Opening Bell: 02.25.11

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Obama Tells Panel US Recovery Harmed By Jobless Rate (Bloomberg)
“The biggest challenge that we’re seeing right now is that unemployment is way too high,” Obama told the 23-member President’s Council on Jobs and Competitiveness yesterday...In the month since he delivered his State of the Union address, Obama has sought to make the case that investments in education, infrastructure and innovation will help create more jobs. He reiterated that message yesterday, telling members of the panel, “We’re going to have to up our game in this newly competitive world.”

Hedge Funds Wary Of Punts On North African Turmoil (Reuters)
Only a handful are starting to hunt ways to profit with investments, for example, in oil and credit protection. "It's a little like the financial crisis in 2008. Many managers are saying, 'how am I supposed to figure this one out?,'" said Morten Spenner, who heads hedge fund of fund manager International Asset Management. "If (Libya's) Gaddafi said tomorrow, 'Look, we've sorted it all out', oil prices could fall as much as 5 or 6 dollars a barrel in a day. And you could be really badly hurt."

Oil Markets Calmer As Libya Supply Fears Ease (WSJ)
"The market is now realizing that there is enough supply to cope with the Libyan disruption," said Christophe Barrett, a global oil analyst at Crédit Agricole. As much as 75% of Libya's oil production may have stopped as rebel forces clash with the country's leader, Moammar Gadhafi. However, European refineries that use Libyan crude are likely to source other oil available in the Mediterranean region, including production from Algeria and Azerbaijan, while members of the Organization of Petroleum Exporting Countries could also raise production to make up for the short-fall.

Citi: US Will Be The World's Third Largest Economy (CNBC)
The world is going to become richer and richer as developing economies play catch up over the coming years, according to Willem Buiter, chief economist at Citigroup. "China should overtake the US to become the largest economy in the world by 2020, then be overtaken by India by 2050," he predicted.

US Economy Grew Slower Than Thought In Fourth Quarter (WSJ)
The U.S. economy sped up slightly at the end of 2010, but the acceleration was slower than previously believed as consumers spent less than first estimated by the government while trade made a smaller contribution to growth. Gross domestic product rose at an inflation-adjusted annual rate of 2.8% in the fourth quarter, the Commerce Department said Friday.

Charlie Sheen Blasts Two And A Half Men Producer (NYDN)
“What does this say about [Chuck Lorre] after he tried to use his words to judge and attempt to degrade me,” Sheen wrote. “I gracefully ignored this folly for 177 shows…I fire back once and this contaminated little maggot can’t handle my power and can’t handle the truth,” he went on. “I wish him nothing but pain in his silly travels especially if they wind up in my octagon.” He boasted that he had “defeated this earthworm with my words” and said that Lorre is lucky he didn’t use his “fire breathing fists.” He implored his fans to rally around him. “I urge all my beautiful and loyal fans who embraced this show for almost a decade to walk with me side-by-side as we march up the steps of justice to right this unconscionable wrong,” Sheen wrote.

How to End a Top-Rated TV Sitcom: The Charlie Sheen Interview (The Atlantic)
Sheen on Chuck Lorre (the co-creator of Two and a Half Men): "I embarrassed him in front of his children and the world by healing at a pace that this un-evolved mind cannot process... I've spent, I think, close to the last decade, I don't know, effortlessly and magically converting your tin cans into pure gold. And the gratitude I get is this charlatan chose not to do his job, which is to write." Sheen on People Who Gossip About Him: "They lay down with their ugly wives and their ugly children and just look at their loser lives and then they look at me and say, 'I can't process it.' Well, no, and you never will! Stop trying! Just sit back and enjoy the show... I'm dealing with fools and trolls. I'm dealing with soft targets, and it's just strafing runs in my underwear before my first cup of coffee." Sheen on Alcoholics Anonymous: "I can't use the word sober because that's a term from those people, and I have cleansed myself. I have closed my eyes and in a nanosecond I cured myself from this ridiculous model of disease ... It's just the work of sissies. The only thing I'm addicted to right now is winning. You know? This bootleg cult arrogantly referred to as Alcoholics Anonymous now supports a 5 percent success rate. My success rate is 100 percent. Do the math!"

Bank of America, Foreclosure Accord, Card Access: Compliance (Bloomberg)
Bank of America Corp. won dismissal of claims by investors that it misled them about the liquidity of its auction-rate securities and manipulated the market for the investments. U.S. District Judge Jeffrey White in San Francisco said in an order yesterday that investors could renew market- manipulation claims if they added more information to their complaints.

London Stock Exchange Hit By Technical Glitch (Reuters)
The UK exchange, which has been working hard to update its trading systems in recent years, did not start trading as planned at 0800 GMT and opened instead at 1215 GMT, with the LSE blaming a technical glitch.

Hedge Funds Cut Food-Price Bets as Grains Take `Harrowing' Fall (Bloomberg)
The 8.6 percent plunge in wheat since Feb. 18 and a decline in corn and soybeans means speculators probably kept cutting positions this week, said Nic Johnson, who helps manage about $30 billion in commodities at Pacific Investment Management Co. in Newport Beach, California. Speculators reduced bets on rising wheat prices by 23 percent in the week ended Feb. 15, Commodity Futures Trading Commission data show. Bullish bets on soybeans fell 18 percent and those for corn slid 3.4 percent.

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Opening Bell: 02.11.13

Two Firms, One Trail, In Probe Of Ratings (WSJ) The Justice Department last week went after Standard & Poor's Ratings Services—not rival Moody's Investors Service —with a $5 billion fraud lawsuit. Some former Moody's employees think they know why. The Moody's Corp. unit took careful steps to avoid creating a trove of potentially embarrassing employee messages like those that came back to haunt S&P in the U.S.'s lawsuit, the former employees say. Moody's analysts in recent years had limited access to instant-message programs and were directed by executives to discuss sensitive matters face to face, according to former employees. The crackdown on communications came after a 2005 investigation by then New York Attorney General Eliot Spitzer into Moody's ratings on some mortgage-backed deals, the former employees say. Former employees also point to an April 2001 settlement between Moody's and the Justice Department's antitrust division over the destruction of documents amid a civil inquiry by the agency. Moody's pleaded to one count of obstruction of justice and paid a fine of $195,000. Moody's called that situation "an isolated incident" and said it cooperated with the Justice Department's investigation. That settlement helped lay the groundwork for heightened concerns about sensitive documents, former Moody's employees say. Credit Rating Victims Didn’t Know S&P’s Toxic AAA Born of Greed (Bloomberg) When Charles O. Prince III was chief executive officer of Citigroup Inc. from 2003 to 2007, he didn’t know about a surge in mortgage risk that his own investment bankers loaded on to its bank’s books. Because such debt carried top credit ratings from firms such as Standard & Poor’s, few financial executives paid attention to the potential dangers. When Charles O. Prince III was chief executive officer of Citigroup Inc. from 2003 to 2007, he didn’t know about a surge in mortgage risk that his own investment bankers loaded on to its bank’s books. Because such debt carried top credit ratings from firms such as Standard & Poor’s, few financial executives paid attention to the potential dangers. Makeover At Barclays Won't Be Extreme (WSJ) Mr. Jenkins's cuts are likely to be focused on areas where Barclays lags far behind competitors, executives say. That could include parts of the equities sales-and-trading businesses in Asia and continental Europe, according to analysts and people at other banks. Those are businesses in which Mr. Diamond spearheaded an ambitious expansion but where Barclays remains a second-tier player. But other changes are driven more by polishing the bank's tarnished image than they are by the need to boost profits. A few business lines that don't seem "socially useful" are likely to end up on the chopping block, executives say. For example, Barclays plans to retreat at least in part from the lucrative trading of "soft commodities" such as coffee, executives say. That is a concession to mounting criticism that speculative trading in those commodities contributes to food-price inflation. "We're a big player, but does it pass the smell test of what society would think of this?" a senior executive said. Mr. Jenkins is also expected to trumpet plans to dramaticallyscale back Barclays's tax-planning business, in which it advises clients on how to minimize their tax burdens. The bank will no longer help clients put together transactions that have no businesspurpose other than reducing taxes. "Such activity is incompatible with our purpose," Mr. Jenkins will say on Tuesday, according to the extract of his speech. But the bank isn't expected to exit the business altogether. It will continue to offer tax-minimizing advice. People familiar with the matter say the business has been hiring employees recently. Putin Turns Black Gold Into Bullion as Russia Out-Buys World (Bloomberg) Not only has Putin made Russia the world’s largest oil producer, he’s also made it the biggest gold buyer. His central bank has added 570 metric tons of the metal in the past decade, a quarter more than runner-up China, according to IMF data compiled by Bloomberg. The added gold is also almost triple the weight of the Statue of Liberty. White House Warns Coming Austerity Will Hit Economy Hard (Reuters) Automatic government spending cuts due to go into effect March 1 unless Congress acts to prevent them would bite deeply into programs affecting many Americans, such as law enforcement, small business assistance, food safety and tax collection, the White House said on Friday. The administration urged Congress to blunt the effect of the reductions, which the White House said would slash non-defense programs by 9 percent across the board and defense programs by 13 percent, the White House said. "These large and arbitrary cuts will have severe impacts across the government," the administration said in a statement. World's most prolific stripper calls it a day (DM) For two decades, the Liverpudlian father-of-three has been the Usain Bolt of the naked dash. In 1995, he leapt naked on to Fred Talbot’s weather map on daytime TV show This Morning, and a year later he appeared nude on the green during the Open at Royal Lytham. Then, in 2004, he was fined £550 for trespassing after streaking across the pitch at the Super Bowl in Texas – a match watched by 130 million people in 87 countries. For good measure, Mark has also stripped off at Wembley, Wimbledon and Ascot. ‘There’s no major venue or event I haven’t done,’ he says proudly. ‘But I’m nearly 49 now and my children have begged me to stop. It’s time. I’m not ready for my slippers just yet, but gravity’s against me.’ Treasury Pick Lew Faces Grilling on Citi Bonus, Cayman Account (Reuters) Jack Lew, President Barack Obama's pick to be U.S. treasury secretary, is expected to come under fire for the administration's budget policies and a nearly $1 million bonus he received from bailed-out bank Citigroup when he testifies on Wednesday before a Senate panel vetting him for the job. The hearing will briefly become ground zero in the pitched political battle over the federal budget, with Republicans set to attack over what they contend is Lew's devil-may-care attitude to reducing the U.S. budget deficit. "He'll be used as a political ping-pong ball," said Ted Truman, a senior fellow at the Peterson Institute for InternationalEconomics who served briefly as an adviser to Obama's former treasury secretary, Timothy Geithner. Treasury Eases Off On Bank Rules (WSJ) The proposal, which will be subject to comment before becoming a final rule, is likely to insist that financial institutions gather beneficial ownership information—who is in charge and who profits—on new corporate accounts, officials said. But in a move that could assuage some industry concerns, financial institutions wouldn't have to vet that ownership data for accuracy. Instead, they would rely on the customer to vouch for the information. With a Focus on Its Future, Financial Times Turns 125 (NYT) On Wednesday, The F.T. is celebrating its 125th birthday. The newspaper’s London headquarters along the south bank of the Thames will be lit up in pink, the color of the paper on which it has been printed since shortly after it was founded. There will be a few parties — understated, of course, for these are straitened times in the City of London, and challenging ones for the newspaper industry. Waxing Our Way To The ER (Salon) A new study from the University of California-San Diego reveals that “Emergency room visits due to pubic hair grooming mishaps,” including “lacerations,” increased fivefold between 2002 and 2010, sending an impressive 11,704 pube-scapers to the E.R. The culprits? Scissors and hot wax did some of the damage, but plain-old non-electric-razors accounted for the lion’s share, at 83 percent...The study also revealed that below-the-belt grooming isn’t just for adult ladies anymore – men accounted for 43.3 percent of the injuries, and almost 30 percent of them were girls under the age of 18. To avoid becoming yet another harrowing grooming gone bad statistic, the researchers advise hair removal aficionados to “Pay attention to where you’re placing that razor. Invest in a non-slip bath mat. And don’t shave while under the influence of drugs or alcohol.”

Opening Bell: 11.24.15

Stress tests will get harder; Steve Carell, Ryan Gosling talk collateralized debt obligations; Icahn has a new target; "Mansion Owner Claims Airbnb X-Rated Scheme"; and more.