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Tue, 28th February 2017

Anirudh Sethi Report

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Posts Authored by: “Anirudh Sethi”

Norway’s oil fund up 6.9% in 2016

The world’s largest sovereign wealth fund overcame sluggish markets at the start of last year to deliver a return of 6.9 per cent in 2016.

Norway’s $905bn oil fund was boosted by strong stock markets in the second half of the year with equity investments returning 8.7 per cent. Fixed income returned 4.3 per cent in 2016.

Yngve Slyngstad, chief executive of Norges Bank Investment Management, the manager of the fund, said:

The fund had 62.5 per cent of assets invested in equities at the end of the year but is expected this spring to be given permission to increase that to 70 per cent. Fixed income assets accounted for 34.3 per cent and real estate 3.2 per cent.

Russia says relations with US are at lowest level since Cold War

Russian news agency IFAX out with some comments 28 Feb

  • opponents of Trump are using Russiaphobia to discredit him
  • Russia is not asking, and has not asked, US to lift sanctions
  • has not discussed sanctions with Trump administration
  • would be easier to work with US on Syria without sanctions
  • Trump admin understands that Assad is not a problem for solving Syria crisis

Really? Feel free to discuss.

 

Asia needs $26tn for infrastructure through 2030: ADB report

Asia will need $26 trillion of infrastructure investment in the 15 years from 2016 to 2030, said a report published on Tuesday by the Asian Development Bank.

According to the report, titled Meeting Asia’s Infrastructure Needs, the region needs electricity supply chains to deliver power to the 400 million people who still live without electricity.

 Infrastructure investment in Asia currently meets only about half the demand. Aid from development agencies, such as the ADB, remains a mere 2.5% of total investment. The report calls on regional economies to provide financing through fiscal measures and to make use of private-sector money.

The report covered 45 countries and territories including China and India. To sustain the current level of economic growth, Asia needs $26 trillion over the 15-year period.

In the previous report, released in 2009, the ADB estimated that Asia would need $8 trillion of infrastructure investment between 2010 and 2020.

Samsung’s Lee to be indicted for bribery linked to Korean corruption scandal

Samsung’s de facto leader Lee Jae-yong will be indicted on Tuesday for bribery, embezzlement and perjury in connection with South Korea’s sprawling corruption scandal, casting a long shadow over the country’s largest conglomerate.

The indictment of the 48-year-old vice-chairman of Samsung Electronics came as the technology-to-finance group is set to announce some reform measures including the dismantlement of the Future Strategy Office, which has been deemed as the group’s control tower.

Mr Lee was one of more than 10 people indicted on Tuesday for their involvement in the political scandal, which is poised to topple President Park Geun-hye, as the special prosecutor’s team wrapped up its three-month long investigation into the influence-peddling scandal.

Nikkei 225 closes up +0.06% at 19,118.99

Japanese equities fading into the close 28 Feb

  • high 19267.95
  • low 19118.99
  • Topix closes +0.09 at 1535.32
  • USDJPY 112.48 just off session lows after a little fall from 112.60

Nikkei and USDJPY both retreating into the close after Kuroda talks of higher interest ratepossibililty longer term. Nothing new or outrageous but probably enough to crank up a few robots.

Expect initial offers/res around 112.60 then 112.80 and 113.00. Demand into 112.20 then 112.00