Agriculture

Volatility to rise on naked short clampdown

12 Jul 2006

There currently exists an unspecified number of longstanding naked short positions which are exempt from current regulation. The US regulator wants to get rid of them. But that could mean a rise in the number of short squeezes.

Engelhard gears up to fend off BASF

26 Apr 2006

The US catalyst's planned $1.2bn buyback may not preserve its independence but it may persude the German group to sweeten its hostile offer. Engelhard would ideally have found a white knight to get a real auction going. But that doesn't look likely now.

Stock market rally has irrational side

20 Mar 2006

Share prices have been climbing steadily for three years. But they are still at 1999 levels. Stocks were ridiculously expensive back then. But despite a sharp fall in PE ratios, markets look far from cheap.

Capitalia’s Arpe embroiled in Parmalat probe

2 Mar 2006

Since Arpe is viewed as the Italian bank s new broom, the request to indict him for his role in Parmalat s collapse is potentially worrying. It could conceivably make Capitalia, which is already swept up in takeover speculation, more vulnerable to a bid.

EU enlargement looks exciting, but adds little

27 Apr 2004

That potential might not be realised poor institutions and low birth rates stand in the way. The historical significance of adding 10 countries and 20% more people to the EU is important, but the potential economic gain is modest.

Europe goes gaga for the LBO

2 Oct 2003

In the first nine months of 2003, deals involving private equity made up 18% of all European M&A more than double the share in the US. There are many reasons for this LBO fetish, but the rise in crises and absence of bankruptcy protection may be a big one.

Retail investors jump aboard stock market rally

21 Aug 2003

Equity funds are once again enjoying steady inflows. This is encouraging, but not a sign that the good times are back. Retail money chases, rather than predicts, trends. Should markets fall again, it will rush for the exit just as fast.

Capital Letter – Soft Commisions

31 Jul 2001