Shutdown, default threat elevates appeal of US Treasuries

NEW YORK: Government shutdown. Federal default. These looming political threats to the US economy might scare investors to buy more US Treasuries in the coming days as they seek a shelter for their cash.

Indonesian Funds Dump Stocks Tumbling Most Amid Global Rally

Indonesia’s biggest mutual funds are liquidating stocks traded in Jakarta as local interest rates rise and growth slows, sending the nation’s benchmark equity index to the biggest drop among major markets this quarter.

Federal Reserve's Jeffrey Lacker says hard to start tapering in October without losing face

WASHINGTON/STOCKHOLM: The Federal Reserve will find it hard to rein in monetary policy next month without losing face after it surprised markets by holding fire last week, a top Fed official said on Thursday.

Canada Pension Funds Eye Some BlackBerry Assets

Two of Canada’s largest pension funds have held preliminary discussions with Fairfax Financial Holdings Ltd. (FFH) about its bid for BlackBerry Ltd. (BB), yet are holding off from the effort because they only want pieces of the smartphone maker, two people familiar with the talks said.

Nigeria fund invests $200 mln as oil price cushion

NEW YORK (Reuters) - Nigeria's fledgling sovereign wealth fund on Monday completed investment allocations for the 20 percent of the $1 billion it is setting aside to guard against commodity price shocks, its chief executive said.

Activist Investors Backed by Large Funds Take on Big Targets

The world’s biggest fund managers are giving shareholder activists the muscle to take on larger companies from Dell Inc. (DELL) to Microsoft Corp. (MSFT)

ECB ready to act to help credit market if needed: Liikanen

MILAN: The European Central Bank is ready to boost liquidity in the credit market by issuing another long-term loan if necessary, ECB Governing Council member Erkki Liikanen was quoted as saying on Sunday by Italy's Corriere della Sera newspaper.

US Federal Reserve could taper in October , depending on data: James Bullard

NEW YORK: The US Federal Reserve could still scale back its massive bond buying program at an October meeting should data point to a stronger economy, St. Louis Fed President James Bullard said on Friday.

Co-op forced to consider hedge fund plan

Two US hedge funds have forced the Co-operative Bank to set up an independent committee to review the American investors' plan to turn the 140-year-old mutually owned bank into a listed company.

Macquarie Sees Record Global Fund Flows Into Australian Property

Macquarie Group Ltd. (MQG), Australia’s biggest investment bank, is seeing record global investor purchases of Australian commercial property, which is offering relatively high yields and secure cash flows.

The Economist: “The Fed's have-it-both-ways policy”

R.A., regarding Bernanke’s Jackson Hole speech, your column notes that you “found the tone on monetary policy to be confusing and timid.” Expectations now turn to what President Obama will say next week and what the Fed will do (or not do) when they next meet. Uncertainty again prevails.

Alexander Mirtchev

Russia Cuts Budget to Try to Spur Growth

MOSCOW — The Russian government on Thursday approved across-the-board budget cuts over the next two years in the clearest sign yet that officials do not expect its economy, the world’s eighth-largest, to revive soon, and that the Kremlin is ready to try a new policy to spur growth.

Deep Thoughts by Alexander Mirtchev

Ashby Monk

For a variety of reasons, SWF employees are typically quite reserved and guarded when speaking to the press. Not so for Dr. Alexander Mirtchev, who is the Independent Director and a member of the Board of Directors of Kazakhstan’s $30 billion National Welfare Fund Samruk-Kazyna. 

Alexander Mirtchev

London steps up Islamic finance ambitions

KUALA LUMPUR (Reuters) - Britain is encouraging banks through a task force to establish sharia-compliant products, aiming to position London as a Western hub for a fast-growing Islamic finance sector that is expected to reach $2.6 trillion by 2017.

Brazil's Batista Says He'll Rise Again

RIO DE JANEIRO—Brazilian entrepreneur Eike Batista, on the wrong end of one of the biggest wealth collapses in history, is lashing out at people he blames for his undoing.

Hedge funds reap rewards from bet on Lehman Europe carcass

LONDON: Hedge funds which gambled on how much money would be recovered from the bankrupt carcass of Lehman Brothers are set to make hundreds of millions of pounds from a full payout to creditors of the European arm.

Silver Lake Investors Said to See Dell as Mixed Blessing

After their hard-won victory in yesterday’s shareholder vote, Michael Dell and Silver Lake Management LLC face the sterner test of turning around Dell Inc. (DELL), the computer maker they are acquiring for $24.9 billion in the largest buyout of a technology company ever.

Malaysia’s Biggest Fund Buying Stocks as Foreigners Sell

Malaysia’s largest pension fund said it was a net buyer of the nation’s stocks during recent declines as foreign investors cut their holdings.

Euro finance ministers warn against complacency

Eurozone finance ministers warned against complacency Friday as the economy recovers from a record recession, insisting the return to growth does not mean that painful reforms can be relaxed.

Abu Dhabi Fund Buys 31 Accor-Branded Hotels in Australian Cities

Abu Dhabi Investment Authority, one of the world’s biggest sovereign wealth funds, bought Australia’s largest owner of hotels, Tourism Asset Holdings Ltd., gaining ownership of 31 properties in major cities.

Harvard MBA Running Nigeria Fund Says Stocks Too Costly

Uche Orji, the Harvard-trained head of Nigeria’s sovereign wealth fund, said he’s worried about rising stock prices as he prepares to hand over the next tranche of the fund’s $1 billion of holdings to external fund managers.

China among world's top three investors in 2012: Government

China became one of the world's top three investors for the first time last year as its foreign investment soared to a new record, the government said Monday.

Economic powerhouse Germany grapples with global role

Chancellor Angela Merkel has been thrust into leading Europe back from the financial brink, but Germany remains reluctant to take on global clout to match its economic prowess.

Neiman Marcus close to changing private equity owners: sources

NEW YORK (Reuters) - A consortium of Ares Management LLC and the Canada Pension Plan Investment Board is in advanced talks to acquire upscale U.S. retailer Neiman Marcus Inc from TPG Capital LP, Warburg Pincus LLC and Leonard Green Partners LP, two people familiar with the matter said on Sunday.

Central banks, SWFs make up less than 1 percent of FX trade - BIS

LONDON (Reuters) - Trading by central banks and sovereign wealth funds account for less than 1 percent of the $5.3 trillion (3.40 trillion pounds) a day FX market, while smaller and regional banks make up nearly a quarter, a survey showed on Thursday.

The Global Inflation Wave: Waiting for Constantine?

Source: The Globalist

Alexander Mirtchev and Norman Bailey

In the wake of the global economic crisis, the world is trying to chart an economic path to the future and find a "new normal." As Alexander Mirtchev and Norman A. Bailey explain in the first installment in their series "The Search for a New Global Equilibrium," inflation as a factor of global economic security has the innate capacity to upend carefully laid plans and further upset the equilibrium.

Australian Sovereign Wealth Fund Manager Mark Burgess Resigns

Mark Burgess resigned as managing director of Australia’s Future Fund, the country’s A$89 billion ($81 billion) sovereign wealth manager.

U.S. manufacturing demand, China services sector suggest growth

(Reuters) - Demand picked up in the U.S. manufacturing sector in August, data showed on Tuesday, which together with a report showing steady growth in China's services sector added to signs of strength in the world's two biggest economies.

Sovereign Debt and Beyond: Toward a New Magna Carta?

Source: The Globalist

Alexander Mirtchev and Norman Bailey

The global debt burden appears to have gathered an unstoppable momentum, prompting divergent reactions. The world economy cannot count on growth to solve the global debt problem — and stimulus measures are not a sustainable solution. In the second installment in the series “The Search for a New Global Equilibrium,” Dr. Alexander Mirtchev and Dr. Norman Bailey explain why the solutions currently being offered are wholly inadequate to the scale of the problem, and argue the time is ripe for a “new Magna Carta” — a redefinition of the social contract among the government, Main Street and Wall Street.

Global investors boost euro zone assets, cut Asia stocks: Reuters poll

(Reuters) - Global investors lifted their holdings of euro zone assets to the highest in more than a year this month while trimming exposure to Asian equities during a rout of emerging market assets, Reuters polls showed.

Will G-20 Counter Power of Uncertainty?

By Alexander Mirtchev 

In 2009, G-20 leaders met in Pittsburgh and emerged with a mandate ‘to be the premier forum for international economic cooperation,' endowing the G-20 with a leading economic role on the global stage. It appeared at the time that the leaders of the G-20 had successfully defeated pessimism. However, the rising tide of global economic turmoil and problems ranging from sovereign indebtedness to consumption and saving imbalances have created a ‘perfect storm' that is far from abating.

Exclusive: Qatar bolstering wealth fund team to diversify portfolio - sources

DUBAI – Qatar's sovereign wealth fund, one of the world's most aggressive investors, is hiring senior bankers and industry executives to lessen the fund's reliance on Europe and diversify its investment portfolio, sources familiar with the plan said.

Norway Oil Riches Up for Grabs as Anti-Tax Group Set to Win

Norway’s Sept. 9 election is set to open up a debate on how much of the nation’s oil wealth can be funneled straight into Scandinavia’s richest economy.

Oil, Gas Rich States Banking the Money

Washington — A savings account North Dakota created to preserve a portion of its oil and natural gas tax dollars for the future has exceeded growth estimates in its first two years and could swell to $3 billion by the time state lawmakers decide how to spend it.

US consumer spending up weak 0.1% in July

WASHINGTON: US consumers barely increased their spending in July after their income grew more slowly, held back by steep government spending cuts that reduced federal workers' salaries.