Opening Bell: 6.27.16

EU leaders hope Brits will reconsider; London bets screwed bookies; Goldman predicts UK recession; Sarah Palin compares Brexit to Declaration of Independence; and more.
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By Rlevente [CC BY-SA 4.0], via Wikimedia Commons

Rlevente, via Wikimedia Commons

After ‘Brexit’ Vote, Europe’s Leaders Debate Timing of U.K.’s Departure (WSJ)
Senior officials from 27 European Union states met in Brussels on Sunday and agreed that they would have to wait at least until the appointment of a new British prime minister, likely to be in October, before the U.K. notified them formally of its intention to quit. This marks a shift from recent days, when foreign affairs ministers called on the U.K. to announce it would leave as soon as this week, allowing negotiations over an exit to begin. In Berlin and Brussels, officials suggested they would wait until the chaos in British politics subsided and leave open the possibility that the U.K. would have a change of heart.

Goldman sees post-Brexit UK recession; cuts EU, U.S. growth views (Reuters)
Britain is likely to enter a recession within the year as a result of last week's vote to leave the European Union, a decision that will stunt global economic growth as well, Goldman Sachs' top economists said on Sunday...They also expect knock-on effects in the U.S. and European economies.

Big London Bets Tilted Bookmakers’ ‘Brexit’ Odds (WSJ)
“I can’t remember any time when the bookies were so wrong,” said Christian Gattiker, chief strategist at Swiss private bank Julius Baer Group AG. Betting odds are assumed to convey the “wisdom of the crowds” and take into account a greater range of factors than the snapshot a poll will offer. But far from being purely rational predictors, betting odds can suffer from an array of biases, observers say. For a start, much of the big betting action was coming out of London, a city that voted solidly to remain in the U.K.—by roughly two-thirds. Investors may have suffered from their own biases. The U.K.’s large domestic and international investment community is based almost exclusively in London as well as Edinburgh, which also voted to remain, by a vote of three-quarters.

Cohen’s Point72 Says London Expansion on Track Despite Brexit (Bloomberg)
“When we reopened our London office in January of this year, we made a strategic commitment to building our presence in the region,” Point72’s Asia-Pacific Chief Executive Officer Marc Desmidt and London office head Will Tovey said Friday in a letter obtained by Bloomberg and confirmed by the company. “Following the U.K. referendum result, we reemphasize our commitment to growing our London office as part of our international growth strategy,” they said.

Palin compares Brexit to Declaration of Independence (The Hill)
Former Republican vice presidential nominee Sarah Palin says Britain’s vote to exit the European Union reminds her of the Declaration of Independence. “The U.K. knew — it was that time. And now is that time in the U.S.A. The Brexit referendum is akin to our own Declaration of Independence," she wrote Friday on Facebook. “May that refreshed spirit of sovereignty spread over the pond to America’s shores! American can learn an encouraging lesson from this.” Palin said she hoped the vote will inspire the U.S. to leave the United Nations.

Many U.S. firms playing catchup after surprise EU exit vote (CNBC)
The risk that Britain could yank itself out of the European Union had been telegraphed for over a year, but even U.S. companies with "Brexit" contingency plans have said they were shocked it is now on track to become reality, and are just beginning to work through all of the implications. Caught off guard, some U.S. firms have rushed to place foreign currency orders hedging against further declines in the British pound. Many are seeking legal advice on the impact on trade agreements and regulations, while others begin to consider a potential drop in demand from European economies, company executives and consultants told Reuters.

Saudi Arabia Hires Banks for First Global Bond Sale (WSJ)
audi Arabia has hired J.P. Morgan, HSBC and Citigroup to help sell its debut international bond, a person familiar with the matter said on Sunday, as the kingdom seeks to shore up its finances hurt by low oil prices. Saudi Arabia has already secured a $10 billion loan from a consortium of international lenders in April and has sold debt to its domestic banks.

Mobile-friendly financial data platform takes on Bloomberg (NYP)
Alap Shah wants to reinvent one of Wall Street’s favorite wheels. Sentieo, the new firm founded by the 35-year-old former hedge fund analyst, is the latest upstart financial data platform seeking a slice of the lucrative financial information provider market long synonymous with Bloomberg’s famous terminals. Sentieo has signed up 85 finance clients, including hedge funds and investment banks. They pay $500 to $1,000 a month — far less than the roughly $21,000 annual cost of a Bloomberg terminal. Shah claims Sentieo stands out for fast, detailed equity research results that are easily synced across mobile devices.

Utah gets its first porn-seeking dog (NYDN)
Utah, which declared pornography a “public health crisis,” now has its first porn-searching dog, trained to sniff out any smut. The 16-month-old K-9, named “URL” but pronounced “Earl,” was rescued from a shelter as a puppy and went through half a year of training in Indiana to search for porn. URL’s highly sensitive nose has been trained to sniff out chemical compounds found in thumb drives, phones, SIM cards, SD cards, hard drives, tablets and iPads, the Weber County Sheriff’s office said in a statement. The black Labrador comes from an elite group of dogs, where there are only nine certified “Electronic Detection” K-9s in the U.S.

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