Goldman Sachs says the Fed could hike rates in September (CNBC)
Goldman Sachs economists believe Fed officials were intentionally sending a strong signal about raising interest rates in September when they met at Jackson Hole, and September remains on the table even with a disappointing jobs report. Goldman is going against the herd, as most economists believe the weakish jobs report for August means a September rate hike isn't even possible.
Boom In Junk Debt Draws Concern (WSJ)
Some investors worry that surging prices and lower spreads are eroding one of junk bonds’ strongest selling points: their tendency to generate positive returns even as rising rates hammer the value of safer bonds.
Musk Confronts Wall Street Divided on Tesla in Plea to Workers (Bloomberg)
Elon Musk’s latest admonition to Tesla employees -- produce more, spend less -- is no simple belt-tightening before he asks investors for more cash. It also reflects Wall Street’s schism about the health of the electric-car maker. Musk urged workers to cut costs and deliver “every car we possibly can” in an Aug. 29 e-mail obtained by Bloomberg News on Friday. Showing positive cash flow this quarter will make it easier for Tesla Motors Inc. to raise funds in the year’s final three months to complete the new Model 3 vehicle and its so-called gigafactory that makes batteries. “We will be in a far better position to convince potential investors to bet on us if the headline is not ‘Tesla Loses Money Again,’ but rather ‘Tesla Defies All Expectations and Achieves Profitability,’” Musk wrote. “That would be amazing!"
Cargill Hedge Fund in Chaos as Fat Salary, Feud Sink Sale Plan (Bloomberg)
But in recent months the deal has turned into an embarrassing black eye for Cargill, the largest private company in the U.S., that set back its efforts to trim its sprawling empire. In June, the company fired John Brice, a brash and confrontational Brit who helped transform CarVal into an influential distressed-debt shop on Wall Street, and the two sides are now exchanging nasty allegations in an acrimonious legal battle. Amid the chaos, the sale has been abandoned and a string of senior executives have exited the firm.
‘Law and Order’ actor will run for NYC mayor in 2017 (NYP)
Darren Dione Aquino — who played a disabled cop on “Law & Order: Special Victims Unit” and a mobster on “The Sopranos” — told The Post that his cousin John Ferolito was ready to provide the startup funds for his Republican campaign.
Cash Piles at American Companies Are Shrinking (Bloomberg)
Pressured by a year-and-a-half of weakening profits and splurges on buybacks and dividends, the once-towering piles of money at American companies have started to topple. Cash and equivalents slipped to a median $860 million at S&P 500 Index members last quarter, touching levels not seen for three years, according to data compiled by Bloomberg. While hardly a portent of mass insolvency, the slippage complicates the balancing act for chief executive officers trying to keep shareholders appeased while earnings drop.
Ken Rogoff makes case for scrapping $100 bills—and even $20 bills (CNBC)
It's time to reduce the amount of physical cash floating around the globe to help combat tax evasion and other illicit activities, Harvard professor and renowned economist Ken Rogoff told CNBC on Tuesday. "I'd eventually phase out the $100 note. I'd phase out the $50. And over 10 or 20 years, I'm phasing out the $20s," he argued, while explaining the thesis of his new book "The Curse of Cash" in a "Squawk Box" interview. "Cash is very good way to port, horde, hide for crime [and] tax evasion. The evidence, I think, is overwhelming that that is a lot of the use," he added. "There are things like illegal immigration … that's cash-driven. If you couldn't pay in cash, it wouldn't drive all the illegal immigration."
Bayer Sweetens Monsanto Bid to $56 Billion (Bloomberg)
Bayer AG sweetened its takeover bid for Monsanto Co. to $56 billion, raising its offer for a second time in its pursuit to become the world’s largest producer of seeds and pesticides. Monsanto responded to say that it’s evaluating the Bayer offer as well as proposals from other parties and strategic alternatives.
Woman mistakenly sets fire to car she thought was her ex’s (NYP)
Carmen Chamblee, 19, was arrested Saturday and charged with arson after she allegedly lit a rag on fire and stuffed it into the gas tank of the white-colored Honda late last month. Surveillance video showed Chamblee feeding the flames in the trunk of the car parked on the side of a road in Clearwater. Witnesses saw her pedaling away from the crime scene on a bicycle, CBS News reported. That, coupled with the video, led to her arrest. Chamblee told investigators that she thought the car belonged to her former boyfriend, but the real owner, Thomas Jennings, was someone she had never met before, the Daily Mail reported.