Goldman third quarter revenue down 20 percent, bank slashes costs (Reuters)
Goldman responded to the weaker revenue by cutting the money set aside for compensation by 35 percent, to $2.38 billion. So far this year it has set aside $10.4 billion to pay employees, down 5 percent from the first nine months of 2012. Overall, Goldman reported net income for common shareholders of $1.43 billion, or $2.88 per share, down 2 percent from $1.46 billion, or $2.85 per share, a year earlier. Per-share earnings rose because of stock repurchases. Analysts had been expecting earnings of $2.43 per share, on average, according to Thomson Reuters I/B/E/S. But analysts had forecast higher revenue, and most of Goldman’s earnings beat came from cost-cutting.
U.S. failure to fix fiscal ‘mess’ undermines Fed on jobs: Fisher (Reuters)
“As long as inflationary expectations are held at bay, we can fully open the monetary throttle in an effort to deliver on the mandate Congress gave us to help achieve full employment,” Dallas Fed President Richard Fisher said in remarks prepared for delivery to the Economic Club of New York. “But it is for naught as long as the fiscal authorities are slamming on the brakes and leaving everyone in the dark as to how they will cure the fiscal mess they have wrought.”
Business Voices Frustration With GOP (WSJ)
The budget stalemate that had the U.S. flirting with default has left business and the Republican Party, longtime political allies, at a crossroads. In interviews with representatives of companies large and small, executives predicted a change in how business would approach politics. They didn’t foresee a new alignment with Democrats but forecast backing challengers to tea-party conservatives in GOP primaries, increasing political engagement with centrist Republicans and, for some, disengaging with politics altogether. Many business executives say they were dismayed that some Republicans didn’t heed their warnings that closing the government and risking default would hurt the U.S. economy. Others expressed disgust with Washington politics in general. All said the crisis could have been averted with a more pragmatic approach.
Boehner’s Favorite Diner Hit As $24B Lost in Shutdown (Bloomberg)
Pete’s Diner & Carryout, a 50-year-old Capitol Hill eatery frequented by House Speaker John Boehner, lost about 80 percent of its usual business, said Tong, surrounded by empty seats and Halloween decorations.
Kim Kardashian does not qualify for a star on Hollywood Walk of Fame, says landmark rep (NYDN)
Kanye West’s recent claim that girlfriend Kim Kardashian deserves a star on the Hollywood Walk of Fame was less that stellar in the eyes of the tourist-magnet’s managers. “We don’t have a category for reality stars on the Walk of Fame,” the landmark’s spokeswoman Ana Martinez told the Daily News. “They’re not giving a performance, it’s just them going through their daily lives and rituals on TV,” she said. “We honor people who’ve acted in or directed or produced an award-winning show or film. And it’s the same with music, people who maybe have gold records. West appeared on “Jimmy Kimmel Live” last week and griped that his baby mama hasn’t been offered a star on the Walk of Fame despite her worldwide fame and long-running show “Keeping Up with the Kardashians.” “People are so, so dated and not modern. It’s like, there’s no way Kim Kardashian shouldn’t have a star on the Walk of Fame. It’s ridiculous, old concepts,” he said. Kardashian, 32, accompanied West, 36, to his Kimmel appearance but remained backstage with their infant daughter North. “This Jimmy Kimmel interview is the truth,” she tweeted that night.
Blackstone’s Profit Rises 33% on Real-Estate Gains (WSJ)
New York-based Blackstone posted a profit of $171.2 million, or 29 cents a share, compared with its year-earlier gain of $128.8 million, or 24 cents a share. The firm reported economic net income of $640.2 million, up from $621.8 million for the same period a year ago. Fee revenue led to the higher profits, as asset sales slowed from earlier this year. The firm’s real-estate segment rode higher deal profits to a 43% jump in economic net income, while its private-equity unit saw such fees fall sharply from a year earlier, resulting in economic net income that was 57% lower. Blackstone’s credit and hedge-fund business saw slightly weaker results, but its advisory business reported a 40% rise in revenue. Blackstone’s assets under management grew to $248 billion at the end of September, up 21% from a year ago and 8% higher than the end of June.
Consumers’ Outlook for U.S. Economy Plunges to Two-Year Low (Bloomberg)
The monthly Bloomberg Consumer Comfort Index expectations gauge plunged to minus 31, the lowest level since November 2011, from minus 9 in September, a report showed today. The share of people projecting the economy will worsen jumped by the most since the collapse of Lehman Brothers Holdings Inc. five years ago. The weekly measure of current conditions fell to minus 34.1 in the period ended Oct. 13, the weakest since March.
Butterfinger ready to stick it to Reese’s– with a new cup (CNBC)
The nation’s top-selling candy bar is about to find itself with an unlikely new competitor in the peanut butter cup category: Butterfinger. Wednesday, Nestle announced plans for a 2014 rollout of its most radical-ever twist to the 90-year-old old candy bar, perhaps best-known for the way it sticks, crunches and oozes between teeth. So convinced are Nestle U.S.A. executives that the Butterfinger Peanut Butter Cup will be a smash, that Nestle has even purchased its first-ever Super Bowl commercial to tout it. “The peanut butter cup is America’s favorite candy,” says Jeremy Vandervoet, brand manager for Butterfinger. “This is the first time the peanut butter cup will change.” But executives at Hershey, maker of No. One Reese’s, say they’re not worried. “Reese’s is one of America’s most beloved brands,” says Anna Lingeris, senior manager of brand PR and consumer engagement at Hershey. She says its sales topped $1.5 billion last year, making it the top-selling confection brand. No other domestic candy brand topped $1 billion in sales last year, Nielsen reports.