Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Protectionism in Spain's Capital Markets
WSJ ^

Posted on 07/14/2006 2:20:25 PM PDT by Sean Flynn

LONDON -- When Spanish stock-exchange operator Bolsas & Mercados Espanoles lists shares on its own market today, opening itself to investors for the first time in its 170-year history, it will do so under one condition: You must ask permission to buy more than 1%.

The Spanish government put the requirement in during May as BME, based in Madrid, was gearing up for its market debut. Under the rule, no investor can build up a direct or indirect stake of more than 1% in BME without consent from the country's market regulator, the Comision Nacional del Mercado de Valores, or CNMV. The CNMV has to approve each further percent bought by any investor, up to 5%, and each 5% thereafter.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Foreign Affairs; Government
KEYWORDS: capitalmarkets; exchange; hedgefund; nationalism; protectionism; spain; stock
This is why Spain's capital markets will never compete with New York, Luxembourg, or Lisbon.
1 posted on 07/14/2006 2:20:29 PM PDT by Sean Flynn
[ Post Reply | Private Reply | View Replies]

To: Sean Flynn
The Spanish would rather lose money than have to interact with foreigners.
2 posted on 07/14/2006 2:24:03 PM PDT by beeler ("When you’re running down my country, Hoss you’re walking on the fighting side of me.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: dennisw; Sean Flynn; Mase; 1rudeboy; Toddsterpatriot; Paul Ross

This is actually consistent. It's a protectionist measure that should to reduce their trade deficit. The fact that it'll also bring about high unemployment, lower wages, etc. has never been a problem before. Why should it be a problem now?


3 posted on 07/14/2006 2:58:02 PM PDT by expat_panama
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sean Flynn

Well, heck, Bambi wouldn't want his country to be a successful capitalist model - gasp - would he?

For those who don't know, Bambi was a name given to Zapatero because of his deer-in-the-headlights eyes and his can't-we-all-just-get-along stupidity.


4 posted on 07/14/2006 3:00:30 PM PDT by livius
[ Post Reply | Private Reply | To 1 | View Replies]

To: expat_panama

Spain appears to be doing rather well, in terms of GDP growth, an inflation problem "looming" just as ours, but an above-average (EU) unemployment rate. It will take some more time for Zapatero to undo the progress Aznar made.


5 posted on 07/14/2006 3:07:09 PM PDT by 1rudeboy
[ Post Reply | Private Reply | To 3 | View Replies]

To: expat_panama
Mi>It's a protectionist measure that should to reduce their trade deficit. The fact that it'll also bring about high unemployment, lower wages, etc. has never been a problem before. Why should it be a problem now?

They are communists merely following in the winning footsteps of their comrades in China, who are quite pleased to keep wages low. Their peasants are used to them by now.

As for Europe, we'll see if the low wages eventuate. My guess is that it goes the other way, since their government does have to answer to the voters, unlike our NAFTA/CAFTA crowd...who have rigged the game by bribing off both parties.

6 posted on 07/14/2006 3:07:21 PM PDT by Paul Ross (We cannot be for lawful ordinances and for an alien conspiracy at one and the same moment.-Cicero)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Paul Ross; 1rudeboy

All I can say is that if this sparks a 'trade war', with the NSYE refusing to sell stocks to Europeans, then I'm selling all my stock and buying gold.


7 posted on 07/14/2006 3:13:19 PM PDT by expat_panama
[ Post Reply | Private Reply | To 6 | View Replies]

To: 1rudeboy
It will take some more time for Zapatero to undo the progress Aznar made.

Are you kidding? He's a socialist. When it comes to that sort of thing they've got the touch.

8 posted on 07/14/2006 3:22:49 PM PDT by yankeedame ("Oh, I can take it but I'd much rather dish it out.")
[ Post Reply | Private Reply | To 5 | View Replies]

To: expat_panama

I'm not. I'm buying oil.


9 posted on 07/14/2006 3:23:25 PM PDT by Paul Ross (We cannot be for lawful ordinances and for an alien conspiracy at one and the same moment.-Cicero)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Paul Ross
...our NAFTA/CAFTA crowd...who have rigged the game by bribing off both parties...

Paraphrasing, bear with me.  Someone asked Reagan whether he led the country like donors wanted when big bucks went for his campaign.  He said that big bucks went into his campaign because donors liked the way he led the country.

I don't call that "bribing".

10 posted on 07/14/2006 3:23:45 PM PDT by expat_panama
[ Post Reply | Private Reply | To 6 | View Replies]

To: yankeedame
Are you kidding? He's a socialist. When it comes to that sort of thing they've got the touch.

Bump!

They likely will have to start buggering the elections like they are in Venezuela...

11 posted on 07/14/2006 3:24:47 PM PDT by Paul Ross (We cannot be for lawful ordinances and for an alien conspiracy at one and the same moment.-Cicero)
[ Post Reply | Private Reply | To 8 | View Replies]

To: SAJ

good time to short euro stocks?


12 posted on 07/14/2006 3:25:20 PM PDT by expat_panama
[ Post Reply | Private Reply | To 1 | View Replies]

To: expat_panama
Dunno. I own a couple -- for the dividend -- and they're not doing much of anything. ECB are being very coy about raising rates, which has resulted in USD becoming far more attractive to capital than is Wonderland just now. I expect US short rates to continue to rise, certainly through the next 2 FOMC meetings, which will compound this effect. ECB are basically scrod right now (no, that's not a fish served in Boston); if they start raising rates, all they'll do is scare traders while simultaneously slowing down their economies and jacking up their costs for their idiotic social schemes. Rock and a hard place.

Unlike some, I do not subscribe to the notion that event risk to Euro shares (presumably from a Mideast war) is somehow outsized. No worse than any other shares, as a group, in my view. Stay long the oil svc equipment sector, the Canadian mineral trusts, PBT, and Anadarko. It's a bit late to buy Slumbugger, but vertical call spreads ATM/ITM in SLB will probably do nicely for some time w/in next 90 days. However, these are ho-hum yawners, comparatively.

I think the real action is going to be in C$, A$, and Yen. Right now, this minute, JY IV is crashing, and that, as a certain ex-felon CEO might say, ''is a Good Thing''. Next week sometime, in full accordance with my straddling strategy as described in ''Don't Just Stand There--Do Something'' in the book, I'm loading up on the ATM JYZ straddles. This is effectively free money, and you can confirm the historical accuracy of the trade using 'The Big Enchilada' at Time & Timing . Take the free trial, short sign-up (we need an e-addy for admin purposes, but that's it), then login, click on The Big E, checkmark Currencies, Yen, and December for the contract month, and change the ending date to Dec 1. You'll see it straightaway.

The JYZ strads (ATM = 88.00 strike) settled @ 373 pips tonight ($4662.50), just 4.23% of the contract value. Can probably get 'em done @ 375-380 Monday, barring a huge development over the weekend, which doesn't seem in the cards for JPY. This is a honking gift, mate.

Good trading to you!

13 posted on 07/14/2006 4:09:07 PM PDT by SAJ (Who doesn't jump is a French! (FReeper 'an italian') Wonderful comment!)
[ Post Reply | Private Reply | To 12 | View Replies]

To: SAJ
Printed it out.  Rereading Chapters 8 & 9.  Thanks.

I knew this freerepublic was good for something...

14 posted on 07/15/2006 8:12:15 AM PDT by expat_panama
[ Post Reply | Private Reply | To 13 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson