Opening Bell: 10.7.16

Twitter shares plunge on report bidders are scarce (Reuters)
Twitter shares plunged on Thursday as fears mounted that a much-anticipated auction of the social media company will draw minimal interest from potential buyers. With stagnant user growth and continuing losses, Twitter's board agreed last month to consider a sale, and has told potential acquirers it wants such deliberations to conclude by the time it reports third-quarter earnings on Oct. 27, Reuters reported on Wednesday. Technology website Recode reported later on Wednesday that Alphabet Inc's Google (GOOGL.O), long considered the most logical buyer for Twitter, and Walt Disney Co (DIS.N) would not bid for the social network, leaving cloud software company Salesforce.com (CRM.N) as the only known suitor.

Deutsche Bank gets support from top investor, CEO in talks with banks (Reuters)
Deutsche Bank has secured support from its largest shareholder and more German lawmakers as it grapples with a confidence crisis following U.S. authorities' demands for up to $14 billion to settle allegations it mis-sold mortgage-backed securities. Qatari investors who own the largest stake in Deutsche Bank do not plan to sell their shares and could consider buying more if the embattled German bank decides to raise capital, sources familiar with Qatari investment policy told Reuters. "Purchasing more (Deutsche Bank) stock - that could be considered ... which is not to say there are any imminent plans to do that," said a source close to the Qatari investors who own just below 10 percent in Deutsche Bank.

Flash Crash of the Pound Baffles Traders With Algorithms Being Blamed (Bloomberg)
The 6.1 percent drop drove sterling to a 31-year low of $1.1841, according to composite prices compiled by Bloomberg of contributions from dealers. Traders speculated the crash might have been sparked by human error, or a so-called “fat finger,” with algorithms adding to selling pressure at a time of day when liquidity is relatively low.

Payrolls in U.S. Rise 156,000 as More Americans Seek Work (Bloomberg)
Employers continued to add to payrolls in September as record openings drew more Americans into the workforce and most found jobs, indicating the U.S. labor market is settling into a pace that will support the economy. The 156,000 increase followed a 167,000 rise in August that was more than previously estimated, a Labor Department report showed Friday in Washington.

Vanilla Ice vows to ride out Hurricane Matthew (NYP)
On Thursday, the rapper and Floridian resident announced his plans to stay at his Palm Beach residence as Hurricane Matthew approached. “This hurricane is serious and coming right at me. I’m going to ride out the storm. I’ll keep you updated,” he tweeted. As promised, Ice, 48, continued to update his 279,000 followers almost hour-by-hour. “Right now things are pretty calm, but you know what that means, the calm before the storm. The entire Florida Georgia and Carolina Coast,” Ice wrote. “It’s starting to get nasty here in Palm Beach #HurricaneMatthew,” he continued.

Fed's Mester says Sept jobs report was 'solid,' it's time for rate hike (CNBC)
Cleveland Federal Reserve President Loretta Mester told CNBC on Friday the government's weaker-than-expected employment report for September was still strong enough to keep her thinking central bankers should increase interest rates. "It's a solid labor market report," Mester said on "Squawk Box." She's a voting member this year on the Fed's policy panel, the Federal Open Market Committee. "This is very consistent with what we expected to see."

After Congressional Grilling, Wells Fargo Is Berated in Newspaper Ads (Dealbook)
Lacy Harber, who owns real estate in Las Vegas and numerous small banks and marinas, took out advertisements in four large newspapers on Thursday — including The New York Times — denouncing Wells Fargo...In an interview, Mr. Harber said his complaint with Wells Fargo centers on its investment brokers. He said that on Aug. 24, 2015, as the stock market dropped precipitously, he placed orders for about $34.8 million worth of stocks through his brokers at Wells Fargo Advisors. Working from his kitchen counter at home in North Texas, Mr. Harber said he went on the buying spree to take advantage of the dropping prices, snapping up shares of blue chip companies like Apple and Exxon Mobil. Like many active investors, Mr. Harber bought the stocks “on margin” which typically means putting down some money and borrowing the rest from the broker. But given the extreme volatility in the market that morning, Wells Fargo, he said, demanded that he pay for the stocks in full. Mr. Harber said that even though he told Wells he could wire $19 million that day and deliver the balance the next day, the bank said it needed the total amount. At the end of that day, he said, Wells sold all of the shares he had bought that day, resulting in a $5 million loss. Adding insult to injury, he said, he was charged about $480,000 in broker fees.

The Billionaires’ Pawn (WSJ)
Julian Rifat was out of money, out of work and facing years in prison. Then his lawyer called with news of a miraculous job offer. A billionaire was interested in having Mr. Rifat help manage his wealth, the lawyer said. That was a surprise, given that British prosecutors had just accused the former hedge-fund trader of padding his $1 million-plus income with profits from insider trading. Mr. Rifat had figured his days in the financial industry were over and jumped at the unexpected opportunity. As it turned out, he traded the frying pan for the fire. Mr. Rifat wasn’t offered a money-management job but instead the role of snitch in a long-running legal brawl between two very rich men, according to people familiar with the discussions. Mr. Rifat’s prospective boss was Canadian retail tycoon Peter Nygard. The only expertise Mr. Nygard sought was any dirt Mr. Rifat had on New York hedge-fund magnate Louis Bacon —Mr. Nygard’s personal enemy and Mr. Rifat’s former employer.

'Snitches' note on front door leads deputies to suspected drug dealer (TSG)
Authorities in West Virginia said a homeowner was arrested on drug charges after deputies noticed a warning sign on the house's door directed toward "snitches." The Fayette County Sheriff's Office said Cpl. C.M. Fitzwater and Deputies Rachel Stephens and M. A. Sifers responded about 10:15 a.m. Thursday to an Oak Hill neighborhood to follow up on a report of joyriding. The sheriff's office said the deputies noticed a sign on a residence's front door that appeared to imply the sale of drugs inside the house. The sign read: "Due to snitches, everyone entering my home is subject to being searched. All cellphones and drinks will be left outside!! (If you're not a snitch, it won't offend you if I search you!!)"