Der Spiegel Cites QIA Could Acquire Large Stake in Deutsche Bank
Der Spiegel, citing unidentified sources, commented that the Qatar Investment Authority (QIA) could acquire a large stake in Deutsche Bank in the open market from HNA Group. HNA Group controls a 6.3% holding in the German bank through various structures. Royal family members from Qatar have a 6.1% stake in Deutsche Bank.
Willis Towers Watson Speeds Up Move into the Asset Management Business
Willis Towers Watson Investments created the Towers Watson Secure Income Fund in March 2017. The fund has received £1 billion worth of commitments in the United Kingdom. The fund was sold to defined benefit plans in the U.K. Towers Watson has now launched the Towers Watson Euro Secure Income Fund.
Luckin Coffee Preps for US IPO
Starbucks rival Luckin Coffee, a Chinese coffee unicorn, has hired Credit Suisse, Goldman Sachs, and Morgan Stanley to work on a 2019 U.S. initial public offering. GIC Private Limited is a key sovereign wealth fund investor in Luckin Coffee.
GE Healthcare Provides Tech to Cancer Center in Partnership with NSIA
GE Healthcare, part of General Electric, has partnered with the Nigeria Sovereign Investment Authority (NSIA) to supply technology in computed tomography (CT), Discovery RT, to Lagos University Teaching Hospital for its modern NSIA- LUTH Cancer Center. The cancer center was commissioned by Nigerian President Muhammadu Buhari.
The Cassa Depositi e Prestiti Group (CDP) and its investee companies, which include Fincantieri, Italgas, Snam, and Terna, have reached an agreement with the Municipality of Naples and the Authority of the Central Tyrrhenian Sea Port System. The entities will cooperate to provide for the development of Naples and its surrounding area. There will be a focus on helping the institutions and the community at large through financial support, real estate, and infrastructure investment, and support for local businesses. Signatories can help to provide technical expertise and planning, loans, and oversee public projects. Further, assistance and consulting will be provided, particularly as they relate to interventions and renegotiation of contract terms for the purposes of freeing up capital. Sustainable mobility will be a priority, with natural gas and biomethane forming the core fuels of the future. The group will be developing the ports, which will include the construction of emission-reducing structures.
[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
The Federal Reserve made a decision to hold interest rates steady and indicated that no more hikes will be coming for 2019. Federal Reserve Chairman Jay Powell addressed the media saying that the Chinese and European economies have slowed ‘substantially’. Despite low U.S. employment, Powell explained to the media that the U.S. has the lowest labor force participation rate among developed nations.
There were four interest rate hikes in 2018.
The Federal Reserve committee intends to conclude the reduction of its aggregate securities holdings in the System Open Market Account (SOMA) at the end of September 2019. Essentially, the Federal Reserve is ending quantitative tightening in September 2019. Furthermore, the committee intends to slow the reduction of its holdings of Treasury securities by reducing the cap on monthly redemptions from the current level of US$ 30 billion to US$ 15 billion beginning in May 2019.
In a March 20, 2019 statement called “Balance Sheet Normalization Principles and Plans”, a portion of it reads, “The Committee intends to continue to allow its holdings of agency debt and agency mortgage-backed securities (MBS) to decline, consistent with the aim of holding primarily Treasury securities in the longer run.
Beginning in October 2019, principal payments received from agency debt and agency MBS will be reinvested in Treasury securities subject to a maximum amount of $20 billion per month; any principal payments in excess of that maximum will continue to be reinvested in agency MBS.
Principal payments from agency debt and agency MBS below the $20 billion maximum will initially be invested in Treasury securities across a range of maturities to roughly match the maturity composition of Treasury securities outstanding; the Committee will revisit this reinvestment plan in connection with its deliberations regarding the longer-run composition of the SOMA portfolio.
It continues to be the Committee’s view that limited sales of agency MBS might be warranted in the longer run to reduce or eliminate residual holdings. The timing and pace of any sales would be communicated to the public well in advance.”
source: Federal Reserve website
Tencent Holdings Limited is contemplating a bid to acquire Temasek Holdings’s ownership stake in A.S. Watson, an Asian beauty and health retailer. Temasek Holdings has been trying to offload its 10% stake in A.S. Watson. The price tag could be around US$ 3 billion.
Alibaba Group Holding Limited has also expressed interest in the A.S. Watson investment.
3 weeks ago
Lower Expectations for Recoveries for Russia’s Trust Bank
3 weeks ago
Peeking into China’s Social Credit Score System
2 weeks ago
SoftBank Spreads Money Love to Latin America
1 week ago
Norway SWF Went Big Into Listed REITs
2 weeks ago
Norway’s Sovereign Wealth Fund Set to Drop Oil Exploration Stocks
1 week ago
Healthcare Data Attracts Sovereign Wealth Funds as Risks Bloom
2 weeks ago
SWFI First Read, March 10, 2019
3 weeks ago
CACEIS to Buy Dutch Custodian KAS Bank