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Sovereign Wealth Funds Briefing - Archive | October, 2008

Nicolas Sarkozy and SWFs

Posted on 28 October 2008 by VRS  |  Email |Print

From Countercurrents.org: In a hard-hitting speech to the European Parliament in Strasbourg (France) on October 21, French President Nicolas Sarkozy proposed that European countries should create their own sovereign wealth funds to protect national companies from foreign “predators.”

“I’m asking that we think about the possibility of creating, each one of us, sovereign funds and maybe these national sovereign funds could now and again coordinate to give an industrial response to the crisis,” he told members of the European Parliament….. Full Article: Source

Foreign currency deposits in Philippines remains stable amid shaky financial markets

Posted on 28 October 2008 by VRS  |  Email |Print

From Gmanews.tv: Foreign deposits in Philippine banks remain stable despite the ongoing global financial meltdown, the Bangko Sentral ng Pilipinas (BSP) said.

BSP deputy governor Diwa C Guinigundo said remittances are still at healthy levels since many Filipinos overseas are in countries which are not badly hit by the economic slowdown. While the Philippines is not spared from the impact of fleeing dollars, Guinigundo noted that remittances from US-based Filipinos account for only 30 percent of the inflows from overseas Filipinos….. Full Article: Source

Oman eyes $2bn investment in water projects

Posted on 28 October 2008 by VRS  |  Email |Print

From Thepeninsulaqatar.com: Oman is investing more than $2bn in its water sector under its 2006-2010 development plan and will privatise two waste water companies, the head of the sultanate s water authority said.

The planned investment in the water sector alone as part of our seventh five year plan is in excess of $2bn. For drinking water alone the investments total $1.82bn and another $385m for constructing dams, Zahir Al-Suleimani told a power and water conference in Abu Dhabi….. Full Article: Source

Sixteen U.S. banks sign up for government funds

Posted on 28 October 2008 by VRS  |  Email |Print

From Guardian.co.uk: Sixteen U.S. banks including BB&T Corp , Capital One Financial Corp and SunTrust Banks Inc have accepted more than $33 billion of U.S. government cash, as speculation turned to which lenders might not qualify for help.

The infusions are part of the second phase of a $250 billion recapitalization program launched this month by U.S. Treasury Secretary Henry Paulson. Governments worldwide are trying to prop up banks whose capital has been hit by the credit crisis as part of efforts to stave off a potentially deep global economic recession….. Full Article: Source

Gulf to the US: thanks, but no thanks

Posted on 27 October 2008 by VRS  |  Email |Print

From Daily Star: As American financial giants collapsed and blue chip corporations sent out distress signals, many on the Wall Street expected super-rich Middle Eastern sovereign wealth funds (SWFs) to swoop down to acquire stakes in some of them. But such thinking has proved to be a mirage.

Contrary to popular perceptions in the West, these SWFs are both cautious and well-diversified. They’re also preparing for the post-petroleum era better than most outsiders imagine….. Full Article: Source

Global funds industry shifting east

Posted on 27 October 2008 by VRS  |  Email |Print

From Asian Investor: New York-based consultancy Strategic Insight says in a new report that the credit crunch has revealed the essential need for fund management companies to have a distribution into Asia – and predicts many more will build it.

Funds under management in Asia as well as the Middle East and Latin America will grow much more quickly than those in the United States and Europe over the next five years, says Daniel Enskat, managing director and head of global consulting….. Full Article: Source

Qatar comes to Barclays’ aid again

Posted on 27 October 2008 by VRS  |  Email |Print

From Guardian: Barclays is set to unveil a £2bn-plus rescue package that will see the Qatar Investment Authority boost its investment in the British bank where it already owns an 8 per cent stake.

A deal that could be announced in days will see the Qataris subscribe to £1bn worth of new loan stock with another £1bn being taken up by Barclays’ existing institutional investors. The special new shares will be high-yielding securities that will pay a relatively high rate of interest….. Full Article: Source

Saudi gives $2.7 bln credit to needy as turmoil spreads

Posted on 27 October 2008 by VRS  |  Email |Print

From Guardian: Saudi Arabia plans to extend 10 billion riyals ($2.7 billion) in credit to low-income citizens as Gulf Arab oil-producers step up efforts to contain the fallout from the global financial crisis.

Saudi King Abdullah ordered that the additional funds be deposited in the Saudi Credit Bank, which was established to extend interest-free loans to Saudi citizens with limited resources to help them overcome financial difficulties…… Full Article: Source

Merrill good long-term investment - Thain

Posted on 27 October 2008 by VRS  |  Email |Print

From Arabian Business: Merrill Lynch chief executive John Thain has moved to calm concerns within Kuwait that the government has lost money from its investment in the US bank earlier in the year.

Speaking in Kuwait during a tour of the Gulf, Thain said the $2 billion cash injection by the state-owned Kuwait Investment Authority (KIA) back in January will be very profitable in the long-term….. Full Article: Source

GPT discount nets $1bn

Posted on 27 October 2008 by VRS  |  Email |Print

From News.com: Property trust GPT Group has sold $1 billion in shares at a hefty 48 per cent discount to their last traded price to repay debt amid falling property values.

GPT, whose chief executive Nic Lyons stepped down this week, is seeking at least $1.3 billion to repay borrowings. Investors bought the GPT shares for 60 each - compared with their last traded price of $1.15 before they were placed in a trading halt on Wednesday.. …. Full Article: Source

Qatar won’t curb investments because of global crisis: PM

Posted on 27 October 2008 by VRS  |  Email |Print

From AFP: Gas-rich Qatar said on Sunday it has no intention of scaling down massive investments at home and abroad as a result of the global financial crisis.

“We have no intention of halting infrastructure projects at home or reducing overseas investments,” Qatari Prime Minister Sheikh Hamad bin Jassem bin Jabr al-Thani told a joint news conference with visiting Greek counterpart Costas Karamanlis…… Full Article: Source

Khazanah buys 10 percent stake in Saudi’s Jadwa investment

Posted on 27 October 2008 by VRS  |  Email |Print

From Bernama: Khazanah Nasional Bhd has acquired a 10 percent stake in Saudi’s Jadwa Investment, a Shariah compliant investment firm, for RM270.85 million in its long-term strategy to ride out the economic downturn and foster stronger ties between Malaysia and Saudi Arabia.

“We believe in Islamic finance and that it will certainly be part of the solution of these tumultuous time,” Khazanah’s managing director, Tan Sri Azman Mokhtar said at the agreement signing ceremony here, Saturday….. Full Article: Source

Financial tempest spreads to Gulf states

Posted on 27 October 2008 by VRS  |  Email |Print

From IHT: The global economic crisis extended its reach into the Gulf states Sunday, as Kuwait suspended trading in shares of a major bank and the Saudi authorities announced a plan to help citizens receive credit.

The Central Bank of Kuwait halted trading in Gulf Bank, one of the country’s largest lenders, after a customer defaulted on a derivatives contract. The central bank said it would “strongly support the bank’s financial position” and protect depositors, to assure the public that Gulf Bank’s business “will not be affected.”…. Full Article: Source

Capital-Injected agricultural bank faces further challenges

Posted on 27 October 2008 by VRS  |  Email |Print

From Chinastakes.com: ABC vice-president Pan Gongsheng, who is in charge of the reform, disclosed that the $19 billion injected by Central Huijin Company as additional core capital, together with 130 billion yuan previously allocated by Ministry of Finance, will well match ABC’s major financial indicators with those of other state-owned banks.

Huijin and the Ministry of Finance, which each own 50% of the bank’s shares, will set up a joint fund to take over ABC’s 800 billion yuan of non-performing assets….. Full Article: Source

China’s CIC chief defends investments, Blackstone

Posted on 27 October 2008 by VRS  |  Email |Print

From Reuters.com: The chairman of China’s sovereign wealth fund has defended its operations, saying its investment in U.S. private equity firm Blackstone will pay off in the long run, and noted it holds over 90 percent of its assets in cash just as global equity markets are plummeting.

China Investment Corp (CIC) bought its original stake in Blackstone Group just before the company’s $31-a-share initial public offering in June 2007, but has seen the value of its investment sink as a year-long crisis froze credit markets, prompting widespread criticism….. Full Article: Source

Gulf SWFs have big exposure to Turmoil, says GRC analyst

Posted on 27 October 2008 by VRS  |  Email |Print

The exposure of GCC Sovereign Wealth Funds (SWFs) to the current global market turmoil must be considerable as their equity component is more than 40 per cent, an analyst with Gulf Research Centre (GRC) said.

Dr Eckart Woertz, Program Manager Economics of the Dubai-based GRC, said GCC-based sovereign wealth funds that control almost $1.5 trillion assets worldwide, probably had also invested more in riskier debt structures like CDOs (Collateralised Debt Obligation) than the region’s banks….. Full Press Release: Source

Singapore’s Temasek seeking to sell Chartered Semi stake to TSMC

Posted on 27 October 2008 by VRS  |  Email |Print

From Tradingmarkets.com: Singapore’s Temasek Holdings is seeking to sell its stake in Chartered Semiconductor Manufacturing Ltd and has approached Taiwan Semiconductor Manufacturing Co Ltd.

Temasek currently holds 60 pct of Chartered Semiconductor, which has a 7.4 pct share of the semiconductor contract manufacturing market. TSMC commands about half of the semiconductor foundry market, it reported….. Full Article: Source

France to create a SWF

Posted on 24 October 2008 by VRS  |  Email |Print

From AP: French President Nicolas Sarkozy has proposed creating a state-run investment fund aimed at defending French companies from unwanted predators and helping small companies in difficulty.

Sarkozy said the global financial crisis proved the need for governments to play a role in the economy. “The moment has come to give the state the instruments it needs to intervene directly in the economy when it considers that strategic interests of the nation are threatened,” he said….. Full Article: Source

Unlisted property a big unknown as SWFs re-emerge

Posted on 24 October 2008 by VRS  |  Email |Print

From Theaustralian.news.com.au: The Singaporean Government’s decision to invest up to $600 million in GPT marks the re-emergence of sovereign wealth funds. SWFs seemingly hid for cover in the wake of the credit crisis.

The Singaporean Government’s agreement to underwrite the GPT rights issue was obviously crucial to the $1.6 billion recapitalisation. The company’s board should get some credit for doing the deal before it was too late….. Full Article: Source

Libyan SWFs to increase investment in equities

Posted on 24 October 2008 by VRS  |  Email |Print

From Bloomberg: The Libyan Investment Authority, the country’s $65 billion sovereign wealth fund, plans to increase its holdings of European, U.S., Asian and emerging market equities by as much as $2 billion in the next six months after the recent collapse in global stock markets made them attractive.

“We’re thinking about telecommunication, pharmaceutical, retailers, utility companies,” Libya’s Central Bank governor Farhagt Bengdara, who also sits on the board of the Libyan Investment Authority, said at a meeting of African central bank governors today in Cairo….. Full Article: Source

Crisis pushes SWFs to go domestic

Posted on 24 October 2008 by VRS  |  Email |Print

From Reuters: Sovereign wealth funds, once feared as the lions of global finance, are looking more like lambs now that the credit crisis has them shoring up domestic banks rather than gobbling up choice Western assets.

Investing at home rather than abroad is a big shift for these state-run agencies that control trillions of dollars and could signal a long-term shift in their strategy….. Full Article: Source

Taiwan: National Development Fund to top $30 bln

Posted on 24 October 2008 by VRS  |  Email |Print

From Chinapost.com.tw: Chen Tain-jy, chairman of the Council for Economic Planning and Development (CEPD), announced that the National Development Fund (NDF) would top NT$1 trillion (US$30 billion).

Altogether, NT$800 billion would be raised to expand the NDF, which has intervened in the Taipei stock market to stop the bear in the impending financial crisis. ….. Full Article: Source

SWFs: Appropriate vehicles for financial bailouts?

Posted on 24 October 2008 by VRS  |  Email |Print

From Seekingalpha.com: The International Monetary Fund (IMF), once a saviour to economies in distress, but then relegated to being an onlooker, is suddenly being called back into action. As the list of troubled countries grows, the list of places they can seek help has not.

The IMF is nearing agreements to make emergency loans to Iceland and Ukraine, and discussing aid packages with Pakistan and Hungary. Probably we would not like to forget that it was the IMF that came to India’s rescue when we faced the currency crisis back in 1991….. Full Article: Source

Emerging markets: Foreign currency debt troubles

Posted on 24 October 2008 by VRS  |  Email |Print

From Businessweek.com: Foreign-denominated debt is squeezing countries from Romania to South Korea as their local currencies falter. When Daniel Ion bought his first home last year, his monthly mortgage payment was $704. Now it’s $939—and rising.

“We wanted so much to have our own house, but now we are really starting to feel the burden,” says Ion. Soon, he frets, his salary as a manager at a toy factory may not be sufficient to cover the payments….. Full Article: Source chan=globalbiz_europe+index+page_top+stories

China to strengthen supervision of state-owned assets

Posted on 24 October 2008 by VRS  |  Email |Print

From Xinhuanet.com: China’s top legislators met for a third time to discuss a newly-revised draft law designed to improve supervision and management of state assets in both financial and non-financial businesses.

It prescribed state-owned assets in both financial and non-financial sectors should be put under supervision. It didn’t include state-owned administrative and resource assets. The draft law of enterprise state-owned assets was submitted to the fifth session of the Standing Committee of the 11th National People’s Congress for a third reading…… Full Article: Source

Spotlight falls on the nature and worth of the buffer funds

Posted on 24 October 2008 by VRS  |  Email |Print

From FT: Much attention has been directed to sovereign wealth funds as the new big players in financial markets. Less has been written about their cousins, sovereign pension funds in spite of calculations from Morgan Stanley that those from western Europe, the US and Japan alone have $4,400bn (£2,437bn, €3,062bn) in assets, far more than the $2,600bn held by SWFs.

SPFs are buffer funds, most established in the past 15 years, to build up reserves against the cost of unfunded state retirement benefits in the decades ahead. They merit individual scrutiny because several are far from similar in character or investment….. Full Article: Source

Italy won’t cap SWFs stakes, radiocor reports

Posted on 24 October 2008 by VRS  |  Email |Print

From Bloomberg: Italy won’t change its laws to impose a limit of 5 percent on stakes held by sovereign wealth funds in the country’s companies, Radiocor said, citing Foreign Minister Franco Frattini.

Italy had previously indicated it was considering setting limits on foreign investment in its companies, after Libya last week bought a stake in UniCredit SpA, the country’s biggest bank….. Full Article: Source

Dubai World invests in Qingdao

Posted on 24 October 2008 by VRS  |  Email |Print

From China.org.cn: Limitless, a business unit of Dubai World, and its subsidiary in Hong Kong, has won the bid for the development of Xiaomai Island in Qingdao at a price of 4.368 billion yuan.

The Xiaomai Island is located on the east of Yinhai International Yacht Club, which was the training base for 2008 Olympic Sailing events. The project covers a planned construction area of 420,000 square meters and consists of a seven-star standard hotel, and leisure tourism, conference, and exhibition facilities….. Full Article: Source

Norway should make oil fund greener

Posted on 24 October 2008 by VRS  |  Email |Print

From Khaleejtimes.com: Norway should earmark some of its $295 billion oil fund for long-term investments in environmental stocks, Environment Minister Erik Solheim said on Thursday.

He said that clearer support for renewable energy and other green technologies by big sovereign wealth funds — Norway alone owns about 1 percent of European equities — could help stabilise the shares and encourage private investors…… Full Article: Source

SWFs and global competition

Posted on 24 October 2008 by VRS  |  Email |Print

From Wordpress.com: A host of nations have what are called ’sovereign wealth funds’ (SWFs) designed to regulate fiscal imbalances or serve as a currency reserve as in a central banking role or more ambitiously serve the purpose of investment return which can include acquiring interest in private ventures.

Central banking role is the more conservative and traditional role that SWFs served but some have accumulated reserves (usually US dollars) so quickly the last few years as a result of commodity price inflation that they have sought out other opportunities to expand their portfolios….. Full Article: Source

East Asia to create $ 80 bln fund

Posted on 24 October 2008 by VRS  |  Email |Print

From AFP: East Asian leaders agreed Friday to set up an 80-billion-dollar fund by mid-2009 to fight the global economic crisis, as Japanese shares again fell sharply after a profit warning from technology giant Sony.

The agreement came hours after US officials warned of a rise in unemployment stemming from the credit crisis, while France unveiled plans for a sovereign wealth fund to protect key industries from turmoil, as debate raged over the cause of the global maelstrom…… Full Article: Source

The bear protects its own

Posted on 23 October 2008 by VRS  |  Email |Print

From Forbes.com: Sovereign wealth funds were once seen as a vehicle for a cash-rich country to invest abroad. Now, amidst the economic downturn, it seems that they will be taking on a different role: helping to protect domestic markets. As the financial markets have changed rapidly over the past few weeks, so have global attitudes toward sovereign wealth funds.

French President Nicolas Sarkozy suggested that Europe should consider creating its own sovereign wealth funds to protect its companies from “predators.”…. Full Article: Source

Singapore invests in GPT as CEO resigns

Posted on 23 October 2008 by VRS  |  Email |Print

From Theaustralian.news.com.au: Singapore’s sovereign wealth fund confirmed today that it has invested in Australia’s oldest property trust, GPT Group.

CEO, Nic Lyons leaves GPT. Michael O’Brien will be acting chief executive in the meantime. The news came as the heavily-indebted GPT confirmed a report in today’s Primespace section of The Australian newspaper that GPT plans to raise at least $1.6 billion in capital from investors and that chief executive Nic Lyons would leave the company….. Full Article: Source

Could SWFs heal global crisis?

Posted on 23 October 2008 by VRS  |  Email |Print

From Busrep.co.za: Sovereign wealth funds are investment vehicles typically controlled by rich countries with trillions of dollars at their disposal ready to invest abroad. The funds have been around since the early 1950s, created to absorb hazards posed by fluctuations in the prices of raw materials, develop infrastructure and finance pensions.

But their ranks have swollen in recent years and the term Sovereign Wealth Fund first appeared in 2006….. Full Article: Source

Thailand proposes asia pool $350 billion for crisis

Posted on 23 October 2008 by VRS  |  Email |Print

From Bloomberg.com: Thailand will propose that Asian countries pool $350 billion, or 10 percent of their foreign- exchange reserves, to help protect financial systems from a looming global recession.

Under the plan the Association of Southeast Asian Nations and Japan, China and South Korea would pool $150 billion to be tapped in case they need to protect their currencies and another $200 billion would be set aside to buy equities, bonds and fund infrastructure projects, Olarn Chaipravat, Thailand’s deputy prime minister, said in an interview in Bangkok today….. Full Article: Source

SWFs target UK plc

Posted on 23 October 2008 by VRS  |  Email |Print

From Accountancyage.com: Grant Thornton says that government intervention is making UK plcs a takeover target for sovereign wealth funds, which could put more FDs in the firing line.

Corporate finance experts at the firm have seen an upswing in man-dates from offshore outfits looking to make bargain acquisitions in the UK, especially from fast developing nations such as India, with many of these firms seeing the extent of economic difficulties affecting the UK economy as offering a golden opportunity to snap up bargains….. Full Article: Source

Would Scottish oil fund have allowed us to ride out the financial storm?

Posted on 23 October 2008 by VRS  |  Email |Print

From Scotsman.com: Having been embarrassed by his earlier comparisons of Scotland with Iceland and Ireland, Alex Salmond now points to Norway as a model of what Scotland could become. There are, however, major differences between the two countries.

Norway has been putting revenues from North Sea oil and gas into a national sovereign wealth fund, while this country has been spending them (much of the money on welfare benefits). We have no such fund to fall back on in the event of bank failure, for example….. Full Article: Source

Enel unaware of any Libyan SWFs holding

Posted on 23 October 2008 by VRS  |  Email |Print

From Reuters: The head of Italian power utility Enel said he was not aware of any stock holding in the company by a Libyan sovereign fund.

“I am absolutely not aware of that. Our investors are predominantly pension and investment funds from Britain, America and Europe and in any case when they get above 2 percent they have to notify it,” Fulvio Conti told reporters….. Full Article: Source

Garcia recasting strategy for $.4-B GSIS foreign investment

Posted on 23 October 2008 by VRS  |  Email |Print

From Businessmirror.com.ph: The state-owned Government Service Insurance System (GSIS) has decided that investing $400 million of its money in foreign-equity issues is too risky at this point, given the ongoing volatility in markets around the world.

This has forced GSIS president and general manager Winston Garcia to recast the fund’s original investment strategy, and the agency would now award the mandate to wealth managers that specialize in fixed-income investing, as opposed to those favoring equity securities….. Full Article: Source

Ukraine’s currency reserves down almost 8%

Posted on 23 October 2008 by VRS  |  Email |Print

From Istockanalyst.com: The currency reserves of the National Bank of Ukraine fell by 7.7% in October (by $2.9 billion), reaching $34.6 billion, Ukrainian President Viktor Yushchenko said.

The bank reserves will be enough to repay $8.8 billion worth of foreign debts of banks and companies in the fourth quarter of this year, but their replenishment using an IMF loan will have a psychological effect on the market, said the president….. Full Article: Source

Turkmenistan to establish Stabilization Fund

Posted on 23 October 2008 by VRS  |  Email |Print

From Turkmenistan.ru: Turkmenistan will establish the Stabilization Fund to avoid the negative impact of the world economic and financial crisis on the national economy. This was announced by Turkmen President Gurbanguly Berdimuhamedov at a government meeting on 21 October, the Turkmenistan.ru correspondent reports from Ashgabat.

According to the head of state, the Stabilization Fund will make it possible to minimize the dependence of the national economy on the oil and gas sector and also protect it from a negative impact of external factors….. Full Article: Source

Chinese money for global economy: Take it or leave it

Posted on 23 October 2008 by VRS  |  Email |Print

From Rian.ru: China is a true “island of stability” amid the raging financial crisis. Given its huge international reserves, assessed at $1.9 trillion, it can maintain its own stability, but it can also help developed countries overcome the crisis.

Is it ready to offer the money? And will anyone take it? There are no prerequisites for a large-scale crisis in the Chinese economy. An economic shock, let alone a recession, is unlikely in China because of its solid economic health and reliable protection from external risks. …. Full Article: Source

Credit crisis sharpens focus on SWFs

Posted on 23 October 2008 by VRS  |  Email |Print

From Riskmetrics.com: Conventional wisdom held that the global credit crisis would alter views on sovereign wealth funds (SWFs). Such investment was to be seen as less of a concern by many Western politicians, financial market participants, and others, who just six months ago loudly touted the need to curb such funding over perceived potential risks related to their lack of transparency and government ownership.

Indeed, the global liquidity crisis has to some degree worked to mute the voice of those who opposed sovereign wealth fund investment in U.S. and European companies, as corporate issuers from New York to Zurich scramble for much-needed capital….. Full Article: Source

GIC expanding its empire

Posted on 23 October 2008 by VRS  |  Email |Print

From Theaustralian.news.com.au: Early this year GIC RE, the real estate arm of the Government of Singapore Investment Corp, the world’s third-largest sovereign wealth fund, invested more than $1 billion in Finland, Italy and Russia.

It has amassed more than 200 assets in 30 countries. Always a passive investor, GIC has partnered with some of the world’s best-known names in real estate when it enters new markets….. Full Article: Source

Back to basics: What is a sovereign wealth fund ?

Posted on 23 October 2008 by VRS  |  Email |Print

From Zawya.com: Sovereign wealth funds are investment vehicles typically controlled by rich countries with trillions of dollars at their disposal ready to invest abroad.

The funds have been around since the early 1950s, created to absorb hazards posed by fluctuations in the prices of raw materials, develop infrastructure and finance pensions. But their ranks have swollen in recent years and the term Sovereign Wealth Fund first appeared in 2006….. Full Article: Source

Norway fund to invest $2 bn in Indian stocks

Posted on 22 October 2008 by VRS  |  Email |Print

From Business-standard.com: Even as foreign institutional investors rapidly pull out their money from Dalal Street, Norway’s sovereign wealth fund, the world’s second largest, is set to invest $2 billion in Indian stocks. The Norwegian Pension Fund, which has assets of $350 billion, is the world’s largest sovereign wealth fund after only the Abu Dhabi Investment Authority, credited with assets of over $875 billion.

The Bombay Stock Exchange’s benchmark Sensex has been in a free fall this year, dipping below 10,000 last week, but the Norwegian government said the investments by the Government Pension Fund would take place between this month and January 2009….. Full Article: Source

French president proposes European SWFs

Posted on 22 October 2008 by VRS  |  Email |Print

From Bloomberg.com: French President Nicolas Sarkozy called on European governments to set up sovereign wealth funds to buy stakes in European companies at beaten-down prices and prevent takeovers by overseas predators.

Purchases by nationally run investment funds in the wake of the stock-market rout could also spin a profit for governments once share prices recover, Sarkozy told the European Parliament in Strasbourg, France today. Germany called the plan unnecessary….. Full Article: Source

Idea of SWFs divides Europeans

Posted on 22 October 2008 by VRS  |  Email |Print

From IHT: With some European corporate gems trading at beaten-down prices because of recent market turbulence, President Nicolas Sarkozy of France on Tuesday suggested that European leaders should set up their own sovereign wealth funds to buy stakes in crucial industries to shield them from potential foreign raiders.

The widely differing reactions to the French proposal refocused attention on the fierce tug-of-war under way between those European countries eager to see government take a more active and expansive role in responding to the financial turmoil and its impact on the economy, and those intent on keeping state intervention to an absolute minimum….. Full Article: Source

JSC chief sees Arab SWFs gaining prominence

Posted on 22 October 2008 by VRS  |  Email |Print

From Jordantimes.com: Jordan Securities Commission (JSC) Chairman Bassam Al Saket expects Arab sovereign funds to gain prominence soon.

According to Saket, Western countries, led by the US, will seek Arab sovereign funds as a saviour to extinguish the financial “fires caused by the Americans, in America, without any interference from other parties”…… Full Article: Source

SWFs will continue bailout

Posted on 22 October 2008 by VRS  |  Email |Print

From Livemint.com: If governments in the US and Europe have acted sufficiently to avert the failure of large financial institutions, then buying now is as good a time as any.

Leveraged sovereign fund investors also often rely on Western banks to help conduct their operations. That’s particularly true of the Gulf where regional and local banks lack experience and scale. Large foreign banks are needed there to coordinate financing above the $500 million mark….. Full Article: Source

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