Markets

1. Morgan Stanley raises outlook for European banks

   Morgan Stanley has upgraded its industry view on Europe's banking sector from underweight to neutral, saying valuations may have fallen far enough and the stocks may benefit as investors shift funds away from commodities.

2. Global confidence index rises despite US concerns

   The confidence of fund managers in equity markets internationally rose this month to the highest level in over six months, despite the confidence of North American institutional investors falling.

3. Goldman cements position as top M&A adviser

   Genentech has brought in Goldman Sachs to advise its board on a $41.3bn (€26.1bn) bid from pharmaceutical giant Roche, extending the US bank’s already considerable lead at the top of the global mergers and acquisitions league table.

4. Hedge fund groups oppose longer ban on naked short selling

   Two hedge fund trade groups have sent a letter to the US Securities and Exchange Commission chairman Christopher Cox requesting that the emergency order on naked short selling not be extended, a sharp contrast to how other market participants have reacted.

5. Private equity infrastructure fundraising rises five-fold in two years

   Private equity infrastructure fundraising has increased by five times in the last two years, with almost half of investors having a separate allocation of funds in the sector.

6. Property and construction firms buckle under economic strain

   The number of UK companies going into administration rose by 16% in the first half of this year, compared to the same period last year, driven largely by companies operating in the weakening property and construction industries.

7. UK Revenue to launch new crackdown on offshore accounts

   UK offshore bank account holders who haven’t revealed details of undeclared money held abroad face a new probe into their tax affairs by HM Revenue & Customs, which is continuing with disclosure initiatives that raised about £400m (€503m) from unpaid taxes last year.

8. Goldstein and Icahn top list of US activists

   Funds run by Phillip Goldstein and Carl Icahn have been the most active participants in US shareholder campaigns started by hedge funds during the first half of this year, according to activism research firm FactSet SharkWatch.

9. Hunger for excess returns drives systems development

   With unprecedented volatility in financial markets, funds and hedge funds are battling for additional returns to attract business, increasing the buyside’s hunger for new algorithms. This in turn is driving a search for technology that can assist in the selection and creation of portfolios.

10. Investor's view: Four Capital sees rebound

    Four Capital Partners, a UK equities specialist boutique founded by former Schroders fund managers, launched its funds last March just as the markets were about to enter one of their most tumultuous period for a decade. Its first investment priority has been to play it safe.