Opening Bell: 01.14.11

Author:
Publish date:
Updated on

JPMorgan Profit Rises 47% (MarketWatch)
The bank said this morning its fourth-quarter profit rose 47% to $4.8 billion, or $1.12 a share, from $3.3 billion, or 74 cents a share, in the year-ago period. Revenue increased to $26.1 billion, from $23.2 billion last year. Wall Street analysts expected net income of $1.00 a share on revenue of $24.2 billion, according to a survey by FactSet Research. Investment banking net income fell 21% to $1.5 billion.

SEC Probes Banks, Buyout Shops Over Dealings With Sovereign Funds (WSJ)
The SEC has sent letters of inquiry to banks such as Citigroup Inc. as well as private-equity firms including Blackstone Group LP, the people said. The letters are said to have been sent to as many as 10 firms in the past week, one person said.

Goldman Sachs Reveals Fresh Crisis Losses (FT)
Goldman Sachs has revealed details of about $5 billion in investment losses suffered during the crisis for the first time this week, in a move that will deepen the debate over companies’ financial disclosures. The figures, issued as part of internal reforms aimed at silencing Goldman’s critics, show that the bank suffered $13.5 billion in losses from “investing and lending” with its own funds in 2008.

Facebook Founder's Ex-Friends Won't Stop Suing Him (Bloomberg)
This just in.

Banks Pitch Themselves for AIG Deal (WSJ)
The proposed offering sizes ranged from $20 billion to as much as $40 billion, and some bankers said they were confident of selling a large amount of shares in the $30-$40 range, or higher, the people said. The AIG offering, which has been touted as the "Re-IPO" of the insurer, could be the largest in U.S. history if it exceeds the $23.1 billion sale by General Motors Co. last November. Attendees to Thursday's meetings included JPMorgan Chief Executive James Dimon, BofA CEO Brian Moynihan, Morgan Stanley CEO James Gorman, Barclays Capital Co-Chief Executive Jerry del Missier and Goldman Sachs President Gary Cohn. Other banks that sent representatives to the "bake-off" included UBS AG, Credit Suisse, Deutsche Bank, Wells Fargo and Citigroup.

Fanuc to Build Robot Factory, Count on `Cranes With Brains' to Fuel Growth (Bloomberg)
The use of thousands of robots in its own factories -- the company’s newest tool plant can run mostly unattended for 700 hours each month -- is one of the reasons for Fanuc’s profitability, Inaba said.

Fox Shoots Man (Reuters)
A wounded fox shot its would be killer in Belarus by pulling the trigger on the hunter's gun as the pair scuffled after the man tried to finish the animal off with the butt of the rifle, media said Thursday. The unnamed hunter, who had approached the fox after wounding it from a distance, was in hospital with a leg wound, while the fox made its escape, media said, citing prosecutors from the Grodno region. "The animal fiercely resisted and in the struggle accidentally pulled the trigger with its paw," one prosecutor was quoted as saying.

JPMorgan Recommends Investors Maintain Bullish Bets on Brent Crude Oil (Bloomberg)
Investors should hold on to long Brent positions and buy the spread between March and June contracts, JPMorgan analysts led by Lawrence Eagles, said in a research note dated Jan 13. Drilling delays resulting from regulations in the wake of BP Plc’s Macondo spill will reduce 2011 crude production by 175,000 barrels a day from pre-spill forecasts, while OECD inventories have fallen on recovering demand, the note showed.

Eurozone Inflation Hits 26-Month High (WSJ)
The euro zone's annual rate of inflation rose above the European Central Bank's medium-term target for the first time in more than two years in December, driven by fuel, food, alcohol and tobacco prices, official data showed Friday.

China Has $1.5 Trillion 'Hidden' Debt: Lawmaker (Reuters)
In an interview with Reuters Insider, Yin said local governments had incurred at least 10 trillion yuan ($1.5 trillion) of "hidden" debt, which they have concealed by creating thousands of investment vehicles that serve as borrowers. Yin Zhongqing said it is not yet clear which loans will sour because they do not have to be repaid until the projects are completed.


Hedge Funds' Pack Behavior Magnifies Market Swings
(WSJ)
Hedge funds are crowding into more of the same trades these days, amplifying market swings during crises and unnerving investors. Such trading has stoked market jitters in recent months and helped to diminish the impact of corporate fundamentals on stock-market movements. Droves of small investors have reacted by pulling money from the market, questioning its stability and whether fast-moving traders are distorting prices. The pack behavior undermines the image of hedge-fund chiefs as savvy money managers who sniff out investment opportunities that others don't see—thereby justifying the hefty fees they charge clients. It also suggests that hedge funds are having a harder time coming up with money-making ideas in rocky markets.

Related

Opening Bell: 04.13.12

JPMorgan Profit Slips (WSJ) J.P. Morgan reported a profit of $5.38 billion, down from $5.56 billion a year earlier. On a per-share basis, earnings were $1.31, up from $1.28 as the share count outstanding declined. The latest quarter included a net 8-cent per-share loss tied to litigation expenses and changes in the value of the bank's debt. Analysts polled by Thomson Reuters expected a per-share profit of $1.18, excluding debt-related charges. Revenue rose 6.3% to $27.42 billion. Analysts were looking for $24.68 billion. Wells Fargo reports higher first-quarter profit (Reuters) Wells Fargo, the nation's fourth-biggest U.S. bank, said net income was $4.25 billion, or 75 cents a share, in the quarter, compared with $3.76 billion, or 67 cents, a share in the same period a year earlier. The average estimate from analysts was 73 cents per share. JPMorgan Said to Transform Treasury to Prop Trading (Bloomberg) Achilles Macris, hired in 2006 as the CIO’s top executive in London, led an expansion into corporate and mortgage-debt investments with a mandate to generate profits for the New York- based bank, three of the former employees said. Dimon, 56, closely supervised the shift from the CIO’s previous focus on protecting JPMorgan from risks inherent in its banking business, such as interest-rate and currency movements, they said. Some of Macris’s bets are now so large that JPMorgan probably can’t unwind them without losing money or roiling financial markets, the former executives said, based on knowledge gleaned from people inside the bank and dealers at other firms. Bank Bonus That Tops Salary May Be Banned by EU Lawmakers (Bloomberg) Governments and lawmakers in the 27-nation EU are considering rules for lenders that would go far beyond international agreements approved by the Basel Committee on Banking Supervision. Denmark, which holds the rotating presidency of the EU, has proposed empowering nations to set surcharges of up to 3 percent across their banking systems. Karas yesterday suggested adding language to the legislation that would ban banker bonuses that exceed fixed pay, following calls from other lawmakers to rein in excessive compensation. IMF Lifts Growth Forecast, Cautiously (WSJ) Christine Lagarde, managing director of the International Monetary Fund, said the world economy is marked by "a high degree of instability" even though prospects for global growth are better than they were a few months ago. In an interview with The Wall Street Journal, Ms. Lagarde said the IMF, which marked down its 2012 forecast for global growth in January to 3.3%, has now marked it up to reflect improving conditions in the world economy. But she said the new forecast, to be released next week, remains more pessimistic than the one it made last September, which predicted 4% growth. Europe remains the biggest single risk to the global economy, the former French finance minister said. Hedge Fund Driver Guns DownArmed Robber (NYP) A retired NYPD lieutenant blew away a drugstore bandit yesterday as the suspect tried to gun down three police officers during a foot pursuit, sources said. Thomas Barnes, Barnes — a driver for hedge fund manager Philippe Laffont, was filling his tank at the BP station on East 119th Street and First Avenue at around 11 a.m. when he saw gunman Rudolph Wyatt running from the store, and sprang into action. He crouched behind his hedge-fund boss’ Mercedes SUV and squeezed off three shots, killing Wyatt, 23. The trigger-happy thug — wanted on warrants for two other shootings — lay dead in a pool of blood on the sidewalk wearing a black stocking mask with a wad of stolen cash spilling out of his pocket, witnesses said. “Part of the back of his head was missing. He had a large head wound and there was tons of blood,” said witness John Brecevich, 59, owner of the Original Patsy’s restaurant nearby. “It was a scene straight out of NYPD Blue.” Trustees Aim For MF Execs (NYP) The trustee tasked with clawing back money for burned customers of MF Global is training his sights on the brokerage firm’s executives — a list that likely includes former CEO Jon Corzine. In a statement yesterday, trustee James Giddens said he is considering pursuing claims against “certain responsible individuals” who worked for MF at the time customers’ trading accounts were improperly tapped. Kent Jarrell, a spokesman for Giddens, declined to name names but said the trustee is considering civil suits against “officers, directors or other employees” of both the brokerage firm and the holding company. Fed Officials Differ on Need to Keep Rates Low to 2014 (Bloomberg) William C. Dudley, president of the New York Fed, and Vice Chairman Janet Yellen said the 2014 time-frame is needed to lower unemployment from 8.2 percent. Minneapolis Fed President Narayana Kocherlakota said rising inflation may prompt an interest-rate increase as early as this year, while Philadelphia’s Charles Plosser said policy should hinge on economic performance, not a calendar commitment. Newark Mayor Cory Booker: Race into home fire was a "come to Jesus moment" (CBS) Booker arrived home last night to discover his next-door neighbor's house on fire, and rescued a young woman trapped upstairs by carrying here through the flames, suffering second-degree burns in the process. The mayor's security team discovered the fire and pounded on the door to alert residents, when an elderly woman said that her daughter was trapped upstairs. At first, Newark Police Detective Alex Rodriguez would not let Booker into the burning house. "He basically told me, 'This woman is going to die if we don't help her,' and what can I say to that?," Rodriguez said. "I let him go and without thinking twice, he just ran into the flames and rescued this young lady." Booker said that as he jumped through the kitchen on the second floor, "I actually wasn't thinking. When I got there and couldn't find her in all the smoke, looked behind me and saw the kitchen really erupting with flames all over the ceiling, that's when I had very clear thoughts that I'm not going to get out of this place alive and got ... very religious. He admitted he was "not gentle" with her - "I just sort of threw her over my shoulder and dragged her through the kitchen."

silicon valley ping pong fire

Opening Bell: 5.25.17

Silicon Valley edges out hedge funds in talent war; initial coin offerings are here, they're weird, get used to it; how not to win a House election (hint: it involves body-slamming a reporter); and more.

Opening Bell: 7.16.15

Goldman, Citi, Blackstone earnings; Greece; Icahn v Fink; "Kissing Your Pet Chicken Can Spread Salmonella, CDC Warns"; and more.