SoftBank CEO to announce $100b investment in US

SoftBank Group CEO Masayoshi Son will announce a $100 billion investment in the United States over the next four years during a Monday visit to USPresident-elect Donald Trump’s residence, Mar-a-Lago, CNBC reported.

Son will also promise in a joint announcement with Trump to create 100,000 jobs focused on artificial intelligence (AI) and related infrastructure, with the money to be deployed before the end of Trump’s term, CNBC said, citing sources.

The funding could come from various sources controlled by SoftBank, including the Vision Fund, capital projects or chipmaker Arm Holdings, CNBC said.

A SoftBank Group representative could not be reached for comment when called outside of regular business hours in Tokyo. Representatives for Trump’s transition team could not be immediately reached for comment on the report.

Son has been a strong proponent of the potential for AI and has been pushing to expand SoftBank’s exposure to the sector, taking a stake in OpenAI and acquiring chip startup Graphcore.

In October, he reiterated his belief in the coming of artificial super intelligence, saying it would require hundreds of billions of dollars of investment to realise.

Son said at the time he was saving up funds “so I can make the next big move,” but did not provide any details.

Meanwhile US stock index futures gained ground on Monday, as investors were optimistic ahead of an anticipated Federal Reserve interest rate cut later in the week, as well as key data prints that will help set the tone for policy next year.

The Fed’s final rate decision of the year is due on Wednesday, with traders pricing in an over 97 per cent chance of a 25 basis point rate reduction, as per CME’s FedWatch.

However, the primary focus will be on policymakers’ outlook for next year, with an updated “dot plot” of forecasts also to be released, as bets moderate on the pace of rate cuts amid strong economic growth and persistent inflation.

“The main focus will be on the Fed, which is generally expected to cut by 25 basis points, but we believe that the Fed will lower expectations of rate cuts further ahead,” said analysts at SEB.

A heavy data docket also awaits investors over the week. S&P Global’s December flash manufacturing and services PMIs are due at 9:45 am ET on the day, with industrial production figures, retail sales, and personal consumption expenditure data also scheduled throughout the week.

At 7:05 am ET, Dow E-minis were up 52 points, or 0.12 per cent, S&P 500 E-minis were up 11 points, or 0.18 per cent and Nasdaq 100 E-minis were up 65.75 points, or 0.30 per cent.

The benchmark S&P 500 and the blue-chip Dow ended the previous week lower, while the tech-heavy Nasdaq had clocked its fourth straight week of gains after breaching the 20,000 mark for the first time. Stocks have had a bumper run this year, as gains in shares related to artificial intelligence, the start of the Federal Reserve’s rate cutting cycle and expected pro-business policies from Donald Trump’s incoming presidential administration have lifted equities.

Shares of MicroStrategy rose 3.5 per cent in premarket trading as the software company and bitcoin buyer was set to join the tech-heavy Nasdaq 100 index.

Palantir and Axon Enterprise gained 0.4 per cent and 2.3 per cent, respectively, with the stocks also to be added to the reconstituted index. The changes will take effect on Dec. 23.

Super Micro Computer, among those set to be removed from the index, dropped 13.5 per cent.

Crypotocurrency stocks rose as bitcoin briefly jumped above $106,000 after Trump suggested he plans to create a US bitcoin strategic reserve similar to its strategic oil reserve. Coinbase Global rose 1.8 per cent and bitcoin miner MARA Holdings gained 2.3 per cent. Honeywell International gained 3 per cent after the industrial conglomerate said it was exploring a separation of its aerospace business.

Meanwhile the emerging market currencies were little changed on Monday as investors awaited the US Federal Reserve’s rate decision this week, while disappointing data from China dented Asian markets.

China’s retail sales climbed only 3 per cent year-on-year in November, falling short of the expected 4.6 per cent increase, keeping alive calls for Beijing to ramp up consumer-focused stimulus as policymakers brace for more US trade tariffs under a second Trump administration.

In response, emerging stocks in Asia fell. China’s CSI300 declined, closing down 0.5 per cent, and the Shanghai Composite index edged lower by 0.2 per cent.