Opening Bell: 12.03.10

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Trichet: Governments Need To Be Flexible (WSJ)
"If we have a problem today, it's not a problem of the euro currency, it's a problem of fiscal policies which haven't been correct," he said. He added euro-area members should go as far as EU institutions permit to reinforce budgetary cooperation. "We are in a monetary union, but without of course a complete political federation. We should conduct a dramatic strengthening of governance to have the equivalent of a quasi-budgetary federation," Mr. Trichet said.

Jobs Up 39,000 (Reuters)
Nonfarm payrolls rose 39,000, with private hiring gaining only 50,000, the Labor Department said. However, overall employment for September and October was revised to show 38,000 more jobs than previously estimated. Economists had expected payrolls to increase 140,000 last month and the unemployment rate to be unchanged at 9.6 percent.

Domain Provider Drops WikiLeaks Name (WSJ)
In a statement on its site, EveryDNS.net said it terminated the free service it had been providing to wikileaks.org at 10 p.m. Eastern time Thursday because WikiLeaks had become the target of "multiple denial of service attacks" that "threaten the stability of the EveryDNS.net infrastructure," which serves 500,000 websites. The move meant that Internet users couldn't access the site as usual by typing wikileaks.org.

Crisis-Hit Banks Flooded Federal Reserve with Junk (FT)
More than 36 percent of the cumulative collateral pledged to the US central bank in return for overnight funding under the Primary Dealer Credit Facility was equities or bonds ranked below investment grade. A further 17 percent was unrated credit or loans, according to a Financial Times analysis of Fed data released this week.

Pimco's McCulley to Retire From Investing for Think-Tank Post (Bloomberg)
McCulley will leave at year-end and take time off before becoming a public speaker, researcher and writer at the Global Interdependence Center, according to a letter sent to clients yesterday.

Portuguese Banks Face Downgrade (WSJ)
S&P said it has put Banco Santander SA's Totta S.A., Banco Comercial Portugues SA, Banco Espirito Santo SA, Banco BPI SA and state-owned Caixa Geral de Depósitos S.A. on credit watch "with negative implications," after it did the same with Portugal's long-term rating earlier in the week.

Tweeting Rules May Leave Brokers With Little To Say (Bloomberg)
Finra requires companies to supervise and store all broker- client exchanges, such as e-mails and now Twitter posts and Facebook updates. Brokerages also are required to approve most postings on websites, Tom Pappas, vice president of advertising regulation at Finra, said in an interview. Finra released a regulatory notice in January with guidelines for firms using social media. “We issued these standards to help firms understand and follow the rules,” Pappas said.

Don't Call Ackman A Hedge Fund (Dealbook)
The head of Pershing Square Capital Management, to a packed audience at Bloomberg’s 2010 Hedge Fund Conference, addressed an increasingly common question: What is a hedge fund? “I don’t think anyone wants to be a hedge fund,” said the activist investor. “Hedge funds do evil things, and Congress doesn’t like hedge funds.“ In deadpan, Mr. Ackman continued: “I’m not a hedge fund. Next year, you’ll have to name the conference something else,” he told the room to laughter. So exactly what is a hedge fund then? “Hedge funds are really a compensation structure,” said Mr. Ackman, getting serious for a moment.

Young Unemployed Are In 'Catch-22' Situation (CNBC)
The world faces a “huge challenge” to bring the offer from universities, from colleges, in line with the needs of the private sectors in business, Salazar said in an interview on the sidelines of the Global Youth Employment conference in London. Young people “are in a kind of Catch-22 situation, they don't have work experience therefore employers don't use them, don’t prefer them," he said. “They are kind of in a vicious circle.” “Another trap is the business cycle, they are the first ones to be fired and last ones to be hired,” Salazar added.

JPMorgan, Deutsche Bank Battle for Rich as Rules Change (Bloomberg)
JPMorgan, the biggest U.S. bank by market value, plans to increase its wealth management staff in Europe, the Middle East and Africa by as much as 20 percent a year until 2013. Frankfurt-based Deutsche Bank is bulking up its Asia business after buying Sal. Oppenheim Group, Germany’s biggest independent private bank, nine months ago, said spokesman Klaus Winker.

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