Opening Bell: 08.19.10

Author:
Dealbreaker
Updated:
Jan 14, 2019
Original:
Aug 19, 2010

UBS To Launch Ad Campaign (WSJ)
"We have restored our earnings power and are excellently positioned to deliver on our strategy. At the same time, we know that it will take more time and even more effort on our part before we fully regain the trust of our clients," UBS's top management said in the memo distributed to the bank's employees. The ad campaign, using the slogan "We will not rest", is the most extensive in several years and is designed to mend relations with clients, in particular at UBS's flagship private bank, which is still leaking assets.

Duquesne managers to start their own firm (MarketWatch)
After Duquesne returns money to outside investors, the other Duquesne portfolio managers are planning on spinning out their own firm. Stanley Druckenmiller will be an investor in their new fund, but he won't be part of the new firm.

Goldman Sachs Sues French Bank Over Credit Default Swaps (Reuters)
The dispute centers around whether French investment bank Natixis can cancel a deal on three credit default swaps with Goldman, which is claiming damages for breach of contract. "We are preparing our defense. We are surprised that Goldman is suing us," a spokesman said.

Facebook Unveils Service To Announce Locations (NYT)
Know where Vikram is at all times.

Columbia Biz Grad Demands Website Heckler's ID (NYP)
In a Manhattan Supreme Court suit, Carla Franklin says she has "suffered damages in the form of disress and mental anguish" from a mean-spirited posting in a comment calling her a "whore" attached to a video posting of her -- and she wants a judge to give her a court order to force Google and YouTube to turn over the poster's identity.

Home Aquariums As Decorating Elements (NYT)
KARIN WILZIG has a hard time choosing a favorite color from among the 64 that she and her husband can use to illuminate the 14 1/2- foot, 450-gallon aquarium in their TriBeCa town house. The default is fuchsia, which turns the dozen koi a deep pink. “Not pink,” said Mrs. Wilzig, 40, an artist and a mother of two small children. “Alan, go to the turquoise.” Her husband, Alan Wilzig, 45, a former banker who collects motorcycles and prides himself on the orange tanning bed in his basement, goes to the James Bond-like control panel in the kitchen, where a touch of a button turns the fish — which are specially bred to be colorless — a vivid blue. “I think they like that,” he said, walking down the steps to the sunken living room to admire the fish from another angle.

SEC Sues New Jersey Over Bond Offerings (WSJ)
In the New Jersey action, the SEC cited municipal bonds in 79 separate offerings totaling $26 billion from 2001 to 2007. Many of those sales occurred after the SEC said the state abandoned a plan to bring pension funding up to snuff.

Intel to Buy McAfee for $7.68 Billion (Bloomberg)
McAfee investors will receive $48 a share in cash, Santa Clara, California-based Intel, the world’s largest chipmaker, said in a statement today. That’s 60 percent more than McAfee’s closing price yesterday. Both boards have unanimously approved the deal, Intel said.

Wager 101: Students Bet on Their Grades (WSJ)
The website lets college students place wagers on their own academic performance, betting they will earn, say, an A in biology or a B in calculus. Students with low grade point averages are considered long shots, so they have the opportunity to win more money for high grades than classmates with a better GPA. But students can bet against themselves, too, wagering they won't achieve a high grade point average. And education experts—along with several of the schools Ultrinsic is targeting—say the use of money as a motivator for academic achievement is dubious at best. Questions remain about whether the venture will run up against laws restricting Internet gambling.

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Germany Hints At More Financing (WSJ) Germany on Wednesday signaled its willingness to provide additional financing for the euro zone's bailout fund and accept lower interest on loans to Athens, in order to get the Greek rescue back on track and free the next tranche of about €44 billion ($56.40 billion) in loans for the euro zone's weakest member. Merkel Sees Chance For Greek Deal Monday (Reuters) "I believe there are chances, one doesn't know for sure, but there are chances to get a solution on Monday," Merkel told the Bundestag lower house of parliament in a debate on the German budget. But the longing for one act, one miracle solution, one truth that means all our problems are gone tomorrow...this will not be fulfilled. What was neglected over years, over decades, cannot be taken care of overnight and therefore we will need to continue to move step by step." H-P Says It Was Duped (WSJ) The technology giant said that an internal investigation had revealed "serious accounting improprieties" and "outright misrepresentations" in connection with U.K. software maker Autonomy, which H-P acquired for $11.1 billion in October 2011. "There appears to have been a willful sustained effort" to inflate Autonomy's revenue and profitability, said Chief Executive Meg Whitman. "This was designed to be hidden." Michael Lynch, Autonomy's founder and former CEO, fired back hours later, denying improper accounting and accusing H-P of trying to hide its mismanagement. "We completely reject the allegations," said Mr. Lynch, who left H-P earlier this year. "As soon as there is some flesh put on the bones we will show they are not true." Analysts Had Questioned Autonomy’s Accounting Years Ago (CNBC) Paul Morland, technology research analyst at broking and advisory house Peel Hunt, told CNBC that he had noticed three red flags in Autonomy’s accounts in the years leading up to the HP acquisition: poor cash conversion, an inflated organic growth rate, and the categorizing of hardware sales as software. London Bankers Become Landlords as Rents Hit Record (Bloomberg) Vivek Jeswani became a landlord by accident when Deutsche Bank AG (DBK) transferred him to New York two weeks after he moved into a new home in central London. Now back in the U.K., Jeswani views the apartment in Baker Street, the fictional home of Sherlock Holmes, as one of his best assets and is about to buy another home to expand his rental business. “There are no other investments as attractive and you’ve got some security if you’ve got an asset you can use yourself,” the 36-year-old risk officer at China Construction Bank Corp.’s U.K. unit said. “There’s a good yield over 5 percent and being in central London, you’ve got demand domestically and internationally.” Trading Charges Reach SAC (WSJ) The hedge funds reaped $276 million in profits and losses avoided based on that information, criminal and civil authorities said—far dwarfing that of any previous insider-trading case. The bulk of the trading profits generated by Mr. Martoma was paid to Mr. Cohen, a person close to the hedge fund said. Fed Still Trying To Push Down Rates (WSJ) Fed Chairman Ben Bernanke suggested that the central bank will keep trying to push down long-term interest rates in 2013, as federal tax and spending policies become a more substantial headwind to the U.S. economy. "We will continue to do our best to add monetary-policy support to the recovery," Mr. Bernanke said at the New York Economic Club, answering a question about how the Federal Reserve would respond to impending spending cuts or tax increases that might restrain economic growth. 'Stiletto Surgery' alters pinky toe for better fit (Fox) These days, some women will do just about anything to fit into their favorite pair of high heels – including surgery. A growing number of women are paying thousands of dollars to surgically alter their feet just to make wearing heels a more comfortable experience. Surgical procedures such as shortening toes, receiving foot injections and even completely cutting off pinky toes are on the rise. “Unless you’ve been there, and you can’t find shoes, and you’re in pain, don’t judge,” said Susan Deming, a patient who recently underwent a toe-shortening procedure. Adoboli’s Fate Decided at Wine Bar as UBS Market Bets Unraveled (Bloomberg) On a cool late summer evening last year in London’s financial district, with the euro-zone crisis worsening and Greece tottering on the edge of default, Kweku Adoboli says he asked the three traders who worked with him at UBS AG’s exchange-traded funds desk to join him for a drink. Adoboli said in a post on his Facebook page that he needed “a miracle” as his bets on the market imploded. That night at a wine bar across the street from their office, Adoboli asked John Hughes, the senior trader on the ETF desk, and two junior traders, what to do. The others decided he should take the blame for billions of dollars in losses and an elaborate web of secret trades in what he called an umbrella account that once held $40 million in hidden profits. “I knew I was going to lose my job anyway, I had already resigned myself to that, so fair enough,” the 32-year-old Adoboli testified last month about the meeting, which the other traders deny took place. Jobless Claims in U.S. Decrease (Bloomberg) Fewer Americans filed applications for unemployment benefits last week as damage to the labor market caused by superstorm Sandy began to subside. Jobless claims decreased by 41,000 to 410,000 in the week ended Nov. 17, the Labor Department reported today in Washington. The number of applications matched the median forecast of 48 economists surveyed by Bloomberg. Soros Buying Gold as Record Prices Seen on Stimulus (Bloomberg) The metal will rise every quarter next year and average $1,925 an ounce in the final three months, or 11 percent more than now, according to the median of 16 analyst estimates compiled by Bloomberg. Paulson & Co. has a $3.66 billion bet through the SPDR Gold Trust, the biggest gold-backed exchange- traded product, and Soros Fund Management LLC increased its holdings by 49 percent in the third quarter, U.S. Securities and Exchange Commission filings show. 'Cannibal Cop' Gilberto Valle planned to to cook up 'some girl meat' on Thanksgiving (NYDN) The "Cannibal Cop" had his own twist for a Thanksgiving dinner this year — cooking up “some girl meat,” prosecutors revealed Tuesday. Gilberto Valle, 28 — who allegedly kept a database of at least 100 women he plotted to rape, cook and eat — planned the freakish feast with one of his online conspirators earlier this year, prosecutors said. “I’m planning on getting me some girl meat,” he wrote to his pal on Feb. 9. “Really tell me more,” responded the friend. “It’s this November, for Thanksgiving. It’s a long way off but I’m getting the plan in motion now,” Valle wrote.

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