Global-Bank Deal Targets Reserves (WSJ)
Regulators have said new rules will help restore confidence in the global banking system. Banks have warned that such requirements could limit economic growth by crimping their ability to lend. Many bankers had believed their arguments were gaining traction, but the new limits regulators appear close to mandating are stiffer than some had expected in recent days.
Boehner Calls For Two Year Freeze On All Tax Rates (AP)
House Republican Leader John Boehner onWednesday proposed a two-year freeze on all tax rates and a cut in government spending to the levels of 2008, before a deep recession took hold of the economy. In a broadcast interview, the Ohio Republican said he was offering a "bipartisan" alternative to the package of business tax incentives and infrastructure spending that President Barack Obama was slated to announce later Wednesday in Cleveland.
Paulson & co Hit By US Economic Woes (FT)
The firm’s flagship $9bn Advantage Plus fund, which aims to profit from trading corporate events, lost 4.26 per cent in August, according to an investor, writing back tentative gains made in July. The fund was down 6.6 per cent in the second quarter. Paulson's $3billion Recovery fund lost 9.13 per cent over the month, erasing its 6.5 per cent gain in July and compounding its 12.6 per cent second-quarter loss.
Goldman Sees $80 Trillion Emerging-Nation Stock Market by 2030 (Bloomberg)
The market value of emerging-market stocks may surge more than fivefold to $80 trillion in two decades, overtaking developed nations, as China becomes the world’s largest stock market, Goldman Sachs said. Faster economic expansion and growing capital markets may lift emerging nations’ share of world equity capitalization to 55 percent by 2030 from 31 percent today, Goldman strategists led by Timothy Moe wrote in a research report. Institutional investors in developed nations will probably buy a net $4 trillion of emerging-market equities, lifting holdings to 18 percent of their total portfolios from 6 percent now, Moe wrote.
SEC Looking At 'Quote Stuffing' (WSJ)
Mary Schapiro said the agency is looking at a practice others have called "quote stuffing" to assess whether it violates "existing rules against fraudulent or other improper behavior." The practice involves trading in which unusually large numbers of orders to buy or sell stocks are placed in a fraction of a second, only to be canceled almost immediately. Ms. Schapiro said the agency is considering requiring traders to hold orders open for minimum periods.
Ryanair's O'Leary Mulls One-Euro Toilets, Standing Passengers (Bloomberg)
“Why does every plane have two pilots?” asks Michael O’Leary, chief executive officer of Ryanair Holdings Plc, the largest low-cost airline in Europe. Wearing sneakers, jeans, and an off-the-rack short-sleeved shirt, O’Leary is pontificating in his office at the company’s headquarters on the outskirts of Dublin Airport. “Really, you only need one pilot,” he tells Bloomberg Businessweek in the Sept. 6 edition. “Let’s take out the second pilot. Let the bloody computer fly it.” What happens if the pilot has a heart attack? One member of the cabin crew on all Ryanair flights would be trained to land a plane. “If the pilot has an emergency, he rings the bell, he calls her in,” O’Leary says. “She could take over.”
Marilyn Manson Loses His Make-Up, Gains A Mullet (STP)
Interview reports that Manson is a "diehard" fan of HBO's "Eastbound & Down," the critically worshiped comedy starring Danny McBride as a washed-up former baseball star whose trademark mullet and angry face Manson is imitating in this photo. "Whenever I see Manson, he's repeating entire chunks of dialogue and dressed like Kenny," Adam Bhala Lough, who's directing Manson in the upcoming film "Splatter Sisters," told Interview. Lough went on to say that Manson dresses like "Eastbound" character Kenny Powers all the time, and provided this photo, credited to Manson himself, as "evidence."
Hedge Funds Shrink In July As Billions Walk (Reuters)
The global hedge fund industry shrivelled a little more in July when investors pulled out nearly $3 billion (1.9 billion pounds) after the loosely regulated portfolios posted losses in May and June, researchers reported on Tuesday. Assets stood at $1.53 trillion, their lowest level since November 2009, according to data released jointly by TrimTabs and BarclayHedge, firms that track performance and flow data.
Hurd To Get $950,000, Eligible For $5 Million Bonus At Oracle (AP)
The biggest part of Hurd's pay package will be the 10 million stock options Oracle plans to give him. The company said Hurd's options will carry an exercise price equal to the market value of the shares on the date they are granted. While the filing did not offer a specific date, Oracle shares closed Tuesday at $24.26, which would value 10 million shares at $242.6 million. If he stays with the company, Hurd will be given options to buy another 5 million shares each year for the next five years.