Opening Bell: 9.7.16

Buffett is back; Blackrock warns on climate change; Short-sellers look for targets of hack attacks; Man arrested for driving car with frying pan instead of steering wheel; and more.
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BlackRock issues climate change warning (FT)
Investors can no longer ignore climate change and should act to protect their portfolios as extreme weather events become more common and governments step up their efforts to fight global warming, according to BlackRock. The world’s largest asset manager said governments and investors had been slow to appreciate the problems related to global warming but that this must change. “Investors can no longer ignore climate change. Climate factors have been under-appreciated and underpriced because they have been perceived to be distant [problems],” said Ewen Cameron-Watt, a senior director at BlackRock.

Berkshire is enjoying a superb comeback this year (CNBC)
Year to date, shares of Berkshire Hathaway — which trade in both astronomic Class A and more standard-priced Class B flavors — are up some 13.5 percent, while the broad S&P 500 has risen about 6.8 percent. This outperformance comes after an unusually dour year for Berkshire in 2015, which saw the company's value slide by 12 percent even as the S&P remained essentially flat.

Brazil’s ‘Better Than Goldman’ Bank Slowly Rebounds From Scandal (NYT)
BTG Pactual, a once highflying Brazilian investment bank that stumbled badly during a brush with scandal last year, is reinventing itself with more modest aspirations. Gone is the brash desire to outdo the American investment bank Goldman Sachs — some here once joked that BTG stood for “Better Than Goldman,” and the bank expanded to Hong Kong, the United States and Europe, even Switzerland. Today, simply getting back into the game may be as meaningful for BTG, given the tumultuous nine months it has endured since its former chief executive and guiding force, André Esteves, was arrested in November on charges of obstruction of justice in the sprawling Petrobras corruption investigation, accusations he has denied.

The New Short: Find Industries Exposed to Exotic Hacking Attacks (Bloomberg)
A few hours after Carson Block announced last Thursday that he was shorting St. Jude Medical Inc. stock over hacking risks to the company’s pacemakers and defibrillators, the e-mails started stacking up in Billy Rios’ and Jonathan Butts’ inboxes. The two are top medical-device cybersecurity consultants, and they were inundated with inquiries from hedge funds, short sellers and other investors trying to make sense of the news -- or profit themselves from the trade by Block’s firm, Muddy Waters Capital LLC. In total, Rios and Butts, who work together, said they’ve fielded more than 40 requests, with more coming in. "This one blew up. This was like nothing else we’d seen," said Butts, who, like the hackers working with Muddy Waters, researches ways to subvert safeguards designed to prevent intruders from breaking into medical devices. "This is almost like The Big Short -- someone saw something that nobody else did."

Man arrested for driving car with frying pan instead of steering wheel (Mirror)
A man has been caught driving his car with a frying pan. The 32-year-old had swapped the cookery instrument in place of the steering wheel...Police in Adelaide, Australia, were called to reports of a man "loitering" around Norman Street just after 8am on Sunday. When they arrived, the man sped off in his Mazda Sedan. The car was also found to be uninsured and unregistered. 7 News Adelaide reports that the man had also changed his number plates and had breached a previous bail.

Newest Canadian Bank Aims to Woo Country’s Chinese Entrepreneurs (Bloomberg)
Wealth One Bank of Canada wants to become the preferred bank for Canada’s Chinese community, said Chief Executive Officer Charles Lambert. The closely held lender, which has about 30 employees and started taking deposits in July, is targeting individuals and businesses with online banking services supported by offices in Toronto and Vancouver and a retail branch in Markham, a city north of Toronto with a large Chinese population.

Allergan says 'outlier' drugmakers scaring off venture capital money (Reuters)
CEO Brent Saunders, in an interview on Tuesday, did not mention names of companies, but said several that have come under fire for "egregious" price increases are causing a backlash against the industry. "My biggest fear, every time there's another headline or more regulator negativity, is that venture capital needed for innovation could move out of the sector," Saunders said, adding that the amount of venture capital backing for early-stage drugmakers is slowing.

Buyer of Waldorf Says It’s Time to Digest $13.5 Billion of Deals (Bloomberg)
Anbang Insurance Group Co., known for its aborted attempt to buy Starwood Hotels & Resorts Worldwide Inc. in March, is turning its attention from chasing deals to digesting $13.5 billion of overseas acquisitions announced since 2014. The company will focus on integrating purchases such as South Korea’s Tongyang Life Insurance Co., Vice Chairman Yao Dafeng said in an interview on Tuesday. While Yao said Anbang will still continue to seek acquisitions, mostly insurers and banks, his comments suggest a deal spree that included buying New York’s iconic Waldorf Astoria Hotel and mounting a $14 billion bid for Starwood might abate.

Man allegedly used homemade line to fish for drugs in police drop box (UPI)
The Santa Barbara Sheriff's Office said a sergeant confronted a man spotted using a homemade cord and fishing hook to remove drugs from the Operation Medicine Cabinet drop box in front of the sheriff's Coastal Station in Carpinteria. Christian Kulbe, 46, had successfully reeled in some drugs and syringes when he was caught early Sunday fishing in the drop box, one of several set up by the sheriff's office and the Santa Barbara County Public Works to allow residents to safely dispose of unused drugs and medications.

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Opening Bell: 10.20.15

Tech IPO scene is very chilly; Hedge funds are loving this toxic investment again; "Elderly Driver Takes Curve On 2 Wheels"; and more.

Opening Bell: 03.07.13

Fed's Fisher Pins Slow Growth on Politicians (WSJ) Federal Reserve Bank of Dallas President Richard Fisher on Wednesday blamed both major U.S. political parties for a "horrid" political climate in Washington, and said monetary policy alone can't drive the economy. "We provided the fuel for economic recovery," Mr. Fisher said of the central bank, describing the Fed's stimulus as "very high-octane, dirt-cheap gasoline." But he said that neither Republican nor Democratic politicians in Washington have done their part by putting policies in place that spur the private sector "to take the cheap fuel that we have provided and step on the accelerator." Banks Said to Weigh Defying Fed With Dividend Disclosures (Bloomberg) The largest U.S. banks are weighing whether to disregard a Federal Reserve request and announce their dividend plans shortly after the central bank’s stress tests are released, people with knowledge of the process said. The Fed has asked 18 firms, including JPMorgan and Goldman Sachs, to wait until next week, even though the lenders will get preliminary word today about whether their capital plans were approved. Bank executives are concerned that investors could be confused and are considering whether securities laws may require prompt disclosure of their plans for dividends and share repurchases, the people said. Paulson Gold Fund Down 18% as Metal’s Slump Foils Rebound (Bloomberg) John Paulson posted an 18 percent decline in his Gold Fund last month as a slump in the metal, after more than a decade of gains, undermined efforts by the billionaire hedge-fund manager to rebound from two years of losses in some strategies. The $900 million Gold Fund, which invests in bullion- related equities and derivatives, is down 26 percent this year, Paulson & Co. said yesterday in a client update obtained by Bloomberg News. The firm’s Advantage funds also fell in February after the metal and related stocks weakened as signs of economic optimism curbed gold demand. “Despite the volatility and drawdown of our gold equity positions, we believe in the long-term outlook for these positions as quantitative easing programs continue around the world, credit expands in the United States, and gold equities continue to trade at a significant discount” to historical average valuations, the hedge fund said in a letter sent yesterday to investors, which was obtained by Bloomberg News. Carl Icahn Rachets Up Dell Fight (WSJ) In a letter released by Dell Thursday, Mr. Icahn said he has a "substantial" position in the company, and asked Dell to pay a per-share dividend of $9 if the deal is voted down by shareholders. He said that by his calculations, that transaction would be superior to the current going-private offer, citing a "stub" value of $13.81 a share which, combined with the special dividend, represents a 67% premium to the current $13.65 per-share offer price. Dell 'Welcomes' Carl Icahn to Go-Shop Process (CNBC) Dell on Thursday said it welcomed Carl Icahn, who has built up a 100 million share stake in the company, and other interested parties as the computer maker seeks to go private. The special committee appointed by the board said it was conducting a "robust go-shop process" and was looking at other alternatives after a $24.4 billion buyout led by founder Michael Dell faced opposition from some shareholders. Bad-News Bears Crash The Party (WSJ) For all their conviction, the bears realize it may be awhile before their dark predictions come true. "Unfortunately, I am bearish and I have been wrong," said Samer Nsouli, chief investment officer at Lyford Group International, a hedge fund, who argues that recent weakness in copper and oil is a portent of a global slowdown. "Make no mistake, it will end in tears. The eternal question is when." Lions Maul Two To Death In Kariba (Herald) Two people were yesterday mauled to death by lions in Mahombekombe suburb in the resort town of Kariba. Sources say the man only identified as Musinje and the woman Sharai Mawera, were attacked while spending time in a bushy area with the man managing to escape, leaving the woman behind. The man went on to report the case to police who, with the assistance of officers from the Zimbabwe Parks and Wildlife Management Authority, went in search of the lions. During the search they found an arm belonging to a man with investigations pointing to the lions having made a kill the previous night. That, the sources say, could have been the reason the lions did not completely eat the woman. BofA Times An Options Trade Well (WSJ) Bank of America's trading desk last June purchased options to buy 150,000 shares of Constellation Brands, an aggressive wager that the wine-and-beer seller's shares would rise, according to a Wall Street Journal analysis of options-market data and of quarterly regulatory filings made by institutional investors. The trade helped push the volume in thinly traded Constellation options that day to more than 13 times the previous 30 days' daily average, the options data show. A week later, Constellation announced a pact to buy a Mexican beer maker out of a joint venture that imports Corona Extra and other beers into the U.S. market. Bank of America led a duo of banks that financed the $1.85 billion deal. Constellation shares soared 24% on June 29, the day the deal was made public, and Bank of America generated an estimated paper profit of more than $1 million from the options trading, the options-market data indicate. China Imitates Singer (NYP) Paul Singer’s battle with Argentina over defaulted debt is beginning to ripple through the bond world. Creditors looking to force deadbeat countries to pay up are turning to the controversial legal argument Singer used to press his case against the South American country in the US courts. On Monday, China’s Ex-Im Bank, which has an unpaid judgment worth $32 million against Grenada, sued the tiny Caribbean country in New York federal court to get its money back. China wheeled out the same “equal treatment” argument that Singer’s Elliott Management used against Argentina, and which was recently upheld at the appeals level for the first time in the US. China’s move marks the first time a creditor other than Singer and his cohorts have tested the maneuver in the US. Obama Tries Charm Offensive to Woo Republicans on Deficit (Bloomberg) The president broke bread last night with a dozen Republican senators, hosting a dinner at a luxury Washington hotel near the White House. Next week, he’ll visit Capitol Hill to meet separately with Republicans and Democrats in the Senate. Obama has also spoken by telephone with at least a half- dozen Republican lawmakers over the past few days about the budget and other priorities of his second term, including a rewrite of immigration laws and controlling gun violence. “There have been some problems, but we’re all adults and you just have to put the country ahead of party and you’ll be fine,” Senator Lindsey Graham of South Carolina, who helped organize the dinner, said before the meal. The increased outreach marks a shift in strategy for the White House, amid signs the president’s poll numbers are falling after he and Republicans were unable to avert the across-the- board spending cuts that took effect March 1. Jobless Claims in U.S. Unexpectedly Fall to a Six-Week Low (Bloomberg) First-time jobless claims unexpectedly fell by 7,000 to 340,000 in the week ended March 2, the lowest since the period ended Jan. 19, according to data today from the Labor Department in Washington. The median forecast of 50 economists surveyed by Bloomberg called for an increase to 355,000. The four-week average dropped to a five-year low. JC Penney Board Can’t Be 'Delusional': Ex-CEO (CNBC) Former JC Penney CEO Allen Questrom told CNBC on Wednesday that the company's board of directors is wrong in thinking the struggling retailer can change its fortunes under current boss Ron Johnson. "The board has to take action. They can't be delusional like Ron Johnson is," Questrom said on "Fast Money Halftime Report." "This has been going on long enough. You can't say you're going to make your numbers for the year and then drop a billion dollars." Questrom, who has watched from afar as Penney's sales and stock have suffered, told CNBC that directors needed to act quickly. "If they think if it all of a sudden going to turn itself around, there is no way they can have reliable information – because Ron is not a source for that," he said. "The sooner they act, the better." 1 in 10 Yale students have engaged in prostitution, 3% have had sex with an animal (NYDN) Sexologist Dr. Jill McDevitt hosted the sex workshop session where around 55 students used their cellphones to answer questions about sex. The results were then published in real time on a screen. McDevitt, who also owns the Feminique sex store in West Chester, Pennsylvania, said the results showed "you can't have assumptions about people's backgrounds." Student Giuliana Berry, who hosted the event, told Campus Reform the workshop - part of Yale's Sex Weekend - aimed to increase understanding and compassion for people who indulged in "fringe sexual practices."

Opening Bell: 3.3.16

Lynn Tilton sued by ex-employees; DoubleLine closing stock picking fund; Pressure mounts for Tesla short-sellers; Drive-Thru Sex Lands Couple Behind Bars; and more.

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Opening Bell: 6.22.17

Warren Buffett comes to the rescue up north; Bill Ackman has a glimmer in his eye; the future of cycling is (literally) shit; and more.

Opening Bell: 02.08.13

Barclays CEO’s Ethics Talk Drowns Out Silence on Profit (Bloomberg) Jenkins, who took over after Robert Diamond departed in the wake of the bank’s fine for rigging Libor, is set to reveal the conclusions of his six-month review of the lender’s operations at London’s Royal Horticultural Halls on Feb. 12. While he may cut about 2,000 jobs, pledge to reform culture and reduce pay to boost returns, he’s unlikely to follow UBS AG and eliminate entire business lines, according to investors and analysts. That’s because the securities unit that Diamond built out of the remains of Barclays De Zoete Wedd over the 15 years from 1996 still contributes about half of the lender’s profit. Meredith Whitney Pans New Citi Chief Corbat (NYP) “He didn’t give us an agenda and he didn’t even give us a stamp for when he’s going to give us an agenda, so it left people a little bit uninspired,” she said during an interview with Bloomberg TV yesterday. Deutsche Bank Said to Fire 10 Traders as Banks Retrench (Bloomberg) Deutsche Bank AG fired between 10 and 12 European power and natural gas traders in London as it cuts staff trading physical commodities, two people with knowledge of the matter said. There are at least two traders still unwinding positions as Europe’s biggest lender is reducing trading in physical energy markets, said the people, who asked for anonymity because the information is private. Nick Bone, a company spokesman in London, declined to comment when reached yesterday by phone. Buffett’s Son Says He’s Prepared Whole Life for Berkshire Role (Bloomberg) Protecting Berkshire’s culture “means that I need to make sure that people feel that they’ve been treated fairly, that whatever my dad committed to them remains committed,” Howard Buffett, 58, said in an interview with Bloomberg Television’s Betty Liu, airing today. The younger Buffett is a director of Coca-Cola Co., the world’s largest soft-drink maker, and once was the head of investor relations for Archer-Daniels-Midland Co. He said observing his father has helped him get ready to lead a board that also includes Microsoft Corp. co-founder Bill Gates and Stephen Burke, CEO of Comcast Corp.’s NBC Universal unit. “In a way, I’ve been preparing for it all my life,” Buffett told Liu. “In another way, I’ve been on the Berkshire board now 20 years. That’s a preparation.” Justin Timberlake Named Creative Director of Bud Light Platinum (Billboard) As part of the deal, Timberlake will be charged with providing “creative, musical and cultural curation” for the Bud Light Platinum brand, per a press release announcing the partnership. Additional terms were not disclosed. “Bud Light Platinum brings a refined, discerning aesthetic to beer that plays well with what I'm doing,” Timberlake said in a statement. Monte Paschi says considering legal action to protect business (Reuters) talian bank Monte dei Paschi said on Friday it is considering legal action against anyone who damages its commercial activity or spreads false information about the bank. In a statement, the bank said it had become the target of "attacks of various kinds involving, in certain circumstances, employees, creating considerable problems in the normal course of business. It said it was considering civil and penal action. Audacious Hack Exposes Bush Family Pix, E-Mail (TSG) The hacker also intercepted photos that George W. Bush e-mailed two months ago to his sister showing paintings that he was working on, including self-portraits of him showering and in a bathtub. Another image shows the former president painting at the family’s Maine retreat. Goldman Readies Fund Business For 'Volcker' (WSJ) For 20 years, Goldman wooed clients to invest in its private-equity funds with the security blanket that the bank and its partners went along for the same ride. But that is about to change. The looming "Volcker rule" is expected to sharply reduce the bank's investment in its own funds. That is forcing Goldman to make major changes in a $50 billion business that has reaped big profits for the bank and its employees and clients. Goldman likely will have to shrink the size of its own investment in its funds to just 3% from as much as 37% once the rule is finalized later this summer. The rule, part of the Dodd-Frank financial-overhaul law and named after former Federal Reserve Chairman Paul Volcker, aims to restrict banks from making big bets with their own money. Goldman expects new funds it raises will be considerably smaller. The New York bank also will change the name of the business to avoid referencing its own name. GS Capital Partners and future funds may become "Broad Street," referring to both the firm's old headquarters and its first leveraged-buyout fund launched in 1986, according to people involved in the business. Ex-Tyco chief gets another chance at parole (NYP) Kozlowski was denied parole in April when state officials tossed out his application saying his release was not "compatible with the welfare of society at large." But in a ruling made public today, Justice Carol Huff this week called that decision "an unauthorized re-sentencing" of Kozlowski, adding that it lacked specifics. In making its decision, she said, the parole board must consider other factors beyond the crime including the inmate's institutional record, which the tycoon asserted is exemplary. The Politics Of Chris Christie's Weight (WSJ) The latest chatter about Mr. Christie's heaviness began on the "Late Show With David Letterman," when he pulled out a pastry and began eating as the comic asked whether his frequent jokes about the overweight Republican were offensive. The day after the good-natured stunt, Mr. Christie opened up about his struggles to lose weight. Later, a former White House physician, Connie Mariano, said she worried his weight made him a "time-bomb" at risk of dying in office. Mr. Christie quickly shot back, calling Dr. Mariano a fame-seeking "hack" who didn't know his health history and was needlessly worrying his children. On Thursday, Dr. Mariano, who attended to presidents George H.W. Bush, Bill Clinton and George W. Bush, said she stood by her assessment. "When I see someone of that size, I worry about various medical issues," she said. "It was not meant to be an attack on him personally."

Opening Bell: 05.08.12

When Facebook Met Wall Street (WSJ) On Monday, investors piled into the hotel to hear what Mr. Zuckerberg and his lieutenants had to say about the offering. At one point, the line, leading to a second-floor ballroom where the meeting was scheduled to be held at 11:45 a.m., stretched down to the first floor and spilled out of the hotel for nearly half a city block. At least one investor waiting in line said he didn't expect anything to be revealed that wasn't already in Facebook's securities filings. Rather, he was there to take in the show, and lunch (which was Cobb salad and grilled chicken). A 30-minute video about Facebook, which had been widely distributed before Monday, led the lunch, according to attendees. The next part of the presentation was briefly delayed by Mr. Zuckerberg's absence. The CEO was in the bathroom, explained Chief Financial Officer David Ebersman to attendees. (Mr. Ebersman wore a navy suit.) Yahoo CEO Apologizes in Memo, Board Meets (Reuters, earlier) Yahoo Inc's board convened on Monday afternoon to discuss the mounting upset surrounding Chief Executive Scott Thompson, who has apologized to employees after being accused last week by activist investor Daniel Loeb of padding his resume, a source with knowledge of the matter said..."I want you to know how deeply I regret how this issue has affected the company and all of you," Thompson wrote in his first extended memo to employees since the disclosures emerged on May 3. "We have all been working very hard to move the company forward and this has had the opposite effect. For that, I take full responsibility, and I want to apologize to you." Billion-Dollar Traders Quit Wall Street For Hedge Funds (Bloomberg) Wall Street’s biggest banks have lost almost two dozen of their most-profitable credit traders in the past 13 months as regulators limit the kind of risk-taking that amplified the housing crisis four years ago. As banks slash or defer pay and reduce the amount they’re willing to wager, the traders are seeing better opportunities at hedge funds and investment firms that seek to profit in markets lenders are retreating from. Wall Street Banks Depressed In Secular Shift (Bloomberg) To Kevin Conn, who has been analyzing bank stocks for 15 years, the investment climate for Wall Street’s biggest firms has entered the realm of science fiction. “It’s like that Ray Bradbury short story where it rains for months in a row,” said Conn, who works for Massachusetts Financial Services Co., referring to “The Long Rain,” published in 1950. “It’s one of these terrifically depressing short stories where the weather just never changes.” Spain To Spend Billions On Bank Rescue (FT) Spain is planning a state bail-out of Bankia, the country’s third biggest bank by assets, in a move likely to involve the injection of billions of euros of public money into the troubled lender. In an abrupt reversal of policy, the Spanish government, which had previously insisted that no additional state money would be needed to clean up the country’s banking sector, confirmed that an intervention was being prepared. OWS Mom Snubs Plea (NYP) Occupy Wall Street protester Stacey Hessler, 39, arrested in November for resisting arrest and disorderly conduct, yesterday refused an offer to have her charges dismissed and will instead face a trial...Hessler had originally planned to accept the judge’s offer of an adjournment contemplating dismissal, which erases the charge if the defendant stays out of trouble for six months, but later changed her mind, her attorney said. SEC Orders Probe Of Watchdog Office (WSJ) The Securities and Exchange Commission has ordered an independent inquiry into allegations of sexual misconduct by current and former staff working for its office of the inspector general, according to a person familiar with the matter. The complaint includes allegations that the misconduct compromised certain investigations of the SEC, according to the person familiar with the situation. Apollo's Profit More Than Doubles (WSJ) For the first quarter, Apollo reported a profit of $98 million, or 66 cents a share, up from a year-earlier profit of $38.2 million, or 33 cents a share. Economic net income rose to $1.10 from 99 cents a year earlier. Analysts surveyed by Thomson Reuters expected 78 cents a share...Total revenue rose 12% to $776.7 million, far better than the $547 million expected by analysts. Bank of America Offers Principal Reductions to 200,000 Homeowners (CNBC) “If people get these things and toss them, they won’t be eligible,” says Ron Sturzenegger, the Bank of America executive charged with providing solutions to borrowers in need of mortgage assistance. But the offer is real, and eligible borrowers could get as much as $150,000 knocked off the balance of their mortgages. It is all part of the $25 billion settlement reached this year between federal and state agencies and the nation’s five largest mortgage servicers over fraudulent foreclosure document processing (so-called “robo-signing”). No Repeating Slowdown Seen by U.S. With Banks to Housing (Bloomberg) Rising auto sales, improving bank credit and stabilization of housing are among the signs the economy is more resilient now than it was around the same time in 2010 and 2011, according to Marisa Di Natale, an economist at Moody’s Analytics in West Chester, Pennsylvania. “From where we sit right now, we think the economy looks fundamentally stronger,” Di Natale said. “Surveys of business and consumer confidence are better, the labor market data looks a lot better than it did last year, even some of the housing data looks better.” Ex-Tyco CFO: Gimme the $ I didn’t steal! (Reuters) Former Tyco International Chief Financial Officer Mark Swartz, who is serving a prison sentence for looting the company, has sued for $60 million in retirement and other money he says he is owed. The lawsuit, which was made public yesterday, accuses Tyco of breach of contract and unjust enrichment for not paying him some $48 million from an executive retirement agreement, $9 million in reimbursement for New York taxes, and other money. Winner Of Mexican Presidential Debate? Julia Orayen (AP) Who won Mexico's presidential debate? According to the media and Twitter frenzy, at least, the victor wasn't any candidate but a curvaceous model in a tight gown who puzzled millions by appearing on stage for less than 30 seconds during the showdown. Julia Orayen has posed nude for Playboy and appeared barely dressed in other media, but she made her mark on Mexican minds Sunday night by carrying an urn filled with bits of paper determining the order that candidates would speak. She wore a tight, white dress with a wide, tear-drop cutout that revealed her ample decolletage. The image was splashed across newspaper front pages and websites by Monday. "The best was the girl in white with the cleavage at the beginning," tweeted former Mexican Foreign Minister Jorge Castaneda, who is also a New York University professor...Alfredo Figueroa, director of the Federal Electoral Institute responsible for organizing the debate, blamed the incident on a production associate hired by the institute to help with the debate. The institute later issued an apology to Mexican citizens and the candidates for the woman's dress.

Opening Bell: 2.19.16

China's top securities will step down; NYSE joins the 21st century; Credit Suisse faces money laundering probe; Drunk Motorist Was Driving Bar On Wheels; and more.