Libyan Fund Scores in Legal Wrangle With Goldman Sachs

London-The Libyan Investment Authority has compelled Goldman Sachs to reimburse it for legal costs it incurred when the financial services titan tried in August to have the LIA's one billion dollar lawsuit against it resolved at a summary trial,instead of at a full hearing.The presiding judge found after a two-day hearing that Goldman should never have submitted the application for summary judgement.In consequence,Goldman must now fork over at least 200,000 pounds to the LIA for its expenses-and possibly as much as 680,000 pounds.
The full hearing on the case will likely begin in 2016.*
The LIA,a sovereign wealth fund,alleges that Goldman Sachs took them for a complete ride.It exploited the LIA and its ignorant staff by encouraging them to make nine very risky investments of over one billion dollars that ultimately failed.Goldman bribed the staff with luxury gifts such as a junket to Morocco with heavy drinking and girls,as well as expensive nights out on the town in London.
Goldman responds that it simply offered small gifts to cement a strategic partnership with key LIA staff,who were actually quite experienced international bankers.In fact,the transactions in question were relatively straightforward and easy to understand,and the investments would have succeeded in more favourable market conditions,Goldman Sachs pointed out.*
Goldman Sachs(GS)

Finance and Foreign Affairs:The View From Qatar

A leading figure in Gulf states finance and foreign affairs has been reflecting on the recent turmoil in the region.We are thinking the Libyan people didn't deserve this,says Sheikh Hamad bin Jassim bin Jabr Al-Thani,Prime Minister and Foreign Minister of Qatar,who also helps oversee Qatar's sovereign wealth.Most of the problem in the Middle East is the economy.Gadaffi should go,leave the people of Libya decide what they want to do.
We see a lot of movement in Qatar.Some of the big companies are moving into Qatar from Egypt.
Between 5 and 7 years we will finish the Qatar infrastructure.Seventy billion is already allocated for that.The challenge is what to do after that to keep the growth 5-8%.We don't want the growth to collapse in 3-4 years when the work is finished.
Last year we invested more than 20 billion.This year we must invest 35 billion if we have the opportunity.We invested in Washington property,as it is a city that is not affected a lot by real estate problems because it is the capital.We think it's the right time to invest in U.S. commercial real estate.We are also looking at retail and energy in the U.S.
We have to be realistic about the supply and demand for energy.The supply is there,but there is anxiety about the Middle East events.In Asia,we sell our gas 3-4 times what we sell it for in the U.S.;Asia is our natural market,frankly speaking.
With regard to censorship of the Internet,to shut down any technology,I think this is stupid,the British-educated Sheikh Hamad believes.
Through its Delta Two fund,which is headed by Sheikh Hamad bin Jassim and managed by Paul Taylor,the Qatari government has increased its stake in British retailer Sainsbury to just over 25%.This is being seen as another step in a possible takeover of the department store chain.

NYSE/Euronext Sells Indian Stake

NYSE/Euronext has sold its 5% stake in the National Stock Exchange of India to Temasek,a Singaporean sovereign wealth fund,for 150 to 180 million dollars.The stake is part of a growing trend of foreign investment in robustly-growing India.India's central bank said the economy will grow at least 8% in the current fiscal year,which began April 1.
The National Stock Exchange has 1470 listed companies,with a combined market capitalization of about 1.3 trillion dollars as of March 1.NYSE/Euronext had purchased the stake in NSE in January 2007.At the same time,Goldman Sachs had purchased its own 5% of the Indian exchange.
Wisdom Tree Investments offers an India exchange traded fund,EPI,which includes 126 profitable companies,according to the firm.It is a fundamentally weighted fund,meaning allocation to the holdings is determined by their success.

Looking Ahead From Qatar

We are looking at various banks in the U.S.,Europe and Asia,Sheikh Hamad Al-Thani revealed.Within two or three years,such an investment will get you in the right shape.We are looking at three or four blue chip companies.We are looking at the right time for entry.Dividend is one of the subjects;balance sheets are very important for us.In Qatar,I think we will be O.K. and there will be substantial growth,Sheikh Hamad believes.

Sheikh Manages Sovereign Wealth

Sheikh Hamad Al-Thani manages Qatar's sovereign wealth fund.We are affected by the financial crisis,the sheikh said,but the banking system is still strong;the economy is still strong,thank God.For us in Qatar,our acquisitions are not bad.No doubt there is a tough road.We have two or three quarters to watch it very carefully,the sheikh cautioned.