Gulf bank’s M&A hunt risks shareholder injury 15 Apr 2024 First Abu Dhabi, worth $40 bln, may be eyeing Turkish lenders following a short-lived pursuit of Standard Chartered. An overseas deal would help to diversify away from corporate and investment banking, but the cost savings look slim. Better to focus on growing at home.
Big banks turn inflationary lemons into lemonade 11 Apr 2024 Stubbornly high consumer prices may delay US monetary easing, a boost to lenders like JPMorgan or Citi that thrive amid high rates. Further relief could come from the dilution of tough new capital rules. For smaller banks, exposed to stressed borrowers, life tastes more sour.
Norwegian fund’s podcast guru plays both sides 9 Apr 2024 Nicolai Tangen, head of the country’s $1.6 trln sovereign vehicle, has a side gig hosting interviews with corporate leaders like Elon Musk. The jaunty chats give CEOs cover with one of their few engaged investors. At least the fund is not afraid to vote against his guests.
Germany sovereign pension fund is sound but small 3 Apr 2024 Berlin will borrow to invest up to 200 bln euros in global equities to help pay for the retirement of the country’s fast-ageing population. The vehicle’s modest size will limit its long-term impact, but Europe can learn from this blend of public and private schemes.
Middle East AI dream depends on luring brainpower 22 Mar 2024 An abundance of cheap energy to power data centres gives artificial intelligence startups reason to consider the Gulf. But to become a force in AI, Saudi Arabia and the UAE will have to design their own advanced chips. Attracting talent to the region will require more than money.
Qatar Barclays sale raises turnaround stakes 5 Dec 2023 The Gulf state almost halved its holding in the British bank ahead of a strategy update. It suggests little faith that the $27 bln lender will tackle its lowly valuation and investment banking reliance. CEO C.S. Venkatakrishnan needs a bold plan to keep investors happy.
Capital Calls: Ferrovial/Heathrow 29 Nov 2023 Concise views on global finance: The Spanish infrastructure giant has offloaded its final 25% stake to Saudi Arabia’s sovereign wealth fund and private equity group Ardian for 2.4 bln pounds, but a chunky premium means the new owners should hope for a smoother ride.
Qatar can weather latest foreign stress test 27 Oct 2023 The Gulf emirate is under scrutiny for its links to Hamas, six years after a blockade by neighbours. One risk is that its $450 bln sovereign wealth fund gets a frostier reception. But Doha’s giant gas reserves and its role as mediator and US ally should protect its clout.
Saudi’s $700 bln PIF is odd sort of sovereign fund 21 Sep 2023 Hyperactive transactions, erratic funding and an unusual asset mix set the kingdom’s Public Investment Fund apart from more cautious state-run investors. As Crown Prince Mohammed bin Salman tries to reach $2 trln by 2030, the PIF will keep making headlines – both good and bad.
Jho Low could create a new world of 1MDB pain 8 Aug 2023 The fugitive at the centre of Malaysia’s sovereign fund scandal, is in China. In this Exchange podcast Billion Dollar Whale co-author Bradley Hope explains why Beijing may soon give him up and how his return could be difficult for all involved, from global banks to celebrities.
Capital Calls: PIF, Siemens Energy 7 Aug 2023 Concise views on global finance: Saudi Arabia’s big sovereign wealth fund is getting bigger; the $13 bln German company unveiled a $2.4 bln charge due to persistent wind turbine problems.
GIC’s real estate safe haven is hard to copy 26 Jul 2023 Singapore’s $690 bln sovereign fund nearly doubled its real estate allocations to 13% in three years. Its student homes to logistics portfolio provides a timely inflation hedge for one of the most active investors in its class. Peers trying to catch up will overpay.
Temasek is betting on all its stars aligning 12 Jul 2023 Singapore’s state investor had a tricky year with its net value dropping 5.2% to $285 bln and the FTX debacle. Half its portfolio is in unlisted assets, so it’s relying on public markets picking up, Southeast Asia thriving and China recovering. Most of that is out of its hands.
ADNOC’s German chemical punt looks a stretch 20 Jun 2023 The Abu Dhabi energy giant is eying Covestro, valuing it at 14 bln euros including debt. The energy crisis has hit the German group’s valuation, and other UAE firms have snapped up European bargains elsewhere. But ADNOC would require synergies to make a deal stack up financially.
Golf’s Saudi surrender is par for the course 7 Jun 2023 The sport’s main US and European tours are linking their commercial arms with Riyadh-run LIV Golf. Saudi gets the smaller stake despite being the only partner to put in cash. But as it has shown by splashing out on other sports, the chance to polish its image is more valuable.
Jho Low could rip scabs off 1MDB wounds 21 Apr 2023 The man at the centre of the sovereign fund scandal could be returned to Malaysia via a deal with China, a respected journalist says. It’s the final piece of the puzzle but given what Low knows, it would be a moment of public cheer and private fear for politicians and bankers.
Singapore looks boxed in with Li Ka-shing 9 Jan 2023 Co-investing with Hong Kong’s top tycoon once seemed like a no-brainer but sovereign fund Temasek may sell its 20% of CK Hutchison’s ports business. It owns a hefty slug of the company’s retail unit too. Geopolitics complicate any exit from these bold private investments.
Sovereign debt greens yet net-zero pledges darken 13 Oct 2022 Saudi Arabia’s wealth fund is the latest public body to issue securities to fund renewable assets. Strong buyer demand and the chance to flaunt action on climate change explain the boom. Yet national decarbonisation targets remain weak, and green bonds do little to improve them.
There’s method to Saudi’s $38 bln gaming madness 11 Oct 2022 Riyadh says it will splash out to become “the ultimate global hub” for gaming by 2030. Saudi and the freewheeling sector are peculiar bedfellows. But with a petrodollar windfall and falling valuations, the kingdom has a good opportunity to make its unlikely vision happen.
Petrodollar rush may disappoint Western financiers 20 Sep 2022 In prior energy booms, like in the 1970s, the proceeds wound up in U.S. banks and bonds. OPEC’s $907 bln haul in 2022 is smaller, and winners like Saudi Arabia need cash to pivot away from oil. Bankers may not see a developed world equities and debt bonanza on the same scale.