All Posts Tagged With: "sovereign wealth funds"
Growing Resource Nationalism Threatens US Consumers
The increase of state-controlled resources is ulitmately bad news for American consumers, says Irwin Greenstein, writing for Contrarian Profits. Not only are state-run resource companies inefficient compared to private sector firms but also many of them are hostile to US interests.
How Death of Investment Banking Will Affect Emerging Markets
Investors woke up this morning to a new era on Wall Street.
The last two big investment banks, Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS), have abandoned their freewheeling, frat-boy days to become bank holding companies. The move puts them under stricter Federal regulation. More important, they will now look to more conservative sources of money - such as customer deposits - over highly leveraged trading bets.
What remains to be seen, though, is whether the shift could dam up a torrent of money flowing into emerging markets.
Using Sovereign Wealth Funds to Follow Hot Money
Lynn Carpenter at Investor’s Daily Edge says that for every super-smart investor there are several spontaenous and irrational money-chasers. Some of the biggest risk takers are Sovereign Wealth Funds (SWF), state-owned funds that hold an estimated $3 trillion in assets worldwide. These funds have little transparency and no clear long-term objectives, but can show investors where money is flowing in the market.
How to Profit From OPEC Nations’ 2008 Windfall
OPEC nations, reports the Financial Times, earned as much in the first half of this year as they did in the whole of 2007.
According to the report, member nations pocketed a staggering $645 billion in the first six months of 2008, just under the record $671 billion they earned last year. This puts OPEC nations on track to earn a record $1,245 billion this year, despite the recent 20 percent drop in oil prices, as any price drop will be offset by an increase in demand.
Profit Hunter’s Manraaj Singh calls it the “biggest transfer in history.”
The Fed Cannot Raise Interest Rates
If Fed chief Ben Bernanke thinks raising interest rates will be a cure all for the US economy, then he can return his diploma from Princeton as “unused”, says Chuck Butler.
Wells Fargo Bank (NYSE:WFC) may have temporarily raised the market’s spirits, but since when did one swallow make a summer?
Raising interest rates in the current economic environment would be nothing less than madness…
Sovereign Wealth Funds Reduce Their Dollar Exposure
The U.S. economy is on the way out, says Dave Gonigam in The Daily Reckoning’s blog, Desidooru Saloon. Dave has picked up on a report from the Financial Times that says an anonymous Gulf sovereign wealth fund has slashed its dollar-based holdings. China’s biggest holder of dollar reserves, the State Administration of Foreign Exchange, is also reducing its dollar exposure…
Why This $250m Decision by China Means Latin ETFs Will Soar
At Contrarian Profits we’re always on the lookout for hidden value opportunities. That’s why the following piece by Taipan Daily’s emerging markets expert Irwin Greenstein has got us really excited.
Irwin says the decision by China Investment Corp (CIC), the country’s $200-billion sovereign wealth fund (SWF) to allocate $250 million in emerging markets means Latin ETFs could receive a big boost.
Irwin says China needs to diversify out the diving dollar and gain greater control of energy reserves - and Latin America serves both purposes best…
The Fed’s Talk Won’t Save the Dollar
Editor’s Note: Bill Bonner in The Daily Reckoning says the recent slide in the dollar is nothing compared to the all-out collapse that could be on its way. Central banks throughout the world are holding $5 trillion, and some are getting worried about the greenback’s decline. Meanwhile, the euro and gold are become increasingly attractive holdings. If global central banks start dumping their dollars, it could mean the end of the global financial system as we know it…
Qatar Sovereign Wealth Fund to Invest $8bn in Libya
The State of Qatar will invest about $8 billion in Libyan companies across various sectors, officials told the Financial Times.
The investment is one of many made by large, national sovereign wealth funds, or global cash barons, and will help Libya diversify its economy away from a reliance on hydro carbons.
According to the FT, Barwa Real Estate Co., an affiliate of the Qatar Investment Authority’s $40 billion property wing, agreed to invest $2 billion in state-owned Libyan Development and Investment Co to develop commercial, residential and leisure facilities.
Barclays To Raise $8.9 Billion With Help From Sovereign Wealth Funds
Starving for capital and hell-bent on retaining its handsome dividend, Barclays PLC (ADR: BCS) plans to raise $8.9 billion (4.5 billion pounds) by selling shares to investment banks and sovereign wealth funds around the world.
As much as 1.58 million shares will be sold to existing investors China Investment Bank and Singapore’s Temasek Holdings Pte. Ltd., as well as new investors Japan’s Sumitomo Mitsui Banking Corp., Qatar Investment Authority and Challenger - a fund that represents “the beneficial interests” of Qatar’s royal family.
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