LSE-Lehman trading venture is too little too late 26 Jun 2008 The London Stock Exchange and Lehman are making a late plunge into the dark liquidity pool. But competition for concealed block trades is intense, so profits may be elusive. Investors have been waiting for some time for the LSE to make a bold strategic move this isn t it.
Carbon emissions projects ripe for ratings 25 Jun 2008 It s often cheaper to limit carbon emissions in poor countries than in rich ones. Yet many projects have disappointed, or worse, been scams. Independent watchdogs could provide a useful service to investors in these projects.
Marshall Wace hits the growth trail 25 Jun 2008 The Londonbased hedge fund manager is setting up a Hong Kong joint venture with GaveKal, a boutique founded by financial journalist Anatole Kaletsky. With most established financial institutions in trouble, this is a smart time for hedge funds to grow their businesses.
Want a millionaire lifestyle? Go to a poor country 25 Jun 2008 Being a dollar millionaire in a rich country is worth a lot less than it used to be, thanks to grinding inflation. Falling asset prices don t help. But in developing countries, there are more fortunes to be made. And your money will go much further.
Halliburton rightly sent packing by UK courts 25 Jun 2008 The US oil services giant failed in an attempt to delay court approval for the sale of UK rival Expro to Umbrellastream a move that it hoped would allow it to reenter the fray. This was a clear attempt to circumvent UK Takeover Panel rules and the court was right to say no.
LSE left stranded by NYSE Euronext-Qatar deal 24 Jun 2008 The transAtlantic exchange will take a 25% stake in the Doha Securities Market to boost Qatar as a financial hub. The London Stock Exchange s unwritten agreement with the DSM is in tatters. More than ever, London looks to have missed the boat in global exchange consolidation.
US watchdogs don’t eat their cooking on ratings 24 Jun 2008 The SEC says money funds should be able to ignore credit ratings. They should do their own analysis. But even the Fed uses ratings. And many private investors aren t equipped to do indepth credit research. For now, regulators should focus on promoting competition among raters.
The Fed’s call: flippers, financiers, or ‘flation? 24 Jun 2008 Bernanke et al aren t likely to dent fragile economic growth with a rate hike on Wednesday. But hints of what the Fed might do next will matter, especially the balance between propping up the economy, along with financial markets, and fighting commodityfueled inflation.
UK short-selling rules could backfire 24 Jun 2008 Shortsellers usually keep their positions secret so they don t jeopardise their relationship with managements. But now the FSA has forced shorts out into the open, they are free to argue their case publicly. That s good news for price discovery, but bad news for the FSA.
What can Wall Street wring out of the bond insurers? 23 Jun 2008 Some underwriters of CDOs guaranteed by the battered monolines are negotiating to cancel the insurance. But how much should they demand to let insurers off the hook? Hard to say: the monoline guarantees have dropped in value, but the CDOs may be plunging too.
Shorting rules bungle has besmirched City 20 Jun 2008 The FSA is right to force the disclosure of short positions during rights issues. But the UK financial regulator made a hash of the rulesetting. It makes London look like an amateur market. The next step should be a proper consultation, and an end to rulemaking on a whim.
FSA’s short-selling D-day looks half-cooked 19 Jun 2008 The D stands for duh . The uncertainty over new rules on rightsissue shorting reflects badly on the UK regulator, which looks to be making policy on the hoof. That s a shame, since the principles behind it look sound.
Babcock & Brown still needs to prove itself 18 Jun 2008 A rushed deal with its banks has allowed the Australian investment company to avoid being bushwhacked by an obscure clause in its loan agreements. That s been renegotiated, at a price. Now B&B has to show investors that its model works in bad times as well as good.
Apollo’s Spac deal is unlikely to reward everyone 17 Jun 2008 The buyout firm is selling Hughes Telematics to a blank check company in return for a stake. Hughes has tiny sales and aggressive growth assumptions. The deal will probably be approved. But it shows why investors who come into Spacs after they buy something should be careful.
Goldman tries to cut SIV knot with common sense 17 Jun 2008 The bank has hatched a plan to rescue Cheyne Finance, the insolvent $7bn structured vehicle. It will sell some assets to price the rest. Junior investors might not like the scheme, as they will get wiped out. But the plan s simplicity could set an attractive precedent.
Europe shouldn’t copy US watchdogs’ ratings blunder 16 Jun 2008 Market overseer Charlie McCreevy wants to crack down on the raters. Some of his ideas look smart. But piling on new regulations his US counterparts strategy just boosts the rating firms implicit government endorsement. That shields them from healthy competition.
FSA rides to rescue of HBOS underwriters 13 Jun 2008 The UK regulator s new rules requiring disclosure of short positions in rights issues will help restore integrity to a process that has become a farce and threat to financial stability. That s good news for HBOS. But hedge funds aren t solely to blame for recent volatility.
Shareholders should welcome even flawed activists 13 Jun 2008 TCI is looking tarnished in its fight with US railway group CSX, and the likes of Carl Icahn can overdo it, too. Yet activists arguments are often close to the mark. Investors should give them a fair hearing and make sure executives answer critics, not silence them.
US steps closer to stagflation 13 Jun 2008 Inflation is here. Without some dubious seasonal adjustments, the threemonth annualized rate would be 8.3%. Even the reported 4.2% is too high from comfort. As for stagnation, May s real retail sales barely rose despite tax rebates. Investors haven t yet really caught on.
SEC sees credit rating problems, but will it act? 12 Jun 2008 The US watchdog appears to have understood the flaws in structured finance ratings, and its proposed rule changes mostly make sense. But while SEC boss Chris Cox might not mince his words now, there s a danger that the regulator pulls its punches later. That would be a pity.