Skip to main content

Opening Bell: 6.29.16

Moody's downgrades 12 UK banks; Soros bets against Deutsche Bank; Saudi Arabia beating off bankers with a stick; Cops say woman wielded hatchet after her demands for sex were rebuffed; and more.
  • Author:
  • Updated:
    Original:
Getty Images

Getty Images

Every Banker in the World Is Chasing the Saudi Aramco Deal (Bloomberg, earlier)
Investment banks around the world are clamoring to join what promises to be a bonanza, and not just the IPO of Saudi Arabian Oil Co., or Aramco, which could be valued at upward of $2 trillion. The kingdom is planning to sell hundreds of state assets to bolster its finances and reduce its dependence on oil. That includes as much as $15 billion of bonds. Saudi Arabia looks even more promising with investment banking in a global slump and Britain’s vote to exit the European Union set to deter deal-making for months to come. “Saudi Arabia is close to the top, if not at the top, of the agenda for banks,” said Christopher Wheeler, a London-based analyst with Atlantic Equities LLP in London. “Where else is there at the moment?"

Moody's changes outlook on 12 UK banks following Brexit (CNBC)
Eight of the 12 banks, including Barclays, HSBC, Santander UK and TSB Bank, were downgraded to negative from stable. Lloyds Bank and Principality Building Society were downgraded to stable from positive. The agency also changed the outlook on the U.K. government-guaranteed senior unsecured debt instruments, as well as Bradford & Bingley and NRAM, to negative from stable.

Trump Channels Brexit in Anti-Trade Speech in Pennsylvania (Bloomberg)
"Our friends in Britain recently voted to take back control of their economy, politics and borders," Trump said. "Now it's time for the American people to take back their future. We are going to take it back." The presumptive Republican presidential nominee sounded more like Vermont Senator Bernie Sanders, who ran against Hillary Clinton and global trade deals in the Democratic primary, when assessing whether free trade should continue to be a priority. Calling NAFTA "the worst trade deal in the history of the country" and the Trans Pacific Partnership "the greatest danger yet," Trump said he planned to re-negotiate trade deals in order to create jobs across the country and especially in places that formerly produced goods sold in the U.S. and abroad. "It's time to declare our economic independence once again," Trump said. "That means voting for Donald Trump."

Stress Test Inc.: Billions of Dollars, Bank Consultants to Manage Other Consultants (WSJ)
Globally, banks spent about $29 billion on consultants last year, much of that for stress tests in the U.S. and elsewhere, according to analysis firm ALM Intelligence. That compares with $16.35 billion in 2007. The total has increased every year since 2009, a period when banks have been relentlessly cutting expenses and employees in areas such as trading and branches.

Cops: Woman, 26, Wielded Hatchet After Her Demands For Sex Were Repeatedly Rebuffed (TSG)
According to police, Leslie Mills, 26, returned home early Thursday after a drinking binge and began badgering the victim to “engage in sexual activity with her.” The man--who said he was awoken by the persistent Mills--told cops that he moved from the Ocala home’s bedroom to the couch in a bid to escape her. However, Mills followed him to the living room, where she climbed atop the victim, “still asking for him to have sex with her,” according to an Ocala Police Department report. After again declining to have sex, the man went into the bathroom and locked the door. Mills responded, police report, by pounding on the door, which she then successfully pushed open. Upon Mills entering the bathroom, the victim noticed that she was carrying a hatchet that had been removed from a living room wall. The man said that he wrestled the hatchet from Mills’s hands after she raised the weapon and "appeared to be preparing to strike him."

Airbnb Is Said to Be Seeking Funding Valuing It at $30 Billion (Dealbook)
Airbnb, which lets users list their homes and apartments for short-term rentals, is in talks for a new round of investment that would value the company at about $30 billion, according to people briefed on the matter. Under the terms of the new fund-raising, Airbnb will have tripled its valuation in two years.

Soros bet on fall in Deutsche Bank shares (FT)
The veteran investor, who famously made $1bn betting against the pound in 1992, took a short position of 0.51 per cent in Deutsche’s stock on Friday — the day after the vote — via his investment vehicle, Soros Fund Management, according to a regulatory filing. The bet equates to about 7m shares. In a second filing on Tuesday, Soros Fund Management said that its short position was now 0.46 per cent - suggesting that it had begun to take profits from the trade.

Lehman Brothers Said to Sell One of Its Last Property Holdings (Bloomberg)
Lehman Brothers Holdings Inc. sold the NYLO New York City hotel, bringing the unwinding of the bank’s real estate investments close to completion almost eight years after its bankruptcy. The buyer of the hotel, at Broadway and 77th Street, was Ashkenazy Acquisition Corp., according to a person with knowledge of the sale, who asked not to be named because the transaction hasn’t been made public. Ashkenazy, which also operates Boston’s Faneuil Hall Marketplace and the retail at Washington’s Union Station, paid about $140 million for the 291-room property, according to the person.

Cowboy On Horseback Causes Traffic Jam On New York City Bridge (HP)
An 80-year-old urban cowboy was spotted on Monday as he made the grueling journey from New Jersey into New York City. Like so many weary travelers before him, Tod “Doc” Mishler and his trusty steed brushed up with authorities along their path. Police said that Mishler, wearing a white cowboy hat and a vest, caused a traffic jam on the bridge, according to the New York Daily News. Mishler was riding one horse and leading another one along. Rather than settle their conflicts by old-fashioned duel, police issued a pair of summonses to Mishler, one for trespassing and another for impeding traffic, CBS New York reports.

Related

By Lishabai Yi (Middle Kingdom Media Ltd.) [CC BY-SA 4.0], via Wikimedia Commons
Opening Bell

Opening Bell: 5.22.17

Steve Schwarzman finds $20 billion in Saudi Arabia; Ford trades in for a new CEO; Trump gropes the orb of power; and more.

Opening Bell

Opening Bell: 4.21.16

Soros says China's economy looks like U.S. before '08 crisis; Canada does global economy a solid; Investors pull $15 billion from hedge funds; Cops Seek Dominatrix In Bar Beating; and more.

george soros
Opening Bell

Opening Bell: 6.9.16

George Soros is back; UBS cuts managers; Martin Shkreli The Musical; and more.

FidelitySign
Opening Bell

Opening Bell: 10.23.17

Fidelity managers aren't very nice; Saudi Arabia regrets Uber investment; Jordan Belfort thinks ICOs are a scam; the universe shouldn't exist; and more.

SaudiSauron
Opening Bell

Opening Bell: 10.22.18

Saudi Arabia crisis still crisis-y; Sears seeks a friend for the end of its world; Italy gives il finger to the EU; Headless chicken monster shows itself; and more!

Opening Bell

Opening Bell: 04.23.12

IMF And World Bank Meetings End With Little Agreement (NYT) To be sure, the additional $430 billion in lending capacity contributed by developed economies like Japan, Britain, Saudi Arabia and South Korea was seen as a major achievement. The contributions came after I.M.F. economists determined that countries around the world might require up to $1 trillion in new loans because of the combined effects of the sovereign debt crisis in Europe and sluggish global economic growth. The I.M.F. agreed to raise about half that amount if Europe would raise the other half. But finance ministers are still at odds over the effect of debt reduction on economic growth. Geithner urges 'aggressive' action to fight financial crisis (DowJones) US Treasury secretary Timothy Geithner said Saturday that the eurozone needed stronger action from authorities, including the European Central Bank, to tame a potential deterioration in the debt crisis. "The success of the next phase of the crisis response will hinge on Europe's willingness and ability, together with the European Central Bank, to apply its tools and processes creatively, flexibly and aggressively to support countries as they implement reforms and stay ahead of markets," Geithner told the International Monetary Fund's policy steering committee. Hedge Fund Short-Sellers to Target Wal-Mart Mexico (Reuters) Hedge fund managers are bracing for selling pressure in shares of Wal-Mart Stores on Monday, but market experts said it is the retail giant's less visible Mexican unit that could be the more attractive target for short sellers. The New York Times reported on Saturday that Wal-Mart de Mexico, which is 69 percent owned by Wal-Mart Stories, had orchestrated a widespread bribery campaign in 2005 to win market dominance. The investigative article alleged that senior Wal-Mart executives knew about the matter and tried to cover it up. "I would not consider Wal-Mart shares expensive, but I definitely would not be a buyer at these levels in the 60s. I'm more interested in shorting the Mexico traded 'pure play,'" said private activist investor Daniel Yu, who has presciently shorted such stocks including Green Mountain Coffee Roasters and Sino-Forest. Wal-Mart said in a statement on Saturday that it was "deeply concerned" about the allegations in the Times report and began an investigation into its compliance with anti-bribery laws last autumn. MF Global Customers Press JPMorgan For Funds (WSJ) In a letter set to be sent to regulators and lawmakers on Monday, an MF Global customer group calls for J.P. Morgan to "return hundreds of millions of dollars in MF Global customer funds transferred" to J.P. Morgan in late October. The group, called the Commodity Customer Coalition, urged U.S. officials to "demand" that the New York bank "disgorge all MF Global customer property immediately." J.P. Morgan is cooperating with the ongoing investigation, has said it did nothing wrong and lost some of its own money in the Oct. 31 bankruptcy because it was a creditor of MF Global. Vietnam Funds Beat India, China in Attracting Investors (Bloomberg) Vietnam-focused stock funds became the only emerging market equity assets in Asia to lure investors every week this year as the nation’s benchmark index rose to an 11-month high, Emerging Portfolio Fund Research said. Table Hockey, on Ice Since Heyday in 1970s, Makes a Comeback (WSJ) Carter Campbell leaned over the stick-figure hockey players, loosening up his wrists and hopping from one foot to the other. The 14-year-old's cap was turned around. His iPod blared tunes from the classic-rock band Rush. Across from him, 35-year-old, No. 1 ranked table hockey champ Mark Sokolski hunched over his own players. "I'm gonna stomp this kid," Mr. Sokolski said. At stake was a slot in the elite eight of this year's Canadian Table Hockey Championships, the best-attended North American tournament that the game has seen in decades. Across the U.S. and Canada, a resurgence of table hockey is under way, drawing younger players and women to a sport that has long been the domain of older men in their basements reliving a game that hasn't been popular since they were kids. Global Crisis Not Over, China Reforms to Go On: Wen (Reuters) The global financial crisis is not over and technical innovation and investment will be key to sustaining what remains a "tortuous" recovery, Chinese Premier Wen Jiabao said on Sunday during a visit to Germany. Wen also said China, the world's biggest exporter and second largest economy, would press on with reforms aimed at creating better legal protection for foreign investors — a major concern for the growing number of German firms active in the country. Buffett Joined by 12 Families Pledging Wealth to Charity (Bloomberg) Twelve families promised to donate most of their wealth to philanthropy, joining the Giving Pledge initiative started by Warren Buffett and Bill and Melinda Gates. The families include hedge-fund manager Bill Ackman and his wife Karen, Tesla Motors Inc.’s billionaire owner Elon Musk and film producer Steve Bing, according to an e-mailed statement from the initiative. Arthur M. Blank, Edgar M. Bronfman, Glenn and Eva Dubin, Red and Charline McCombs, Michael Moritz and Harriet Heyman, John and Ginger Sall, Henry and Susan Samueli, John A. and Susan Sobrato, John Michael Sobrato, and Ted and Vada Stanley also signed the pledge. Aiming for Clarity, Fed Still Falls Short in Some Eyes (NYT) But as Mr. Bernanke prepares to meet the press for the fifth time Wednesday afternoon, after a scheduled meeting of the Fed’s policy-making committee on Tuesday and Wednesday, there are reasons to doubt that the efforts are increasing public understanding of monetary policy. Experts and investors have continued to disagree about the plain meaning of the Fed’s recent policy statements. Some say the increased volume of communication is creating cacophony rather than clarity. Political criticism of the Fed has continued unabated. Man's nightmare since NYPD labeled him ‘Gentleman Groper’ (NYP) A citywide manhunt ensued after four Manhattan women were fondled in tony neighborhoods in a 35-day stretch. On April 13, authorities paraded their main suspect past snapping cameras. He defied the conventional image of a creepy perv. He was young, handsome, well-dressed, affluent, educated, a churchgoer. A gentleman groper. That suspect, Karl Vanderwoude, says if the scene seemed implausible — that’s because it was. “I didn’t do it. I wasn’t even in the vicinity of these incidents,” he said in his first interview since his arrest. “It’s a case of mistaken identity.” The 26-year-old Bible-study leader’s nightmare began 10 days ago, when he left early from his job as an operations coordinator at a Flatiron District private equity firm because he felt sick. He was in his Park Slope apartment for about an hour when the doorbell rang. “I thought it was my roommate who had been locked out and forgot his keys, which has happened, so I go to answer the door,” he recalled. Instead, two NYPD detectives were standing in the threshold. “They’re like, ‘Are you Karl? May we speak with you?’"

(Getty Images)
Opening Bell

Opening Bell: 5.24.17

Moody's downgrades China; Ford's ex-CEO got booted over Trump tantrum; Uber, bitcoin called ponzi schemes; there is a blind baseball announcer; and more.

Opening Bell

Opening Bell: 09.20.12

Regulators Try To Beat Clock In Rate Probe (WSJ) The Justice Department recently asked several banks to sign "tolling" agreements, in which the companies promise they won't challenge any enforcement action on the grounds that the alleged wrongdoing occurred beyond the statute of limitations, people close to the investigation said. The requests were sent to all the major banks under investigation, these people said, including Citigroup, Deutsche Bank, JPMorgan, RBS, and UBS. Libor-Like Manipulation Possible in Other Benchmarks, Iosco Says (Bloomberg) The same lack of oversight that enabled traders to manipulate the London interbank offered rate plagues other benchmarks around the globe, according to a group of international securities regulators. Fewer than half of the benchmark interest rates surveyed in the U.S., Europe and Asia were based on actual transactions, according to a confidential International Organization of Securities Commissions discussion paper obtained by Bloomberg News. Instead, the rates were calculated by methodologies that were unclear, not transparent and only rarely subject to specific regulatory standards or obligations, the group said. Nomura Cuts Up to 30% of Europe Investment Bank Jobs (CNBC, earlier) Nomura is making wide-ranging cuts in its European investment banking division on Thursday, according to sources, with up to 30 percent of jobs likely to go...“Today is D-day, there is a crazy atmosphere, everybody knows it is going to be big,” one source told CNBC. Citigroup Warns Irish Investors to Plan for Losses (Bloomberg) All of the optimism that Ireland can raise money in the markets and avoid a debt restructuring is premature as the nation struggles to emerge from its worst recession in modern history, said Michael Saunders, Citigroup Inc.’s head of European economics in London. “Ireland faces an almost impossible task to get back to fiscal balance,” Saunders said. Visits to the country showed “life is tough, very tough and not getting that much better anytime soon,” he said. Debt Investors Aren't Just Waiting For the Next Downgrades in Europe (WSJ) As many investors brace for possible downgrades of Spain and Italy, some are already positioning themselves for the potential fallout in the countries' €180 billion ($234.9 billion) corporate-debt markets. Even with the prospect of aid from the European Central Bank, Spain and Italy could still face credit downgrades, investors say. The main focus is on Spain and Moody's Investors Service Inc. Moody's has said it may cut Spain to "junk" status, a move that would likely be followed by lockstep cuts of its banks and several companies to junk. Such a move would likely trigger a wave of selling from investors who can only own bonds with investment-grade ratings. Some ratings-sensitive investors are selling ahead of the move. Others are getting ready to buy. Couple Accused Of Selling Neighbor's Puppy On Craigslist (NYDN) Scott and Roxanne Duff accused of calling police when a neighbor’s 6-month-old Rottweiler and a Labrador retriever showed up at their house Sept. 3. They asked what to do with the dogs and were told to contact a local shelter or reach out to the regional dog catcher, police told the Valley News Dispatch. But that didn’t happen. While the couple returned the Labrador to their neighbor, they later told police the Rottweiler puppy had run away. That neighbor didn’t believe this story, and told police the next day that he thought the Duffs still had his puppy. When police asked the couple about the puppy again, they allegedly admitted to selling it on Craigslist for $50 High-Speed Trading In The Spotlight (WSJ) Since rapid-fire trading firms now provide many of the buy and sell orders that support the market, investors are at the mercy of automated systems that can run amok during volatile times, according to Dave Lauer, who last year quit his job as a trader for an elite Chicago high-frequency trading outfit. Mr. Lauer is part of a growing chorus of industry insiders blowing the whistle on approved trading techniques that they say are designed by the traders who derive the most benefit. Mr. Lauer is now a consultant on market-structure issues for Better Markets, a Washington, D.C., advocacy group funded by a hedge fund. He plans to tell senators how he came to believe that high-speed trading has made the market less fair for many investors, according to his advance testimony for a Senate panel on computerized trading. Blankfein Admits Tougher Regulation Needed (Reuters) "You have to go out and you have to take steps. You have to have different regulation, maybe more regulation in certain respects," he said, while addressing a room full of bankers and lawyers on Bay Street — the financial hub of Toronto. Bias Suit Against Deustche (Reuters) Kelley Voelker said she learned of her firing two weeks ago, after having been told on Aug. 21 that no one in her hedge-fund group would lose their jobs in connection with the bank’s global cost-cutting plan. Deutsche Bank had in July announced 1,900 job cuts, but on Sept. 11 said that number would grow. Voelker’s last day at her New York office was Sept. 12, her lawyer said. Voelker first sued Deutsche Bank last September. She claimed to have never been promoted since joining the bank in 1998, and that the bank had tried to demote her after she took maternity leave, which she called being “mommy-tracked.” Monica Lewinsky Set To Reveal Bill Clinton's Sex Secrets In Tell-All (NYP) Lewinsky, who turns 40 next year, is out for “revenge” and ready to air bombshell details from her Oval Office trysts with the former Horndog-in-Chief in a $12 million memoir, according to friends, who say she plans to describe plans to describe Clinton's “insatiable desire for three-way sex, orgies and the use of sex toys of all kinds." In the 14 years since she became a national punch line, Lewinsky has gotten her master’s degree, worked briefly as a news correspondent and launched a failed handbag line. “No one will hire her and she can’t get a job because of Clinton,” a sympathetic friend told The Post yesterday. “She needs to make money somehow.”