Opening Bell: 10.28.15

AB InBev explores sale of US assets; Hillary Clinton is serious about breaking up big banks; Employees don't want your stinking stock; Man turns violent after being asked to sit out Monopoly tournament; and more.
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Walgreens Boots Alliance to Buy Rite Aid for $17.2 Billion (Bloomberg)
The transaction would combine the second- and third-largest drugstore chains in the U.S., with a total of about 12,800 locations, helping Walgreens vault past market leader CVS Health Corp. The acquisition will add to Walgreens’ earnings beginning a full year after completion and will produce more than $1 billion in savings from cost overlaps, the companies said Tuesday in a statement. Including debt, the deal is valued at $17.2 billion, they said.

AB InBev eyes asset sale to seal SAB deal (FT)
Anheuser-Busch InBev has hired bankers to explore a sale of US assets, in a move seen as crucial to winning regulatory approval for a proposed £68bn merger of the two brewers. The assets include SABMiller’s stake in a joint venture with Molson Coors. Lead adviser Lazard and Barclays have been appointed to sell SAB’s 58 per cent stake in the joint venture, which could fetch as much as $10bn, according to people briefed on the matter. The hiring comes as AB InBev and SAB agreed to extend Wednesday’s deadline to complete the terms of the deal, a move expected to be granted by the UK Takeover Panel, people familiar with the situation said. The extension highlights the complex nature of the deal and the amount of work and people involved, including 21 banks working on AB InBev’s financing.

Hillary Clinton Gets Serious About Breaking Up Big Banks on Stephen Colbert (Bloomberg)
Her stated refusal to bail out the big banks—to let them fail, if a 2008 scenario were to repeat itself—was a crystallization, a hardening, of her economic position. “First of all, under Dodd-Frank, that is what will happen because we now have stress-tests and I’m going to impose a risk fee on the big bank if they engage in risky investor," she said. "And they have to know, what their shareholders have to know is, yes, they will fail. And if they're too big to fail, then, under my plan and others that have been proposed, they may have to be broken up.”

The Bitcoin Startup Boom Comes Back Down to Earth (Bloomberg)
After an aggressive start to 2015 that entailed venture capitalists kicking $373 million into bitcoin startups in the first half of the year, growth slowed substantially in the third quarter, according to data from researcher CoinDesk. The $85 million in investments last quarter represents a relatively modest growth rate of 15 percent from a year earlier and a 41 percent drop from the previous quarter.

Grocery Store Bans Egg Sales To Minors Around Halloween (HP)
Local resident Frank Tkachenko told The Huffington Post that he posted a photo of the sign -- which states the age restrictions are due to “safety concerns” -- online after his friend sent him the snapshot. Tkachenko said his friend took the photo at a Redner's Market store in Langhorne, but noted that he's heard of similar signs at other Redner's locations...Lancaster Online reported last year that the "no eggs to minors" rule is a chain-wide policy during the week surrounding Halloween, apparently to prevent eggings. Pete Bourey, assistant store director in Ephrata, Pennsylvania, told Lancaster Online at the time that “there’s usually not a good outcome” when teens purchase eggs in late October. He also said he had not heard any complaints about the policy.

Goldman Sachs to Spin Out Mobile-Phone Software Projects Into Separate Venture (WSJ)
The New York investment bank said it is spinning out a collection of mobile-phone software it developed in-house into a new venture. That entity will be managed and majority-owned by Synchronoss Technologies Inc., a publicly traded software firm that is increasingly trying to target business customers, the companies said.

Brazilians Expect Crisis to Linger for at Least 3 More Years (Bloomberg)
Brazil’s economy will contract 3 percent this year and 1.4 percent in 2016, according to analysts surveyed by the central bank. That would be the first back-to-back recession since 1931.

Paying Workers in Stock Can Be a Tough Sell (WSJ)
“It’s a little bit like paying your employees…in lottery tickets,” says Dirk Jenter, an associate professor of finance at the London School of Economics and the Stanford Graduate School of Business who studies employee attitudes toward equity compensation. “Most people prefer cash.”

Man goes directly to jail for brawl at Missouri Monopoly tournament (UPI)
Organizers of Saturday's 7th Annual Stone County OACAC Monopoly Tournament in Branson, Mo., told police John Litton, 69, turned violent when he was asked to sit out from this year's tournament after he allegedly engaged in unsportsmanlike conduct during last year's game. Police said there were no serious injuries when the tournament -- like so many Monopoly games -- descended into a brawl. Litton was taken directly to the Stone County Jail on charges of third-degree assault, disturbing the peace and trespassing. He was ordered held without bond.

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Opening Bell: 11.12.15

AB InBev seals SABMiller deal; Argentina finally pays off for hedge funds; $50,000 headphones; "Shia LaBeouf Live-Streams Himself Watching All of His Movies"; and more.

By Captain-tucker (Own work) [CC BY-SA 3.0], via Wikimedia Commons

Opening Bell: 9.27.16

Stumpf forfeits $41 million; Germany has no plans to save Deutsch Bank; SABMiller backs AB InBev takeover; Warren Beatty denies sleeping with 12,775 women; and more.

Opening Bell: 02.27.13

Bernanke Affirms Bond Buying (WSJ) In his semiannual report to Congress Tuesday, Mr. Bernanke said the bond buying is helping the economy by holding down long-term interest rates and ought to be sustained. "Keeping long-term interest rates low has helped spark a recovery in the housing market and has led to increased sales and production of automobiles and other durable goods," he said. The Fed has accumulated $2.8 trillion of Treasury and mortgage securities. Mr. Bernanke's remarks signaled little change in the central bank's plans to purchase $85 billion a month of long-term Treasury and mortgage debt. The Fed's next policy meeting is March 19-20. Regulators Hope For Libor Pacts (WSJ) Regulators investigating alleged interest-rate manipulation are hoping to reach settlements with at least three major financial institutions by the end of summer, according to a person familiar with the probes. It isn't clear if the companies will go along with any proposed settlements, and previous agreements with banks were delayed before being completed. So far, regulators have settled rate-rigging charges with Barclays, RBS, and UBS collecting about $2.5 billion in penalties. All three banks admitted that employees sought to rig rates. Barclays to Unveil Numbers Earning 1 Million (FT) Barclays is set to reveal the number of staff who earned above 1 million pounds ($1.5 million) last year, in a push for transparency that could turn the bank into a trailblazer for the sector. In its annual report next week, the British retail and investment bank will for the first time give an outline of the various pay brackets among its 140,000 staff, people close to the situation said. Analysts estimate that between 600 and 700 employees – mostly in the investment bank – will be revealed as having taken home more than 1 million pounds last year. JPMorgan To Cut 17,000 Jobs (WSJ) The move announced Tuesday by the New York company, the nation's most profitable bank in 2012 and the biggest U.S. lender by assets, will reduce its staff by 6.5% in one of the most aggressive reductions to date amid widespread financial-industry cutbacks. Bond brawl: Singer v. Argentina today (NYP) Lawyers Ted Olsen and David Boies will appear before a Manhattan US appeals court to argue over how $1.44 billion in Argentina debt should be paid. Olsen represents billionaire hedge fund magnate Paul Singer, who claims he and other bondholder holdouts should be paid alongside those holders who agreed to a steep haircut during a debt restructuring. Argentina President Cristina Kirchner has long insisted she will never pay “one dollar” to the Singer holdouts. Boies represents the bondholders who agreed to the restructuring — and they oppose Singer, believing that Argentina will never go along with a pro-holdout ruling, thus putting their bonds at risk of default. Cops: Florida Man, 36, Assaulted Teen Relative With Taco Bell Burrito (TSG) The victim told cops that he was having a “verbal altercation” with his mother and Brown, his brother-in-law, when Brown “asked his mother to bring him the burrito,” according to an arrest affidavit. Brown then allegedly threw the burrito “with force” at the victim, striking the boy in the face with the fast food item. While interviewing the teen, cops noted that he had “burrito cheese, sauce and meat all over his clothing and face.” Brown told police that the victim was disrespectful to his mother and had cursed at the woman. He also acknowledged that he had “delivered” the burrito. After being booked into the county jail, Brown warned that he would “take care” of the teen upon his release from custody, adding that the victim “was going to get knocked out.” Best Buy Takeover Attempt by Founder in Jeopardy (Reuters) Best Buy founder Richard Schulze's effort to take the company private is in trouble after attempts to secure financing faltered while an alternative strategy to line up minority investors may not pan out either, five sources familiar with the matter said. No longer pursuing a full takeover bid for the troubled electronics retailer, Schulze has focused discussions in recent weeks on a potential deal in which private equity firms would buy a non-controlling stake, the sources, who declined to be named because the discussions are private, said. 'Penta-Millionaires' Happier Than Merely Rich: Study (CNBC) Breaking: A survey from Spectrem Group found that individuals worth $5 million or more are far more satisfied with their jobs, relationships and work than those worth $100,000 or less. Dimon Says Banks Have More Capital Than They Can Use (Bloomberg) The biggest U.S. banks are lending the smallest portion of their deposits in five years as cash floods in from savers, a slow economy damps demand from borrowers and regulators push financial firms to bolster themselves against any future credit crisis. The average loan-to-deposit ratio for the top eight commercial banks fell to 84 percent in the fourth quarter from 87 percent a year earlier and 101 percent in 2007, according to data compiled by Credit Suisse Group AG. JPMorgan had the lowest ratio in the group at 61 percent. “I don’t want to say it’s anti-American” to be held to international standards, Dimon said, adding that the bank’s assets include highly rated securities. “That balance sheet is almost as liquid as you can get.” Budweiser Has Been Sued 3 Times for Watering Down All Those Watery Beers (Atlantic Wire) The plaintiffs — including one guy who bought a case of Michelob Ultra a month, for some reason — allege that the public doesn't know what all the beers under the Budweiser umbrella really taste like, and that they're not getting their money's worth. There is no science backing up the defendants' claims, and AB InBev has yet to respond in court. The krux of the evidence comes from "information from former workers" of Anheuser-Busch breweries who claim watering down the beer in post-production is a company policy.

Opening Bell: 9.16.15

AB InBev wants SABMiller; Kynikos gains; Bridgewater loses (and tells investors to f*ck off); Young Wall Street has no idea what a rate hike looks like; "Man Throws Brisket At Woman During Beef At BBQ Fest, Police Say"; and more.

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Opening Bell: 7.26.16

AB InBev ups SABMiller offer; Deutsche Bank must face subprime suit; Marissa Mayer probably won't get another CEO job right away; Man head-butted mother in face because she brought home Chick-fil-A for dinner; and more.

Opening Bell: 11.12.12

Leucadia Agrees to Buy Jefferies for About $2.76 Billion (Bloomberg) Leucadia National Corp agreed to buy the the portion of Jefferies Group it doesn’t already own for about $2.76 billion. Investors will receive 0.81 Leucadia share for each Jefferies share they own, the companies said today in a statement. The deal values the entire company at about $3.59 billion, based on data from the company’s most recent 10-Q regulatory filing. Jefferies management will run the firm, according to the report. Leucadia already holds about 28.6 percent of New York-based Jefferies. Jefferies Chief Executive Officer Richard Handler will become CEO of New York-based Leucadia after the transaction is completed, which the companies said they expected in the first quarter. Handler will remain CEO of Jefferies as well. “This transaction represents the realization of a personal dream for me,” Handler, 51, said in the statement. Greece Passes 2013 Austerity Budget (WSJ) Greece passed on Monday a 2013 austerity budget needed to unlock further funding for the cash-strapped country, although international creditors have indicated the disbursement may be weeks away as they squabble over how to resolve the nation's debt problems. Euro-zone finance ministers will meet Monday in Brussels, where they had been expected to approve Greece's next aid payment of €31.5 billion ($40 billion), but no decision is now expected until they are assured the country's overhauls are on track. The budget, approved by a 167-128 vote, foresees Greece taking €9.4 billion of budget cuts next year, dealing a fresh blow to an economy seen contracting 4.5% next year, its sixth year of recession. Spain Needs A Bailout Urgently: Former ECB Member (CNBC) Bini Smaghi told CNBC that Spain must not waste any more time and that it needed to apply for help from Europe's bailout fund. "They need to revitalize the economy and they need lower interest rates [and] the only way to do that [is] to request a program," he said, adding that Spain should have done so "yesterday." White House Plans Public Appeal On Deficit (WSJ) Mr. Obama has planned the meetings as policy makers start work to craft a package of deficit-reduction measures that could come in place of the so-called fiscal cliff, the mandatory spending cuts and tax increases scheduled to begin in January. His meetings with labor and business leaders come before he meets with congressional leaders Friday, evidence the White House believes Mr. Obama can use momentum from his re-election to marshal outside support and heighten pressure on Republicans to agree to tax increases on upper-income earners. The strategy comes as many Republicans appear to have softened their antitax rhetoric in the wake of the election, with many openly acknowledging that higher taxes will likely be part of any plan to reduce the deficit. Boehner Tells House GOP to Fall in Line (NYT) On a conference call with House Republicans a day after the party’s electoral battering last week, Speaker John A. Boehner dished out some bitter medicine, and for the first time in the 112th Congress, most members took their dose. Their party lost, badly, Mr. Boehner said, and while Republicans would still control the House and would continue to staunchly oppose tax rate increases as Congress grapples with the impending fiscal battle, they had to avoid the nasty showdowns that marked so much of the last two years. Members on the call, subdued and dark, murmured words of support — even a few who had been a thorn in the speaker’s side for much of this Congress. It was a striking contrast to a similar call last year, when Mr. Boehner tried to persuade members to compromise with Democrats on a deal to extend a temporary cut in payroll taxes, only to have them loudly revolt. No Increase Of Banker Bonuses This Year (NYP) That’s the dour view of executive-compensation firm Johnson Associates, which says investment-banking business is so slow that after the sector’s workers bore the brunt of most of the 7,000 job losses on the Street this year, they will find the bonus pie smaller as well. “It’s a tremendous drop from five years ago. If you were getting an average bonus of $400,000 back in 2007, then this year it will probably be around $200,000 or $250,000,” says Alan Johnson, managing director of Johnson Associates...However, fixed-income executives, who sell bonds, should see bonuses rise this year by something between 10 percent and 20 percent. Deputies: Man impersonated federal officer to get into Epcot for free (Orlando Sentinel) A 74-year-old Miami man who was trying to avoid paying nearly $100 to get into Epcot, was arrested after he impersonated a Federal officer. Emerito Pujol flashed a fake badge at an Epcot employee as he passed through the turnstiles at the park around noon on Saturday. The employee challenged him and asked to see the badge again. He claimed he was an undercover officer who was looking for someone, according to an arrest report. When a security guard approached him, Pujol again claimed he was "in service" and was "guarding someone important," the report states...Pujol was arrested and charged with unlawful use of a police badge, falsely impersonating an officer and petty theft. No Individual Charges In Probe Of JPMorgan (WSJ) The top U.S. securities regulator doesn't intend to charge any individuals in its planned enforcement action against J.P. Morgan for the allegedly fraudulent sale of mortgage bonds, according to people close to the investigation. The largest U.S. bank by assets will pay a significant financial penalty under the proposed deal, which has been approved by Securities and Exchange Commission staff but not by the agency's five commissioners, said the people close to the probe. Nomura Launches Private Equity Index (FT) The Japanese bank will look to match the returns of private equity funds – which take over companies, restructure them, and then seek to sell them at a profit – by investing in publicly traded companies in sectors that are attracting attention from buy-out groups. Morgan Stanley Sues Ex-FrontPoint Manager Over Insider Trading (Reuters) In a complaint filed in Manhattan federal court on October 31, Morgan Stanley sued ex-FrontPoint Partners hedge fund manager Joseph "Chip" Skowron over the funds the bank paid to the U.S. Securities and Exchange Commission. The lawsuit also called for unspecified compensatory and punitive damages. Doctor-turned-stock picker Skowron pleaded guilty in August to trading stock of Human Genome Sciences Inc in 2008 based on non-public information he admitted to having received from a consultant for the biotech company, who also pleaded guilty to insider trading charges. Skowron was sentenced to five years in prison and ordered to forfeit $5 million. "Beyond the harm attendant to having one of its managing directors plead guilty to serious criminal conduct, the firm expended its own reputational capital by defending Skowron during the years it believed, based entirely on his misrepresentation, that he had not violated the law," the complaint said. So, maybe that Romney face tattoo wasn’t such a good idea... (Politico) With the election over, supporters of Mitt Romney have to pack up their campaign signs and paraphernalia and get on with their lives. But what if you can’t get rid of that stuff? Literally. Eric Hartsburg caught some attention in the weeks leading up to the election for having the Romney campaign’s logo tattooed on his face. Suffice to say, he’s not happy with Tuesday’s results. “Totally disappointed, man,” Hartsburg told POLITICO. “I’m the guy who has egg all over his face, but instead of egg, it’s a big Romney/Ryan tattoo. It’s there for life.” Hartsburg’s tattoo covers a 5-by-2 inch space on the side of his face, and he did it after raising $5,000 on eBay for the effort. He didn’t even tell his wife he planned to get the tattoo until about an hour before. “Right away, she was taken aback,” Hartsburg said, adding that his wife is also a Romney/Ryan supporter. “My 15-year-old son, however, he was all about it.”

Opening Bell: 09.24.12

Germany Losing Patience With Spain as EU Warns on Crisis Effort (Bloomberg) Germany’s governing coalition showed growing exasperation with Spain, as a senior ally of Chancellor Angela Merkel said Prime Minister Mariano Rajoy must stop prevaricating and decide whether Spain needs a full rescue. “He must spell out what the situation is,” Michael Meister, the chief whip and finance spokesman for Merkel’s Christian Democratic Union, said in an interview in Berlin today. The fact he’s not doing so shows “Rajoy evidently has a communications problem. If he needs help he must say so.” Germany Dismisses Talk of Boosting Bailout Fund (WSJ) Europe is discussing ways to leverage the assets of its €500 billion ($649.05 billion) bailout fund through the involvement of private-sector investors, but reports that this could boost the firepower of the European Stability Mechanism to more than €2 trillion are "completely illusory," a spokesman for the German Finance Ministry said on Monday. Cost of Leaving Greece Rises for Crédit Agricole (WSJ) Crédit Agricole will likely have to pour a further €600 million ($779 million) to €700 million into its flailing Greek unit before it will be able sell the subsidiary, according to people from both the private and public sectors with knowledge of the sales process. Under Ben Bernanke, An Open And More Forceful Fed (WaPo) In what might be his final years as chairman of the Federal Reserve, Ben S. Bernanke is transforming the U.S. central bank, seeking to shed its reclusive habits and make it a constant presence in bolstering the economy. The new approach would make the Fed’s policies more responsive to the needs of the economy — and likely more forceful, because what the Fed is planning to do would be much clearer. A key feature of the strategy could be producing a set of scenarios for when and how the Fed would intervene, which would mark a dramatic shift for an organization that throughout its history has been famously opaque. Bernanke has already pushed the Fed far along this path. The central bank this month pledged to stimulate the economy until it no longer needs the help, an unprecedented promise to intervene for years. That’s a big change from the Fed’s usual role as a curb on inflation and buffer against financial crises. “It’s a re-imagining of Fed policy,” said John E. Silvia, chief economist at Wells Fargo. “It’s a much more explicit commitment than people had thought about in the past. It’s a much stronger commitment to focus on unemployment.” Economists Say US Needs More Taxes, Spending Cuts (AP) A slight majority of respondents — 59 percent — said that current U.S. monetary policy was "about right." The percentage replying that monetary policy was "too stimulative" fell slightly compared with the percentage that held that same view in March, while the proportion answering that policy was "too restrictive" edged up. Flight attendant brings revolver through Philly airport security (NYDN) Republic Airlines flight attendant Jaclyn Luby was walking through airport screening around 6:50 a.m. when she placed her carry-on bag through the X-ray machine. Transportation Security Administration screeners saw the gun, described as a .38 caliber Smith and Wesson Airweight revolver, and notified a Philadelphia police officer. Luby was in another screening room with police when the gun went off. The bullet fired into a TSA break room, where an employee was sitting, police told NBC 10 Philadelphia. The gun discharged when the officer tried to put the safety on. Luby, a flight attendant for more than five years, told authorities that she had a permit to carry a gun — but forgot hers was in her handbag...“We are human and everybody does make mistakes and I understand that, even though she’s a seasoned veteran, she needs to be careful,” US Airways passenger Andrea Burger said, adding, “I’m sure it will be a great learning opportunity for her.” Winkelvoss Twins Weigh In On Facebook IPO (NYP) Cameron and Tyler Winklevoss have put their $65 million Facebook lawsuit settlement money to work, starting Winklevoss Capital, a venture-capital firm focused on technology investments. The duo were asked by Yahoo!’s Daily Ticker what went wrong with the Facebook initial public offering. Cameron Winklevoss said the insiders got greedy and didn’t leave something on the table. “I think when you alienate a group of investors, it takes time to build that rapport back.” Tyler Winklevoss thought the hoodie and “hacker way” ethos didn’t play well with public investors. Mark Zuckerberg’s business model “might work in Silicon Valley with venture-capital firms, but when you go public and you’re talking to the Street, they’re much more concerned with numbers and bottom line and accountability.” Hedge Funds Cut Bets as Prices Drop Most Since June (Bloomberg) Hedge funds cut bullish commodity bets for the first time this month as weaker manufacturing from China and Europe eclipsed central banks’ efforts to boost growth, driving down prices the most since June. Money managers decreased their net-long positions across 18 U.S. futures and options by 1.7 percent to 1.307 million contracts in the week ended Sept. 18, halting two weeks of gains that had sent holdings to a 16-month high, U.S. Commodity Futures Trading Commission data show. Wells Fargo Should Buy CIT Group, Says Analyst (Reuters) FYI. U.K. to Set Up Business Bank (WSJ) The U.K. government is investing £1 billion ($1.62 billion) to set up a new state-backed business bank that it hopes will eventually support up to £10 billion of new lending for small and medium-size companies, Business Secretary Vince Cable will announce on Monday. The new wholesale bank, which will operate at arms length from the government, aims to attract more than £1 billion of private-sector capital to help tackle what it sees as the long-standing problem of a lack of credit for smaller companies. Houston Officer Kills Double Amputee in Wheelchair (AP) A Houston police officer shot and killed a one-armed, one-legged man in a wheelchair Saturday inside a group home after police say the double amputee threatened the officer and aggressively waved a metal object that turned out to be a pen. Police spokeswoman Jodi Silva said the man cornered the officer in his wheelchair and was making threats while trying to stab the officer with the pen. At the time, the officer did not know what the metal object was that the man was waving, Silva said. She said the man came "within inches to a foot" of the officer and did not follow instructions to calm down and remain still. "Fearing for his partner's safety and his own safety, he discharged his weapon," Silva told The Associated Press.

Opening Bell: 2.18.16

Bank stock-rout hits bonuses; Derek Jeter invests in whistleblower app; Ray Dalio says expect lower returns, higher risk; Hookers 4 Hillary Offers 'Extras' To Nevada Clinton Supporters; and more.