Germany leapfrogs UK to become Europe’s most shorted market as recession fears surge

Germany just leapfrogged the UK to become the most shorted market in Europe as economic worries grip the continent. The German market accounted for about 25% of short positions last month, followed by UK’s 20%, data from SEI Novus shows. The data, which covers pan-European short positions worth over €30bn from more than 150 managers, shows that … Read more

Credit Suisse calls for calm with staff memo and investor talks

Credit Suisse tried to assuage fears about its health in a memo to employees and in a round of phone calls to investors and clients over the weekend, according to people familiar with the matter. Credit Suisse shares are down 21% over the last month and spreads on its credit default swaps, a type of insurance against default, rose … Read more

Tumbling Markets Imperil Tech, the Dollar, and Private Equity

Text size Japan has had to intervene to support the sliding yen for the first time since 1998, even as it tries to keep its interest rates low. Akio Kon/Bloomberg The world has been hooked on cheap money for years. Now we’re witnessing what withdrawal looks like. Lifting interest rates from nil has produced a … Read more

Hedge fund Millennium’s €126m Porsche short signals bearish bet on IPO

Ahead of Volkswagen’s IPO of Porsche AG in a few weeks, hedge fund Millennium International Management has built a large short position in Porsche SE. According to data from research firm Breakout Point, Millennium disclosed a position representing 0.6% of the company’s shares on 14 September. A rough estimate based on current market capitalisation would … Read more

Bed Bath & Beyond Stock Sinks. It’s Cutting 20% of Jobs and Closing 150 Stores.

Text size Bed Bath & Beyond said it will close 150 of its stores and lay off 20% of its workforce to reduce costs. Joe Raedle/Getty Images Bed Bath & Beyond shares dropped on Wednesday after the troubled retailer said it was laying off a fifth of its workforce and closing more than a hundred … Read more

PayPal Is Being Targeted by Activist Elliott. Here’s Why.

Text size PayPal shares have slid this year as people have returned to their prepandemic spending habits. Courtesy of PayPal Payments giant PayPal finally has attracted an activist. PayPal (ticker: PYPL) had been a pandemic-darling as households increasingly shopped online but shares have slid more than 60% this year as people returned to their prepandemic … Read more

LME used ‘expert judgement’ to wipe $4bn trades, defence to Elliott and Jane Street suit claims

The London Metal Exchange asked a High Court judge to respect its “specialist” judgment and refuse payment of $456m and $15.3m, respectively, sought by activist hedge fund Elliott Management and market maker Jane Street over cancelled nickel trades in early March. The view from the LME in the 13 July court filings — still in the early … Read more

Why UK investors shouldn’t worry about companies fleeing overseas

David Wighton is a columnist for Financial News The encircling gloom surrounding the British economy is so pervasive that even those rare pieces of seemingly good news are glumly scrutinised for evidence that they are actually bad. One of the most striking successes of the UK economy in recent years has been the extraordinary growth of venture … Read more

Crypto’s Domino Effect Is Widening, Threatening More Pain

Turmoil in the digital-assets ecosystem has grown in recent weeks, with losses in cryptocurrencies blowing holes in balance sheets and pushing firms near bankruptcy. After a pair of cryptocurrencies crashed, wiping out billions of dollars in value in May, a British Virgin Islands court this past week ordered a hedge fund that had survived several … Read more

Blackstone, Carlyle brace for private equity’s ‘terrible hangover’

Despite the sunny weather, the outlook was less rosy this week in Berlin, where the private equity industry met for its annual industry summit. In a week when the S&P 500 stock index fell into a bear market and both the US Federal Reserve and Bank of England raised interest rates, buyout bosses met in … Read more