Various: 7th June, 2007

1. A confusingly successful GlaxoSmithKline (GSK) funded study of a GSK drug.

A Glaxo study apparently passes its drug for diabetes, Avandia (the link makes it clear that the site is intended for US residents only and © 1997-2007 GlaxoSmithKline. All Rights Reserved.) claiming it does not raise the risk of heart problems. Alternatively, and for comparison, see Avandia, which carries an FDA safety alert. This is the type of potentially confusing scenario to be cautious about and the alleged interim results published by the New England Journal of Medicine is of the study funded by GSK.

Full Text: Rosiglitazone - Continued Uncertainty about Safety.

2. Big chains 'will control 90% of market by 2016'.

According to investment bank Morgan Stanley, 87% of the retail market will be controlled by the "big chains" by 2016, currently 60%. That is, a growth of some 50% within the next 10 years. Presumably, the enormous buying power of the retail giants confers a huge advantage over the smaller independent retailer. As the super supermarkets get larger and continue to diversify, the buying power drowns out any competition and so effectively 'monopolises' the market. The days of selling groceries and foodstuffs only have long gone. Now it is insurance, holidays, books, clothes and a very varied mixture of many other product lines. Any competition seems to be suffocated.

3. Red Funnel: the Isle of Wight ferry operator.

 The ferry operation between Southampton-Cowes (since 1861) is to be sold to Infracapital (Prudential's infrastructure specialist) in a deal valued at over £200m. Management and senior staff hold a 51% stake will stand to make £40m out of the deal (£32.5m profit). HBOS stands to make a similar profit to management (49% stake). That accounts for the 100% holding. The only competitor to Red Funnel is the Wightlink ferry group, which operates between Portsmouth and Ryde and is owned by another infrastructure fund, Australia's Macquarie Bank. The apparent attraction to infrastructure funds is the it has reliable income and 'high barriers to entry'. The two ferry operators between them allegedly charge inflation busting fares according to periodic complaints from commuters to and from the Isle of Wight.

4. Warning: inflation is still the chief risk to the American economy.

Reminding investors to control their appetite for risk in a hazardous world, Ben Bernanke, chairman of the US Federal Reserve, said: "Lack of attention to risk management is not desirable".

• Sounds more like a warning to be not too greedy.- DA