Opening Bell: 12.02.11

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Unemployment Slips To 8.6% (WSJ)
The U.S. labor market strengthened in November as private employers continued to add jobs at a healthy pace, while the unemployment rate fell to its lowest level since March 2009. Nonfarm payrolls rose by 120,000 last month, the U.S. Labor Department reported Friday in its monthly survey of employers. Private companies added 140,000 jobs, while the public sector—federal, state and local governments—lost 20,000 jobs. The unemployment rate, obtained by a separate survey of U.S. households, fell to 8.6% in November from 9.0% the previous month. The rate hadn't been below 9% since March, when it was 8.8%. The rate is now lower than at any point since March 2009, when it was 8.6% as well. In another positive development, October's figure for nonfarm payrolls was revised upward to show a gain of 100,000 from a previously reported 80,000, while September was revised up to a 210,000 gain from 158,000.

A Euro Crisis Deal Emerges (WSJ)
In his first appearance before the European Parliament since taking the ECB helm last month, Mr. Draghi offered a road map for policy makers. He called on euro-zone governments to quickly craft a "new fiscal compact," calling it "the most important element to start restoring credibility." He added that "other elements might follow, but the sequencing matters."

Merkel Says Joint Euro Bonds Unthinkable (Bloomberg)
Also: “Marathon runners often say that a marathon gets especially tough and strenuous after about 35 kilometers (22 miles),” Merkel told the lower house of parliament in a speech previewing the European Union summit. “But they also say you can last the whole course if you’re aware of the magnitude of the task from the start.”

Banks See Emerging-Market Rally on ‘Cheap’ Stocks (Bloomberg)
Morgan Stanley’s Jonathan Garner lifted his recommendation to “maximum overweight” for the first time since October 2008, according to a report today. Citigroup Inc.’s Markus Rosgen said Asian stocks may surge 30 percent, while Credit Suisse Group AG’s Sakthi Siva predicted 10 percent gains. Antoine van Agtmael, who coined the term “emerging markets” in 1981 and now oversees $7.4 billion at Ashmore EMM LLC, said the stocks are “cheap.” Pacific Investment Management Co.’s Masha Gordon has been buying equities most reliant on economic growth.

Zynga Looks To Raise $1 Billion (WSJ)
Online games developer Zynga Inc. set the terms of its planned initial public offering Friday, seeking as much as $1 billion by selling 100 million shares at a price between $8.50 and $10. At the $10 end of its IPO range, Zynga commands a valuation of nearly $7 billion, according to an updated prospectus filed Friday.

House Panel Eyes MF Subpoena; Corzine May Be Target (Reuters)
The House Agriculture Committee has scheduled a Dec. 8 hearing to examine the bankruptcy. In a statement late Thursday, it said it will meet on Friday "to consider the issuance of a subpoena to compel the attendance of a witness at the subsequent hearing to examine the MF Global bankruptcy."

Drunk RIM employees disrupt Beijing-bound flight (The Star)
Two drunken Research In Motion employees forced an Air Canada flight from Toronto to Beijing to make an unscheduled stop in Vancouver, disrupting travel plans of more than 300 people. George Campbell, 45, of Conestogo, Ont., and Paul Alexander Wilson, 38, of Kitchener, pleaded guilty to one charge of mischief in Richmond Provincial Court on Wednesday. They were each given suspended sentences and one year’s probation, and ordered to pay restitution to Air Canada of $35,878 each, and barred from having any contact with Air Canada crews or flying that carrier during the probation period. The incident began Monday night aboard Air Canada Flight 31, a non-stop flight from Toronto to Beijing, where the unruly passengers consumed “too much alcohol” and “disobeyed” the flight crew, according to Richmond RCMP...After forcibly restraining the two men, the crew notified the RCMP of the decision at 6:30 p.m. on Monday, and the plane landed at about 10:21 p.m. in Vancouver.

Credit Raters Join The Rated (WSJ)
More than 100 analysts at credit-rating firms have left over the past five years to work for financial companies they once helped to rate, according to recent data aimed at flagging potential conflicts of interests at rating firms.

JPMorgan Follows UBS Cutting Carbon Jobs (Bloomberg)
Investment banks are cutting traders and analysts in climate-related businesses as a slump in shares and carbon emission permits coincides with a deadlock in international climate talks.

Sweden Is Safest as Crisis Upends Bond Market (Bloomberg)
Almost two decades after resolving its last banking crisis, Sweden boasts the world’s best-performing bond market. The country, which opted to stay outside the euro, has paid down its debts and imposed stricter controls on its lenders. Sweden’s government made a profit on its 2008 financial rescue, will post a budget surplus this year and pays less than any other European Union member to borrow for 10 years.

'Hail Fail' Cab Shock (NYP)
An undercover operation paying college kids $10 an hour to pose as cab riders has revealed that hundreds of hacks have refused to take them to the outer boroughs in violation of Taxi and Limousine Commission regulations, authorities said yesterday. The student agents have hailed 1,330 yellow cabs since September and been denied 361 times, according to TLC data. A quick crunch of the numbers shows that drivers were refusing rides 27 percent of the time. The more than 360 guilty cabbies collared in the dragnet face first-offense fines of $500. The young undercovers were looking for lifts to out-of-the-way neighborhoods in Brooklyn, Queens, The Bronx and northern Manhattan. Brooklyn, Queens and The Bronx were the least popular destinations, with refusal rates ranging between 15 and 63 percent during various time frames, the statistics revealed. The TLC partnered with Baruch College and other institutions in February to recruit the “secret shoppers,” as the co-ed operatives are known.

Related

Opening Bell: 03.05.12

Greek Bond Swap Deal Rests on Knife Edge (FT) People close to some bondholders warned other investors to take seriously threats by policymakers that if the deal fails Greece will default on its debt. “Some investors seem to think they will be rescued. That just isn’t the case,” one said. People involved in the deal denied that there was any nervousness about the outcome but nobody was willing to guess how high the participation rate would be. Slim Beats Gates in First Daily Billionaire Ranking (Bloomberg) If you like obsessively measuring your penis you'll love this: Carlos Slim, the telecommunications tycoon who controls Mexico’s America Movil SAB, is the richest person on Earth, according to the Bloomberg Billionaires Index, a daily ranking of the world’s 20 wealthiest individuals...The Bloomberg Billionaires Index takes measure of the world’s wealthiest people based on market and economic changes and Bloomberg News reporting. Each net worth figure is updated every business day at 5:30 p.m. in New York. The valuations are listed in U.S. dollars. Zuckerberg Doesn’t Rank on Billionaire Index (Bloomberg) Sad trombone: At the time of the offering, Zuckerberg is likely to sell about $1.75 billion of Facebook stock to pay off the tax obligation he will incur when he exercises options to buy 120 million shares. The combined transactions will dilute Zuckerberg’s stake from 28.4 percent to about 21 percent. If the company maintains its projected $100 billion valuation, that would make Zuckerberg worth about $21 billion, less than the $28.4 billion implied by his stated ownership. At that net worth, Zuckerberg isn’t rich enough to qualify for the Bloomberg Billionaires Index, a new daily ranking of the world’s 20 richest people. The 20th spot is currently occupied by L’Oreal heiress Liliane Bettencourt. AIG to Sell $6 Billion In Asian Insurer's Stock (WSJ) American International Group Inc. kicked off a $6 billion sale of shares in Asian life insurer AIA Group Ltd. on Monday morning in Hong Kong, moving forward with plans to repay another chunk of its 2008 U.S. bailout. AIG said the shares will be placed with institutional investors and expects them to be priced by Tuesday. The 1.7 billion shares up for sale represent around 14% of AIA, less than half the 32.9% stake AIG holds, according to a term sheet. Proceeds from this week's sale have been earmarked to repay the U.S. government, which rescued AIG from near collapse during the financial crisis with a record $182.3 billion bailout that has been partially repaid. The Treasury Department still has to recoup about $50 billion in taxpayer funds, and about $8.4 billion of that amount will be repaid when AIG sells the AIA shares and other assets, including its airplane-leasing subsidiary. The rest of the money—roughly $42 billion—is supposed to come from the government's sale of its 77% stake in AIG. Lenders Stress Over Test Results (WSJ) The 19 biggest U.S. banks in January submitted reams of data in response to regulators' questions, outlining how they would perform in a severe downturn. Now, citing competitive concerns, bankers are pressing the Fed to limit its release of information—expected as early as next week—to what was published after the first test of big banks in 2009. JFK Airport search of drug mule who said she was three months pregnant reveals she carried $20,000 worth of heroin (NYDN) Awoyemi, coming off an Air France flight from Paris to New York and wearing a “loose-fitting dress” was asked whether she was pregnant, and the woman replied that she was three months along, Homeland Security special agent John Moloney stated in a complaint filed in Brooklyn Federal Court. The customs inspector noted that Awoyemi appeared nervous, so she was selected for a pat-down search. After feeling a “bulge” in Awoyemi’s groin area, the situation escalated to a partial strip-search, according to the complaint. When she dropped her drawers, Awoyemi’s scheme fell apart. Pellets containing brown powder began dropping from her groin area — and the substance tested positive for heroin. Awoyemi was taken to a medical facility at the airport, where the federal cops administered a pregnancy test that came back negative. An X-ray showed more pellets in her intestinal tract, and by the end of the day she had passed about 25 pellets of heroin in a special commode that Customs officials have dubbed the “Drug Loo.” The high-tech toilet sanitizes the incriminating evidence. More On The Morgan Stanley Executive Charged in Cab Hate Crime Attack (Bloomberg) Jennings left a bank holiday party sometime before 11 p.m. and headed to the street, where he was supposed to be met by a car service, Jennings said. He hailed Ammar’s cab after the livery car didn’t appear, according to the report. Ammar said Jennings agreed on the fare and told him he would pay cash. Jennings fell asleep during the trip, the driver said. Once at the destination, though, Jennings said “he did not feel like paying” because he was already home, Ammar told police...When Ammar threatened to call the local police, Jennings said they wouldn’t do anything to help because he pays $10,000 in taxes, according to a report by the Darien police department...The Morgan Stanley executive told police he was afraid to come forward after the incident because the cab driver knew where he lived. He then went on vacation to Florida, police said. Jennings told officers he subsequently called his lawyer after a friend told him police were looking for a suspect in the stabbing incident, according to the report. JPMorgan Star To Launch Own Hedge Fund (FT) London-based Mike Stewart, JPMorgan’s global head of proprietary trading, and former head of emerging markets, is set to start his own new hedge fund, Whard Stewart, in the second quarter, people familiar with his plans said. Mr Stewart’s emerging markets trading team at the bank is expected to join him. The departures come despite word last week that US regulators will probably delay implementation of the so-called “Volcker rule” , under which banks are in effect banned from proprietary trading. Friends With Benefits (NYP) Unlike his fallen pal Raj Rajaratnam, former Goldman Sachs director Rajat Gupta appears to have no shortage of character witnesses willing to testify at his upcoming insider trading trial. Indeed, dozens of well-heeled supporters are already putting their names on the line for the former consulting titan, including world-renowned speaker Deepak Chopra and Mukesh Ambani, the ninth-richest man in the world. “I have never seen him ask for anything for himself, always for the greater good,” Ambani, the chairman of Reliance Industries, said recently on a little-noticed website called friendsofrajat.com. Cigarettes: The Most Stable International Currency (BusinessWeek) Cartons of Good Cat brand cigarettes are selling for as much as RMB5,600 (US$890) per carton in the city of Xi’an, in Shaanxi Province. The suspicion, according to reports this week, is that they are being used to bribe officials. Election Year Poses Challenge For Stocks (WSJ) The Dow is off to its best start to a year since 1998. But if history is a guide, this exuberance soon could give way to the first pangs of electoral anxiety. In a typical presidential-election year, stocks start well but slip into a funk by spring, according to Ned Davis Research, which has measured election-year trends back to 1900. At least in part, the slump reflects the electoral unknowns, Ned Davis has concluded. In a good year, investors deal with their jitters by late summer or early autumn and stocks recover. People get more comfortable with the November election outlook and put money back into stocks. This year, with the Dow Jones Industrial Average up 6.2% in just over two months, many investors and analysts expect a pullback soon. The looming election adds to ambient uncertainty about European debt and U.S. and Chinese growth prospects. Tony Welch, an analyst at Ned Davis Research, says the Dow could pull back 5% or 6% in the coming weeks. "We think the election-year trend could be strong this year," Mr. Welch says. "The market prefers certainty. It doesn't like unknowns." Ochocinco was urinated on by a lion and lived to tweet the tale (YS) The New England Patriots receiver was at a charity event in Miami on Saturday night when he ran into the caged animal. According to Ochocinco's Twitter account, the king of the jungle proceeded to become the urine sprayer at the party. Tweets included: "Swear to lil 10 pound bearded baby Jesus I just got peed on by a real "Lion" I'm not lying either. And y'all wonder why I don't go out!!!!!," "It's not funny i have on my good church clothes," and "I wasn't that close, he sprayed like a water gun."

TrumpMuppetClose

Opening Bell: 8.8.16

Trump readying to announce economic plan today; Walmart spending $3B on e-commerce site; Mark Carney is Ziggy Stardust; and more.

Opening Bell: 04.17.12

Goldman Earnings Beat Expectations (WSJ) For the first quarter, the firm's revenue from fixed income, currency and commodity trading totaled $3.46 billion, down 20% from a year earlier although more than double what the firm booked in the fourth quarter. Investment-banking revenue came in at $1.15 billion, down 9.1% from a year, yet up 35% from a fourth quarter that was bleak across Wall Street. Goldman posted a profit of $2.11 billion, compared with a year-earlier profit of $2.74 billion. Earnings per share—reflecting the payment of preferred dividends—rose to $3.92 from $1.56 a year earlier, topping the $3.55 per-share profit expected by analysts polled by Thomson Reuters. Paulson Said to Short Europe Bonds Amid Spain Concern (Bloomberg) John Paulson, the billionaire hedge-fund manager seeking to reverse record losses in 2011, told investors he is shorting European sovereign bonds, according to a person familiar with the matter. Paulson, 56, said during a call with investors that he is also buying credit-default swaps on European debt, or protection against the chance of default, said the person, who asked not to be identified because the information is private. Spanish banks are of particular concern as their holdings of the country’s debt and client withdrawals make them overly dependent on European Central Bank financing, Paulson told investors. No Double-Dip Deja Vu Seen for U.S. Economy (Bloomberg) “It feels eerily similar to last year, but fundamentally it’s quite different,” said Joseph LaVorgna, chief U.S. economist for Deutsche Bank Securities in New York. He sees the economy growing 3 percent in the fourth quarter from a year earlier, compared with 1.6 percent in 2011. Ainslie's Maverick Makes First Start-Up Seeding In Sycamore Lane (WSJ) Maverick Capital Management LP, the $9 billion investment firm run by Lee Ainslie, has made its first seeding investment in a start-up hedge fund, according to marketing materials sent to investors. According to the materials sent by Sycamore Lane Partners to investors, Maverick provided it with start-up capital, allowing the long/short value-driven equity fund to begin investing April 2. The amount of Maverick's investment isn't outlined, but is described as "significant capital contributions with extended lock through 2015." Alabama Bond Fight Begins New Round (WSJ) Wall Street has sparred with Jefferson County for years over the local government's crippling debt. Now the battle has moved underground, and the two sides are arguing over the condition of 3,200 miles of sewage pipes below Alabama's largest metropolitan area. A federal judge is weighing whether officials of the bankrupt county can divert money that would have gone to pay J.P. Morgan Chase and other debtholders in order to upgrade its leaky sewer system. The case could have far-reaching implications for the $3.7 trillion municipal-bond market. A ruling in the county's favor could upend the notion that holders of debt backed by revenues from utilities such as sewer systems should continue to be paid in full when a municipality files for bankruptcy protection. Toms River Couple Sues Landlord Over Alleged Paranormal Activity (CBS) Jose Chinchilla and his fiancée Michele Callan say they hear eerie noises, that lights flicker, doors slam and a spectral presence tugs on their bed sheets. Chinchilla and Callan are suing the landlord for their $2,250security deposit claiming the paranormal activity forced them out of the home only a week after moving in. For Two Economists, the ‘Buffett Rule’ Is Just a Start (NYT) As much as Mr. Piketty’s and Mr. Saez’s work has informed the national debate over earnings and fairness, their proposed corrective remains far outside the bounds of polite political conversation: much, much higher top marginal tax rates on the rich, up to 50 percent, or 70 percent or even 90 percent, from the current top rate of 35 percent. The two economists argue that even Democrats’ boldest plan to increase taxes on the wealthy — the “Buffett Rule,” a 30 percent minimum tax on earnings over $1 million — would do little to reverse the rich’s gains. Many of the Republican tax proposals on the table might increase income inequality, at least in the short term, according to William G. Gale of the Tax Policy Center and many other left-leaning and centrist economists. Romney Not Too Rich To Relate (Bloomberg) Presumptive Republican presidential nominee Mitt Romney said he isn’t too rich to relate to average Americans and President Barack Obama should “start packing” for a White House departure in 2013. Romney made the remarks in an ABC News interview aired yesterday as Democrats accused him of running a secretive campaign and called on him to release more tax records....Periodically while campaigning this year Romney has made comments drawing attention to his wealth -- and earning scorn from opponents -- including saying he has friends who are NASCAR owners and that his wife, Ann, owns a “couple” of Cadillacs. Brazil’s Unpredictable Central Banker Tombini Confounds Critics (Bloomberg) No central banker in the world’s top 10 economies has surprised analysts as frequently as Brazil’s Alexandre Tombini. Since taking office 15 months ago, Tombini set interest rates lower than economists expected in three out of 10 policy meetings, including an August reduction that all 62 analysts surveyed by Bloomberg failed to anticipate. Russia’s central bank, the second most unpredictable, defied economists in three out of 14 rate decisions in the same period. So far, Tombini has been vindicated. Inflation in Brazil, at 5.24 percent in March, is easing at a pace faster than analysts forecast. While investors have speculated that Tombini may be yielding to political pressure to lower rates, his gloomy assessment of the world economy and risk-taking may prove correct, according to Citigroup Inc.’s Dirk Willer. Husband watching porn online finds film starring his wife (Emirates) An Egyptian man who went online to watch a porno film for the first time got the shock of his life when he found that the woman in the film was his own wife. The man, identified as Ramadan, instantly collapsed in disbelief on the floor at an internet shop before coming round and rushing home to face his unfaithful wife. The woman first denied his allegations and started to swear at him, prompting her husband to face her with the film...“I found 11 films showing my wife in indecent scenes with her lover….it was the first time I watched a porno film and I did this just out of curiosity,” Ramadan told Egyptian newspapers at his house in the northeastern province of Dakhalia...Ramadan said he had been happy during his marriage life until he logged on to that website.