Breaking news

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.

Bank Of Cyprus Q1 Results Reinforce Strong Investment Appeal

Positive Q1 Performance Sets The Stage

Bank of Cyprus continues to cement its status as one of the region’s most compelling banking investment stories. Notably, the institution maintained a robust market standing during the first quarter of 2026, with both Deutsche Bank and Euroxx Securities issuing strong positive recommendations following the quarter’s results.

Solid Fundamentals And Valuation Strength

Analysts highlighted continued credit expansion, resilient recurring revenues, stable net interest income and a strong capital position among the bank’s key strengths. Deutsche Bank maintained its buy recommendation with a target price of €10.40, while Euroxx Securities reiterated its overweight rating with a higher target price of €11.50. Both institutions also pointed to valuation metrics and shareholder return prospects as central elements supporting the investment case.

Robust Earnings And Operational Resilience

Bank of Cyprus reported net profit of €121 million for the quarter, exceeding Deutsche Bank’s forecast of €111 million. The stronger-than-expected performance was supported by favourable provision adjustments and stable core earnings despite pressure from a shorter first quarter and softer lending margins. Operational performance also remained stable, supported by continued loan growth and disciplined cost management.

Key Metrics And Forward Guidance

Analysts from Deutsche Bank and Euroxx Securities also published updated projections covering earnings multiples and dividend yields through 2028. Current forecasts indicate gradually declining price-to-earnings ratios alongside rising dividend yields over the coming years. Net interest income remained resilient during the quarter, while the cost-to-income ratio stayed near 37%. Capital strength also remained a key focus, with the bank maintaining a CET1 ratio close to 20%.

Outlook: Conservative Guidance With Upside Potential

Management guidance projects net interest income of approximately €720 million, loan growth above 5% and a return on tangible equity in the mid-teens. Both analyst groups suggested the guidance may prove conservative if lending growth and broader market conditions remain supportive. Continued balance sheet strength and stable profitability are also expected to support shareholder returns over the medium term. Bank of Cyprus’ latest quarterly performance reinforced investor confidence in the bank’s operational resilience, capital position and long-term growth outlook.

The Future Forbes Realty Global Properties
eCredo
Aretilaw firm
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter