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Convertible arbitrage and short-selling have been the cornerstones of hedge fund strategies. Competition and difficult underlying markets, however, are forcing managers to reconsider their game plans.

Merger with Belgium's InterBrew last year helped catapult the Brazilian company to the top of the beer industry. But, as Leticia Lozano reports, the emphasis now is on growth closer to home.

The UAE's financial regulator, the Securities and Commodities Authority, announced on September 6 that the case of two individuals and a brokerage suspected of manipulating the stock price of Dubai Islamic Bank (DIB) had been referred to the judiciary.

Questions remain over how best to price ultra long-dated linkers and the role of hedge funds.

These days, convertible arbitrage managers can barely complete the first line of their pitch without investors heading for the door. The solid returns the strategy offered have faded as a result of capacity issues, the sharp decline in global volatility and fewer opportunities. But Axis Capital has managed to retain investors by finding a new niche within the strategy – Asia.

Paying a pop star to perform at your wedding is so underwhelming. At least, this seems to have been the thinking behind 33-year-old Russian billionaire Andrei Melnichenko's decision to employ not one but four during his nuptials to model and former Miss Yugoslavia Aleksandra Kokotovich in Antibes, France, last month.

Joe Feshbach was the archetypal short seller. With his two brothers, Kurt and Matt, Feshbach ran a $1 billion short-only hedge fund during the 1980s and 1990s. They were a force to be reckoned with, hunting down fraudsters and hounding them into bankruptcy. "There is nothing better and more fun than when you find a good fraud story and a good stock to short," reminisces Feshbach. "The laughs are much better on the short side than on the long side." But those were the days when there were just a few hundred long/short hedge funds running around $50 billion in money, and broker rebates on the short credit. And so Feshbach has done what was once the unthinkable, he's moved to the long side. In April this year he launched his long-only equity hedge fund, Joe Feshbach Partners, and has about $22 million in invested capital.

Yahoo's acquisition of a major stake in Chinese e-commerce business Alibaba looks like another example of a US internet firm muscling its way into a dominant position in China. That might be the end result. For now, though, it's Alibaba that has the real power in the relationship. Chris Leahy reports.

Time for optimism on Europe? German firms have made breakthroughs in their struggle to achieve competitive labour costs. The French Government is fighting the Marseilles mutineers. We see hope.

A full 70% of the world's economic imbalance is due to overspending by the USA, and Katrina has just made the situation much worse. Will forthcoming interest increases change this?

PIRAEUS BANK: Piraeus Bank further expansion Piraeus Bank, one of the largest privately banking groups in Greece, is one of the fastest growing institutions in Greece today, with an ever-increasing international presence. The latest developments are more than promising, and include increased profitability, growth and expansion abroad and reinforcement of the Group's position in its main business areas. Impressive first half 2005 results Piraeus Bank group reported a remarkable set of results for the 1st half of 2005. In particular, The Group's profit after tax and minority interests amounted to EUR86.5 mn in H1 2005 compared to EUR56.9 mn in H1 2004, representing a growth of 51.9%. The basic and diluted after-tax EPS in H1 2005 reached EUR0.44 up from EUR0.29 the respective period of 2004, showing an increase of 50.8%. Moreover, total loans grew by 26% yoy, customer deposits by 20% yoy, while ROE improved to 19.3% from 14.2% last year. A series of acquisitions Since last May the Group has expanded its presence in the Balkans and Eastern Mediterranean basin, promoting its effort of outward looking policy and expansion. A key objective of the Group has been to expand its banking activities in markets that present significant growth potential. On this track the Group acquired on May 19, 2005 99.7% of the share capital of the Bulgarian Bank Eurobank A.D., enhancing its network to 65 branches in 28 cities in Bulgaria, corresponding to approximately 4.5% of the local market share. On the 30th of the same month the Bank acquired 80% of the share capital of the Serbian Atlas Bank, adding to its international network 11 branches in 3 cities. Thereafter, Piraeus Bank enhanced its international operations in developing countries by entering the promising Egyptian market in June, through the acquisition of 89.3% of the share capital of the Egyptian Commercial Bank (ECB), adding another 21 branches to its network. ECB's total assets amounted to Euro 507 mn, while it has been also assigned with a BB long term rating by Fitch. As Mr. Sallas, Chairman, recently stated "E.C.B. is an important investment of Piraeus Bank Group which falls into the general strategic target of enhancing Piraeus Bank's operations in the markets of South - Eastern Europe and Mediterranean basin". Affirmed ratings The Group's improving profitability, financial condition and business outlook also translated into affirmed ratings in August 2005. Fitch affirmed the Bank's Long-term rating at 'BBB+' and Short-term at 'F2', keeping its outlook stable. According to Fitch, the rating reflects the Bank's improving operating profitability, good capital adequacy and strengthening domestic competitiveness. In addition, Moody's affirmed the Bank's Long-term rating at 'Baa1' and Short-term at 'P-2', keeping its outlook stable. International Awards For a second consecutive year, Deutsche Bank, the world's largest Euro payment orders settlement Bank, honoured Piraeus Bank with the «2004 Euro STP Excellence Award» for its excellent quality of euro payments around the world. Piraeus Bank is the only Greek bank that has ever received a quality award from Deutsche Bank. This award was established by the international bank to reward innovative smart automations, ongoing payments systems upgrading and delivery of such services at low prices, distinguishing yet another time the quality and competitiveness of the Bank's services. Bank of Piraeus is listed on the Athens Exchange (ASE - TPEIR, Reuters - BOPr.AT, Bloomberg - TPEIR.GA, ISIN GRS014013007). It has a market capitalization of E 3.3 billion and is one of Athens Exchange's more liquid shares. At the end of June 2005, individual investors held 48% of the shares, followed by foreign institutional investors with 26% and Greek institutional investors with 12%. ING has a 4% stake in the Group. by Capital Link

The longer-term impact of Katrina is now becoming clearer: a big increase in the supply of both corporate and government bonds in the USA. This must eventually affect yields.