Fujifilm said Friday it would increase its investment in a planned biotech plant in North Carolina by $1.2 billion at a time when Japan-US trade ties are in the spotlight.
The cash injection to ramp up output to meet growing demand for antibody drugs brings “the total investment in the facility to over $3.2 billion”, the company said.
It plans for the facility to reach full capacity by 2028 and says its total investment will create 1,400 local jobs.
The announcement comes with Japanese Prime Minister Fumio Kishida on a tour to the United States as a state guest.
Marring the mood between Washington and Tokyo at the summit has been President Joe Biden’s opposition to Nippon Steel’s proposed $14-billion acquisition of US Steel, based in the key election battleground state of Pennsylvania.
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A planned visit by Kishida to Toyota and Honda factories in North Carolina on Friday to highlight Japanese investment is seen as an attempt to soothe fears about the deal.
Kishida told reporters in the southern state on Thursday evening that “in terms of economic relations, Japan is the world’s largest investor in the US and creates significant employment”.
“From tomorrow, I would like to use the visit to see how Japanese companies… are contributing to the US economy,” he said, touting “the great importance of promoting investment on both sides in driving the global economy”.
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Fujifilm announced its original investment in the large-scale cell culture facility in North Carolina, part of its pharmaceutical business, in 2021.
The investment is part of its strategy of enabling the firm “to construct identical large-scale production facilities” in the United States and Europe, it said.
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Microsoft on Tuesday announced a $2.9 billion investment over the next two years in Japan to bolster the country’s push into artificial intelligence.
The announcement coincides with Japanese Prime Minister Fumio Kishida’s visit to Washington, underscoring Tokyo’s commitment to becoming a major AI power.
Microsoft has grown into a major player…
Microsoft on Tuesday announced a $2.9 billion investment over the next two years in Japan to bolster the country’s push into artificial intelligence.
The announcement coincides with Japanese Prime Minister Fumio Kishida’s visit to Washington, underscoring Tokyo’s commitment to becoming a major AI power.
Microsoft has grown into a major player in the advancement of AI through its partnership with ChatGPT-maker OpenAI, propelling it past Apple as the world’s biggest company by market capitalization.
“This is Microsoft’s single largest investment in its 46-year history in Japan,” said Brad Smith, Vice Chair and President of Microsoft. “These investments are essential ingredients for Japan to build a robust AI Economy.”
The investment included providing “more advanced computing resources,” according to Smith, including powerful graphics processing units (GPUs) that are crucial for running AI applications.
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Microsoft also pledged to invest in training three million Japanese workers in AI skills over the next three years, and announced the opening of its first Microsoft Research Asia lab in Tokyo that will work on AI and robotics.
Underling the growing importance of cybersecurity amid increased hacking and breaches, Microsoft also announced plans to collaborate with Japan’s government to strengthen the country’s cyber defenses.
“The threat landscape for cybersecurity has become more challenging … We’re seeing that from China and from Russia in particular, but we’re also seeing growing ransomware activity around the world,” Smith told the Nikkei news outlet.
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Linklaters has hired Accenture for client service advice as it pushes for growth.
Consultancy giant Accenture has been looking at the Magic Circle law firm’s technology, templates and processes in order to improve its interactions with its clients, Financial News has learned.
The project includes exploring the use of generative AI in client pitches, according to a person familiar with the situation.
The work with Accenture focuses on the firm’s business services teams in a drive to make them more client-centric, the people said.
READ Paul Weiss hires Simpson Thacher partner to lead Brussels expansion
“Our business teams play an integral role in the outstanding service we offer to clients. We want to ensure that we continue to be equipped to do that in the most effective ways possible,” a spokesperson for Linklaters said in a statement.
The process is being led by Linklaters’ chief growth officer Lucy Murphy, according to people familiar with the situation.
Murphy joined the firm in September last year having previously worked for Magic Circle firms Allen & Overy and Freshfields Bruckhaus Deringer in senior business services roles.
Murphy was given a brief of driving forward the firm’s client strategy when she joined last year.
“Lucy will play a pivotal role in ensuring that we are even more client centric and that everything we do as a firm is to the benefit of our clients,” Linklaters’ managing partner Paul Lewis said in September.
Linklaters has been scrambling to harness generative AI amid a rush in the professional services sector to adopt the new technology.
READ Why law firms are betting big on Saudi Arabia
The firm launched an AI chatbot for its lawyers in March last year which was built using Microsoft’s Azure OpenAI service.
Last month the firm said it was promoting the co-head of its AI steering group Shilpa Bhandarkar to partner, in a sign of its commitment to the new technology.
Linklaters is not the only Magic Circle law firm turning to consultancy firms for advice. Its rival Allen & Overy has tapped KPMG and McKinsey to advise on its merger with US firm Shearman & Sterling which is scheduled to go live in May, Law.com reported.
To contact the author of this story with feedback or news, email Edin Imsirovic
Home prices increased at the fastest clip since 2022 at the start of the year, according to one closely watched home price gauge published Tuesday.
Home prices nationally in January were 6% higher than the same month in 2023, according to S&P CoreLogic Case-Shiller data. Prices in an index measuring changes in 20 of the nation’s large cities increased 6.6%.
Both indexes increased at the quickest annual pace since November 2022.
Seasonally adjusted prices also gained, with the 20-city index rising 0.14% from December, and the national index gaining 0.36%.
“U.S. home prices continued their drive higher,” Brian D. Luke, head of commodities, real and digital assets at S&P Dow Jones Indices, said in a statement. “On a seasonal adjusted basis, home prices have continued to break through previous all-time highs set last year.”
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The quick annual gain was expected. The 6.6% gain in the 20-city index was in line with the consensus call among economists surveyed by FactSet. Price gains will continue, but will slow by the end of the year, some economists say.
Prices were higher than year-ago levels in each of the 20 cities tracked by the index. Prices in San Diego, Los Angeles, and Detroit were highest compared to one year prior, rising 11.2%, 8.6%, and 8.2% respectively. The cities with the slowest gains included Dallas, Denver, and Portland, Ore., where prices grew 2.9%, 2.7%, and 0.9%, respectively.
A low supply of homes for sale, combined with a relatively easy comparison with prices at the same time last year, look set to keep prices strong this spring.
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The median home in February sold for $384,500, up 5.7% from the same month in 2023, according to the National Association of Realtors. It was the greatest price increase in the trade group’s data set since October 2022.
data suggest prices have remained strong in March. Over the four-week period ended March 17, home-sale prices rose 5.3%.
Industry economists expect gains will slow later this year. The Mortgage Bankers Association estimates that home prices in the fourth quarter measured by the Federal Housing Finance Agency’s home price index will be 4.1% higher than one year prior—a slower growth rate than the anticipated 5.7% in the first quarter of this year.
expects its home price index to be 3.2% higher than one year prior at the end of the year, slower than an anticipated 7.2% first-quarter increase.
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That’s despite mortgage rates that remain higher than levels immediately before the pandemic. Higher rates and prices has made it harder for first-time buyers to enter the market. The share of buyers purchasing a previously owned home for the first time fell to 26% of all transactions in February from 28% the month prior, the National Association of Realtors said earlier this month.
The typical buyer in February needed an annual income of $113,520 to afford the median U.S. home, according to a Redfin analysis published Tuesday. That is nearly $30,000 more than the median household income, the brokerage said. The last time the typical household earned more than it needed to afford the median home was three years ago, in February 2021, according to the analysis.
Home values are stretched relative to their historic price-to-rent ratio, Mark Zandi, Moody’s Analytics’ chief economist, wrote in a Monday note. “That valuations have remained so high given the doubling in mortgage rates since just prior to the pandemic is especially surprising,” the economist wrote, adding that high home prices are supported by an undersupply of housing and the mortgage rate lock-in effect.
“For some semblance of normalcy to return to the housing market, something has to give—mortgage rates need to decline, incomes rise, and/or house prices cool considerably,” Zandi wrote. The most likely scenario is that prices move “more-or-less sideways” for one to three years. That would “allow corporate earnings and rents to catch up and valuations to normalize at least partially.”
Write to Shaina Mishkin at shaina.mishkin@dowjones.com
Home prices likely climbed in January, according to one closely watched measure. That trend will continue but gains will narrow by the end of the year, some economists say.
The S&P CoreLogic Case-Shiller Home Price index tracking changes in 20 of the nation’s large cities is expected to have been 6.6% higher in January than it was one year prior, according to FactSet consensus estimates. A seasonally adjusted index measuring month-to-month price gains is estimated to have risen 0.15% from December’s levels. The reading will be released Tuesday at 9 a.m.
A low supply of homes for sale, combined with a relatively easy comparison with prices at the same time last year, look set to keep prices strong. If the estimates are correct, January’s annual home price increase would be the largest since November 2022, according to December’s Case-Shiller data.
The median home in February sold for $384,500, up 5.7% from the same month in 2023, according to the National Association of Realtors—the greatest price increase in the trade group’s data set since October 2022.
data suggests prices have remained strong in March: over the four-week period ended March 17, home sale prices rose 5.3%.
Industry economists expect gains will slow later this year. The Mortgage Bankers Association estimates that home prices in the fourth quarter measured by the FHFA’s home price index will be 4.1% higher than one year prior—a slower growth rate than the anticipated 5.7% in the first quarter of this year.
expects its home price index to be 3.2% higher than one year prior at the end of the year, slower than an anticipated 7.2% first-quarter increase.
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That’s despite mortgage rates that remain higher than levels immediately before the pandemic. Higher rates and prices has made it harder for first-time buyers to enter the market. The share of buyers purchasing a previously owned home for the first time fell to 26% of all transactions in February from 28% the month prior, the National Association of Realtors said earlier this month.
Home values are stretched relative to their historic price-to-rent ratio, Mark Zandi, Moody’s Analytics’ chief economist, wrote in a Monday note. “That valuations have remained so high given the doubling in mortgage rates since just prior to the pandemic is especially surprising,” the economist wrote, adding that high home prices are supported by an undersupply of housing and the mortgage rate lock-in effect.
“For some semblance of normalcy to return to the housing market, something has to give—mortgage rates need to decline, incomes rise, and/or house prices cool considerably,” Zandi wrote. The most likely scenario is that prices move “more-or-less sideways” for one to three years. That would “allow corporate earnings and rents to catch up and valuations to normalize at least partially.”
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Write to Shaina Mishkin at shaina.mishkin@dowjones.com
Reversing a 2022 decline, the number of ultra-high-net-worth individuals worldwide jumped 4.2% in 2023, according to the latest Wealth Report from London-based property consultancy Knight Frank.
The annual report, released Wednesday, defines “ultra-high-net-worth” as having a net worth of at least US$30 million. Of the total 626,619 ultra-wealthy individuals―up from 601,300 a year earlier―the largest proportion comes from North America, with a 7.2% increase over 2022, the report says.
“The U.S. story here is massive,” says Liam Bailey, global head of research at Knight Frank and the report’s editor. “Not only has the U.S. been a huge force in wealth creation, but our forecast over the next five years sees a third of newly wealthy people coming from the U.S. as well.”
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Bailey attributes the reversal to “a revival in asset pricing, led by equities, gold, Bitcoin, and even residential properties.”
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“The big story,” Bailey says, “is that wealth creation is back.”
By region, the Middle East has the second largest population of ultra-wealthy, up 6.2%, with Africa in third place, up 3.8%. Only Latin America saw a decline in wealthy people, with a 3.6% drop. By country, Turkey leads the rankings with a 9.7% expansion of the ultra-wealthy population, followed by the U.S. at 7.9%, India at 6.1%, South Korea at 5.6%, and Switzerland at 5.2%.
The increasingly global flow of capital may account for some shifts, Bailey says. “Money from Latin America has moved into U.S. markets like Miami. And while markets like London and New York still attract the attention of wealthy property buyers, we’re seeing a shift to new markets,” he says.
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Dubai “has been a standout as a new global hub in terms of where the world’s wealthy want to be and invest. Hubs like Miami and Milan are also trying, quite successfully, to attract wealth.”
The evolution of those markets creates a virtuous cycle where wealthy investors see “an opportunity play” to invest in commercial real estate and infrastructure, Bailey says.
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“Wealthy people need services in locations they’re seeking,” he says, pointing to the lack of high-quality schools in Miami—something an influx of wealthy people could seize on and remedy.“And the value correction in commercial real estate, with more to go, means there are major openings for well-capitalized investment to get into areas of redevelopment and repurposing of buildings.”
The increasing mobility of wealth also means governments are moving to “balance impacts of those money flows,” Bailey says. “In the last 12 months, Singapore has increased stamp duties on foreign property buyers. We’ve seen the same pattern in Canada, with a foreign-buyer ban. Portugal’s foreign-investor scheme, which encouraged wealthy people to buy real estate, has shifted to other investments,” including company creation, arts, and research.
“It’s an attempt to balance inflows of wealth with the needs and requirements of local residents. Wealth can be a controversial topic, and governments will always try to balance inequality in some way,” Bailey says.
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At the same time, wealth expansion doesn’t necessarily come at the expense of the less affluent—it can create “genuine economic growth,” he says.
By 2028, the Knight Frank Wealth Report predicts, the number of ultra-wealthy individuals worldwide will increase by 28.1%. Asia will lead the way, Knight Frank says, with high growth in India (50%), the Chinese mainland (47%), Malaysia (35%), and Indonesia (34%). Europe and Latin America are “expected to be the weakest regions,” the report says.
An Australian Home With a Historic Racecourse
This Victoria, Australia, home is the perfect fit for any equestrian. Located in the town of Lancefield, the 89-acre property features a full-sized, 1,600-meter racetrack that hosted horse races until the 1930s. In addition to the track, there’s also a stable complex, multiple paddocks and yards. The residence, built in 2000, has five bedrooms and two bathrooms, and its style mixes elements of Victorian architecture with modern details. The property has a guide price of A$4 million (US$2.62 million). Domain
Home Prices Are Still Climbing in the U.S.
January marked the 10th consecutive month of home prices rising across the U.S., according to the latest Home Price Index from First American. House prices increased 0.3% from December to January and jumped 7.2% year over year, which is a slight decline from December’s 7.7% annual increase. December’s peak was driven by buyers taking advantage of decreased mortgage rates, said First American’s chief economist Mark Fleming, and the rate of appreciation is likely to slow in the coming months. MPA Mag
Scottish Homes Are Selling Well Above Asking
Homes across much of Scotland have been selling for more than their asking price, according to analysis of Zoopla data. This trend is most prominent in East Renfrewshire, where properties are selling for £272,187 (US$343,468) on average, which is £36,708 more than the typical listing price of £235,479. Additionally, the typical sold price is exceeding asking by £31,662 in East Dunbartonshire, £30,627 in Edinburgh and £29,456 in East Lothian. PropertyWire
Podcaster Tim Dillon Lists His Hollywood Hills Home for $5 million
Comedian and podcaster Tim Dillon is selling his Los Angeles home, asking just under $5 million. Dillion bought the Hollywood Hills home less than two years ago from actor Thomas Middleditch for $4.6 million. Built in the early ’70s, the 3,000-square-foot Spanish-style estate has been renovated over the years. It has three bedrooms, two bathrooms and an attached two-car garage. There’s also a separate guest cottage with a bedroom and a bathroom. The home sits on a little more than a third of a clifftop acre above Mulholland Drive. Robb Report
HSBC’s global banking and markets unit jumped 8% last year as the UK lender increased fees from dealmaking and maintained trading revenue in most asset classes.
The UK lender posted revenue of $16.1bn for its global banking and markets unit last year, according to its annual accounts. Fees from capital markets and M&A work surged 36%, with HSBC’s investment bank benefiting from a resurgence in debt underwriting revenue.
HSBC’s pre-tax profit of $30.3bn for 2023 was a record for the bank and an increase of 78%, but still below the $34bn expected by analysts. In a statement, chief executive Noel Quinn said that the results “reflected four years of hard work and the strength of our balance sheet in a higher interest rate environment.”
HSBC finished 16th in the investment banking fee league tables last year, according to data provider Dealogic, with 1.3% share of the market. This is up from 17th a year earlier.
The UK lender’s markets and securities services business posted revenue of $9bn, which was largely in line with 2022. However, equity trading fees of $552m were nearly half of the $1bn it earned in the unit in 2022.
HSBC’s GBM business dipped 4% in the final quarter of the year to $3.7bn.
READ HSBC hikes bonuses to $771,700 for its top investment bankers
HSBC has bolstered its UK investment bank over the past year, hiring two senior dealmakers for corporate broking in July, but faces stiff competition from Barclays, which is aiming to consolidate its first place finish in the UK dealmaking fee league tables last year. In recent months, hires within its investment bank have focused on its core markets of China and the Middle East.
Investment banks have struggled against an ongoing drought in deals, with Wall Street banks and Europeans alike posting sharp declines in M&A fees in 2023. UK rival Barclays unveiled a 12% decline in investment banking fees for 2023, led by a 23% slump in revenue from M&A work.
Barclays also unveiled its first investor day since 2014, separating its business into five key units including separating its investment bank from its corporate bank. While the UK lender will look to reduce its reliance on its investment bank, it is not pulling back and within its dealmaking team intends to shift the balance away from debt underwriting to do more M&A and equity capital markets work.
Deutsche Bank’s origination and advisory business was up by 25% in 2023, buoyed by a rebound in debt capital markets activity as its M&A unit slipped 25%. A hiring spree of 50 managing directors at the German lender last year aims to shift the balance of its investment bank towards more M&A and equity capital markets work.
To contact the author of this story with feedback or news, email Paul Clarke