Opening Bell: 7.23.07

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TomTom to buy map supplier Tele Atlas for $2.5 bln (Reuters)
Dutch navigation firm Tom Tom announced the purchase of Tele Atlas, a supplier of maps. This acquisition is personally meaningful to us, because the other day we were walking, and an orange Tele Atlas van with 360 degrees worth of cameras mounted on top of it drove right by us. It appeared as though it was doing something similar to Google's Street View. So, Tele Atlas has a picture of us walking in Brooklyn, which is an image that will now be owned by Tom Tom.
Dubai Offers $2.1 Billion for Auckland Airport Stake (Bloomberg)
Dubai continues to buy anything it can get its hands on, left and right, here and there, from banks to real estate and now a controlling interest in the main Auckland Airport in New Zealand. This is the beauty of oil money. Sure, it flows from all over the world into the hands of some lucky few, but then they have to spend it and everyone gets it back. The only catch is that you have to part with critical chunks of your national infrastructure, like a national airport or a water system. Meanwhile, check out the picture of the CEO of the Dubai Aerospace Enterprise. That's one intense dude.
Cerberus to buy United Rentals for $4 billion (Reuters)
Here's your obligatory Monday private equity deal. This time its equipment rental firm United Rentals, which will sell out to Cerberus for $4 billion, a mere 6.6% premium over its Friday closing price. Of course, United Rentals announced a few weeks ago that it was seeking "alternatives" to its existing structure, so much of the actual premium was already baked in. All in all, seems pretty typical.
A Family Meets Today to Hear the Complexities of a Bid for Dow Jones (NYT)
Just in case you somehow forgot, the Bancrofts are having a family reunion today, where, among other things, they'll be discussing a bid for Dow Jones made by some Australian ex-pat. Just out of curiosity, do you think that the Bancrofts are the type of family to make a t-shirt commemorating their family reunion that they'll give out to all of the members in attendance? Eh, they're probably to Brahmin for that, although you might want to keep a look out at thrift stores for that one.


Grocery Cos Say S. Calif Unions Apparently OK Labor Pact (Dow Jones Newswires)
Another headline/article that we'd expect to read in The Onion. No, really, this time the California grocers and the union have got things all squared away. Dudes, we hope the price of avocados isn't affected at Von's.
Medical devices, 'Web 2.0' firms drive venture investment (MarketWatch)
It may not get as much attention as, say, Facebook, but medical gadgets were the hottest area of venture capital investment last quarter. Of the $7.4 billion that was invested by VCs last quarter, nearly $1 billion went to this area. The hope is that medical gadgets will end up solving medical problems that drugs can't. Meanwhile, if you're interested in this area, we can highly recommend checking out the blog MedGadget, which is on our daily must-read list.
Putin May Have `Third Man' Scenario in Mind for 2008 Election (Bloomberg)
It's important to follow the scheming of the world's most important energy executive, Vladimir Putin. Technically speaking, he only has 18 more months in office (just like President Bush!), but unlike President Bush, Putin probably isn't going to, you know, give up any influence or power once he "leaves" office. So everyone is watching to see who he pushes as his successor and what kind of role he establishes for himself at that point. The latest theory is that he'll push some real no-name, which would ensure that his persona not be eclipsed.
Low-Key Recall of AIDS Drug Hits World’s Poor (NYT)
The recall of an AIDS drug reveals the double standard that pharmaceutical firms are held to, depending on what country they're operating in. In the US, companies are slammed and called "greedy" for failing to recall a drug at the slightest hint that a small percentage of patients may come down with a cold. On the other hand, in developing countries which receive discount AIDS drugs, a recall is "irresponsible", even when a company feels the pills have been tainted. The difference is the level of perceived desperation, but the operative word is "perceived". Those who suffer from chronic pain in the US aren't given as much sympathy as African AIDS patients, which is why it's not a tragedy when we pull Vioxx or Oxycontin off the shelf (for their own good).
Blackstone I.P.O.: A Case of Buyers’ Remorse (Dealbook)
We were among the many that questioned the valuation of Blackstone when it came public, and the company's share price drop has vindicated our view, at least to some extent. But come on, all the handwringing seems a tad overdone. After all, a company can't really be blamed for its one-month performance. And frankly, if your time horizon for a stock is so short, you really have no business investing in a private equity firm -- or stocks at all, for that matter. Perhaps you should go play the Forex market or something like that.
Southwest, JetBlue move to match Virgin America's fares (Today in the Sky)
Voila, the magic of markets works again. Both Southwest and JetBlue have announced that they will cut fares on certain routes in order to match those being offered by Virgin American. So if you've been planning a California trip, now might be the time to book it and save money. Good news for you, bad news for the airlines, which had been talking lately (lately=always) about wanting to raise fares. And to think the government tried so hard to keep Virgin American away.

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Opening Bell: 08.28.12

Greece Plans 'Special Economic Zones' to Boost Growth (Reuters) Greece plans to set up "special economic zones" to attract private investment and help lift its debt-laden economy out of depression, the government said on Tuesday. The zones would offer investors tax and administrative advantages. Athens is already in talks with the European Commission to get approval for the move, Development Minister Costis Hatzidakis told a news conference. "We believe these zones will boost the real economy by creating a special regime to attract investment and generate exports," Hatzidakis said. Spain's Catalonia to Ask for Aid From Madrid (WSJ) Catalonia, Spain's most indebted region, said Tuesday it will ask for €5.02 billion ($6.27 billion) in financial assistance from the Spanish government's liquidity program, as it struggles to pay for basic services such as hospitals, schools and care homes. Catalan government spokesman Francesc Homs said at a news conference that the government will ask for the funding to "face debts maturing in the coming months." ECB's Draghi Stuck At The Office, To Skip Jackson Hole Symposium (WSJ) "ECB President Mario Draghi had hoped to attend the annual economic symposium in Jackson Hole organized by the Federal Reserve Bank of Kansas City, but has decided not to go to Jackson Hole, due to the heavy workload foreseen in the next few days," an ECB spokesperson wrote in an email. Leonardo DiCaprio To Bare All In 'Wolf Of Wall Street' (NYDN) “There will be some pretty illicit sex scenes coming up,” said a set insider. “It involves four guys and two girls.” And there’ll even be a little guy-on-guy action in one of the orgies — but DiCaprio won’t be in those. Not that there would be anything wrong with that. Scorsese’s film follows the rise and eventual imprisonment of drugged-out real-life former stockbroker Jordan Belfort, who is now a motivational speaker and says he has been sober since his life imploded in the go-go late ’90s and he went to prison. The movie started shooting in the Financial District over the weekend and there’ll be more filming in midtown this week. Later this month, the action will move to a Hamptons estate. DiCaprio was spotted rehearsing at Bank of America with co-star Jonah Hill. Matthew McConaughey also stars, as Belfort’s mentor. “They were incognito and Leo didn’t take his sunglasses off the entire time,” said a Merrill Lynch source. There are some scenes you can bet will be shot strictly behind closed doors. “We have a scene in an office with a troupe of hookers during a coffee break,” the set insider told us. “They are in the process of casting a ton of beautiful models, who are willing to bare it all, to portray escorts and strippers,” our source said. “The girls have to be incredibly hot.” Connecticut Homes Biggest Losers As Wall Street Cuts (Bloomberg) Connecticut, for 25 years the state with the highest per capita income in the U.S., is now leading the nation in home-price declines as Wall Street trims jobs and bonuses that had driven multimillion-dollar property sales. Prices in the Fairfield County area, home of the banker bedroom communities of Greenwich and New Canaan, tumbled 12.9 percent in the second quarter from a year earlier, the biggest decline of the 147 U.S. metropolitan areas measured by the National Association of Realtors. Hero Reagan’s Compromise Would Collide With Tea Party Certitude (Bloomberg) Ronald Reagan remains the modern Republican Party’s most durable hero. His memory will be hailed as The Great Uncompromiser by those who insist the GOP must never flag in its support for smaller government, lower taxes and conservative social values. His record tells a different story. During Reagan’s eight years in the White House, the federal payroll grew by more than 300,000 workers. Although he was a net tax cutter who slashed individual income-tax rates, Reagan raised taxes about a dozen times. His rhetoric matched that of many of today’s most ardent Christian conservatives, yet he proved to be a reluctant warrior on abortion and other social issues. Perhaps most tellingly, he was willing to cut deals, working closely with Democratic leaders such as House Speaker Tip O’Neill of Massachusetts to overhaul Social Security and House Ways and Means Committee Chairman Dan Rostenkowski of Illinois to revamp the tax code. Ann Romney Takes Biggest Stage Yet To Humanize Husband (Bloomberg) Mitt Romney’s likability gap was evident in a Washington Post/ABC News poll released yesterday. The poll, taken Aug. 22-25, showed 27 percent of registered voters find Romney to be more friendly or likable among the two candidates, compared with 61 percent for the incumbent. Kidney for Ohio patient's transplant put in trash (AP) A nurse accidentally disposed of a kidney from a living donor this month at an Ohio hospital, and doctors tried unsuccessfully for at least two hours to resuscitate the organ in what medical experts describe as a rare accident, health officials said. "Human error rendered the kidney unusable," University of Toledo Medical Center spokesman Toby Klinger said Saturday, but he declined to give more details, citing the hospital's investigation into what happened and its respect for the privacy of the patients involved. But one of the doctors involved told Dr. David Grossman, a Toledo-Lucas County health commissioner, that a nurse disposed of the kidney improperly. Two nurses have been placed on paid administrative leave while the hospital reviews what happened, Klinger said.

Opening Bell: 06.21.13

U.S. Weighs Doubling Leverage Standard for Biggest Banks (Bloomberg) The standard would increase the amount of capital the lenders must hold to 6 percent of total assets, regardless of their risk, according to four people with knowledge of the talks. That’s twice the level set by global banking supervisors. ... "The 3 percent was clearly inadequate, nothing really,” said Simon Johnson, an economics professor at the Massachusetts Institute of Technology and a former chief economist for the International Monetary Fund. “Going up to five or six will make the rule be worth something. Having a lot of capital is crucial for banks to be sound. The leverage ratio is a good safety tool because risk-weighting can be gamed by banks so easily.” China steps back from severe cash crunch (FT) China pulled back from the brink of a severe cash crunch on Friday, with money rates falling after reports that the People’s Bank of China, the central bank, had acted to alleviate market stresses. Nevertheless, interbank conditions remained tight and analysts said the PBoC would continue its hard line of recent days to compel financial institutions to pare back their leverage. Sprint Beats Dish’s Latest Bid for Clearwire (DealBook) Sprint Nextel raised its bid for Clearwire to $5 a share on Thursday, hoping to knock out a rival offer from Dish Network. The new offer, which values Clearwire at about $14 billion, is 47 percent higher than Sprint’s last proposal. It is also higher than Dish’s most recent bid of $4.40 a share. Banks Race to Increase Salaries to Beat EU Bonus Caps (IBT) Banks are racing to overhaul their remuneration structures by bumping up fixed salaries ahead of European Union-imposed bonus caps in 2015. According to a prominent employment partner at law firm Pinsent Masons, banks are stuck between having to overhaul remuneration procedures by a certain deadline but without concrete rules, which is likely to result in across-the-board increases in salary. FAA to Relax Rules for Gadgets in Flight (WSJ) The Federal Aviation Administration is expected to relax the ban on using some types of personal-electronic devices at low altitudes, allowing passengers leeway during taxiing and even takeoffs and landings, according to industry officials and draft recommendations prepared by a high-level advisory panel to the agency. For fliers, the new rules would likely mean an end to familiar admonitions to turn off and stow all electronic devices. Cellphone calls are expected to remain off limits, however. War of words erupts after wedding guests gift bride 'cheap and embarrassing' food hamper containing marshmallow fluff and croutons Kathy Mason from Hamilton, Ontario, and her boyfriend, who wished to remain anonymous, decided to create a food hamper for their friends' same-sex marriage and packed it with a mix of 'fun' treats including pasta, olive oil, croutons, biscuits, Marshmallow Fluff and Sour Patch Kids. They attached a carefully worded card to the parcel which read: 'Enjoy . . . Life is delicious.' However, the European newlyweds were less than impressed with the gesture and contacted the couple the next day via text message to ask if they had the receipt so they could get the money back instead. ... 'You ate steak, chicken, booze, and a beautiful venue . . . If anything you should be embarrassed for being so cheap and embarrassing,' the brides said in one message. Creeping mistrust stops euro zone banks lending to peers across bloc (Reuters) In a trend that could reignite fears about the euro and its banks, European Central Bank data shows the share of interbank funding that crosses borders within the euro zone dropped by a third, to just 22.5 percent in April from 34.5 percent at the beginning of 2008. Banks are now lending to other banks across euro zone borders at only about the same rate as when the single currency was first launched, 15 years ago. Greek markets rattled by political disarray (FT) The benchmark 10-year bond yield of Greece rose 75 basis points to 11.6 per cent by late morning in London, while the Athens stock exchange index fell 2.9 per cent to its lowest level since early April. ... Investor sentiment towards Greece is not helped by uncertainty over how to plug a funding gap in the country’s bailout programme. The FT reported on Thursday that the International Monetary Fund might suspend aid to Greece next month unless the eurozone stepped in. Losses loom for investors enmeshed in U.S. mortgage chaos (Reuters) A review of loan documents, property records and the monthly reports made available to investors show that mortgage servicers are reporting individual houses are still in foreclosure long after they have been sold to new buyers or the underlying mortgages have been paid off. ... In one case, Reuters found that Bank of America Corp had been collecting a monthlyservicing fee of $50.73 from investors on a loan that had been paid off nearly two years ago, investor reports show. Bank of America filed a document at a local county office on July 22, 2011 showing that the $162,400 loan on a cream-colored duplex in Greenacres, Florida, owned by a drywall hanger named Roman Pino, had been satisfied and "cancelled." But investors in Pino's loan and more than 6,700 other similar mortgages that are bundled together in a subprime mortgage bond still have not been informed that the loan no longer exists, according to the last investor report in May. Good and Evil Battle Volatility on Summer Solstice (CNBC) "Summer Solstice is upon us: the longest day of the year in the northern hemisphere where some religions in the western world believe the sun defeats the forces of evil." Also it's triple witching. Oracle to Leave Nasdaq for the Big Board (DealBook) Oracle, one of the most prominent technology companies listed on the Nasdaq, is defecting to a rival exchange. The company, which has been traded on the Nasdaq since 1986, has applied to be listed on the New York Stock Exchange, it said in a filing on Thursday. The transfer, among the largest ever between the exchanges, represents a significant gain for the Big Board, which has been trying to bolster its technology credentials. FINRA beefs up policing of arbitrators (Reuters) The Financial Industry Regulatory Authority's policy change comes after Reuters asked questions about the background of Demetrio Timban, a Medford, New Jersey-based arbitrator who has become a central figure in a lawsuit between Goldman Sachs Group Inc and a wealthy investor. Timban was indicted by the state of New Jersey for practicing law without a license, although charges were later dropped under a state program to deal with non-violent offences. He was also reprimanded by a Michigan regulator for the New Jersey incident and passing $18,000 in bad checks. Timban said in an interview he had closed his New Jersey office and the check-writing incident was "accidental," as a family member was supposed to wire funds to cover the check. But FINRA said it did not learn of the New Jersey indictment for five months and that Timban failed to tell it about the Michigan problems altogether, while he arbitrated the Goldman case. Brooklyn framer accuses former boss of firing him for being too fat (NYP) The owner of a picture-framing shop in Brooklyn fired a worker because he was too fat to fit in the aisles, a lawsuit claims. Seth Bogadanove, 52, of Bath Beach, is suing Frame It In Brooklyn, in Sunset Park, and owner Jerry Greenberg, claiming he was canned after gaining weight because of medication. “Oh, my God! What happened to you? You got so fat!” the suit says Greenberg told Bogadanove after he returned from a leave. ... But Greenberg told The Post he never hired Bogadanove back, only gave him an opportunity to work from home. He called Bogadonove’s story “ridiculous.” “He was sweating, and he couldn’t make it up stairs,” Greenberg recalled. “But that would never come out of my mouth in my wildest dreams.” Video shows woman tossing perceived rival off cliff (CBS) Surveillance video caught a brutal fight between a woman and her perceived romantic rival in Arequipa, Peru, but it's pretty one-sided. A woman caught her husband walking with a younger woman while they were out on a stroll by a cliff back in January. She is seen grabbing the younger woman by the hair and dragging her off a cliff, where she reportedly plunged about 20 feet. She is okay after the fall - she only sustained some cuts and bruises, was treated at a hospital and released.