Goldman Sachs Earnings Collapse, Wells Fargo Thrives (Bloomberg)
Goldman Sachs, whose shares have fallen 43 percent this year, may report its lowest quarterly profit since the 2008 financial crisis. Far from Wall Street, Wells Fargo is headed for record earnings...Goldman’s earnings will collapse to breakeven in the third quarter from $2.98 per share a year earlier, according to the average of 24 analysts’ estimates compiled by Bloomberg. That would be the lowest since the fourth quarter of 2008, when the firm posted its only quarterly loss since going public in 1999. Twelve of the analysts expect Goldman Sachs to report a loss for the three months on Oct. 18, driven by declines in its investments in companies such as Industrial & Commercial Bank of China (1398) Ltd., which fell 35 percent in the quarter in Hong Kong trading, and other assets such as real estate.
Wall Street Shrinkage (WSJ)
New York City's securities industry could lose nearly 10,000 jobs by the end of 2012, New York state's comptroller predicted, a painful blow to the area's economy and government budgets. In a report set to be released Tuesday, Comptroller Thomas P. DiNapoli also said bonuses are likely to shrink this year, reflecting lower profits on Wall Street.
'Millionaire' Home Visits Add To Wall Street Protests (Crain's)
The coalition of labor, community and advocacy groups that organized last week's 15,000-person march to support the protest in lower Manhattan is planning a “Millionaires March” for Tuesday afternoon that will visit homes of some of the city's wealthiest residents. JP Morgan Chase CEO Jamie Dimon, billionaire businessman David Koch, financier Howard Milstein, News Corp. CEO Rupert Murdoch and hedge fund maven John Paulson are all expected to receive visits at their homes.
Rio Tinto Says Greece Risk Overdone (Bloomberg)
“My sense is that the expectations are actually more gloomy than what is taking place on the ground,” Tom Albanese, chief executive officer of Rio Tinto, said today in an interview in Seoul. “From what I’m seeing, the actual real economy is probably doing better than the financial markets are worrying about.”
Blankfein Cancels Barnard College 'Power Talk' (Bloomberg)
Sorry, ladies: “Mr. Blankfein’s office informed us that he would be unable to deliver his lecture as planned, due to an unavoidable scheduling conflict,” Kathryn Kolbert, director of Barnard’s Athena Center for Leadership Studies, said in an e-mailed statement. “We expect that his talk will be rescheduled for a future date.” The “Power Talk” with Blankfein was cancelled because he “must be in Washington D.C. that evening,” the Athena Center said on its website.
NBA's First Two Weeks Cancelled (WSJ)
The cancellation came after a seven-hour meeting at a Manhattan hotel on Monday. There are no further meetings scheduled and no timetable for when more games could be axed. Mr. Stern said that any financial losses incurred in the stretch will be factored in as negotiations move forward. The league has said it stands to lose hundreds of millions of dollars.
Pimco's Balls Doesn't See Buy Signal for European Sovereigns (Bloomberg)
"They need a medium-term plan for greater fiscal integration and to promote growth," said Balls, head of European portfolio management at Pimco in London, in a Bloomberg Television interview on "In the Loop" with Betty Liu. "Everybody expects a default in Greece. You need to have a plan to prevent contagion. You need to make it credible."
Bond Yields Show 60% Odds Of Recession (Bloomberg)
“The adjusted curve is giving a powerful signal for an upcoming U.S. recession,” said Ruslan Bikbov, a fixed-income strategist in New York at Bank of America, one of the 22 primary dealers of U.S. government securities that trade with the Fed. “If that happens, the Fed’s target rate could remain near zero beyond 2014,” more than a year longer than the central bank has indicated, he said in an interview on Oct. 3.
China Props Up Bank Shares (WSJ)
"The government clearly sent a message that it wants to boost confidence in the market," said Wu Dazhong, an analyst at Shenyin Wanguo Securities. Some are skeptical. "Unless market participants can get a more credible picture of balance-sheet risks…we expect share prices to remain quite volatile," said Sarah Wu, an analyst with UBS, in a note before Monday's intervention. She said banks face a "credibility gap" between what they "are actually reporting and what the market is willing to believe."
Jon Corzine: Occupy Wall Street 'Bookend To Tea Party' (CNBC)
"It happens to have a more left-wing point of view but it's the same as the Tea Party in 2009. People are not satisfied that government is resolving the problems that matter in their lives."
Bloomberg: Occupy Wall Street Can Stay Indefinitely (Metropolis)
Bloomberg said on Monday that he’ll allow the Wall Street protesters to stay indefinitely, provided they abide by the law, marking his strongest statement to date on the city’s willingness to let demonstrators occupy a park in Lower Manhattan. “The bottom line is – people want to express themselves. And as long as they obey the laws, we’ll allow them to,” said Bloomberg as he prepared to march in the Columbus Day Parade on Fifth Avenue. “If they break the laws, then, we’re going to do what we’re supposed to do: enforce the laws.” Bloomberg said he has “no idea” how much longer the Wall Street demonstration will last. “I think part of it has probably to do with the weather,” he said.
Kanye West, Russell Simmons Lend Support To Occupy Wall Street Protestors (NYDN)
West and Simmons They caused a brief frenzy in the crowd of protesters before Simmons went to appear on Al Sharpton's radio show and West took off. "I love how sweet and tolerant he was to the crowd," Simmons tweeted about West. On Sharpton's show, which was being broadcast from the sunny park, Simmons said that as a member of the wealthy "1%," he is willing to pay more taxes. "I'm happy to pay a little more taxes if it means better education for our children," he said. "I don't pay enough taxes and I know it." He said it shouldn't just be him, though. "I want to write a check when everybody else does," he said.