Opening Bell: 12.07.12

SEC Warns Netflix CEO Over Facebook Post (WSJ)
Mr. Hastings boasted on his Facebook page in July that Netflix exceeded 1 billion hours of video streaming in a month for the first time. The post may have violated rules of fair disclosure, the SEC said. The SEC said it may also issue a cease-and-desist proceeding against Netflix and Mr. Hastings. Mr. Hastings responded in another Facebook post Thursday. He said further disclosure at the time wasn’t necessary because he has more than 200,000 subscribers to his Facebook page, which makes it a “very public” forum. Netflix had also disclosed on its blog in June that it was nearing the 1 billion streaming hours milestone, he said. Mr. Hastings, who is also on the board of Facebook, added that, at any rate, such information isn’t a “material” event to investors.

Germany’s Central Bank Cuts Forecasts (WSJ)
“The cyclical outlook for the German economy has dimmed [and] there are even indications that economic activity may fall in the final quarter of 2012 and the first quarter of 2013,” the Bundesbank said in its monthly report. In its semiannual economic projections, the central bank slashed its forecast for German growth next year to 0.4% from its previous estimate of 1.6% in June. It also lowered its forecast for 2012 growth to 0.7% from 1.0%.

Moody’s: It’s Deal Or Die (NYP)
The American economy will fall into “severe recession by the spring” unless Congress lessens the tax increases and spending cuts that are set to begin in January, said Mark Zandi, chief economist at Moody’s Analytics. “We’ve got to nail this down; uncertainty is killing us,” Zandi told lawmakers yesterday at a Joint Economic Committee hearing in Washington…If Congress were to “kick the can down the road” by extending the current tax-and-spend policies, Zandi predicted the US would lose its Aaa rating because “it would signal that the political will is lacking to put the nation on a sustainable fiscal path.”

Fiscal Cliff? France Has ‘Fiscal Mountain’: PPR CEO (CNBC)
The head of one of France’s biggest companies has warned that France’s problems dwarf those of the U.S. in an interview with CNBC. Francois-Henri Pinault, chief executive of luxury goods company PPR, said: “When we talk about the fiscal cliff in France it’s a mountain, it’s much higher than a cliff. And when it comes to France the only solution that has been put on the table is tax raises, nothing about cutting expenses. So it’s a completely different situation.”

Greece sticks to buyback plan, says will shield banks (Reuters)
Greece says it is sticking to plans to close its offer to buy back its own bonds from investors on Friday in a deal that should meet a debt writedown target set by its international lenders. The government said it would shield the country’s banks from any lawsuits over losses booked if they take part in the buyback. The buyback, part of a broader debt relief package worth 40 billion euros ($52 billion) agreed by Greece’s euro zone and International Monetary Fund lenders last month, is central to efforts to bring its debt to manageable levels.

Judge: Ganek, Steinberg conspirators (NYP)
Manhattan federal judge Richard Sullivan yesterday ruled that SAC Capital money manager Michael Steinberg and Level Global co-founder David Ganek can be named co-conspirators in the current insider trading case unfolding downtown. Neither Steinberg nor Ganek has been charged in the case, but the ruling lets prosecutors submit their e-mails and instant messages as evidence in their case against Todd Newman, a former portfolio manager at Diamondback, and Anthony Chiasson, Ganek’s former Level Global partner. The feds have accused Chiasson and Newman of improperly profiting off insider tips on Dell and Nvidia. Chiasson lawyer Greg Morvillo objected, saying that Chiasson’s former analyst Sam Adondakis, who pleaded guilty, testified that he never told Ganek he had an inside source at Dell. Judge Sullivan said the evidence is “certainly circumstantial” but sufficient enough for the government’s request to be granted. Sullivan cited the “precise information” Ganek had received leading up to Dell’s earnings as well as the “large trading positions” he authorized on the computer maker. The judge relied on three e-mail communications to implicate Steinberg, one of which he said made “clear references to keeping things on the down-low and being extra sensitive.”

Burglary suspect calls 911 after Springtown homeowner holds him at gunpoint (DN)
In a strange flip of events, a burglary suspect called 911 early Tuesday to report that he was being held at gunpoint by a Springtown homeowner and his son. The homeowner called 911, too, but by then he was in control, holding him at gunpoint and demanding to know what he was doing in his home. “Just unlucky, I guess,” the man responded, according to a release from the Parker County Sheriff’s Department. The incident happened around 12:30 a.m. when the homeowner and his wife woke up to find an intruder in the bedroom of their home in the 100 block of Lelon Lane. The suspect, identified as 41-year-old Christopher Lance Moore of Bedford, left the home and sat in his GMC pickup, parked in the family’s driveway. The homeowner followed him with a pistol, took the suspect’s keys and blocked his getaway with his own vehicle, while his stepson trained a shotgun on Moore, Fox 4 News reports. “If he gets out of the truck, shoot him in the legs,” James Gerow told his son. “You ain’t gotta kill him; just shoot him in the legs. … If he’d got out, I’d have expected him to shoot him.” When deputies arrived, both men were on the phone with 911. Deputies asked Moore why he had broken into the home, to which he merely said he had “bad intentions.”

Morgan Stanley Alters Broker Pay Plan as Revenue Bonus Takes Hit (Bloomberg)
Morgan Stanley, the brokerage with the biggest corps of financial advisers, changed its wealth- management compensation plan to encourage brokers to increase revenue and allow them to buy discounted stock. The 2013 program pays a bonus of 2 to 5 percentage points of revenue for advisers who bring in new assets and are in the top 40 percent in revenue growth, according to terms outlined in a summary obtained yesterday by Bloomberg News. That comes at the expense of a 2 percentage-point reduction in the revenue bonus paid to all brokers who generate at least $750,000.

JPM Bonus Bummer (Bloomberg)
JPMorgan Chase’s bonus pool for the corporate and investment bank may shrink as much as 2 percent this year as the firm completes performance reviews, three executives with direct knowledge of the process said.

Fed Exit Plan May Be Redrawn as Assets Near $3 Trillion (Bloomberg)
A decision by the Federal Reserve to expand its bond buying next week is likely to prompt policy makers to rewrite their 18-month old blueprint for an exit from record monetary stimulus. Under the exit strategy, the Fed would start selling bonds in mid-2015 in a bid to return its holdings to pre-crisis proportions in two to three years. An accelerated buildup of assets would also mean a faster pace of sales when the time comes to exit — increasing the risk that a jump in interest rates would crush the economic recovery. A decision by the Federal Reserve to expand its bond buying next week is likely to prompt policy makers to rewrite their 18-month old blueprint for an exit from record monetary stimulus. Under the exit strategy, the Fed would start selling bonds in mid-2015 in a bid to return its holdings to pre-crisis proportions in two to three years. An accelerated buildup of assets would also mean a faster pace of sales when the time comes to exit — increasing the risk that a jump in interest rates would crush the economic recovery.

Danger Lurks Inside The Bond Boom (WSJ)
Amid the rush of bond deals, which already have topped $1 trillion in value, these managers—from BlackRock to Federated Investment Management Co.—are pointing to unusual wrinkles suggesting that now could be one of the most dangerous times in decades to lend to investment-grade companies. Interest rates are so low and bond prices so high, they warn, that there is little room left for gains. Some worry that even a small increase in interest rates—a traditional enemy of bond returns—could eat away at bond prices.

College Student Poisons Roommate’s Iced Tea With Bleach Following Argument (DM)
A college student faces 15 years in jail after she allegedly sprayed bleach into her roommate’s iced tea.
Kayla Ashlyn Bonkowski, 19, was charged with felony poisoning and appeared in court on Wednesday. She reportedly told police that she had put chemicals in the drink following an argument about cleaning the dishes with her 20-year-old roommate Emily Joseph. The poisoning occurred on November 7 at the students’ apartment in Union Township, located near the Mount Pleasant school of Central Michigan University, authorities said. Miss Joseph was taken to hospital for treatment but later released. After she filed a complaint, Bonkowski was arrested. The 19-year-old ‘verbally admitted’ to police that she put bleach in the drink because ‘Joseph is mean’, according to ABC. She was arraigned on Wednesday at 2pm before posting $2,000 bond. She entered a plea of not guilty to the charge of poisoning a food, drink, medicine or water supply. The college student faces up to 15 years in prison. Reached by e-mail, Bonkowski said on Wednesday morning that she needed to consult with a lawyer before commenting.

50 comments (hidden to protect delicate sensibilities)
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Comments (50)

  1. Posted by Guestimate | December 7, 2012 at 8:48 AM

    "Mr. Hastings boasted on his Facebook page in July that Netflix exceeded 1 billion hours of video streaming in a month for the first time."

    No different than Steve Hirsch saying that "more guys beat off to Vivid videos than any other site"

    – GS Adult Video Equity Research

  2. Posted by Guest | December 7, 2012 at 8:51 AM

    "The government said it would shield the country’s banks from any lawsuits over losses booked if they take part in the buyback."

    Guessing that indemnity will be issued by Greek Government Shellcorp XYZ, printed on a used napkin, and signed by the third cousin twice removed of Jordi Sarda Bonvehi.

  3. Posted by 2 cubes over | December 7, 2012 at 9:25 AM

    She looks like she'd be a Kayla… *shudders*

  4. Posted by Slow Clap | December 7, 2012 at 9:32 AM

    Hats off to the Springtown homeowner. The man and his son deserve a high five. It has always been my dream to catch a burglar in the act and hold him at gunpoint.

  5. Posted by McKayla | December 7, 2012 at 9:36 AM

    Hey !

  6. Posted by Patrick | December 7, 2012 at 9:38 AM

    go on…

  7. Posted by PermaGuestII | December 7, 2012 at 9:50 AM

    '“If he gets out of the truck, shoot him in the legs,” James Gerow told his [13 year old] son. “You ain’t gotta kill him; just shoot him in the legs."'

    And that's why this country will always and forever be great.

  8. Posted by Daily Mail UK | December 7, 2012 at 9:54 AM

    "Dealbreaker Editor Poisons Executive Editor's Iced Tea With Bleach Following Argument Over Dishes In Break Room Sink"

  9. Posted by Lon Varney | December 7, 2012 at 9:54 AM

    yeah i totally jack off to that, too.

  10. Posted by Guest | December 7, 2012 at 9:54 AM

    I'm so glad the obsession with producing catchphrases is alive and well.

    -Guy from Main Street who's Kicking the Can Down the Road along the edge of the Fiscal Cliff on Fiscal Mountain

  11. Posted by Mark Sanchez | December 7, 2012 at 9:54 AM

    Hey !

  12. Posted by Im_a_Dude | December 7, 2012 at 9:55 AM

    SEC spending thousands of hours monitoring Facebook? guess its better use of their time then secrettrannylove.com

  13. Posted by Tranche of Hipsters | December 7, 2012 at 9:59 AM

    You old guys "beat off". We "fap".

  14. Posted by Barnett Shale Genius | December 7, 2012 at 10:02 AM

    As the incident happened in Springtown, and the alleged burglar wasn't "in his right mind" according to the home owner, I'm surprised the intruder wasn't a petroleum landman.

  15. Posted by Horse | December 7, 2012 at 10:03 AM

    Sup?

  16. Posted by Horse | December 7, 2012 at 10:04 AM

    Hay!

  17. Posted by Old guy | December 7, 2012 at 10:04 AM

    Thanks for the disgusting visual at 10AM.

  18. Posted by Guest | December 7, 2012 at 10:05 AM

    Fiscal thumb up my ass

  19. Posted by john king cnn | December 7, 2012 at 10:07 AM

    It's all about how the iconic narrative resonates.

  20. Posted by Guest | December 7, 2012 at 10:07 AM

    There are no breaks at Dealbreaker.

  21. Posted by over 30 male | December 7, 2012 at 10:08 AM

    6 half doz

  22. Posted by investorcluzo | December 7, 2012 at 10:09 AM

    In capitalist Springfield, homeowner points gun at you!

  23. Posted by emma bloomberg | December 7, 2012 at 10:17 AM

    you're my only friend

  24. Posted by Guesteban | December 7, 2012 at 10:17 AM

    "Reached by e-mail, Bonkowski said on Wednesday morning that she needed to consult with a lawyer before commenting."

    She figures this out only AFTER verbally admitting to the crime? Good lord, people, how many episodes of CSI, Law & Order, The Wire, Perry Mason, Matlock, Columbo and Murder She Wrote do you need to see before you learn: lawyer up immediately and never say anything to the cops, ever ?!?

  25. Posted by Guest | December 7, 2012 at 10:22 AM

    Please get off your parents computer and go back to texting with your friends about the latest One Direction gossip.

    Alternatively, do your best to determine what might actually add some value before posting crap like this again.

  26. Posted by DeLoss B. Hidden | December 7, 2012 at 10:23 AM

    The homeowner has a nice doublewide. And he was wearing a delightful Texas A&M t-shirt. Living the dream. Gig 'em Aggies!

  27. Posted by Hondo | December 7, 2012 at 10:24 AM

    Fuck Vinny Farina up the ass!!!!!!!!!!

  28. Posted by el guesto | December 7, 2012 at 10:28 AM

    It is simply amazing how almost none of these exchanges take place in anything resembling proper English.

    – Guy who likely has 30 grammatical and / or spelling errors in his post

  29. Posted by your wife | December 7, 2012 at 10:29 AM

    same

  30. Posted by Sol Prakashandrada | December 7, 2012 at 10:30 AM

    whats the symbol for one direction ?

  31. Posted by Hulu | December 7, 2012 at 10:31 AM

    It's never enough

  32. Posted by HBO MD | December 7, 2012 at 10:32 AM

    Alternatively, just don't poison people. Then you can spend your time watching Boardwalk Empire.

  33. Posted by Guest | December 7, 2012 at 10:33 AM

    –>

  34. Posted by DingALing | December 7, 2012 at 10:33 AM

    The SEC is really proving to be the Sheriff in town. Awesome job taking on the guy who rents movies to people that had THE AUDACITY to say how many people rent by announcing it on a social network that is publicly traded and whose CEO often says how many members it has.

  35. Posted by Hakuna Matata Guy | December 7, 2012 at 10:35 AM

    It's funny how one simple word can ruin someones Friday. Happy Friday everyone!

  36. Posted by Shecky Hall | December 7, 2012 at 10:35 AM

    A crude oil trader went to the police station wishing to speak with the burglar who had broken into his house the night before. “You’ll get your chance in court,” said the desk sergeant. “No, no, no!” said the oil trader. “I want to know how he got into the house without waking my wife. I’ve been trying to do that for years!”

  37. Posted by McDonalds sign guy | December 7, 2012 at 10:43 AM

    They been hsssling me for years.

  38. Posted by Irony Mikey | December 7, 2012 at 10:49 AM

    When did the NYPost become Bloomberg? Did I miss something? Does Bloomberg use the word "bummer" now?

    JPM Bonus Bummer (Bloomberg)

  39. Posted by Guest | December 7, 2012 at 11:21 AM

    Go on…

    -SEC legal department

  40. Posted by guest | December 7, 2012 at 11:25 AM

    Surprisingly, Bloomberg had the better quote, too!

    “If the JPM bonus pool only shrinks 2 percent this year, then I’d say that those guys, and women, are the luckiest folks on earth,” said Nancy Bush, an analyst and contributing editor at SNL Financial LC, a bank-research firm in Charlottesville, Virginia. “I expected much more shrinkage.”

  41. Posted by SEC | December 7, 2012 at 11:40 AM

    You better not post that stuff on FB again or… or… or you gonna wish we didn't warn you so bad!

  42. Posted by Grammar Deputy | December 7, 2012 at 11:51 AM

    Turned in my badge and weapon months ago. Unwinnable uphill battle.

    –Former Grammar Deputy now given to sentence fragments

  43. Posted by F9_Calculate | December 7, 2012 at 11:51 AM

    With a name like Kayla Ashlyn Bonkowski…I suspected white trash

    Attending CMU was only further confirmation

  44. Posted by two words | December 7, 2012 at 12:10 PM

    Working Saturday

  45. Posted by guest | December 7, 2012 at 12:13 PM

    It depends on the, "seriousness" of the point you are trying to make.

  46. Posted by Carnegie Mellon Univ | December 7, 2012 at 12:16 PM

    eh eh hum

    We rather don't think so.

  47. Posted by Guest | December 7, 2012 at 12:26 PM

    Deputies asked Moore why he had broken into the home, to which he merely replied, "Recession, bro."

  48. Posted by Gozer | December 7, 2012 at 1:36 PM

    You fucking suck

  49. Posted by 2 cubes over | December 7, 2012 at 2:23 PM

    I see what you did there…

  50. Posted by George Costanza | December 7, 2012 at 2:27 PM

    Don't talk tome about shrinkage!