Opening Bell: 07.08.10 - Dealbreaker

Opening Bell: 07.08.10

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Hedge Funds `Frozen in Headlights' Cut Trading (Bloomberg)
“People are in cash for the most part and nobody’s really taking out any big bets,” said Blaze Tankersley, chief market strategist at Bay Crest Partners LLC, a brokerage firm in New York. “Nobody wants to take risk in either direction. It’s a weird time in the market.” Barton Biggs, whose purchase of stocks in March 2009 gave Traxis Partners LLC a 38 percent gain last year, said last week he sold about half his stock investments because of concern governments around the world are curtailing stimulus measures too soon. “I’m not wildly bearish, but I don’t want to have a lot of risk at this point,” Biggs, who manages $1.4 billion, said in a telephone interview. “I’m not putting my money into anything. I’m raising cash.”

Paulson's Advantage Fund Lost 6.9 Percent In June (Bloomberg)
The fund has now lost 8.8 percent through the first half of 2010

Goldman And Morgan Stanley Saw Turbulent Q2 (Reuters)
Analysts have cut their earnings estimates for the two investment banks in recent weeks, citing concerns about fixed income trading, as well as merger advisory revenue and stock trading. "This will be one of the most difficult trading quarters since the credit crisis," said Roger Freeman, an analyst with Barclays Capital. "This quarter is a stark reminder that we have some major macro unanswered questions, be it the stability of the U.S. and the global economic recovery."

BP Tries To Reassure Shareholders (NYT)
It'll never happen again okay? You believe us right? RIGHT? Who loves ya?

Man Group Bleeds Assets (Reuters)
Man, in the process of buying smaller rival GLG Partners, said on Thursday total assets under management -- on which fund firms earn fees -- fell 2.2 percent over the three months to end-June to $38.5 billion (25.3 billion pounds). Net client withdrawals were $1 billion.

What To Expect From The LeBronference Call (WSJ)
The show will begin with a brief video introduction of Mr. James's career, followed by a complete rebroadcast of the fourth quarter of Game 6 of the Eastern Conference semifinals against Boston.

Wells Fargo Plans Layoffs at a Consumer Finance Unit (Reuters)
The bank said Wednesday that it would no longer make subprime mortgages and as a result would close a 100-year-old finance division that specialized in those loans.

Citi Exits PE (NYP)
Citigroup has agreed to sell its private-equity unit to Lexington Partners for more than $900 million, PE Hub said yesterday. The portfolio includes stakes in bank-branded funds-of-funds, mezzanine and co-investment vehicles.

Asbury Park, NJ, nixes proposal for topless beach (AP)
After hearing a report from City Attorney Fred Raffetto that two city ordinances prohibit public nudity, including simply going topless, the City Council declined to consider the proposal any further. "There is no intention to change those ordinances," Mayor Ed Johnson said. The idea was the brainchild of Reggie Flimlin, a yoga studio owner who has sunbathed without a top in Europe and Miami. She wants to do it legally here. "It's a shame," she said when told by The Associated Press of the council's decision. "They had a real opportunity here to embrace women's rights in Asbury Park. It's discouraging."

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