Gross Says Global Selloff Shows Failure of Central Bank Efforts (Bloomberg)
The rout in global markets is being triggered by investors seeking to reduce leverage as central bank efforts to prop up economies have little effect, according to Janus Capital Group Inc.’s Bill Gross. “Markets sense this lack of growth potential and observe recessions beginning in major emerging-market economies,” Gross, who manages the $1.3 billion Janus Global Unconstrained Bond Fund, wrote in an e-mail. The markets are attempting to balance value at risk “on a daily basis reducing risk but lowering prices.”
Hedge Funds Have a Hot Idea: Retreat (WSJ)
After an abrupt decline that sent the Dow Jones Industrial Average deeper into correction territory, a number of hedge-fund managers are playing defense. Some are stockpiling cash. Others, including some managers who are known for making bold bets on stocks when markets plunge, are bracing for an extended downturn unlike any seen in recent years.
Goldman: Deal Pipeline Is Still Strong (WSJ)
“We wouldn’t say that two weeks of volatile markets would stop a pretty powerful M&A trend,” Goldman Chief Financial Officer Harvey Schwartz said Wednesday during a conference call with analysts.
The Wharton Grad Sensing a Fortune in the World's Most Toxic Air (Bloomberg)
The 43-year-old Wharton graduate began selling pollution masks last year in India, home to some of the planet’s most toxic cities. Gupta reckons he’ll sell 70,000 from January to March -- as much as the whole of 2015 -- and may buy an equity stake in the U.S. company that owns the rights to the products. "India is going to be the biggest market for the masks," he said in a Jan. 11 interview, adding he plans to manufacture and export them from India. Gupta wants to expand into products such as in-car air purifiers and is targeting $30 million in total sales for his company, Nirvana India Pvt., by March 2017.
Motorist fined for using wrench to control car without steering wheel (UPI)
A Chinese taxi driver seeking to save money on a tow truck used a wrench to drive his vehicle to the repair shop without a steering wheel. The driver was recorded in Yinchuan using a wrench to control the vehicle after the steering wheel fell off of its base. Sina Auto reported the driver was taking the vehicle to a repair shop 14 miles away and didn't want to pay for a tow truck.
Capital flight from China worse than thought (FT)
Emerging markets saw an estimated $735bn in net capital outflows last year with all but $59bn of that coming from China. In October, the global finance industry group had predicted 2015 would see net outflows from emerging markets of $540bn, the first since 1988.
American Apparel Founder Charney in Court to Reclaim Company (Bloomberg)
Charney is in Delaware bankruptcy court this week seeking to persuade a judge to throw out American Apparel’s proposed reorganization plan in favor of one that lets him return to the company he created.
Expect Some Unicorns to Lose Their Horns, and It Won’t Be Pretty (Dealbook)
The unicorn wars are coming, as the downturn in the market will force these onetime highfliers to seek money at valuations below their earlier billion-dollar-plus levels, known as “down rounds.”
Lamborghini bursts into flames during Florida valet's joyride (UPI)
Witnesses who captured photos and videos of the scene Dec. 29 near the Lincoln Road Mall in Miami Beach said the $400,000 sports car caught fire when the driver revved the engine too hard while driving past the crowds of people on Lincoln Road. "Guy revving his lambo like an idiot and it catches fire on Lincoln rd. Be safe out there the Bros are in town," witness Tony Merenda said in an Instagram post. Merenda later posted an "update" saying he had learned the car was being taken for a joyride by a valet driver at the time of the fire.