State-run investment funds will quadruple in size to almost $8,000bn during the next four years as currency reserves keep accumulating in economies such as China investment banks, Russia and the Middle East investment banks, investment bank Merrill Lynch said in a report.
This is becoming an issue which could hamper global prosperity if we don’t solve it investment banks, Mr Trichet said last month. But Merrill global economist Alex Patelis said the growth of the funds should prove a boon for the world economy investment banks. He said it was unlikely that the funds would try to buy more companies outright, as in the discussions between J Sainsbury and the investment fund of the Qatari government investment banks. They will be much more subtle and complex investment banks, he said, adding that he would expect more deals like that between Barclays and China investment banks, which invested ï¿¡3bn in Barclays through the China Development Bank as it prepared its ultimately doomed bid for ABN Amro investment banks.
Investment Banks October 20th, 2007
