Boaz Weinstein's Saba Capital sells stake in UK trust Keystone Positive Change
April 8 (Reuters) - U.S. activist investor Boaz Weinstein's Saba Capital has sold its nearly 30% stake in British investment trust Keystone Positive Change (KPC) (KPCAa.L), opens new tab, a regulatory filing showed on Tuesday.
The Baillie Gifford-run investment trust is undergoing a planned liquidation under which shareholders have the option of a cash exit or the opportunity to roll over into another Baillie Gifford managed fund.
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The filing on Tuesday showed that on March 28, Saba Capital management's voting rights in KPC dropped to nil, from about 29.65%, but did not disclose any other transaction details.
KPC was one of seven targets of Saba in the UK, where it was waging a campaign to overhaul their boards over performance it labelled as "underwhelming" and "disastrous".
In December, the U.S. hedge fund sought to overhaul the boards of the trusts but six of the seven trusts, including KPC, rejected its proposal and publicly hit back at Saba Capital, calling its efforts opportunistic and not in the interests of broader shareholders.
KPC was already in the process of winding itself down after a long bout of underperformance, and announced plans to go ahead with the liquidation after shareholders rejected Saba's attempted efforts to gain control.
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Telegraph
an hour ago
- Telegraph
The treaty Gibraltar wants, for the future we all need
For over five years, Gibraltar has been at the centre of one of the most complex, technical, and geopolitically sensitive negotiations undertaken by the United Kingdom and the European Union since Brexit. The process has consumed me. It has occupied close to half of my time in elected office, taken over almost every waking hour of the last five years, and, in truth, deprived the people of Gibraltar of their Chief Minister in the way they are used to having him, that is, from fixing housing and parking complaints to defending their sovereignty in the international arena. For much longer than I would have wanted, I have been behind closed doors, in physical or virtual boardrooms, working through the details of a document that will shape the next generation of our people. It has been a relentless, exhausting endeavour. Throughout this time, the UK and Gibraltar teams have worked together seamlessly, 'hand in glove', without a flash of daylight between us. We have worked in close partnership with both Conservative and Labour prime ministers and foreign secretaries; from Dominic Raab, Liz Truss and James Cleverly to David Cameron and now David Lammy. What we have negotiated is not the product of fragmented agendas, but the position of a unified British family determined to find a solution worthy of our people. Without a treaty, Gibraltar could be staring down the barrel of a hard border, marked by endless queues, disrupted supply chains, and a deeply uncertain future for many of our businesses. Our hospitals and elderly care homes would face chronic understaffing, and the surrounding region would suffer the almost certain loss of employment for many of the 15,000 cross-border workers who depend on Gibraltar's economy to support their families. The services we deliver to our people would all come under strain. Our public finances would be pushed to the brink. The self-governing Gibraltar we have built would be diminished, replaced by something poorer, more isolated, more inward-looking, and ultimately less able to thrive as a proud, British European Territory. Instead, we now stand at the threshold of something remarkable, and not just for Gibraltar, but also for the United Kingdom, for Spain, and for Europe and our people. Something bold. Something forward looking and hopeful. Something that finally breaks free of the negative inertia that has defined too much of our recent past. Unlocking potential across borders This is politics at its most elevated. The service-led principle of working for our people's benefit and not the performative personal antagonism that too often infects public life. Real, hard graft that overcomes challenges to deliver progress. This is the kind of result our people demand when they voice distrust and decry the political 'establishment'. Our Spanish and EU counterparts, for their part, have brought to the table a seriousness of purpose that also reflects the gravity of the moment. They, too, have recognised that this treaty is not merely about fluidity of movement, but about unlocking human and economic potential across borders. Make no mistake: the treaty that is now within reach is not one that the Gibraltarians have been forced to accept. Our people voted for us to have a mandate to turn our New Year's Eve agreement of 2020 into a UK/EU agreement/treaty. So we say 'yes' to this agreement, but not because we don't know how to say 'no' when we have to. We did so, emphatically, in 2002, when we triggered a referendum to reject Jack Straw's proposal of joint sovereignty with Spain, and I am just as adamant today that this treaty will not in any way compromise British sovereignty over Gibraltar. That will be set out, black upon white, in the treaty when it is published. It is a legal undertaking given by both sides in clear and unequivocal terms. So to be clear: in this treaty we have not ceded any control of Gibraltar to any authority. Just like today, only Gibraltar will decide who enters Gibraltar – exactly as we agreed in 2020 when Dominic Raab was foreign secretary and Boris Johnson was prime minister. This treaty unleashes the potential to usher in a new era. One in which we move beyond the tired narratives of the past on constant sovereignty disputes, towards a future defined by hope, cooperation and shared prosperity. It will pave the way for better jobs, more investment and lasting stability for Gibraltar and the wider region. It can deliver more harmonious human relations and a better quality of life for all our people. When you read it, I ask that you to look up from the pages of this treaty and see that better reality as it peers back at us from the future. This will be the treaty Gibraltar wants. It will be a treaty the UK and the EU can be proud of. And it will be a treaty that will propel us all to the better future politicians are elected to deliver. When the time comes, back Gibraltar and its proudly British people by backing the Gibraltar treaty.
Reuters
an hour ago
- Reuters
TRADING DAY Good vibrations turn sour
ORLANDO, Florida, June 11 (Reuters) - TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist I'm excited to announce that I'm now part of Reuters Open Interest (ROI), an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X. The US and China have reached a trade deal, or at least agreed on the framework of a deal, which together with surprisingly soft U.S. inflation data, gave markets a lift on Wednesday. But Wall Street's gains were mild, and they were later wiped out by rising tensions in the Middle East. In my column today I look at the 'equity risk premium' and other metrics that suggest relative U.S. equity and bond valuations are getting very stretched. More on that below, but first, a roundup of the main market moves. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Good vibrations turn sour It's a "done" deal, according to U.S. President Donald Trump, although the he and Chinese leader Xi Jinping still have to finalize the wording of the trade agreement between the two superpowers and sign off on it. The main points of the deal appear to be: China will remove export restrictions on rare earth minerals and other key industrial components; U.S. tariffs on Chinese goods will total 55%; Chinese tariffs on U.S. goods will total 10%. Trump could not have been more enthusiastic in his praise for the agreement on Wednesday, and Commerce Secretary Howard Lutnick said 'deal after deal' with other countries will follow in the weeks ahead. Yet, judging by the relatively muted market reaction, investors are less enthused. And given the chaotic and unpredictable nature of the Trump administration's tariff announcements thus far, the irony of Treasury Secretary Scott Bessent calling on China to be a "reliable partner" in trade negotiations will not be lost on some observers. Especially, one suspects, in Beijing. Based on these proposed China levies, and with the US expected to conclude more trade deals in the coming weeks, the overall U.S. effective tariff rate will be lower than feared a couple of months ago. That's a relief. But the effective tariff rate of around 15% that many economists expect will still be significantly higher than the 2.5% rate at the end of last year, and would be the highest since the 1930s. Also, as the May inflation figures showed, tariffs have yet to be felt on prices. Investors - and Fed policymakers, who meet next week - are in a state of limbo. How will corporate profits and consumer spending be affected? What proportion of the tariffs will companies "swallow", and how much will they pass on to their customers? Zooming out, inflation appears to be cooling around the world, although this trend is expected to reverse once tariffs start to fuel higher goods price inflation. Figures on Wednesday showed that U.S. consumer inflation and Japanese wholesale inflation were lower than expected in May. These reports follow similar numbers from Europe recently, and China remains stuck in its battle against deflation. Next up is India, which releases consumer inflation figures on Thursday, which are expected to show annual inflation slowed to 3.0% in May, the lowest in more than six years. Another focus for investors on Thursday will be the auction of 30-year U.S. Treasury bonds. US stocks-bonds warnings flash amber again Calm has descended on U.S. markets following the 'Liberation Day' tariff turmoil of early April. But Wall Street's rally has revived questions about U.S. equity valuations, as stocks once again look super pricey compared to bonds. Since the chaotic days of early April, U.S. equities have rebounded fiercely, with the S&P 500 up 25%, putting the Shiller cyclically adjusted price-earnings (CAPE) ratio for the index in the 94th percentile going back to the 1950s, according to bond giant PIMCO. Stocks are looking expensive in absolute terms, and in relation to bonds. The equity risk premium (ERP), the difference between equity yields and bond yields, is near historically low levels. According to analysts at PIMCO, the ERP is now zero. The previous two times it fell to zero or below were in 1987 and 1996–2001. In both instances, the ultra-low ERP precipitated a steep equity drawdown and sharp fall in long-dated bond yields. "The U.S. equity risk premium ... is exceptionally low by historical standards," they wrote in their five-year outlook on Tuesday. "A mean reversion to a higher equity risk premium typically involves a bond rally, an equity sell-off, or both." But reversion to the mean doesn't just happen by magic. A catalyst is needed. Equities have recovered largely because they were oversold in April, trade tensions have been dialed down, and investors remain confident that Big Tech will drive solid AI-led earnings growth. So even though huge economic, trade, and policy risks continue to hang over markets, there is no sign of an imminent catalyst that would cause an equity market selloff. The flip side of equities looking expensive is that bonds look like a bargain. Indeed, the relative divergence between stocks and bonds is such that, by one measure, U.S. fixed income assets are the cheapest relative to equities in over half a century. Using national flow of funds data from the Federal Reserve, retired strategist Jim Paulsen calculates that the total market value of U.S. bonds as a percentage share of the total market value of U.S. equities is the lowest since the early 1970s. "Since the aggregate U.S. portfolio is currently aggressively positioned, investors may have far more capacity and desire to boost bond holdings in the coming years than most appreciate," Paulsen wrote last week. But bonds are 'cheap' for a reason. Washington's profligacy – the reason ratings agency Moody's recently stripped the U.S. of its triple-A credit rating – and inflation worries have kept yields stubbornly high. The term premium - the risk premium investors demand for holding long-term debt rather than rolling over short-dated loans - is the highest in over a decade, reflecting concerns about Uncle Sam's long-term fiscal health. And the diagnosis here shows no signs of improving. Trump's 'Big Beautiful Bill' is expected to add $2.4 trillion to the U.S. debt over the next decade, according to the nonpartisan Congressional Budget Office, likely putting more upward pressure on yields. Of course, equity investors do seem to be pricing in a very rosy scenario, and the past few months have shown how quickly the market landscape can change. The U.S. economy could weaken more than expected, the trade war could escalate, or there could be a geopolitical surprise that causes bond yields and equity prices to fall. Investors should therefore be mindful of the warnings being sent by ERPs and other absolute and relative valuation metrics. However, they should also remember that stretched valuations can get even more stretched. As the famous saying goes, markets can stay irrational longer than investors can remain solvent. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.
Rhyl Journal
2 hours ago
- Rhyl Journal
UK agrees to check-free land border for Gibraltar but EU controls for flights
The agreement on a 'fluid border' clears the way to finalise a post-Brexit deal on the territory with the EU. But those flying into Gibraltar from the UK will face one check from Gibraltarian officials and another by the Spanish on behalf of the EU. An agreement for the future relationship between the EU and the UK in relation to Gibraltar is now a reality. It is a historic agreement. — Fabian Picardo (@FabianPicardo) June 11, 2025 This is because the land border will allow those arriving by air access to the European Schengen free travel area unchecked once they are in Gibraltar. The UK and Gibraltar insisted the changes would not affect the British overseas territory's sovereignty. The airport will operate under a model similar to London's St Pancras station, where passengers pass through both UK and French passport checks to board international trains. Goods and customs checks will also eventually be removed in both directions under the agreement. The move could also see airlines start to add flights to Gibraltar from countries other than the UK in a boost to tourism. Officials say a hard border would have been introduced under the EU's incoming exit and entry control system if no deal was reached, causing delays for some 15,000 people who cross the border every day as every individual passport was checked. Talks on rules governing the border have been ongoing since Britain left the European Union in 2020. Foreign Secretary David Lammy said the previous Tory government left behind a situation that 'put Gibraltar's economy and way of life under threat'. He said the agreement was a 'breakthrough' after years of uncertainty. He said: 'Alongside the government of Gibraltar, we have reached an agreement which protects British sovereignty, supports Gibraltar's economy and allows businesses to plan for the long-term once again. 'I thank the chief minister and his government for their tireless dedication throughout the negotiations. The UK's commitment to Gibraltar remains as solid as The Rock itself.' Spanish foreign minister Jose Albares said the deal marked 'a new beginning' in the relationship between the UK and Spain. He said that Spain 'will guarantee free movement of people and goods', adding that Gibraltar would now be linked to the Schengen Area with Spanish authorities controlling entry and exit. I have always said nothing about Gibraltar, without Gibraltar. — David Lammy (@DavidLammy) June 11, 2025 President of the EU Commission Ursula von der Leyen welcomed the deal. In a post on X, she said: 'It safeguards the integrity of Schengen and the single market, while ensuring stability, legal certainty and prosperity for the region.' Gibraltar's chief minister Fabian Picardo said the deal would 'protect future generations of British Gibraltarians and does not in any way affect our British sovereignty'. 'Now is the time to look beyond the arguments of the past and towards a time of renewed co-operation and understanding. Now the deal is done, it's time to finalise the treaty,' he said. On Wednesday evening, Sir Keir Starmer spoke with Mr Picardo and thanked him for 'his years of hard work, commitment, and leadership to reach an agreement'. Spanish Prime Minister Pedro Sanchez also had a phone call with Sir Keir, and congratulated the British PM because 'his Government had succeeded where others had failed'. The Conservatives have said they will carefully review the UK's agreement with the EU on Gibraltar's border to see if it crosses any 'red lines' the party set out during its own negotiations when in government. Shadow foreign secretary Priti Patel said: 'Gibraltar is British, and given Labour's record of surrendering our territory and paying for the privilege, we will be reviewing carefully all the details of any agreement that is reached.' Mr Lammy held talks with Gibraltar's leaders, members of the opposition and the business community before leaving the British overseas territory to head to Brussels on Wednesday morning. Gibraltar was ceded to the UK by Spain in 1713 and the population is heavily in favour of remaining a British overseas territory. The last time it voted on a proposal to share sovereignty with Spain, in 2002, almost 99% of Gibraltarians rejected the move. Gibraltar also hosts an RAF base at its airport and an important naval facility.
