Wall Street Basks In The ‘Trump Effect’ As Trading Soars (FT)
Since the November election, there have been seven days when more than $20bn of investment grade debt has traded hands — a level that had previously only been breached 18 times since 2005. Record trading volumes in the asset class have been achieved, accompanied by an uptick in Treasuries, swaps, high yield corporate bonds, exchange traded funds and equity volumes.
Until the election, Goldman Sachs’s core clientele of hedge funds was less active amid low stock-market volatility and interest rates stuck near zero. The surge in volatility since Nov. 8 has reawakened hedge funds. Opportunities in trading are shifting from a “stocked pond” where it’s easy to catch small fish to a new environment “all about trying to reel in the big ones," said Brennan Hawken, a UBS Group AG analyst. “That’s Goldman’s sport.”
On Oct. 15, 2010, a UBS trader wrote, “Gonna bend this silver lower.” A Deutsche Bank trader responded, “Oh dear. my boss just said he bought some.” The UBS trader said, “I have to be sneaky then.” Then later, “Had to really work that one. told u I’d bend it lower for u.”
Amazon CEO and founder Jeff Bezos was invited, said sources, and he is likely to attend. Bezos’ presence would be awkward, obviously, given how aggressive his Washington Post has been in its reporting on Trump and how many times the reality show star turned President-elect has attacked Amazon on a number of issues.
The Italian government is ready and willing to step in to help stricken lender Monte dei Paschi di Siena if a private recapitalization plan fails. The bank's deadline to raise new capital is the end of the year, but if it does not reach that target, the Italian Treasury is now ready to step in.
The founder of the Vanguard Group complains that the annual turnover of shares in the biggest ETF, which tracks the S&P 500, can reach 3,000 per cent of its assets, and that the implications of this “trading — call it speculation — have yet to be fully examined”.
As of Friday, Shiller price-to-earnings ratio hit 27.86, and the only times it's been higher were right before the 1929 crash, the dot-com bubble of the late 1990s, and the run-up to the 2008 financial crisis. Of course, high valuations don't necessarily mean a crash is imminent, but stocks have certainly gotten very pricey lately.
”The markets are assuming that he is going to create three to four percent growth on a sustainable basis,” said Dent. “It is demographically impossible.... When the markets figure this out, they are going to crash.”
A group of traders in JPMorgan’s investment bank has expanded from selling commercial mortgage-backed securities to underwriting loans that are unsuitable for bonds, such as those for big construction projects. In recent months, the desk has helped fund developments including Manhattan condominiums, a Times Square hotel and New Jersey’s troubled American Dream mega-mall.
Uber Would Like Some Of Its Users To Please Stop Having Sex In Its Cars (Houston Chronicle)
"Uber has a no sex rule," the company says online in their legal portion of their website. They clarify just in case anyone is confused by that statement saying, "That's no sexual conduct with drivers or fellow riders, no matter what."