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U.S. Creates Sovereign Wealth Fund With Potential To Acquire TikTok

In a surprising move, U.S. President Donald Trump has signed an executive order to create a sovereign wealth fund within the next 12 months, which could include the acquisition of the popular short-video app TikTok. The fund’s purpose would be to manage U.S. assets and generate wealth for the nation, with Trump promising it would benefit American citizens.

The sovereign wealth fund could be structured similarly to other such funds in countries across the globe, particularly in the Middle East and Asia, which use them to make direct investments. While the executive order provided little detail on the fund’s operations, it directed the U.S. Treasury and Commerce Departments to submit a comprehensive plan, including funding mechanisms and investment strategies, within 90 days.

Trump has previously expressed support for creating a government-backed investment vehicle during his presidential campaign. He envisioned it as a tool to fund key national projects such as infrastructure, manufacturing, and medical research. The fund would likely be financed through innovative sources, including tariffs, though no clear explanation has been provided yet on its structure or funding.

In contrast to typical sovereign wealth funds, which rely on a country’s budget surplus, the U.S. operates at a deficit, which makes the funding approach more complex. Treasury Secretary Scott Bessent emphasized that the fund’s creation would focus on monetizing U.S. assets, particularly those on the country’s balance sheet. However, many experts believe that the creation of such a fund would require Congressional approval, as it may involve legislation to authorize new funding sources.

The possibility of the fund purchasing TikTok has drawn significant attention. Trump suggested that the fund might acquire the social media platform, which has around 170 million U.S. users, after its ownership by Chinese company ByteDance became a subject of national security concerns. A law mandating ByteDance to sell its U.S. assets or face a ban took effect in January, but Trump has delayed its enforcement by 75 days, citing ongoing negotiations. Trump stated that if a suitable deal could be reached, TikTok would potentially become part of the sovereign wealth fund. However, he also indicated that this was not a certainty, leaving the decision still to be made.

This announcement follows reports that the Biden administration had also explored the idea of establishing a similar fund. However, as Trump’s plan unfolds, it remains uncertain whether it will materialize within the expected timeframe. Sovereign wealth funds manage over $8 trillion globally, and with this new initiative, the U.S. could join the ranks of nations leveraging such funds for national investment purposes.

Cyprus Sees Sharp Rise In New Mortgage Lending In May As Deposit Rates Remain Among Eurozone’s Lowest

New mortgage lending in Cyprus rose sharply in May 2026, highlighting continued demand for housing finance despite elevated borrowing costs. Net new housing loans increased to €145.5 million from €106 million in April, according to the Central Bank of Cyprus.

Overall Lending Gains Momentum

Net new lending across all categories reached €361.9 million in May, up from €331.3 million a month earlier, reflecting stronger credit activity among both households and businesses.

Mortgage Rates Continue To Rise

The average interest rate on new housing loans increased to 4.06% in May from 3.73% in April, as demand for residential financing remained resilient despite higher borrowing costs.

Consumer And Small Business Lending Expand

Consumer lending also strengthened, with new loans rising to €23.9 million from €21.8 million in April.

Lending to non-financial corporations for amounts up to €1 million climbed to €63.4 million from €39.4 million, while loans exceeding €1 million declined to €121.5 million from €156.8 million, pointing to softer activity among larger corporate borrowers.

Borrowing Costs Show Mixed Trends

Interest rates moved in different directions across lending categories. Consumer loan rates eased to 6.95% from 7.19%, while rates on business loans of up to €1 million edged higher to 4.27%. The average rate on loans above €1 million fell to 3.85%.

Deposit rates also increased modestly. One-year household time deposits rose to 1.25% from 1.20%, while comparable deposits for non-financial corporations increased to 1.31% from 1.23%.

Deposit Rates Remain Among The Eurozone’s Lowest

According to the Central Bank of Cyprus, lending rates remain broadly in line with the euro area median. Deposit rates, however, continue to rank among the lowest in the eurozone, reflecting the banking sector’s strong liquidity position.

Borrowers Shift Toward Fixed-Rate Mortgages

Borrowers continued to favour longer fixed-rate mortgages in May. Loans with variable rates or an initial fixed-rate period of up to one year accounted for 17.8% of new housing lending, down from almost 100% at the beginning of 2022.

The shift reflects a growing preference for payment certainty as households adapt to a higher interest-rate environment.

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