Goldman To Ramp Up Investment In Japan’s Mid-Cap Companies

Stocks

Economic

Summary:

Goldman Sachs Group Inc. is planning to expand its acquisitions and investments in Japan's booming corporate deals market over the next decade by about ¥800 billion ($5.1 billion), with a focus on mid-sized firms.

The Wall Street investment bank is looking for corporate clients in areas such as management buyouts, subsidiary sales and business succession planning, said Yu Itoki, managing director in its Japan unit's growth equity and private equity team. He sees strong global institutional demand for Japanese allocations, while more and more companies are keen to carry out projects such as MBOs and sales of non-core assets.

"We're in an environment now where we can invest at double or triple the pace compared with before," Itoki said in an interview. "Supply and demand are aligned" between investors targeting Japan and companies seeking funding, he said.

Deal volumes involving Japanese companies in 2025 jumped to record highs of around $350 billion, as corporate governance reforms aimed at bolstering shareholder returns led to more transactions. Multibillion-dollar megadeals have emerged, but Itoki said those aren't the main target for Goldman because there's intense competition for them, reducing their appeal.

The bank is instead targeting mid-sized companies valued from about ¥30 billion to ¥300 billion that tend to lack capital and human resources needed to expand overseas or carry out mergers and acquisitions, he said.

"In many cases, the quality of their business is high," with a big market share in Japan, "but they lack the resources necessary for further growth," Itoki said.

Goldman has already started such investments, acquiring in 2022 the road-building company Nippo Corp. with an investment of around ¥200 billion in collaboration with Eneos Holdings Inc. In 2024 the US bank teamed up with the founding family and others to carry out an MBO for Nihon Housing Co. for around ¥94 billion.

The US investment bank is focused on four sectors, including tech firms it's invested in like taxi dispatch app operator Go Inc. and smart lock company Bitkey Inc.

Health care is another area, and Kakehashi Inc. straddles health and technology, providing software data over a cloud service to pharmacies. The company raised about ¥14 billion from Goldman Sachs and existing shareholders earlier this year.

A third preferred sector is industrials, a broad area that includes Nippo and Nihon Housing, according to Itoki. Raksul Inc., a web-based service provider is another, and it's just announced that it will carry out an MBO for ¥120 billion.

Industrial firms aren't "necessarily experiencing high growth," but they have "high quality technology and services, and with ample room for value improvement through operational efficiency and slimming down of balance sheets," Itoki said.

Goldman didn't have holdings in the fourth sector, consumer firms, until it acquired Burger King Japan, announcing the deal in November. It bought the fast food business from Hong Kong investment company Affinity Equity Partners for around ¥70 billion.

Quick service restaurants like Burger King have shown high growth since the Covid-19 pandemic, with hamburger joints doing especially well, said Itoki.

It takes time and money for overseas private equity funds to set up their own teams and invest directly in Japan due to the language barrier and different business practices and regulations.

"Many investors think it is rational to entrust their funds as LPs to houses with teams and track records in Japan," Itoki said, referring to limited partners. With funds entrusted to Goldman, "I want to responsibly make allocations to help Japanese companies grow."

Source: Bloomberg Europe

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Gerik

Economic

Commodity

Silver’s Rapid Rise Signals a Market Shift

In December 2025, both gold and silver reached historic price milestones, but silver’s performance has notably eclipsed that of gold. While gold rose to $4,480.60 per ounce a 71% increase from the previous year silver futures soared past $69.09 per ounce, marking a 137% gain since January and setting a new all-time high. This divergence signals a shift in investor sentiment and hints at silver’s evolving role in the market.

Analysts point to historical trends to explain this dynamic. Silver tends to lag behind gold in the early stages of a precious metals bull market. Once gold establishes momentum, silver often catches up rapidly and can outperform sharply. This pattern is now playing out, as silver has accelerated after years of underperformance relative to gold.

Gold-Silver Ratio Compression Reflects Silver’s Strength

A significant indicator of silver's momentum is the gold-silver ratio, which measures how many ounces of silver are equivalent in value to one ounce of gold. This metric has dropped from 104:1 in April to just 64:1, indicating that silver is closing the valuation gap.

The ratio’s compression reflects not only silver's rising price but also shifting market behavior. Silver is increasingly being treated not only as a hedge like gold, but also as a commodity tied to future economic expansion, especially in industries relying on its conductive and reflective properties.

Why Investors Are Flocking to Silver

Several factors are contributing to silver's outperformance:

Affordability and accessibility: Often referred to as “poor man’s gold,” silver offers a more accessible entry point into the precious metals market. Retail investors are more likely to buy silver for physical storage, especially during inflationary periods.

Industrial demand potential: Unlike gold, which is primarily a financial asset, silver has substantial industrial use. It is vital in electronics, solar panel manufacturing, and green energy technologies. As interest rates decline and project financing becomes easier, demand for silver in industrial sectors is expected to rise.

Inflation hedge and rate-cut environment: Both metals benefit from inflation concerns, but silver’s dual nature makes it more responsive to broader economic shifts. Falling interest rates reduce the opportunity cost of holding precious metals, boosting silver’s appeal as both an investment and industrial commodity.

What Investors Should Understand Before Entering the Market

Investing in precious metals is often viewed as a defensive strategy in times of economic uncertainty, but it comes with its own set of risks and considerations. Unlike gold, silver is more volatile and less liquid, meaning its price can swing more drastically, and it might be harder to sell quickly at fair market value.

There are various ways to invest in silver:

Digital investments: ETFs, futures contracts, and mining stocks allow investors to gain exposure without holding the physical metal.

Physical investments: Silver bars, coins, and jewelry offer tangible assets but require secure storage and carry potential resale complications.

Gold tends to offer greater liquidity and price stability, but silver's upside potential may attract those with higher risk tolerance or a bullish view on green energy demand.

Silver’s Surge Is Both Opportunity and Caution Flag

The silver rally in 2025 reflects a convergence of historical price behavior, inflationary hedging, and surging industrial relevance. While the metal has decisively outperformed gold this year, the associated volatility, liquidity constraints, and market timing risks mean that investors should approach silver with strategic clarity.

For those looking to diversify, hedge against macro uncertainty, or bet on the future of industrial growth, silver may offer compelling upside. But as always, allocation should align with risk tolerance, long-term goals, and the awareness that sharp gains often come with equally sharp corrections.

Source: Yahoo Finance

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Winkelmann

Forex

Political

The yen outperformed its Group-of-10 peers on Tuesday, strengthening after Japan's Finance Minister Satsuki Katayama said in an interview that the government has a "free hand" to take bold action against the currency if its moves are out of line with fundamentals.

Japan's currency appreciated as much as 0.5% to 156.24, rebounding from about a one-month low that it hit following the Bank of Japan's rate decision last week. Meanwhile, the dollar extended its decline versus major peers for a second day.

"There is a certain degree of caution over possible intervention by the authorities, and the yen has shown a noticeable rebound after having been heavily sold," said Hiroyuki Machida, director of Japan FX and commodities sales at Australia & New Zealand Banking Group. "However, the move also reflects broad dollar weakness, as US Treasury yields have declined and major currencies have risen against the dollar."

While the BOJ lifted its policy rate to a three-decade high on Friday, Governor Kazuo Ueda offered little clarity on the central bank's future rate-hike path, helping trigger a slide in the currency toward levels that have led to interventions in the past. Japan's chief currency official Atsushi Mimura said this week that authorities will take appropriate measures against excessive foreign exchange market moves.

"While it is difficult to pinpoint a specific level for actual intervention, past experience suggests that once the yen weakens past the 158 level, market nervousness would rise sharply amid expectations that intervention could come at any time," Machida said.

Source: Bloomberg Europe

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Gerik

Political

Seized Oil Becomes a Strategic Asset for Washington

President Donald Trump stated on Monday that the United States will keep both the crude oil and the tankers recently seized near Venezuelan waters. Speaking in Palm Beach, Florida, Trump suggested multiple possible uses for the oil, including selling it, holding it, or diverting it into the U.S. Strategic Petroleum Reserve. He also confirmed that the vessels themselves would remain under U.S. control.

This announcement follows Trump’s order last week to impose a full blockade on sanctioned oil tankers entering or leaving Venezuela. The decision represents a clear intensification of economic and maritime pressure on the Maduro government, shifting from indirect sanctions enforcement toward direct asset seizure.

Escalating Maritime Enforcement in the Caribbean

According to energy consultancy Kpler, the U.S. seized a large tanker on December 10 carrying more than 1 million barrels of crude oil. A second tanker was intercepted over the weekend, and Trump confirmed that U.S. forces are actively pursuing a third vessel. He justified these actions by stating that the tankers originated from Venezuela and were subject to U.S. sanctions.

The sequence of seizures reflects a tightening operational approach rather than isolated enforcement actions. The growing number of interdictions suggests that Washington is now prepared to systematically disrupt Venezuelan oil exports at sea rather than relying solely on financial or diplomatic tools.

Oil, Regime Pressure, and Strategic Signaling

When asked about his ultimate objective, Trump said it would be “smart” for President Maduro to step down. While no formal declaration of regime change was made, the statement reinforces the perception that the oil seizures are closely linked to Washington’s broader political aims in Venezuela.

Venezuela remains a founding member of OPEC and holds the largest proven oil reserves in the world. Despite sanctions, it is exporting roughly 749,000 barrels per day in 2025, with more than half of that volume flowing to China, according to Kpler data. The U.S. focus on tankers transporting Venezuelan crude therefore directly affects Caracas’ remaining export lifelines.

The relationship between these seizures and pressure on Maduro is not coincidental. By physically removing oil from circulation, Washington reduces the Venezuelan government’s access to revenue, which in turn constrains its political and economic room for maneuver.

Military Buildup Raises Stakes Beyond Energy Markets

The tanker seizures are unfolding alongside a substantial U.S. military buildup in the Caribbean. The Trump administration has already carried out lethal strikes on boats accused of drug trafficking, actions that have drawn scrutiny from Congress and sparked debate over their legal basis.

Trump’s remarks on Monday suggested a further expansion of these operations. He warned that similar programs could be extended onto land, framing the threat in terms of preventing drugs from entering the United States. This language connects security concerns with military escalation, even though the geographic scope and scale go beyond traditional counternarcotics operations.

From Sanctions to Direct Control

Trump’s declaration that the U.S. will keep seized Venezuelan oil and tankers marks a turning point in the confrontation with Caracas. The move goes beyond restricting trade or freezing assets and enters the realm of direct appropriation. This shift alters the balance of risk for energy markets, shipping companies, and countries still purchasing Venezuelan crude.

At the same time, the combination of oil seizures, naval blockades, and military threats signals a broader strategic posture in the Caribbean. Whether this approach succeeds in forcing political change in Venezuela or triggers wider regional tensions will depend on how other global actors, particularly China and OPEC members, respond to Washington’s increasingly assertive stance.

Source: CNBC

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Gerik

Economic

Stocks

AI Momentum from Wall Street Carries Over to Asia

A fresh wave of investor enthusiasm for artificial intelligence rippled across Asia-Pacific equity markets on Tuesday, following overnight gains on Wall Street. The rally was driven largely by upbeat sentiment surrounding Nvidia’s reported plan to begin shipping its high-performance H200 chips to China by mid-February, despite ongoing export restrictions. Nvidia’s shares rose more than 1%, while fellow tech names like Micron Technology and Oracle also posted solid gains, up around 4% and 3% respectively.

The bullish mood in U.S. markets where the S&P 500 added 0.64%, the Dow Jones Industrial Average climbed 0.47%, and the Nasdaq rose 0.52% provided the immediate catalyst for Tuesday’s upbeat start across Asia.

Australia Extends Winning Streak, Japan Mixed

Australia’s S&P/ASX 200 index rose 1.16% to 8,800.70, on track for a fourth consecutive day of gains. This upward trend reflects strong domestic sentiment and continued alignment with global tech-led growth themes.

Japan’s Nikkei 225 showed limited movement, up only 0.08% to 50,442.12, while the broader Topix index gained 0.56%, led by strength in financials and healthcare stocks. This divergence may reflect investors selectively rotating into sectors less exposed to AI valuation volatility after earlier sell-offs.

Korea Gains on Shipbuilding Optimism, but Small Caps Slip

South Korea’s Kospi climbed 0.42% to 4,123.32, bolstered by a 10% surge in Hanwha Ocean shares after former President Donald Trump announced the firm’s involvement in building new frigates for the U.S. Navy. This announcement had a clear causative effect on the stock's rally, driven by expectations of significant defense contract revenues.

However, the small-cap Kosdaq index declined 0.79%, a likely sign of selective investor profit-taking or hesitance amid broader volatility.

Hong Kong and China See IPO Frenzy Amid Modest Gains

Hong Kong’s Hang Seng Index ticked up 0.18% to 25,848.43, while mainland China’s Shanghai Composite added 0.27% to 3,928.04, and the CSI 300 increased 0.35%. The standout news came from two new listings in Hong Kong: QingSong Health Corporation and Nuobikan Artificial Intelligence Technology. The former surged 134%, while the latter skyrocketed 323% on debut.

The rally was underpinned by overwhelming demand. QingSong’s IPO was 1,421 times oversubscribed on the domestic tranche, raising HK$602 million (approx. USD 77 million), and Nuobikan’s public offering was 188.74 times subscribed, bringing in HK$303 million. The outsized enthusiasm reflects strong retail investor appetite for AI and biotech names, highlighting a speculative boom in niche IPOs, likely driven by correlation with global AI excitement.

Singapore Inflation Eyed as Regional Risk Factor

In Southeast Asia, attention turns to Singapore’s November inflation data. Economists surveyed by Reuters expect the inflation rate to reach its highest level of 2025. While this poses a potential headwind for market sentiment and could signal future monetary tightening, it has yet to exert visible pressure on equity performance.

The inflation reading will act as a litmus test for broader Southeast Asian economic momentum and may influence short-term currency and bond market trends across the region.

AI Surge Rekindles Market Optimism, but Macro Risks Linger

The Asia-Pacific equity rebound reflects a strong correlation with Wall Street’s AI-led surge, demonstrating how expectations around chip shipments and tech momentum continue to dominate global investor psychology. Gains in Australia and Korea were bolstered by sector-specific catalysts tech in the former, defense in the latter while the record-setting IPOs in Hong Kong signal frothy enthusiasm for innovation-focused listings.

However, beneath the rally, risks remain. Singapore’s inflation outlook could reintroduce monetary policy concerns, and the uneven performance across small-cap indexes suggests lingering caution. As such, while AI is clearly fueling a risk-on environment, markets remain vulnerable to macroeconomic headwinds in the weeks ahead.

Source: CNBC

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Justin

Political

Economic

Ayanangshu Lahiri and his bandmates were about to rush to a clothing store after a sudden change in the dress code for their performance just hours before the show. Then he recalled an Instagram post raving about Slikk, a startup that delivers clothes in less than an hour.

Slikk saved the day for the band. But ever since that first purchase in September, Lahiri, a drummer and creative director at an advertising agency in the southern Indian city of Bengaluru, has not looked anyplace else for daily wear.

"It is not that I need clothes in an hour every time," Lahiri said, "But why wait for a few days for delivery when you can get things almost instantly?"

Urban Indians like Lahiri have become hooked on quick deliveries in the last three years, with couriers from Blinkit, Swiggy and Zepto turning up at their doorsteps with groceries in 10 minutes. Their love for speed is fueling a barrage of startups that are applying the same model to everything from fashion and to household help, with industry executives saying quick turnarounds could become the order of the day in India's fiercely competitive digital services market.

Nearly 70 quick delivery and on-demand home services startups have launched since the start of 2024, raising $1.9 billion, estimates data company Tracxn, with grocer Zepto alone bagging $1.8 billion. But early investments by global funds like General Catalyst, Glade Brook Capital, Bain Capital, Accel, Lightspeed and Nexus Venture Partners into fashion startups such as Slikk and Zilo, food delivery specialist Swish and home services companies like Snabbit and Pronto signal the race to offer convenience is heating up.

"More people are playing the convenience game because instant services have become table stakes. ... Consumers are used to not planning ahead," said Shivakumar Ramaswami, founder of investment bank Indigoedge. "The demand for such services will only grow as younger people enter the workforce and move to urban centers."

According to Akshay Gulati, cofounder and CEO of Slikk, which received an investment of $10 million in May, two months after raising $3.2 million, "Quick commerce is the new norm."

"Any online marketplace in India is built on three principles -- pricing, selection and service -- and you need to win on two fronts to build conviction with customers," Gulati said. "Our differentiators are services and supply -- a very curated supply and delivering it very fast."

The spate of investments brings to mind the heady days of e-commerce a decade ago, when the likes of Tiger Global Management and Naspers poured funding into online marketplace Flipkart, while Alibaba and SoftBank bankrolled Snapdeal. The mammoth fundraising by these companies, to the tune of billions of dollars, and their rapid expansion triggered a further wave of investments in sectoral startups specializing in fashion, furniture, accessories and baby care.

But as private funding became erratic amid intensifying competition, many such startups folded or were bought by larger competitors. Snapdeal, meanwhile, is a shadow of its former self after a failed attempt at merging with Flipkart. Some executives fear a similar story may play out with the current wave of convenience-focused startups.

"The question about the sector-focused startups is whether they will survive as independent entities or will eventually get folded into some of the big guys," said Rutvik Doshi, managing director and general partner at venture capital firm Athera. "There will be consolidation, definitely."

Those questions are growing louder as established players make a belated entry into the field and incumbents expand into new categories. Both Amazon and Flipkart, for instance, started quick deliveries of groceries in mid and late 2024, respectively. Flipkart's fashion arm, Myntra, and listed lifestyle company Nykaa began deliveries within a couple of hours in late 2024.

Similarly, Swiggy, Blinkit and Zepto have expanded beyond groceries into electronics, apparel and food, while home services firm Urban Company, which went public earlier this year, has offered on-demand household help since March.

"The next wave of online commerce will be driven by time-bound services," said Karan Taurani, executive vice president at brokerage firm Elara Capital. "Companies that don't have such offerings may end up losing market share."

Securing a bigger slice of that market will require a generous infusion of growth capital. Swiggy, which raised $1.4 billion in an initial public offering in November 2024, mopped up another $1.2 billion in a share sale earlier this month. Eternal, the parent company of Blinkit, raised nearly $1 billion late last year, on top of a $1.3 billion IPO in 2021.

But growth capital is scarce for unlisted companies, although emerging startups that have raised from global funds or their Indian affiliates have a better chance, given their easier access to a bigger capital pool.

Founders admit that their businesses will end up guzzling money, at least in the early days.

"Any major disruption, be it e-commerce, ride hailing, food delivery or quick commerce, would not have been possible without high-quality venture capital that allows for up-front investment in category creation and habit formation," said Aayush Agarwal, CEO of Lightspeed- and Nexus-backed Snabbit, which in 2025 has raised $55 million in three rounds. "Beyond a certain threshold, additional capital requirement is a factor of competitive intensity. ... With a listed competitor in the mix, we need to be better capitalized than if we were building this category alone."

Investment banker Ramaswami sees no letup in investor interest. "Investors are willing to fund [cash] burn because once habit is formed, the lifetime value [of consumers] will be high," he said.

Source: Asia_Nikkei

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Economic

Indonesia said it has resolved all substantive issues in trade talks with the US and is on course to ink an agreement in late January, removing a major source of uncertainty for Southeast Asia's biggest economy.

Both countries have aligned on the "crucial issues" in their draft agreement, protecting the mutual interests of both parties, Coordinating Minister for Economic Affairs Airlangga Hartarto said in an online presentation on Tuesday, after meeting with US Trade Representative Jamieson Greer in Washington.

The trade agreement will be signed by both President Prabowo Subianto and President Donald Trump, with the Indonesian leader expected to travel to the US at the end of January.

The US agreed to exempt tariffs on certain Indonesian products including palm oil, coffee and tea, said Hartarto, Indonesia's lead negotiator. The US will also gain access to Indonesia's critical minerals, he said.

Under a framework announced in July, Indonesia was to eliminate tariffs on over 99% of US goods and remove non-tariff barriers, in exchange for the US reducing tariffs on Indonesian products from a threatened 32% to 19%. Indonesia also agreed to purchase roughly $19 billion in American products, including 50 Boeing Co. jets and agricultural goods.

Since then, negotiations hit sticking points over US demands that could limit Indonesia's autonomy in engaging in strategic trade and investment agreements with other countries. Of particular concern was the potential impact on the critical mineral and energy sector, and commerce with China and Russia.

Trump Demands on Mining, China Snarl US-Indonesia Trade Deal (1)

"No Indonesian policies are restricted by this agreement," Hartarto said, when asked about the US demands. The trade agreement between Indonesia and the US "is commercial and strategic in nature and benefits the economic interests of both countries equally," he said.