Asian firms' US investment to keep rising, Citi's international chief says

what happened

Investment by companies from Japan, South Korea and Taiwan in the United States is expected to keep rising, according to Ernesto Torres Cantu, who leads Citi's business outside North America. He told Reuters in Hong Kong that these firms have substantial capacity to invest. In his view, spending on US projects builds in stages, from buying land to constructing a plant and starting daily operations.

Cantu said inbound investment into North America is growing at double-digit rates. Tariffs remain a factor, but he believes the Gulf War is having a bigger effect on how companies reroute trade and rebuild supply chains. Citi's overall third-quarter revenue rose 8%, while its services unit, covering payments, trade finance and cash management, climbed 15%. He also expects flows from China, which he said have risen by more than 20% a year for two years, and trade between Britain and India after tariff cuts, to keep expanding.

why it matters

For markets, the remarks point to steady cross-border capital flows and stable fee income for large banks that earn from payments, trade finance and settlement as supply chains shift. These are a bank executive's views, not a forecast for any specific asset.

market impact

Cross-border banks: steady international flows support fee income

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