided £1.5m to build a safe access route from Gallowhill using the underpass on the former railway line. Council leader Iain Nicolson said it was one of the most significant developments in Renfrewshire's recent history. "It will bring high-quality jobs, world-leading industry and provide a significant boost to the area's economy so it is important that we provide the appropriate access to Scotland's home of manufacturing innovation," he said."This project will not only provide infrastructure to better connect communities to education and employment opportunities, but it will also significantly improve the offer to organisations looking to locate here with enhanced access to the airport and the fourth-busiest train station in Scotland."Farrans Construction, which was responsible for the Govan to Partick bridge in Glasgow, has been appointed to deliver the transport minister Simon Lightwood said the flagship project would deliver "a major boost for Paisley and for Scotland as a whole".He added: "It's exactly the kind of investment behind last month's announcement of nearly £340m from our Levelling Up Fund to communities across the UK."
Reuters
3 hours ago
- Reuters
Exclusive: Toms Capital seeks CSX meeting after acquiring stake, sources say
NEW YORK, Aug 19 (Reuters) - Hedge fund Toms Capital Investment Management has requested to meet with the board at U.S. railroad operator CSX (CSX.O), opens new tab after recently buying a stake, people familiar with the matter said, raising speculation the firm may push for a possible merger. Toms Capital, run by Ben Pass, invested in the railroad during the second quarter, holding 5.6 million shares of common stock in CSX as of June 30, a new filing showed. It is unclear exactly what the firm wants but Pass has a history of pushing for mergers at companies like U.S. Steel and the Band-Aid and Tylenol maker, Kenvue (KVUE.N), opens new tab. The hedge fund invested and is reaching out to the company at a time speculation is mounting that fresh railroad mergers are likely after Union Pacific (UNP.N), opens new tab and Norfolk Southern (NSC.N), opens new tab inked a deal last month. Unlike some activist investors, Toms Capital prefers to stay in the background and push for changes out of the limelight, rather than launching public and noisy campaigns. A representative for Toms Capital declined to comment. CSX did not immediately respond to a request for comment. CSX is no stranger to activist investors and previously worked with investor Mantle Ridge, whose founder Paul Hilal, now serves on the CSX board. Toms is not the only firm to have invested in the railroad during the second quarter. Ancora Holdings also established a toehold investment and has been considering more purchases, a person familiar with the firm's trading patterns said. A spokesman for Ancora declined to comment. Ancora has a history of pushing for changes and won board seats last year at rival railroad Norfolk Southern. Speculation about CSX's future has come into sharper focus in the wake of rival railroad Union Pacific's decision in July to acquire Norfolk Southern in a $71.5 billion deal. The U.S. Surface Transportation Board will still have to sign off on the deal. Investors have said CSX needs to find a partner of its own now, raising the possibility of potential talks with Berkshire Hathaway-owned (BRKa.N), opens new tab BNSF Railway and others.
Daily Mail
3 hours ago
- Daily Mail
Japan's Warren Buffett announces huge stake in Intel
Masayoshi Son, the billionaire investor often called Japan's Warren Buffett, is making a huge bet on Intel. His company, SoftBank, is pumping $2 billion into the struggling US chipmaker in a move that immediately sent Intel shares higher. When the news broke Monday night, shares jumped five percent in after hours trading and this morning were up by as much as eight percent. The investment makes SoftBank one of Intel's biggest shareholders and highlights Son's latest push into artificial intelligence and semiconductors. He has already backed major projects including a $500 billion data center plan in the United States. Intel, once the undisputed leader in chips, has been losing ground for years to rivals like Taiwan's TSMC. The move follows reports that Washington may take a stake in Intel as part of a broader push to stabilize US chipmaking. It emerged yesterday that the Trump administration weighing an unprecedented move: taking a 10 percent stake in Intel. The roughly $10.5 billion investment would mean the US becoming the troubled chipmaker's biggest shareholder. Shares had fallen on that news. Treasury Secretary Scott Bessent said any government investment would likely come through a conversion of CHIPS Act grants, rather than a direct push to buy Intel products. The move, part of Trump's unusual approach to national security, comes two weeks after the President demanded the resignation of CEO Lip-Bu Tan in a fiery post on Truth Social. Tan, who took the helm just over six months ago, has been tasked with reviving the struggling company. While the government has sometimes taken temporary stakes during crises — such as the 2008 financial bailout — a similar move in peacetime for a tech giant would be virtually unprecedented. SoftBank's purchase price of $23 a share represents a small discount to Monday's close of $23.66. Tuesday they were trading at between $25.50 and $26.50. The investment will give the Japanese firm an equity stake of just under 2 percent, making it Intel's sixth-largest shareholder. Tan, who took the helm just over six months ago, has been tasked with reviving the struggling company. While the government has sometimes taken temporary stakes during crises — such as the 2008 financial bailout — a similar move in peacetime for a tech giant would be virtually unprecedented. SoftBank's purchase price of $23 a share represents a small discount to Monday's close of $23.66. Tuesday they were trading at between $25.50 and $26.50. The investment will give the Japanese firm an equity stake of just under 2 percent, making it Intel's sixth-largest shareholder. Meanwhile, Intel is slashing 25,000 jobs this year as it battles to turn around its flagging fortunes. The chip making giant — which makes processors that power millions of Dell, HP, and Lenovo computers — will shrink its workforce from about 99,500 to 75,000 by the end of 2025. The confirmation in July of the the scale of the layoffs, first announced in April, came as Intel updated Wall Street on its earnings over the past three months. It posted a loss of $2.9 billion. Street on its earnings over the past three months. It posted a loss of $2.9 billion. Bosses said Intel has slashed 15,000 jobs so far this year — suggesting another 10,000 are set to go. These are the second major round of job cuts at Intel in the past two years. In December, the company ousted its CEO while cutting 15 percent of its workforce in 2024.
