Opening Bell: 04.03.12

U.S. Economy Enters Sweet Spot as China Slows (Bloomberg)
An improving job market, rising stock prices and easier credit are combining to lift U.S. consumer confidence and spending, with optimism measured by the Bloomberg Comfort Index near a four-year high. Personal-consumption expenditures increased by the most in seven months in February, rising 0.8 percent, the Commerce Department said last week. “We’re entering a sweet spot for the economy,” said Allen Sinai, president of Decision Economics Inc. in New York. “We’re in a self-reinforcing cycle,” where faster employment growth leads to higher household income and increased consumer spending.

China’s Central Banker Sees Risk of Global Recession (WSJ)
China’s central bank Gov. Zhou Xiaochuan warned that the global economy hasn’t yet escaped the financial crisis, while cautioning the U.S. to take “more responsibility” for its monetary easing. There are “new elements that could bring the global economy back into recession,” the central bank chief said in a panel discussion Tuesday at the Boao Forum in the southern island province of Hainan, without elaborating on what the elements are.

JPMorgan’s Hannam Resigns After Market Abuse Fine (Reuters)
JPMorgan Chase’s Ian Hannam, one of its most senior London-based bankers, has decided to resign after being fined by Britain’s financial watchdog for market abuse, according to an internal memo the bank sent to staff. In a separate statement, Hannam said he would appeal the 450,000 pounds ($720,700) fine by the FSA.

CFTC Deals Out Royal Pain (WSJ)
In a federal-court lawsuit filed Monday in New York, the Commodity Futures Trading Commission alleged a “wash trading scheme of massive proportion” by RBC, Canada’s largest bank. From 2007 to 2010, officials at RBC coordinated with two subsidiaries on the purchase and sale of futures contracts that gave the right to sell stock later at certain prices, the CFTC alleged. The alleged scheme eliminated the possibility that RBC would suffer any losses on the investments, while locking in “lucrative” Canadian tax breaks on dividend payments, according to the lawsuit.

SEC Probes Groupon (WSJ)
The regulator’s probe into the popular online-coupon company is at a preliminary stage and the SEC hasn’t yet decided whether to launch a formal investigation into the matter, the person said. The SEC decision to examine the circumstances surrounding Groupon’s surprise revision is the start-up’s latest run-in with the regulator. Groupon twice revised its finances before its November IPO. An SEC spokesperson declined to comment, as did a spokesman for Groupon.

JOBS Act Jeopardizes Safety Net for Investors (Dealbook)
Andrew Ross Sorkin: “Maybe President Obama should have bought shares in Groupon’s I.P.O. If he had, he would understand what some Groupon investors may be feeling as he prepares this week to sign a new piece of legislation to help start-ups get financing. Had he purchased $10,000 worth of shares on the open market on the first day of public trading for Groupon, the online coupon company based in his hometown Chicago, he would have lost a good chunk of his investment, putting him in the red by almost $4,100 today. That means he would have lost about 41 percent of his investment in Groupon in just five months, while the Nasdaq rose some 16 percent.”

James Cameron Changes Stars In Titanic (CM, Time)
The director unveiled a 3D version of his multi-Oscar winning classic last month (Mar12) and he resisted the temptation to use its reworking as an excuse to cut scenes he’s no longer happy with. But there was one shot Cameron felt obliged to alter, because a top stargazer informed him the astral pattern onscreen was incorrect for the night the liner sank in 1912. The scene involves Kate Winslet’s character, Rose DeWitt Bukater, drifting on a piece of wood and gazing at the night sky as the disaster unfolds. Cameron tells British magazine Culture, “Oh, there is one shot that I fixed. It’s because Neil deGrasse Tyson, who is one of the U.S.’ leading astronomers, sent me quite a snarky email saying that, at that time of year, in that position in the Atlantic in 1912, when Rose is lying on the piece of driftwood and staring up at the stars, that is not the star field she would have seen, and with my reputation as a perfectionist, I should have known that and I should have put the right star field in. “So I said, ‘All right, you son of a bitch, send me the right stars for the exact time, 4.20am on April 15, 1912, and I’ll put it in the movie.’ So that’s the one shot that has been changed.”

‘Apple Fever’ to Push Stock to $1,001, Topeka Capital Says (Bloomberg)
Apple, already the world’s most valuable company, will see its stock price reach $1,001 within 12 months, lifted by growth in China and the debut of a new television product, according to Topeka Capital Markets. The new target, issued yesterday by Topeka’s Brian White, is the highest among the 45 analysts tracked by Bloomberg and represents a 62 percent increase over the current price. The gains will be fueled by demand for the next iPhone, in addition to the expansion into China and the TV market, he said.

Judge OKs MF sale (Dow Jones)
A judge approved a Jefferies Group affiliate’s purchase of MF Global Holdings Ltd.’s liquidating brokerage’s remaining gold, silver and other precious-metal assets. Judge Martin Glenn of the US Bankruptcy Court in Manhattan approved the sale, but much of yesterday’s time was taken up by issues regarding insurance meant to pay for former MF Global executives’ legal defenses. Jefferies is buying the remaining 106 warehouse certificates — not the actual gold and silver bars — of MF Global’s former commodities customers.

Ann Romney Says Campaign Will ‘Unzip’ the Real Mitt (The Note)
Ann Romney defended her husband’s sense of humor today during a radio interview, explaining that if people think the candidate seems too stiff at times as the host suggested, she thinks “we better unzip him and let the real Mitt Romney out.”

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51 Responses to “Opening Bell: 04.03.12”

  1. guest says:

    “we better unzip him and let the real Mitt Romney out.”

    and they say mormons don't like to party.

  2. Guest says:

    We have AAPL approaching one million bajillion dollars by mid-year.

    -Timbuktu Capital Markets Analyst

  3. guest says:

    That photo, right click, save as wallpaper, done.

    -guy who's not afraid to admit he cried

  4. PermaGuestII says:

    "Titanic" < "A Night to Remember"

  5. SEC probers says:

    Don't worry Andrew Mason, Groupon is the stage name of a tranny performer we hired

  6. guest says:

    Draw me like one of your French girls.

  7. pazzo83 says:

    James, it was actually cloudy that night where the ship sank. I know you are a perfectionist so I just thought you should know.

    – NOAA Climatologist

  8. Cut Me says:

    James, the entire movie is not historically accurate. Nothing was in color then, as it was not invented until 1931. Please redo.

    -UBS History Quant

  9. Beavis says:

    he he 4:20 he he

  10. Annoying says:

    I don't think they had wetsuits either back then…plus they all look way to calm for just having survived a disaster.

    -UBS Continuity Quant

  11. HFguy says:

    “So I said, ‘All right, you son of a bitch, send me the right stars for the exact time, 4.20am on April 15, 1912, and I’ll put it in the movie.’ So that’s the one shot that has been changed.”

    This should be Matt's standard reply to all his haters as well.

  12. Guest says:

    Great nips!

  13. ShortNaked says:

    Im surprised he didnt ask me about the stars. I know everything.


  14. whowhawhen says:

    "Apple, already the world’s most valuable company, will see its stock price reach $1,001 within 12 months"

    $1002, Bob

    UBS Showcase Showdown Quant

  15. Nigerian Banker says:

    Hello intelligent and wise investor in Groupon,

    We want to remind you that we in it for long haul and stand by our greatest of ideas. Groupon is stock for children and grand childrens! This is only formality that very common practice, even Apple works with SEC and if you sold when it near IPO you kick yourself now. Don't make same mistake twice!

  16. next article says:

    Dennis Gartman has joined UBS as a media entertainment analyst according to Dick Bove.

    -Comment Briefer