Pension funds hive off record amount of long-life risk

LONDON (Reuters) - The market that final salary pension funds are banking on to insure against the cost of longer lifespans has chalked up a record 8.9 billion pounds ($14.7 billion) in deals in 2013.

Greek EU presidency a challenge given ongoing crisis: Analysts

ATHENS: Crisis-hit Greece in January takes over the six-month rotating EU presidency with a crucial European Parliament ballot looming, and the bloc divided over delicate efforts to create a banking union.

High street post-Christmas sales dampen as shoppers stay at home

Retailers hoping for a steady boost from bargain hunters were disappointed on Friday when a strong start to the post-Christmas sales went into reverse.

Japan World-Beating Stocks Seen Repeating Gains in 2014

The 49 percent rally that pushed Japanese stocks past every other developed market in 2013 has done nothing to increase valuations, a sign to the world’s biggest investors that the advance will last.

Windham Capital Receives Tactical Risk Management Award by aiCIO

BOSTON--(BUSINESS WIRE)-- Windham Capital Management has been recognized with the “Strategy & Tactics: Tactical Risk Management” Award at aiCIO’s 4th Annual Industry Innovation Awards, which highlights the best of the best in institutional asset management and servicing for the world’s largest pensions, endowments, foundations, and sovereign wealth funds.

U.S. mortgage applications fall as refinance hits five-year low: MBA

(Reuters) - Applications for U.S. home mortgages fell for a second week and hit a 13-year low as mortgage rates rose due to a bond market sell-off following the Federal Reserve's decision to pare its bond purchase stimulus in January, an industry group said on Tuesday.

GIC Buys 50% of Broadgate From Blackstone in British Land Tie Up

GIC Pte bought Blackstone Group LP (BX)’s 50 percent stake in London’s Broadgate office complex in the latest overseas acquisition for the Singapore sovereign wealth fund as it seeks stable returns from real estate.

Qatar fund in talks to invest $200 million in Indian property - source

MUMBAI (Reuters) - Qatar Investment Authority (QIA), the sovereign wealth fund of the gas-rich Gulf emirate, is in talks to invest $200 million in residential property in India, a source with direct knowledge of the matter told Reuters.

Off Limits, but Blessed by the Fed

The good news arrived in a confidential letter from the Federal Reserve Board in Washington. The nation’s biggest bank, JPMorgan Chase, had won the right to expand its reach in a lucrative business that has nothing to do with banking: electricity.

Hedge Fund Secrets Lie in Short Term Over Luck: Cutting Research

The best hedge fund managers tend to find profits in short-term, contrarian bets. That’s the finding of a study published this year by Russell Jame of the University of Kentucky and set to be presented next month at the American Economic Association’s annual meeting in Philadelphia.

Interest rate rise with no wage increase 'will push heavily-indebted to edge'

Heavily indebted homeowners will be hit hard if interest rates start to rise before wages have picked up, according to research by the Bank of England that underlines the dilemma facing policymakers as the economy recovers.

The Promise and Perils of Sovereign Wealth Funds

LOS ANGELES – Although sovereign wealth funds (SWFs) have been around for decades, it was not until the subprime mortgage crisis of 2007 that they truly garnered recognition as major players in the investment market.

Ukraine Getting $15 Billion From Russia Raises Questions

Ukraine sealed $15 billion of Russian financing and a one-third discount on energy imports from its neighbor as anti-government protesters in Kiev demanded to know what President Viktor Yanukovych had ceded in return.

Eurozone business activity rises but France lags: PMI data

BRUSSELS: Business activity in the 17-nation eurozone ticked up in December, but the recovery is uneven and weak French data of particular concern, a key survey showed on Monday.

Federal Reserve Tapering to U.K. Inflation: Global Economy

The data docket in the U.S. this week will be eclipsed by the Federal Reserve meeting as prospects mount that policy makers will trim stimulus in response to an improving economy.

Spanish inflation up 0.3 per cent in November

MADRID: Inflation rose by 0.3 in Spain in November, after staying flat in October, official data showed Friday, amid concern that deflation could dent the recovery in some eurozone countries.

Barings Joins Russian Sovereign Wealth Fund In Far East Coal Private Equity Deal

This morning the Russian sovereign wealth vehicle, the Russian Direct Investment Fund, announced a joint investment with an offshoot of Barings Private Equity International, one of the biggest names in private equity worldwide.

Manufacturing boosts UK industry but exports weaker

There were fresh warnings on Tuesday night that the UK's economic recovery was too reliant on hard-pressed consumers after official data showed exports falling.

GIC to Norges Bank Raise Risk Appetite in London: Real Estate

Investors from Norway to Singapore are bypassing property funds and putting money into London commercial projects with developers, taking more risk in a bid to increase returns as the U.K. market recovers.

'Upstairs' Trading Draws More Big Investors

Some of the world's biggest investors are changing the way they trade in U.S. markets in response to what they say are rising risks for institutions of their size.

China to probe use of foreign currency in trade finance

BEIJING (Reuters) - Chinese regulators will clamp down on banks' and companies' use of foreign currency for trade finance by ensuring that trade deals are authentic and by monitoring for unusual cross-border cash flows, state media reported.

Investors join gold rush for European infrastructure

LONDON (Reuters) - Power distribution systems may not sound like trophy assets, but for investors seeking higher returns in a low interest rate world, such European infrastructure is gold dust.

New Zealand Pension Fund Pares Equities Bet After Markets Surge

New Zealand’s sovereign wealth fund is cutting equity holdings after this year’s surge in global stock markets left shares at the most expensive in four years.

Bank of England holds UK interest rates at record low

The Bank of England has kept interest rates at a record low of 0.5%, despite signs that the UK economy is improving.

World’s Biggest Pension Fund Sees Japan Fail on 2% Inflation

The Bank of Japan’s unprecedented monetary easing will fail in its goal of spurring 2 percent inflation, according to Takahiro Mitani, president of the fund that manages the world’s largest pool of pension savings.

India current account deficit narrows sharply

India's current account deficit, a key area of concern, narrowed sharply in the second quarter after a series of measures helped curb gold imports.

Asia Pacific Bond Risk Little Changed, Credit Default Swaps Show

The cost of insuring corporate and sovereign bonds in the Asia-Pacific region against non-payment was little changed today, according to traders of credit default swaps.

U.S. retail sales up at start of holiday season: data

(Reuters) - U.S. shoppers visited more stores and spent more money at brick-and-mortar sites across Thanksgiving Day and "Black Friday" than they did in 2012 while online sales set records, data showed on Saturday.

Jobs and price growth offer hope for euro zone

BRUSSELS – The first fall in euro zone unemployment in almost three years coupled with rising prices gave fresh momentum to an economic recovery, but a growing rift between the bloc's haves and have-nots continued to widen.

Traders Ignore S&P Decision to Cut Netherlands Credit Rating

The Netherlands lost its top rating at Standard & Poor’s amid weakening economic growth prospects while Spain’s outlook was raised, decisions that were largely ignored by bond investors.

Venezuela central bank denies transactions with Wall St

Nov 28 (Reuters) - Venezuela's central bank president denied on Thursday that Caracas is carrying out any transactions with Wall Street banks, a day after a senior government source said it was evaluating a swap agreement involving its gold reserves.

Goldman Sachs to GLG Open Asia Hedge Funds as Big Is Chic

Global banks and asset managers are opening hedge funds in Asia for the first time since the 2008 financial crisis, putting pressure on smaller firms that are already struggling to hold onto investors.

Independent Scotland would create oil and gas wealth fund

Nov 26 (Reuters) - An independent Scottish government would create a sovereign wealth fund using revenue from exploiting oil and gas reserves worth around 1.5 trillion pounds ($2.4 trillion), the Sottish government said in an independence blueprint on Tuesday.

U.S. pending home sales hit 10-month low in October

(Reuters) - Contracts to buy previously owned U.S. homes fell for a fifth straight month in October, hitting a 10-month low and adding to signs of cooling in the housing market.

Norway wealth fund, Och-Ziff among investors in Cinda IPO-sources

Nov 24 (Reuters) - A group of 10 investors, including Norway's sovereign wealth fund and Och-Ziff Capital Management Group LLC, have together committed to buy about $1.1 billion into China Cinda Asset Management Corp as part of its Hong Kong IPO, people familiar with the matter said on Sunday.

US markets hit historical highs: Are stock prices really at record levels?

The stock market flirted with historical highs this week, with the Dow Jones industrial average trading higher than 16,000 and the Standard & Poor's 500 exceeding 1,800 for a time.

UK public finances improve in October as economy grows

The UK's public finances improved in October, as a recovering economy and housing market boosted tax revenues.

Japan Pension Fund Urged to Diversify as Independent Body

Japan’s 121 trillion yen ($1.21 trillion) pension fund needs more independence from bureaucrats and should put some of the world’s biggest retirement savings pool into private equity and commodities, an expert panel said.

GIC, Ascendas to Invest Up to S$600 Million in Indian Property

GIC Pte, Singapore’s sovereign wealth fund, and Ascendas Pte plan to invest as much as S$600 million ($483 million) in Indian real estate to meet rising demand for commercial property.

Temasek's Africa Investment A Sign Of The Future For Sovereign Wealth Funds

Last week Temasek, one of Singapore’s two sovereign wealth funds, made a $1.3 billion investment in a liquified natural gas block in Tanzania.

Economy offers little cheer ahead of holidays

WASHINGTON (MarketWatch) — The U.S. economy remains stuck on slow-revolving merry-go-round that won’t bring much mirth ahead of the holiday season.

Why Yale, Harvard And Sovereign Funds Are Changing Their Views On Alternative Assets

You would call them the smartest guys in the room, had Enron not ruined the term for at least a generation.

Japan’s Biggest Banks See Profit Declining in Second Half

Japan’s three biggest banks reported a surge in first-half profits this week that they said means the year will turn out better than expected.

Singapore-based GIC said to invest in Time Warner Center

(Bloomberg) -- GIC Pte, Singapore's sovereign wealth fund, is part of a group that is buying the headquarters of Time Warner Inc. in New York City, according to one person with direct knowledge of the transaction.

London’s Mayor Sees More Kuwait Investment in Developments

Kuwait is interested in investing in London real estate projects after focusing on completed properties for several years, Boris Johnson, the city’s mayor, said after meeting with members of the Kuwait Investment Authority.

Norway's $800 bln fund should lose independent ethics panel -report

OSLO, Nov 11 (Reuters) - The ethics panel that decides which firms Norway's $800-billion wealth fund should avoid should lose its independence and become part of the central bank, a report said, a shift critics said would undermine the fund's ethical strategy.

China to let private investors hold up to 15% in state firms: Report

SHANGHAI: China will allow private investors to buy up to 15 percent stakes in state-own enterprises (SOEs), the official China Daily reported, as Beijing moves to leverage private funds to avoid having to bail out heavily indebted state owned firms.

US businesses boost hiring despite the shutdown

WASHINGTON: Employers added a surprisingly strong 204,000 jobs in October despite the 16-day government shutdown, the Labor Department said, suggesting the US economy may be sturdier than many had assumed.

Fraudsters target BBC reporter in investment scam

Police have launched an investigation into a gang selling fake gold investments after they were exposed by the BBC.

Gold miner Amara taps Amway family wealth to boost prospects

LONDON (Reuters) - African gold miner Amara Mining has sold roughly a fifth of its shares to a wealth management firm investing on behalf of one of America's richest families, in a deal that will bring in cash, a drilling firm, and exploration licenses.

Latin America: A New Frontier for ETF Industry Growth

Exchange traded funds providers may have found a new region in which to shop their wares: Latin America and it is not even the region’s largest economies, Brazil or Mexico, that is really helping facilitate ETF growth there.

NIESR: UK interest rates could rise in 2015

The Bank of England could raise interest rates as soon as 2015, the National Institute of Economic and Social Research (NIESR) has said.

Hong Kong investor Knight Dragon takes full control of UK property scheme for $296 million

LONDON: Hong Kong investor Knight Dragon has taken full ownership of a development in east London's Greenwich Peninsula after paying its British partner Quintain Estates 186 million pounds ($296 million) for its 40 per cent stake.

Citigroup Favors Debt as Real Yield Lures Western: Korea Markets

The highest inflation-adjusted yield among Asia’s biggest economies is attracting Citigroup Inc. and Western Asset Management Co. to South Korea’s sovereign bonds.

Green bonds usher in a new era of environmental finance, TD Economics

TORONTO , Nov. 1, 2013 /CNW/ - Green bonds are emerging as a frontrunner to fund environmental investment and have garnered a considerable amount of attention from both investors and environmentalists, states TD Economics in a special report released today.

Wealth Fund Cautions Against Costs Exacted by High-Speed Trading

Despite being one of the largest single investors in the world, Norway’s sovereign wealth fund rarely makes waves.

No shutdown in U.S. Midwest as business activity index surges

(Reuters) - Business activity in the U.S. Midwest surged past expectations in October as new orders hit their highest level since 2004, countering recent evidence of soft economic growth.

Barrick Said to Mull Options Including Stake Sale

Barrick Gold Corp. (ABX) has explored cash-raising options ranging from a strategic equity investment to a sale of part of its copper business during a months-long effort to cut debt, said people with knowledge of the matter.

South Korea September output hit by auto strikes; recovery seen intact

SEOUL: South Korea's industrial production unexpectedly fell the most in six months in September as strikes hit major car makers, but sidestepping that blip, analysts see a quick return to upbeat indicators when Friday's export data is published.

Kuwait wealth fund hires ex-BofA banker as infrastructure head - sources

DUBAI, Oct 28 (Reuters) - Kuwait Investment Authority (KIA), the Gulf state's sovereign wealth fund, has appointed a head for its newly-created infrastructure arm, seeking to bolster its investments in the sector, two sources familiar with the matter said.

Blackstone’s Tony James Sells 3.25 Million Shares, Filing Shows

Blackstone Group LP (BX) President Tony James this week sold about $88.6 million in company stock, at least his third sale of the year, as shares trade near a six-year high.

Germany may see higher tax revenues, could play role in talks

BERLIN: Germany's tax revenues are likely to rise more than expected in 2013 and beyond, newspapers reported on Saturday, potentially giving the new government financial leeway and playing a role in coalition talks focused on the economy and energy.

Legg Mason, in turnaround bid, says profit up despite outflows

Oct 25 (Reuters) - Asset manager Legg Mason Inc on Friday said its quarterly profit rose 7 percent compared with a year ago as assets and performance fees rose, but reported an outflow of investor cash from its equity funds.

Gulf funds may take stake in EDF's UK nuclear project - paper

PARIS (Reuters) - Gulf state funds could take a stake of up to 15 percent in French utility EDF's (PAR:EDF) 16 billion pound project to build two nuclear reactors at Hinkley Point in the UK, French financial daily Les Echos reported.

Oman Shuns Hedge Funds as Sovereign Investor Targets Equities

Oman, the largest oil producer in the Arabian Peninsula that’s not a member of OPEC, said it’s shunning hedge funds and alternative assets to invest directly in emerging market equities and real estate in stable countries.

Public borrowing figures show George Osborne on track to meet target

Chancellor George Osborne is on track to meet his budget goal for this year, economists said on Tuesday after the latest public finance figures suggested a quickening economic recovery was boosting government coffers.

Investors jump back into money funds after US debt deal: JPMorgan

NEW YORK: Investors poured cash back into U.S. money market funds the day after Washington reached an agreement to raise the federal debt ceiling temporarily and avert a default, J.P. Morgan Securities analysts said on Monday.

Hedge Funds Seek to Trade in Comfort as Bankruptcy Insiders

Hedge funds that invest in bankrupt companies are demanding protection from insider-trading lawsuits before agreeing to take part in restructuring talks -- a reaction by the industry’s top performers to an obscure court decision involving the 2008 collapse of Washington Mutual Inc.

New York investors agree to buy large Florida farming company

MIAMI: A majority interest in one of the largest private landowners in Florida, agribusiness company Alico Inc, is being sold for $138 million to a group of New York private investors.

Bank of Japan to extend loan facilities to make banks create more credit: Sources

TOKYO: The Bank of Japan is preparing a plan to extend three special loan facilities that have backed more than $81 billion in lending over the past three years, a step intended to nudge Japan's risk-averse banks to start creating credit, according to people familiar with the matter.

EU backs new joint banking supervision

LUXEMBOURG: European Union officials on Monday approved the creation of a centralized banking supervisor, even though they still squabbled over the next steps in the bloc's quest to stabilize its financial system.

Norway Fund Joins Axa to Target Large Europe Property Loans

The manager of Norway’s sovereign-wealth fund, the world’s largest, formed a venture with Axa Real Estate Investment Managers to provide European commercial real estate debt as borrowers seek to refinance maturing loans.

China to invest millions in Manchester airport development

Chinese investors will pump millions of pounds into the £800m development of Manchester's Airport City which is hoped will strengthen business links between Britain and the world's second largest economy.

Obama warns of 'economic shutdown' as debt deadline approaches

WASHINGTON: Faced with the looming prospect of a debt default, President Barack Obama today appealed to Congress to pass the budget while pushing Republicans to agree to hike the borrowing limit to prevent an "economic shutdown".

Royal Mail soars on stock market debut

LONDON (AP) — Shares in newly-privatized Royal Mail soared on their stock market debut Friday, bolstering criticism that the company — which traces its five-century history back to King Henry VIII — was undervalued by the British government.

China aims to triple minimum capital level for new foreign banks: Paper

SHANGHAI: China's banking regulator plans to more than triple the minimum registered capital requirement for new wholly-owned foreign banks and joint-venture banks, a state-owned newspaper reported on Wednesday.

Biggest Pension Fund at Risk Holding 60% in Japanese Debt

Japan’s Government Pension Investment Fund, the world’s largest manager of retirement savings, isn’t ready for Abenomics, according to the head of an expert panel advising on public investments.

Norway finds diversification easier said than done

Spare a thought for the incoming Conservative-led coalition government in Norway. The likely next Norwegian prime minister, Erna Solberg, has a problem every other leader would like to face: how to supervise a massive sovereign fund that already has assets of more than 150% of the country’s gross domestic product, and is destined to get even bigger in coming years.

Sovereign Funds Boosting Alternative Investments, Invesco Says

Sovereign wealth funds, which control about $6 trillion of wealth globally, are boosting investments in alternative assets like real estate and private equity to increase returns, a survey by Invesco Ltd. (IVZ) found.

Japan’s GPIF May Opt for Growth Stocks in Bid for Returns

Japan’s Government Pension Investment Fund plans to boost investment in growth stocks to increase returns and may eventually allocate several trillion yen to such equities, the Nikkei newspaper reported on Oct. 5.

Malaysia Sovereign Wealth Fund Buys 4.95% Stake in Beijing Water

The Malaysia state investment fund Khazanah Nasional Bhd acquired almost 5 percent of Beijing Enterprises Water Group Ltd. (371) for $152 million to expand in China, making it the company’s third-largest shareholder.

Government Shutdown Impact on Hedge Funds

The impact of the October 1 shutdown of the federal government on hedge funds is now playing out in slow motion.

Investors bet on a U.S. default

Want to bet against the "full faith and credit" of the United States government?

Bank of England warns borrowers and lenders not to overstretch themselves

The Bank of England has warned it is keeping a close eye on developments in the housing market and said borrowers and lenders should be careful not to overstretch themselves.

Gross Says U.S. Will Avoid ‘Catastrophic’ Default on Debt

Pacific Investment Management Co.’s Bill Gross said the U.S. will avoid a “catastrophic” default on Treasury securities if lawmakers fail to extend the debt limit on the nation’s debt.

ECB ready to add liquidity if necessary: Makuch

BRATISLAVA: The European Central Bank stands ready to pump more liquidity into the market if needed, ECB Governing Council member Jozef Makuch said on Monday.

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.

Barclays’s Azar Sees Middle East M&A Driven by Sovereigns

Middle East mergers and acquisitions, at a six-year high, will be driven by sovereign wealth funds and regional transactions amid an economic recovery in the Persian Gulf, according to a Barclays Plc (BARC) executive.

We Are All Europeans Now

Alexander Mirtchev, Contributor

 The broadening cracks in the European economic framework now appear to be undermining the whole European structure, as if a ‘contagion’ is spreading from the Southern European economies outwards.

Argentine Bondholders Urge U.S. Court to Reject Appeal

Holders of Argentina’s defaulted bonds urged the U.S. Supreme Court to reject the country’s appeal in a clash with implications for tens of billions of dollars in debt.

Merkel Blames SPD’s Schroeder for Letting Greece Into the Euro

German Chancellor Angela Merkel sought to pin the blame for the euro-region’s debt turmoil on her Social Democratic predecessor, Gerhard Schroeder, saying he should never have let Greece into the single currency area.

Home prices rise strong 12.1 per cent in June

WASHINGTON: US home prices rose 12.1 per cent in June from a year earlier, nearly matching a seven-year high. But month-over-month price gains slowed in most markets, a sign that higher mortgage rates may weigh on the housing recovery.

Hedge Funds Win Ruling in Argentina Bond Case

A dogged group of hedge funds secured a significant victory in a federal appeals court on Friday in a case that is likely to have far-reaching effects on international bond markets, parts of the banking system and the struggling nation of Argentina.

Australia's opposition leader pledges stronger economy if elected PM

CANBERRA (Reuters) - Australia's conservative opposition leader Tony Abbott, favorite to win September 7 elections, launched his campaign on Sunday promising to build a stronger economy, putting bulldozers on the ground and cranes in the skies.

How the Fed can taper without killing housing

The pressure is on for the central bank to gradually start winding down its bond-buying program soon. Many fear that a pullback on current Fed policy might cause mortgage rates to skyrocket -- which could choke off home sales and drag down economic growth.

Germany's finances in surplus as growth picks up

Germany's finances are back in surplus as growth rebounded in the second quarter, official data showed on Friday.

Blackstone to sell London office stake to GIC - report

LONDON (Reuters) - Singapore's sovereign wealth fund GIC (GIC.UL) is in exclusive talks to buy Blackstone Group's (NYS:BX) stake in the Broadgate office and retail complex in London for 1.7 billion pounds, Britain's Times newspaper said.

Analysis: Sovereign funds' fortunes turn as emerging assets sour

LONDON (Reuters) - The world's biggest sovereign wealth funds may see their bumper profits of 2012 diminish this year as recent diversification into high-growth emerging markets starts to produce disappointing returns.

Chinese bank investing billions of dollars in Africa

BEIJING: China Development Bank (CDB), the country's largest policy lender, has invested at least USD 2.4 billion in African infrastructure and commercial projects besides extending loans to the tune of USD 18.9 billion, the bank's president said today.

Blackstone Said to Sell Broadgate Stake for $2.7 Billion

Blackstone Group LP (BX), the biggest manager of private-equity real estate funds, agreed to sell its 50 percent stake in London’s Broadgate office complex for more than 1.7 billion pounds ($2.66 billion), according to two people with knowledge of the deal.

Libya in talks to buy Dubai's stake in Tunisie Telecom: sources

DUBAI (Reuters) - A unit of Libya's sovereign wealth fund is in talks to buy a 35-percent stake in state-owned Tunisie Telecom from a conglomerate owned by Dubai's ruler, three sources aware of the matter said.

Norway's Progress Party seeks big changes in new government

OSLO (Reuters) - Siv Jensen narrowly missed becoming Norway's prime minister four years ago. Now another chance of entering government appears within her grasp, as her opposition Progress Party looks set to become the kingmaker after elections on September 9.

Eurozone: Recession over, but recovery's roots still shallow

LONDON: The cheery freeze frame of the euro zone economy last quarter is no guarantee of a happy ending to what has been a horror movie for most of the single currency bloc since the onset of the great financial crisis.

Citi Haunts Abu Dhabi as Fund Caught in Brazil Meltdown

Mubadala Development Co., the Abu Dhabi sovereign wealth fund, is fighting to avoid losses on its $2 billion investment in Eike Batista’s companies as the former billionaire seeks to save his commodity empire from collapse.

India Unveils Rules to Allow 480 Billion Rupees of Tax-Free Debt

India allowed 13 state companies to raise as much as 480 billion rupees ($7.9 billion) selling tax-free bonds this financial year, helping generate funds for infrastructure such as roads, ports and power plants.

From FDI to AIA: Africans investing in Africa

JOHANNESBURG (Reuters) - Investors from Europe, Asia and the United States are not the only ones chasing growth opportunities in Africa these days - Africans themselves are waking up to the potential across borders in their own backyard.

Norway Fund Says Emerging Market Slump Curbed Returns

Norway’s sovereign wealth fund, the world’s largest, said a slump in emerging markets held back returns in the second quarter amid concern over a slowdown in the Chinese economy.

Italian parliament gives final approval to growth package

ROME: Italy's lower house of parliament on Friday gave final approval to a package introduced by Enrico Letta's government to try to help pull the country out of recession with measures to cut bureaucracy and promote public work projects.

Korea State Fund to Spend Up to $10 Billion on Alternatives

Korea Investment Corp., the nation’s sovereign wealth fund, plans to spend as much as $10 billion to triple its allocation to alternative assets, diversifying its portfolio to smooth the fund’s returns.

Growth in China trust assets slows as shadow banking crackdown bites

SHANGHAI: Growth of China's trust sector, the largest component of the country's so-called shadow banking system, slowed markedly in the second quarter after a government clampdown on risky lending.

French private sector shrinks at slowest pace in 17 months: PMI

PARIS: France's private sector shrank at its slowest pace in 17 months in July, a survey showed on Monday, adding to signs of an emerging recovery in the euro zone's second-largest economy.

Norway’s $740 Billion Fund May Be Restructured, Solberg Says

Norway needs to review its $740 billion sovereign wealth fund to find a more competitive model that will boost returns, according to the head of the opposition bloc leading in polls ahead of elections next month.

Asia stocks drop in wake of tepid US hiring

BANGKOK (AP) -- Asian stock markets sagged Monday after a disappointing U.S. jobs report sparked worries about the health of the world's biggest economy.

Singapore State Fund Tackles Markets With New Strategy

GIC Pte, manager of more than $100 billion of Singapore’s reserves, is changing its investment strategy for the second time in three decades to be more flexible as the global outlook becomes “complicated.”

Bank of Cyprus to cut workforce by a quarter

NICOSIA: Bank of Cyprus said on Friday that a quarter of its staff had applied for a voluntary retirement programme that would help cut its annual personnel expenses by about 35 percent.

India aims to boost rupee with bond issues

NEW DELHI (AFP) – India said Wednesay it would ask state firms to raise funds abroad in "quasi-sovereign" bond issues and might also raise import taxes on luxury goods as it struggles to revive the rupee.

Credit Suisse in talks to sell private equity unit: Report

Credit Suisse Group AG is in advanced talks to sell its private equity business to Grosvenor Capital Management LP as the bank adapts to stricter rules for managing capital and risk, the Wall Street Journal reported, citing people familiar with the matter.

Analysis: JPMorgan faces 'hard sell' in crowded market for commodity traders

NEW YORK (Reuters) - For third time in five years, one of the world's biggest commodity trading desks is for sale.

Qatar Finds Revolution Abroad Not as Easy as Stock Picks

Two months later, Tamim donned a straw boater and dark morning suit, the uniform of the elite English boarding school Harrow, Bloomberg Markets magazine will report in its September issue.

Investors wince but keep calm as US budget battle looms

NEW YORK: Another year, another battle over the U.S. budget. It's hardly what investors need, but it looks like they're going to get it just the same.

Sovereign wealth fund CIC boasts 10.6% return in 2012

BEIJING: Sovereign wealth fund China Investment Corp (CIC) boasted a 10.6 per cent return on its global investment portfolio in 2012 according to the company's annual report.

Exclusive: Malaysia pension fund to spend 500 million euros on German, French properties

KUALA LUMPUR (Reuters) - Malaysia's state pension fund will invest half a billion euros ($660 million) in industrial property in Germany and office space in France, according to sources familiar with the deals, signaling growing appetite for high-yielding property assets as Europe's main economies show signs of recovery.

IMF warns eurozone of risks to economy

PARIS: The International Monetary Fund is warning the 17 eurozone countries that their economies face a possible severe downturn unless more is done to improve growth and ease political tensions.

Hedge-Fund Founder Loses Suit Over $6 Million Gift to Partner

One of the founders of Gradient Capital Partners LLP lost a lawsuit seeking to recover a “gift” of about 3.9 million pounds ($6 million) paid to his former partner at the London hedge fund as losses mounted amid the financial crisis.

ECB balance sheet shrinks to 2.4 trillion euros

FRANKFURT: The balance sheet of the European Central Bank and the euro zone's 17 national central banks shrank by 4.374 billion euros ($5.77 billion) to 2.399 trillion in the week ending July 19.

India to call on millions of non-residents to defend rupee - sources

NEW DELHI (Reuters) - India is considering calling on its millions of non-resident citizens to help reverse a record slide in the rupee and does not favour the idea of a global sovereign bond at this time, senior government officials told Reuters on Monday.

Next major struggle for world economies: Whether taxes on personal wealth should rise

If you'd like to know where American political debates are headed, the data suggest a simple answer. The next major struggle - in economic terms at least - will be about whether taxes on personal wealth should rise - and by how much.

Sheik Sells Stake in Barclays

LONDON – More than four years after helping Barclays avoid a government bailout at the height of the financial crisis, Sheik Mansour bin Zayed al-Nahyan of Abu Dhabi has sold his stake in the bank.

Abu Dhabi sells Barclays bank stake: Statement

LONDON: An Abu Dhabi sheikh who helped British bank Barclays avoid a state bailout during the global financial crisis has sold his stake.

Northern Trust Falls Most Since April as Earnings Miss

Northern Trust Corp. (NTRS), the third-biggest independent U.S. custody bank, fell the most in three months after reporting second-quarter earnings that missed analysts’ estimates.

Federal Reserve's Ben Bernanke aims to reassure markets

Federal Reserve chairman Ben Bernanke, in his bi-annual testimony to Congress, sought to reassure markets about plans for ending its policy of easy money.

Major economies still struggling to create jobs

GENEVA: Jobs growth remains weak among the world's 20 biggest economies, where almost a third of the 93 million unemployed have been out of work for more than a year, top labor and development officials reported Wednesday.

Kester quits as Abu Dhabi's private equity boss

FORTUNE -- Jim Kester has stepped down as head of private equity investing for the Abu Dhabi Investment Authority, Fortune has learned.

China economic slowdown seen deepening as Beijing pushes reform

BEIJING: China's GDP growth is expected to have slowed down in the second quarter as weak overseas demand weighs on output and investment, providing a test for Beijing's resolve to revamp the world's second-biggest economy in the face of deteriorating data.

U.S. banks face profit lull as mortgage boom fizzles

Unexpectedly large quarterly profits at JPMorgan Chase & Co and Wells Fargo & Co hide a more worrisome forecast for the rest of the year for many U.S. banks. Things could get worse before they get any better.

UK to rebuff private equity, overseas funds in Lloyds sale - sources

LONDON (Reuters) - Britain will start selling its shares in Lloyds Banking Group (LSE: LLOY.L - news) to pension funds and insurers later this year, rejecting interest from private equity and sovereign wealth funds, industry and political sources said.

China ready to negotiate investment treaty with US

WASHINGTON (AP) — China agreed Thursday to negotiate a bilateral investment treaty with the United States, a move hailed by Washington as a significant step in the Asian giant's economic reforms that could level the playing field for American businesses.

U.S.-based stock funds gain $11.84 billion, most since January: Lipper

(Reuters) - Investors in funds based in the United States poured $11.84 billion into stock funds in the latest week, the most since late January, as investors overcame fears of a pullback in the Federal Reserve's stimulus, data from Thomson Reuters' Lipper service showed on Thursday.

Germany calls on EU to ban 'patent box' tax breaks

Germany's finance minister called on Tuesday for a ban on the so-called "patent box" tax break offered by Britain, Netherlands and some other EU members, which he says results in unfair competition for foreign investment.

US economic recovery will eventually benefit India: BofA-ML

NEW DELHI: Bank of America Merrill Lynch ( BofA-ML) is of the opinion that a US economic recovery will eventually benefit India.

Iran offers special exchange rate to lure commerce

TEHRAN, Iran (AP) -- Iran's central bank is allowing most importers to buy local currency at half the former official price as part of attempts to attract investors to an economy battered by Western sanctions.

Canada Dollar Falls for Third Week as Economy Trails U.S. Pace

The Canadian dollar fell in the longest streak since May as the country’s job market stagnated while U.S. employment growth exceeded forecasts, adding to evidence the two countries’ economies are diverging.

Germany, Spain sign deal to ease credit crunch

BERLIN (AP) -- Germany and Spain on Thursday signed a deal under which Berlin will provide 800 million euros (about $1 billion) to ease a credit crunch for small and medium-sized Spanish companies.

UK economy 'buoyant' as services sector grows at fastest rate in two years

Hopes of an economic recovery are growing as the UK's dominant services sector expanded at its fastest rate in more than two years, according to monthly data.

Portugal may re-ignite Europe crisis

Political turmoil in Portugal is threatening to re-ignite Europe's debt crisis after a year of relative calm.

Rising interest rates set to make external commercial borrowing route unviable

MUMBAI: The government's move to widen the scope of external commercial borrowing to let the debt-laden telecom and aviation companies raise funds overseas may be too little and too late as rising global interest rates will make borrowing in US dollars unviable.

Fed officials in damage control mode

Federal Reserve officials are still in damage control mode , after comments about winding down stimulus frazzled markets last week.

Kuwait Wealth Fund Doubles Investments in U.K. to $24 Billion

Kuwait Investment Authority, the country’s sovereign wealth fund, doubled investments in the U.K. over the last 10 years to more than $24 billion.

Canadian pension fund seals European warehouse deal with Segro

LONDON (Reuters) - One of Canada's largest pension funds formed a joint venture with Britain's Segro for a portfolio of European warehouses, the latest global investor attracted by the high returns of industrial real estate.

Chinese Investors Pursue U.S. Property Deals

First, it was the Japanese. Moneymen from Tokyo blew into the United States to buy famous pieces of the American landscape, from Rockefeller Center in New York to the Pebble Beach Golf Links in California.

Portugal Yields Need Draghi to Keep His OMT Promise

Portugal’s 10-year bond yield jumped more than a percentage point in the past month to levels that may test European Central Bank President Mario Draghi’s pledge to buy bonds of crisis-torn countries.

Swiss court blocks Credit Suisse data transfer to US

GENEVA: A Swiss court has ordered an injunction halting the transfer of a former Credit Suisse employee's data to US authorities as part of the bank's attempt to settle a tax investigation, a lawyer involved in the case said on Tuesday.

Key points in the leadership switch in Qatar

DOHA, Qatar (AP) — Background on Tuesday's leadership transition in Qatar from the 61-year-old emir to his 33-year-old son, Sheik Tamim bin Hamad Al Thani.

Kuwait sheikh sues UBS for $21.4 mn in Dubai court

DUBAI: A Kuwaiti sheikh is suing UBS AG for $21.4 million, alleging the Swiss bank failed to pay him for helping it become lead arranger on a $9 billion asset sale by the Kuwaiti telecommunications operator Zain, a Dubai court heard on Sunday.

Angola names president's son to chair $5 bln sovereign wealth fund

LISBON (Reuters) - Angola on Friday appointed one of President Jose Eduardo dos Santos' sons to chair its $5 billion sovereign wealth fund, a move likely to raise further questions about transparency and nepotism in Africa's second-biggest oil producer.

Five U.K. Banks Must Raise Extra $21 Billion Capital

Five U.K. banks must find 13.4 billion pounds ($21 billion) to plug a 27.1 billion-pound capital shortfall by the end of the year, the Bank of England said.

Eurozone finance ministers tackle bank reforms

LUXEMBOURG: Eurozone finance ministers try to keep a push for banking sector reforms on track Thursday, to ensure it is creditors who foot the bill for future bank rescues, not the weary taxpayer.

Federal Reserve leaves interest rates alone and pledges to continue stimulus

The US Federal Reserve left interest rates unchanged and reaffirmed its pledge to maintain its massive stimulus program amid further signs of a split in the central bank's committee and speculation that chairman Ben Bernanke is preparing to step down.

Porsche family buys back stake from Qatar fund

BERLIN: Descendants of German automobile entrepreneur Ferdinand Porsche have bought back a 10 per cent stake in their holding company from Qatar's sovereign wealth fund.

Analysis: Fed-induced selloff has investors hunting for bargains

NEW YORK (Reuters) - Since Ben Bernanke unleashed a bombshell on May 22 by suggesting the U.S. Federal Reserve could before long start to pull back on its massive monetary stimulus, big stock and bond markets have been feeling the pain.

Emerging-Market Bond Funds See Second-Largest Net Weekly Outflows

Investors continued to pull money out of emerging-market bond and equity funds on escalated concerns about the tapering of the U.S. Federal Reserve's bond-buying program.

US retail sales beat expectations as automobiles surge

WASHINGTON: US retail sales rose more than expected in May as households stepped up purchases of automobiles and bought other goods, suggesting the economy was squeezing out of a recent soft patch.

Africa Has Strongest Growth in Sovereign Funds, JPMorgan Says

Africa is experiencing the strongest growth in new sovereign wealth funds in the world as the continent’s nations are amassing commodity revenues and foreign-exchange reserves, according to JPMorgan Asset Management Inc.

India considers easing rules for sovereign wealth funds to stem rupee fall

NEW DELHI (Reuters) - The finance ministry, the RBI and market regulators on Monday discussed loosening rules for investment by foreign sovereign wealth funds in response to a sharply falling rupee and a wide current account deficit that are hurting the economy.

Financial crisis curbs private equity investor returns: Survey

LONDON: Two thirds of private equity investors have made net returns of at least 11 per cent over the lifetime of their portfolios, a survey showed on Monday, with returns dropping since the financial crisis.

Despite the politics, Chinese investment in US grows

RALEIGH: The biggest-ever Chinese acquisition of a US company faces hurdles in Washington from lawmakers and regulators, but in much of America, Chinese investment is quietly booming.

Strong demand should support stable performances for Asia-Pacific utilities, says S&P report

KOLKATA: Asia-Pacific utilities are well placed to benefit from the region's increasing appetite for energy. But evolving regulations, fuel shortages, rising costs, and lagging recoveries could put the brakes on performance.

China Sovereign Fund President Says It’s Met State Expectations

China Investment Corp., the nation’s $482 billion sovereign wealth fund, has met the government’s expectations by delivering 5 percent annualized returns in the five years since its creation, the official Xinhua News Agency reported, citing the fund’s president.

Vietnam Eyes Foreign Investors to Expand Stock Market

Vietnamese regulators will submit a proposal next month to ease restrictions on foreign ownership in companies as they lure more international investors to a stock market that’s 14 times smaller than Singapore’s.

Experts offer Angela Merkel tips on how to cheer up the Germans

BERLIN: "Happiness experts" from all over the world offered Germany's Angela Merkel tips on Wednesday on how to cheer up her citizens, often stereotyped as prosperous worriers who view their glasses as half empty rather than half full.

Bonds’ Point of No Return About a Standard Deviation Away

The biggest monthly loss in fixed-income securities since 2004 has still left global yields short of the tipping point that would signal a bear market in bonds.

Some Look to Norway as Model for US Oil Bounty

In a country where oil wealth has typically been controlled up by oil companies, the concept of the U.S. harnessing its energy boom to shore up its frayed public finances may be hard to conceive.

Gross’s Pimco Total Return Fund Falls 1.9% in May

Bill Gross’s Pimco Total Return Fund (PTTRX), the world’s largest mutual fund, declined 1.9 percent this month, the biggest monthly loss since September 2008.

Swiss banks break ranks as US tax probe bites

ZURICH: The unified front with which Switzerland's banks have defended their culture of secrecy is breaking down as some prepare to hand over data in a US tax evasion probe, leaving others at greater risk of prosecution.

Banks said to lend China's Shuanghui $7 billion for Smithfield deal

HONG KONG (Reuters) - Bank of China and Morgan Stanley have combined to provide $7 billion of loans to finance Shuanghui International's record deal to buy U.S. pork producer Smithfield Foods , people familiar with the matter said on Friday.

African infrastructure fund "could reach $50 bln"

MARRAKESH, Morocco (Reuters) - The African Development Bank (AfDB) said on Thursday the fund it hopes to create to finance infrastructure investment on the continent could be as big as $50 billion.

Norway fund’s POSCO India investment under OECD ethics scanner

OSLO (Reuters) - Norway's oil fund, the world's largest sovereign wealth fund, has no strategy for dealing with possible violations of human rights by the companies in which it invests, an independent committee set up to safeguard OECD ethical guidelines said.

Abu Dhabi Wealth Fund Cuts Reliance on External Managers

Abu Dhabi Investment Authority, among the world’s biggest sovereign wealth funds, is curbing reliance on outside fund managers and reducing holdings in developed-world shares in favor of emerging market investments.

EU to move spotlight from austerity to reforms on Wednesday

(Reuters) - The European Commission will further shift the EU's policy focus from austerity to structural reforms to revive growth when it presents economic recommendations for each member state on Wednesday, officials said.

Nobody wants to be in charge of spending $500 billion in China’s sovereign wealth fund

Running China’s main sovereign wealth fund is a powerful job that a series of powerful leaders and executives don’t seem to want.

Japan $314 Billion Rout Tests Topix Bulls Who Pushed Gain

The biggest drop in Japanese shares since the 2011 earthquake erased $314 billion in market value, shaking bulls who pushed the Topix Index to five-year highs and highlighting their vulnerability to shocks at home and abroad.

Investors remain risk-averse ahead of long weekend

Britain's blue-chips closed out the week on a downbeat note as investors continued to sell equities on both sides of the Atlantic ahead of two bank holidays in Britain and America.

Vietnam Dollar Bonds Lead Region as Kokusai Sees Recovery

Vietnam’s dollar bonds are beating their Southeast Asian peers as the region’s highest yields attract investors confident the government can revive an economy growing at the slowest pace in 13 years.

EU leaders discuss fight against tax evasion

BRUSSELS: European Union leaders on on Wednesday sought to advance their fight against tax fraud and close the loopholes for large corporations' tax avoidance schemes.

Investors Leave London for Property Yields: Real Estate

For most property investors, the U.K. is a country with one city. Private-equity firms, pension funds and millionaires from Russia to Qatar spent more on real estate in London than the rest of the country for the first time last year, lifting values there while prices elsewhere sank.

Gulf wealth funds raising private equity investments: Study

DUBAI: Sovereign wealth funds in the Gulf Arab region are raising their allocations to private equity investments at a faster rate than other types of investment, US fund manager Invesco says in a new study.

Barclays Names Hammoud as Head of Wealth Management in Abu Dhabi

Barclays Plc (BARC) named Haidar Hammoud head of wealth and investment management in Abu Dhabi as Britain’s second-biggest lender seeks to tap high net-worth individuals in the emirate, holder of about 6 percent of the world’s oil.

Eurozone calm compared to a year ago: Jean-Claude Juncker

BERLIN: The eurozone crisis has eased markedly from one year ago when some doubted its very survival, Luxembourg Prime Minister Jean-Claude Juncker said in Germany on Thursday.

Kuwait-Led Group in Takeover Approach for U.K. Water Firm

Severn Trent Plc (SVT), the U.K.’s second-largest publicly traded water company, rejected a takeover approach from Kuwait’s sovereign wealth fund and a Canadian infrastructure investor.

EU to shift bill for bank failures to creditors

BRUSSELS: European Union governments want to shift the cost of rescuing troubled banks from taxpayers to the banks' creditors, including the holders of large deposits as a last resort.

Bond Sales to Fall 1st Time Since 2010 as U.S. Revenue Soars

Wall Street’s biggest bond dealers are starting to forecast that the U.S. Treasury will reduce the size of its debt auctions in coming months for the first time in three years as government revenue soars.

US retail sales edge up 0.1 percent in April

WASHINGTON (AP) — Americans increased their spending in April at retail businesses, buying more cars and clothes after cutting purchases sharply in March.

China Currency Regulator Scraps Some Foreign Investment Rules

China’s foreign exchange regulator will abolish 24 regulations on the administration of funds for foreign direct investment, in line with State Council orders to cut red tape and increase transparency.

Neiman To Court Sovereign Wealth Funds

Neiman Marcus Group Inc. is planning overtures to a handful of sovereign-wealth funds about a possible buyout of the luxury retailer, said people familiar with deliberations.

Citigroup Funds Bestowed on Employees Offer Volcker Payday

For a pair of former Citigroup Inc. (C) hedge-fund managers, Napier Park Global Capital may turn into a multimillion-dollar payday thanks to the Volcker rule.

Bank of England keeps interest rates and QE unchanged

The Bank of England has kept its stimulus programme of quantitative easing (QE) unchanged and also held interest rates at 0.5%.

Germany wants swift progress on EU banking union

BERLIN: Germany wants to push ahead with a European banking union, a finance ministry spokesman said on Wednesday, possibly in two stages as EU treaty change would be required to create a Europe-wide banking resolution authority.

Inaction on global warming 'not an option': Angela Merkel

BERLIN: German Chancellor Angela Merkel warned Monday that in the quest for binding international emissions targets to fight global warming, doing nothing is "not an option".

Abu Dhabi Commercial Bank buys back shares worth $313 million

DUBAI: Abu Dhabi Commercial Bank , the United Arab Emirates' third-largest lender by market value, bought back shares worth 1.15 billion dirhams ($313.1 million) at the end of last week, the bank said in a statement on Sunday.

Stocks surge to new highs after hiring climbs

NEW YORK (AP) — Optimism about the economy swept through the stock market Friday, pushing two widely watched indexes past major milestones.

Canada Pension Plan, Hammerson buy UK mall stake for $476 million

LONDON (Reuters) - Canada's Pension Plan Investment Board (CPPIB), one of the world's largest pension funds, and landlord Hammerson have bought a stake in a major British shopping center for 307 million pounds ($476 million).

Goldman Sachs Deal Averted Osborne Embarrassment, Group Says

Goldman Sachs Group Inc. (GS) was able to avoid paying as much as 20 million pounds ($31 million) in U.K. taxes as the government fought to shield Chancellor of the Exchequer George Osborne from political embarrassment, an advocacy group said at a London trial.

No end in sight for Fed stimulus as inflation sags

WASHINGTON (Reuters) - The Federal Reserve's debate over monetary policy could begin to shift away from the prospect of reducing stimulus toward a discussion about doing more, given the signs of economic weakness and slowing inflation.

Spreading the Risk With Real Estate

SINGAPORE — Commercial real estate has long had a place in the portfolios of wealthy investors, who see it as a useful diversification away from more volatile assets like stocks or bonds.

Norway, Qatar and Azeri Sovereign Wealth Funds Buy Into Russia's VTB

Russia's second-largest lender VTB Bank (VTBR.RS) said Monday its secondary public offering, scheduled for May, attracted demand from the sovereign wealth funds of energy giants Norway, Qatar and Azerbaijan.

Italy's new economy minister aims to cut taxes and spending

ROME (Reuters) - Italy's new economy minister Fabrizio Saccomanni plans to cut taxes and public spending and lower borrowing costs, according to an interview published on Sunday in daily la Repubblica.

Swiss central bank keeps some gold in UK, Canada

GENEVA: The Swiss National Bank has for the first time disclosed where it stashes its 1,040 tons of gold, saying almost a third is kept overseas, in Britain and Canada.

Russia's VTB set to approve terms for $3.2 billion share sale

MOSCOW (Reuters) - Russia's second-largest bank VTB (VTBR.MM) was set to push ahead with a 100 billion rouble $3.2 billion (2 billion pounds) share sale in the coming weeks to bolster its capital, even as its shares languish after a series of strategic missteps.

Post-Cyprus credit rebound hints at bounce for unloved banks

LONDON (Reuters) - A hasty scramble to ditch European banks after Cyprus took a contentious sovereign bailout drove some stocks lower than the credit market suggests they should be, potentially leaving them ripe for a rebound.

Greek privatisation bidder urged to improve offer

Greek-Czech investment fund Emma Delta has been given until 1 May to submit an improved bid for Greek gambling monopoly OPAP.

Forex Flash: Massive sovereign wealth fund gobbles up JGB – UBS

FXstreet.com (Barcelona) - Market attention is now shifting to the Government Pension Investment Fund in Japan. This giant asset manager has Y111.9trn ($1.19trn).

Knocking on EU's door, Serbia tries to tap investment potential

BELGRADE (Reuters) - Serbs pride themselves on their hospitality, and Abu Dhabi's crown prince got the full treatment this year: skiing in the mountains, a tour of Belgrade's Red Star soccer club and a parting gift of hand-knitted woollen socks.

ECB's Nowotny says too early to judge if rate cut needed

WASHINGTON: It is too early for the European Central Bank to judge whether a further interest rate cut is needed but the impact of Japan's easing must be closely monitored, ECB Governing Council member Ewald Nowotny said on Saturday.

Lloyds May Raise $1.2 Billion From Scottish Widows, Numis Says

Lloyds Banking Group Plc (LLOY), the U.K.’s biggest mortgage lender, may reap about 800 million pounds ($1.2 billion) from selling fund-management unit Scottish Widows Investment Partnership, Numis Corp. said.

Portuguese borrowing costs steady, show faith in bailout, ECB

LONDON: Growing public protests against austerity have not blown Portugal's borrowing costs off course, suggesting investors still believe the European Union will make the country's bailout work.

Angola misses deadline on $5 bln wealth fund, blames legal challenge

LISBON (Reuters) - Angola said on Tuesday it missed its own deadline to publish an investment policy for a planned $5 billion sovereign wealth fund due to a legal challenge, slowing efforts to diversify its oil-dependent economy.

China softens rules on bank lending to local govts: Sources

SHANGHAI: New rules from China's banking regulator aimed at restricting local government borrowing are weaker than a draft version circulated last month, according to a copy of the rules provided to Reuters by two industry sources.

Cordiant Raises $250 Mln to Invest in Emerging Market

Cordiant Capital Inc., a Montreal- based money manager, raised $250 million to invest in emerging market loans as it seeks to replace European and American banks that have cut lending.

Switzerland eyes compromise with EU in tax row

ZURICH: Swiss Finance Minister Eveline Widmer-Schlumpf signalled the country may be ready to make concessions to the European Union to end a long-standing conflict over EU citizens stashing untaxed money in Swiss bank accounts.

Cyprus president to ask EU for more help

NICOSIA: Cyprus' president said today that he will ask the European Union to provide more help for the crisis-hit country, which has to pay for most of its expected 23 billion euro (USD 30 billion) bailout.

China banks "significantly exposed" to shadow financing: Fitch

BEIJING (Reuters) - Chinese banks face growing risks as they are heavily exposed to the "shadow banking" being used by debt-laden local governments to raise funds, global ratings agency Fitch said on Wednesday.

Inflation likely to remain stable as recovery strengthens: IMF

WASHINGTON: Asserting that inflation is likely to remain stable as the recovery strengthens, the International Monetary Fund has said fears about high inflation should not prevent monetary authorities from pursuing highly accommodative monetary policy.

Gulf Funds Eye U.K. Banks as Rules Tighten, Staveley Says

Investment firm PCP Capital Partners LLP and the Gulf investors it works with are interested in the U.K.’s banking industry despite stricter rules imposed since the financial crisis, said Chief Executive Officer Amanda Staveley.

Qatar runs returns rule over fast cars and football

DUBAI (Reuters) - Bankers and politicians touting their countries' wares have to work hard to get the attention of Qatar's sovereign wealth fund, such is the range of its interests, from banks to cars to soccer clubs, and its exacting requirement for returns.

China Local Debt May Top Estimates, Former Minister Says

China’s local governments may have more than 20 trillion yuan ($3.2 trillion) of debt, former Finance Minister Xiang Huaicheng said, almost double the figure given in a 2011 report by the National Audit Office.

France wants banks to be core Euronext investors - sources

LONDON/PARIS (Reuters) - The French government has approached the country's banks and insurers about forming a consortium to buy at least 34 percent of the Euronext stock exchange, due to be spun off in a public offering, sources close to the matter said on Friday.

France, Germany seek to finesse growth vs rigor divide

(Reuters) - The finance ministers of France and Germany sought on Thursday to play down differences over the euro zone's economic policy mix, saying budgetary rigor and growth were not incompatible.

Cyprus crisis to deepen Greek recession: Business leader

ATHENS: The Cyprus crisis could tip Greece into an even deeper recession this year, the head of Greece's biggest business group said on Wednesday, urging a growth-boosting rethink of the country's bailout programme.

Ruble Tumbles Most in 12 Weeks as Europe Woes Stoke Outflows

The ruble sank the most in 12 weeks as concern over Europe’s economic and debt crisis spurred the strongest capital outflow from Russia in a year.

World stocks edge higher on US economy hopes

LONDON (AP) — Stock markets mostly rose on Tuesday on hopes that improvements in the U.S. economy will make up for the continued gloom in the eurozone, where the unemployment rate hit a new record high.

Yen Rises to Almost Four-Week High on Safety Demand

The yen climbed to the strongest level in almost four weeks against the dollar after a gauge of U.S. manufacturing expanded less than forecast, adding to haven demand and damping bets the Federal Reserve might slow its bond- buying under quantitative easing.

Investors shun emerging market equity funds: EPFR

NEW DELHI: Emerging market equity funds witnessed their biggest weekly redemption since early September, primarily due to Italy's inconclusive election and the Cyprus bank bailout, a report says.

Investors wary of "slow panic" on growth after Cyprus rescue

LONDON (Reuters) - World markets have reacted calmly to the twists and turns of Cyprus's financial rescue in the last fortnight but many investors fear the economic fallout is yet to come.

UK has already returned to growth, says OECD

Triple-dip recession fears eased as a leading economic forecaster said the UK has already returned to growth, while officials reported the dominant services sector has expanded at its strongest pace in five months.

Cyprus Immunity Shows Libor Still Broken Rate: U.K. Credit

Libor ignored the crisis in Cyprus that’s roiling financial markets, showing the global benchmark for $300 trillion of securities remains divorced from reality six months after regulators laid out a plan to fix it.

Egypt to apply gains tax in QNB bid for NSGB

CAIRO (Reuters) - Shareholders and investment funds that make capital gains from Qatar National Bank's (QNB) bid for Cairo-based National Societe Generale Bank (NSGB) will face a 10 percent tax, Egypt's tax authority said on Tuesday.

Arab League summit showcases Qatar's swagger

DOHA, Qatar (AP) — Qatar's emir looked over an assembly of Arab leaders Tuesday as both cordial host and impatient taskmaster.

Norway Becomes Petro-State as Investors Balk at Hidden AAA Risks

Norway, home to the world’s biggest sovereign wealth fund, is betting it can afford to ignore investor outrage.

India eases rules for foreign investors in government, corporate bonds

NEW DELHI (Reuters) - India will ease restrictions for foreign institutional investors in federal and corporate bonds next month to attract inflows and help fund a widening current account deficit, Finance Minister P Chidambaram said on Saturday.

Buyout firms face squeeze as investors go direct for deals

LONDON (Reuters) - Tired of the hefty fees charged by private equity firms and wanting more say over what they buy, big investors like pension funds and insurers are taking matters into their own hands.

Nigeria further depletes oil savings for spending

ABUJA (Reuters) - Nigeria will make a second $1 billion withdrawal from its Excess Crude Account (ECA) by next month to distribute to its three tiers of government for projects, reducing its oil savings to $6.82 billion, the state minister for finance said on Thursday.

Euro zone in reverse, China speeds up

LONDON: The euro zone's economic downturn deepened this month, even before Cyprus' bailout troubles, but China's factories took a completely different path and moved up a gear, business surveys showed on Thursday.

Bernanke Put Here To Stay With QE Through Late-2014 And No Rate Hikes Until 2016: Goldman

Up until Cyprus erupted into the scene, the Federal Reserve had been the main protagonist in the market.

PIMCO cuts euro exposure as investors decry Cyprus bailout plan

LONDON (Reuters) - A demand that Cyprus seize money from depositors to help rescue the island's banks is a wake-up call for those who believed the euro zone crisis was solved, institutional investors and hedge funds said.

New Premier in China Faces Test on Economy

HONG KONG — China’s new prime minister, Li Keqiang, entered the job on Friday inheriting a wobbling economy that could distract his government from its bold vows to clean up pollution and harness expanding towns and cities as an engine for growth.

France, Italy see leeway on budget rules at EU summit

(Reuters) - France and Italy won support for a slightly more growth-friendly interpretation of European Union budget rules at a summit on Thursday after French President Francois Hollande challenged German-driven fiscal austerity.

Norway Tariff Cuts to Lower Income by $7 Billion, Funds Say

Funds that have invested $5.6 billion in Norway’s gas pipelines said a government plan to cut their transportation fees by 90 percent would lower income by almost 40 billion kroner ($7 billion).

Sovereign Funds’ Assets to Gain 60% by 2016, UBS’s Castelli Says

Sovereign wealth funds will increase their assets by 60 percent over the next three years, bolstered by rising income from commodities and exports, according to UBS AG. (UBSN)

Norwegian oil fund dumps UK gilts

The Norwegian oil fund, one of the world’s biggest investors, dumped almost half of its holdings in UK gilts last year amid concerns about mounting Government debt levels and money printing.

Fugitive Hedge Fund Manager Homm Arrested at Gallery

Florian Wilhelm Jurgen Homm, the German hedge-fund manager who has been a fugitive for more than five years, was arrested at the Uffizi Gallery in Florence on U.S. fraud charges.

Cerberus seeks to tighten control over Japan's Seibu-sources

(Reuters) - Cerberus Capital Management LP will announce plans as early as Monday to raise its stake in Seibu Holdings Inc and install new directors to tighten its grip over the Japanese railway and property group, finance industry sources briefed on the plan said.

US banks stress test: Is Citigroup safer than JPMorgan?

NEW YORK: The newest stress tests for US banks produced scores that are at odds with other measures of lenders' safety, in another sign that some institutions may be too big for regulators to understand and executives to manage.

Norway’s public pension reflects investing shift away from Europe

Plenty of investors have abandoned Europe over the past couple of years, but one of the more telling examples came on Friday from the far north when Norway’s public pension fund reported that it was basically ditching France in favor of the Washington property market.

Prosperity Adds More Gazprom as Putin Pushes Improvement

Prosperity Capital Management Ltd., whose Russia fund beat 97 percent of peers in the past year, bought more shares of OAO Gazprom (OGZPY) on prospects Russia will push its gas export monopoly to be more efficient.

Banks, traders wary of two-step stress test

(Reuters) - Investors in U.S. bank stocks may be in for a volatile ride over the next two weeks as the Federal Reserve releases results of its annual stress tests of bank capital in two steps.

Korea Lures Investors as Covered Bonds Dwindle: Mortgages

Global investors are looking past record household debt and falling property prices to pile into South Korean mortgage bonds as a lack of supply in the world’s biggest markets boosts the allure of the securities.

Stock investors look past pricey Germany for Europe growth

LONDON: Smaller northern European stock markets are luring investors keen to escape fresh political and debt market risk in the south but loath to pay for entry into traditional safe-haven Germany.

Spending cut showdown threatens Barack Obama's second-term agenda

WASHINGTON: Just hours after across-the-board spending cuts officially took effect, President Barack Obama pressed Congress on Saturday to work with him on a compromise to halt a fiscal crisis that threatens the economy and his broader domestic policy agenda.

Swiss vote 'to crack down on excessive pay'

A plan to limit pay to executives based in Switzerland is expected to be passed on Sunday, as people vote on the referendum against “rip-offs” remuneration.

Libya Fund Helps SEC in Goldman Investigation

Libya's sovereign-wealth fund said it is cooperating with the U.S. Securities and Exchange Commission in its ongoing investigation into Goldman Sachs Group Inc. (GS) over the securities firm's dealings with the fund when Col. Moammar Gadhafi was in power.

Blackstone’s Assant Says Buyout Funds Negative on France

Blackstone Group LP (BX)’s head of European private equity, Lionel Assant, said his industry is “absolutely negative” about investing in France because the country is delaying economic reforms.

Africa investment boom sees beyond conflict-driven headlines

LONDON (Reuters) - Turmoil in Tunisia? Conflict in Mali? Fraught elections in Kenya? Investment in Africa is thriving regardless.

Canada funds bet emerging markets can lift "funk"

TORONTO (Reuters) - With only tepid growth expected in North America and Western Europe in 2013, Canadian asset managers say the best opportunity for growth comes from emerging markets, where a burgeoning middle class is hungry for consumer goods and improved infrastructure.

Africa investment boom sees beyond conflict-driven headlines

LONDON: Turmoil in Tunisia? Conflict in Mali? Fraught elections in Kenya? Investment in Africa is thriving regardless.

Osborne Sticks to Austerity as Investors Say Downgrade Came Late

U.K. Chancellor of the Exchequer George Osborne said he won’t give in to opposition calls to change his economic policy after Moody’s Investors Service’s decision to strip the U.K. of its Aaa status.

Q&A: Why investors are wary of Italy's elections

FRANKFURT, Germany (AP) — Investors are keeping a wary eye on Italy as the country heads to the polls Sunday and Monday to elect a new parliament.

Turkey lures Asian investors as it looks east for capital

ISTANBUL, Feb 20 (Reuters) - When Turkish conglomerate Anadolu Holding put its 75-percent stake in Alternatifbank up for sale last year, a distant potential suitor took a close look at the business, eyeing an entry into Europe's fastest-growing economy.

Qatar to list $12 billion firm with assets from wealth fund

DOHA (Reuters) - Qatar will create a new $12 billion investment firm, backed by blue-chip assets from its sovereign wealth fund, and list it on the local stock exchange, its main institutional backer said on Tuesday.

China January foreign direct investment down 7.3%

BEIJING: Foreign direct investment in China declined in January, official data showed Wednesday, extending a downward trend after falling on an annual basis in 2012 for the first time in three years.

IHG To Sell Flagship Hotels As Market Improves

LONDON--InterContinental Hotels Group PLC (IHG.LN) Tuesday pointed to a recovery in the international hotel market as it said it will push ahead with the sale of its flagship New York Barclay and InterContinental Park Lane hotels.

Wells Fargo eyes Mideast growth

DUBAI, United Arab Emirates – Wells Fargo & Co., the U.S. bank that counts billionaire Warren Buffett’s company as its largest shareholder, is targeting Persian Gulf sovereign-wealth funds as it seeks to expand its client base in the Middle East.

As sovereign wealth funds look beyond bonds and equities, another great rotation is underway

Azerbaijan is planning to take some of its $34 billion in state oil wealth on a trip Down Under, where it will shop for real estate (paywall), as the sovereign wealth fund told the Wall Street Journal.

London property no longer looks safe for investors

LONDON: London's property is losing its attraction for investors as they start to venture out of 'safe havens' and worry that the city's prices look high given a slowing British economy.

UK regulator fines UBS over investment funds

LONDON: Britain's financial regulator fined Swiss bank UBS 9.45 million pounds ($14.8 million) Tuesday for exposing customers to unacceptable risk in the selling of an investment fund and for failing to deal properly with complaints that followed.

Funds Cite CMBS Top Bet After Subprime Gains: Mortgages

Hedge funds seeking the hottest trade of 2013 are turning to skyscrapers, shopping malls and hotels after last year’s rebound in residential real-estate drove the industry’s best gains.

Angolan court rejects opposition complaint on sovereign fund

LISBON (Reuters) - Angola's constitutional court on Friday rejected a claim by an opposition party that President Jose Eduardo dos Santos had overstepped his powers to create the country's $5 billion sovereign wealth fund.

Total: Picked EDF-Led Consortium to Sell TIGF for 2.4 Billion Euros

Total SA (FP.FR, TOT) Tuesday confirmed it entered exclusive talks with a consortium led by Electricite de France SA (EDF.FR) to sell its natural-gas transport and storage unit TIGF, for a price valuing the company at 2.4 billion euros ($3.26 billion).