Opening Bell: 11.05.13
J.P. Morgan Talks With Justice Department Gain Momentum (WSJ)
Talks between J.P. Morgan Chase and the Justice Department are heating back up after several disagreements threatened to scuttle a landmark pact between the two last month, people close to the talks said. Comprehensive final terms haven't been reached, but several people said it was possible they could be agreed to this week. The $13 billion deal would resolve a number of probes into the bank's sale of mortgage bonds during the housing boom. Negotiators from J.P. Morgan and the Justice Department are working on final language that would resolve the differences that divided the two sides last week, including the question of whether J.P. Morgan can count $5.1 billion in recent settlements with mortgage-finance companies Fannie Mae and Freddie Mac toward the $13 billion total.
Cohen’s Dream of Soros Status Dies as SAC Pleads Guilty (Bloomberg)
Cohen’s goal has always been to be acknowledged as something greater than a masterful trader, say the friends and colleagues, who asked not to be identified to avoid hurting their relationship with him. Rather, he wants to be included in the pantheon of world-class money managers such as Warren Buffett and George Soros, whose savvy investing history and prescient market calls draw a following on Wall Street, these people say.
Fed in no rush to cut bond buys, top policymakers say (Reuters)
The Federal Reserve should scale back its asset purchases only when the U.S. economy shows clearer signs of improvement and even then it should act slowly, one senior central banker said on Monday, while two others stressed there is no need to rush. The comments suggest the U.S. central bank will be propping up the economy and financial markets for some time to come, and they underscore Fed Chairman Ben Bernanke's repeated promise that stimulus will not be reduced according to a set timeline but rather in response to economic developments.
Gross Loses World’s Largest Mutual Fund Title to Vanguard (Bloomberg)
Gross’s Pimco Total Return Fund has shrunk by $37.5 billion since the start of this year, ending last month with $247.9 billion in assets, according to data provided by Pacific Investment Management Co. in Newport Beach, California, and compiled by Bloomberg. The Vanguard Total Stock Market Index Fund ended October with $251 billion, Vanguard Group Inc. spokesman John Woerth wrote in an e-mail, taking the top spot.
Book About Amazon Is Reviewed on Amazon, by Founder’s Wife (NYT)
In a scathing 922-word review posted on Monday, Ms. Bezos described the book, written by Brad Stone, as “a lopsided and misleading portrait of the people and culture at Amazon.'’ “I have firsthand knowledge of many of the events,” Ms. Bezos wrote, describing her time with Mr. Bezos through the early years of Amazon and 20 years of marriage, including “the basement warehouse closet, the barbecue-scented offices, the Christmas-rush distribution centers, and the door-desk filled conference rooms.'’ “The Everything Store” has received raves for its comprehensive and meticulously researched details about Amazon’s history and Mr. Bezos’s conception of the company. Mr. Stone is a senior writer for Bloomberg Businessweek and a former reporter for The New York Times. In Ms. Bezos’s review, the only one-star review “The Everything Store” has received, she accused Mr. Stone of making factual errors and, noting that Mr. Bezos was “never interviewed for this book,” took issue with Mr. Stone’s use of the phrases “Bezos believed” and “Bezos felt.” Readers, she wrote, should “take note of how seldom these guesses about his feelings and motives are marked with a footnote indicating there is any other source to substantiate them.”
Justin Bieber walks off stage after being hit by water bottle (NYDN)
Bieber, 19, was singing when he was hit by a water bottle that was thrown from the audience...The "Bad Day" singer was obviously peeved by the gesture, as he looked visibly annoyed and walked off stage mid-song. He must have gotten over it quickly, as he later tweeted, "Love u Brazil."
China Buys Its Way Into Silicon Valley (WSJ)
The Chinese firms, which have little consumer business outside their home market, are unloading small fortunes on startups as they strive to understand and eventually gain a foothold in the elusive U.S. market. This week, Tencent Holdings Ltd., a social networking and gaming company, is vying to lead a fundraising round of $200 million in buzzy American messaging app Snapchat Inc., according to people briefed on the matter.
The One Thing People Still Really Like About BlackBerry (BusinessWeek)
...the company’s consumer brand seems irreversibly damaged—with one exception. Last month BlackBerry finally began offering BBM, the company’s instant messaging system, for iOS and Android. The company said that 20 million people downloaded the app in the first week of availability. People actually like using the service, it seems.
China's Central Banker Leads Push to Overhaul Economy (WSJ)
Mr. Zhou's reappointment signals that party leaders are likely to embrace at least some market-oriented reforms in an economic plan due to be released at a meeting of senior party officials scheduled to begin on Saturday. The central banker has long championed a more consumer-based economy in which ordinary people have more money to spend and more loans are available to private firms rather than state-owned behemoths. To that end, his priorities include creating deposit insurance for banks, making higher interest rates available to depositors, creating more privately owned banks and opening China more to foreign investors.
Burglar left cellphone in house; mom's call helped track him, deputies say (Sun Sentinel)
An investigator picked up the phone when it started ringing at the Lake Worth house and the word "Mom" appeared on the screen, according to a Palm Beach County Sheriff's Office arrest report. He asked the woman on the other end who the phone belonged to, and she said her son, Derek Codd.
