Opening Bell: 3.13.17

Buying Snap stock is a millennial lifestyle choice; TD Bank gets Wells Fargo treatment; radioactive boars plague Japan; and more.
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Millennial love for Snapchat extends to the stock (Reuters)
Some seasoned investors have been wary of the volatile, relatively high-priced stock of a company that has yet to report a profit. But novice investors said their deep affinity with the disappearing-message app prompted them to jump in. "I bought it even when I was pretty positive I would not make a profit in the short run, but just because I am a fan of the product," said Chris Roh, a 25-year-old software engineer in San Francisco, who has only been trading stocks for about a month on Robinhood, a mobile trading app popular among millennials.

SnapchatIPO

This Banker Emerged From the Collapse a Billionaire Hero (BBG)
“I didn’t sell this bank and decide to take this money and quadruple it—it was enough, more than enough,” he says, nibbling on an egg salad sandwich made with eggs from his own chickens. “We continue to give it away. We invest it, and we’re fortunate the investments have done very well. But we don’t make them looking at a balance sheet.”

TD Bank under pressure over sales tactics claims (FT)
Shares in the bank dropped more than 5 per cent on Friday — the most in more than eight years — after reports by the Canadian Broadcasting Corporation accused TD of a catalogue of Wells Fargo-like sales abuses. More than 34m shares in TD changed hands on the day, more than at any point during the global financial crisis of 2008-09, as investors rushed to dump their holdings.

Preet Bharara’s Probes Likely to Continue After His Exit (WSJ)
In reference to Mr. Bharara’s ouster, the White House aide said: “The U.S. attorneys are political appointees, and all 46 of the holdovers from the Obama administration received the same resignation letter. It’s fair to say that 45 of the 46 behaved in a manner befitting the office.” The aide added: “As much as Preet wants everything to be about Preet, everyone was treated the same way.” Mr. Bharara, in response to the comments, said: “It was my understanding that the president himself has said anonymous sources are not to be believed.”

Market Drift Suggests Some Investors May Be Trading on U.K. Economic Data Ahead of Release (WSJ)
Some traders and investors say they have long had suspicions about trading on potential data leaks. “People watching the markets just had a feeling that something was going on, that markets were drifting into the number in a way that looked as though somebody, somewhere, knew it already,” said Kevin Rodgers, a former trader who was Deutsche Bank’s global head of foreign exchange up to 2014.

Wall Street Has Found Its Next Big Short in U.S. Credit Market (BBG)
With bad news piling up for anchor chains like Macy’s and J.C. Penney, bearish bets against commercial mortgage-backed securities are growing. In recent weeks, firms such as Alder Hill Management -- an outfit started by protégés of hedge-fund billionaire David Tepper -- have ramped up wagers against the bonds, which have held up far better than the shares of beaten-down retailers. By one measure, short positions on two of the riskiest slices of CMBS surged to $5.3 billion last month -- a 50 percent jump from a year ago.

Is It Better to Be Poor in Bangladesh or the Mississippi Delta? (The Atlantic)
Someone asked me the other day when I was giving a talk a really interesting question. They said, “If you abolished the government, would America be more or less equal?” Because there’s all the equality that comes from redistribution but there’s all the inequality that comes from rent-seeking. And it’s not clear to me which one.

The Golden Age of Hedge Funds (CFA Institute)
If the average performance of hedge funds leaves so much to be desired, how many are worth investing in? Very few — at least according to Cambridge Associates, a large institutional investment consulting firm that recommends hedge fund investments. Just 2% — or around 250 — of the 11,000-plus hedge funds can successfully produce returns good enough to account for the high fees and competition.

Japan's Radioactive Boars
"It is not really clear now which is the master of the town, people or wild boars," said Tamotsu Baba, mayor of the town.

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SnapchatIPO

Opening Bell 8.1.17

S&P 500 becomes No Snaps Allowed club; Greenspan speaks; White House officials fall for our old friend the email prankster; unrest at the Bank of England; and more.

By Luccadomina (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Opening Bell: 10.4.16

Banks will get no special treatment in Brexit negotiations; Deutsche layoffs; Illinois expects others to cut ties with Wells Fargo; Man busted on lewdness charge for wearing Saran Wrap bikini on NJ beach; and more.

SnapchatIPO

Opening Bell: 3.6.17

What it feels like to be the other Snap; Citi says sell; that time Steve Mnuchin's toy terrier met Dog the Bounty Hunter; and more.

Opening Bell: 04.27.12

LightSquared Lenders Pressure Falcone (WSJ) If Mr. Falcone doesn't agree to eventually leave LightSquared's board and make way for new executives and directors at the wireless communications firm, lenders are likely to balk and the company could end up filing for bankruptcy protection, they said. Shareholders Rebuke Barclays, Credit Suisse on Pay (Reuters) More than a quarter of Barclays shareholders look set to vote against the British bank's controversial pay plan for bosses and Credit Suisse is also facing a backlash as investors seek a greater share of profits. Stormy annual shareholder meetings at both banks got underway on Friday with many attendees complaining executives are getting too big a slice of bank income at their expense...Barclays Chairman Marcus Agius apologized for badly communicating the bank's pay strategy and promised to "materially" increase the dividend shareholders receive, helping to lift the bank's shares more than 4 percent. But he was heckled during his speech to a packed hall of about 2,000 shareholders and his comments about pay were greeted with laughter in some quarters. Renowned short-seller bets against Fortescue (SMH) Hedge fund short-seller Jim Chanos has singled out Fortescue Metals as a "value trap" stock, telling a New York conference that shares in billionaire Andrew Forrest's company will fall "materially." In a presentation this month to Grant's Spring Conference, a private investment forum, Mr Chanos, the boss of Kynikos Associates, told investors he feared iron ore miner Fortescue has "a somewhat promotional management team." Goldman Banker Probed For Alleged Leaks To Galleon (WSJ) U.S. prosecutors and securities regulators are investigating whether a senior Goldman investment banker gave Galleon hedge-fund traders advance word of pending health-care deals, according to people familiar with the matter. The banker, whom the people identified as Matthew Korenberg, is a San Francisco-based managing director for Goldman, a senior post. Among the merger deals being scrutinized by Los Angeles federal prosecutors and the Securities and Exchange Commission is the 2009 acquisition by Abbott Laboratories of Advanced Medical Optics, a Santa Ana, Calif., medical-device maker—a deal in which Mr. Korenberg advised Advanced Medical Optics, the people say. Another is the acquisition of APP Pharmaceuticals Inc. by Fresenius, announced in July 2008, in which Goldman advised APP, they say. Unlikely Allies (NYP) Billionaire hedge-fund mogul and Republican stalwart Paul Singer is in an odd position of late — asking the Obama administration for help to keep troubled mortgage lender ResCap out of bankruptcy. Singer, whose Elliott Associates owns debt in the mortgage lender, a unit of Ally Financial, asked Treasury Secretary Tim Geithner in recent weeks to use the government’s 74-percent stake in Ally to press for an alternative financial cure. An out-of-bankruptcy solution would help Elliott, to be sure, but would also assist the White House by keeping a unit of one of its high-profit bailouts from outright failure. But Singer, so far, hasn’t gotten any satisfaction. Geithner, insiders said, doesn’t want to use Treasury’s muscle to stop the likely Chapter 11 filing because it could be interpreted as the government overstepping its bounds. Spain Urges Focus On Reforms After Downgrade (WSJ) The government has embarked on a plan of far-reaching reforms to overhaul the economy, including new labor laws and a cleanup of the banking sector. Mr. Jiménez Latorre said these reforms will pay dividends in the medium- to long-term. The S&P ratings action "just focuses on the immediate effects," which won't be positive, Mr. Jiménez Latorre said. Dream Stenographer / Lucid Dreaming Partner (Craigslist) "I possess the wonderful gift of regularly occuring and incredibly vivid lucid dreams. In these dreams I have written Pulitzer Prize winning novels, bioengineered the cure for HIV, and brokered a lasting Israeli-Palestinian peace agreement. I have also composed Grammy winning albums. The only problem is humanity hasn't and can't benefit from my accomplishments because I forget how I achieved them shortly after waking. As a modern Renaissance man and philosopher scientist, my conscience cannot be at peace knowing I'm not doing everything possible to save my fellow human beings. Therefore I would like to a hire a dream stenographer to write down my ideas so that I may share them with the world. You, the dream stenographer, will sleep within arm's reach of me on selected nights when I feel my mind is operating at its peak performance level. Sleeping is mandatory as I'm not able to reach my optimum dream state when someone is watching me sleep. Remaining within arm's reach at all times is also mandatory so that I may wake you as quickly as possible to begin recording my stream of consciousness.Qualified applicants will be excellent note takers with unrivaled penmanship." KKR Earnings Beat Expectations (WSJ) Economic net income, a measure of private-equity firms' profitability that analysts follow because it includes both realized and unrealized investment gains, was $727.2 million, or 99 cents a share, compared to $742.5 million, or 96 cents a share, in the year-earlier period. The earnings came in at the top end of analysts' estimates, with a consensus economic net income of $486.6 million, or 74 cents a share, according to Thompson Reuters. NYSE CEO 'very disappointed' to lose out on Facebook listing (DJ) Just so you know. Wells Fargo to Buy Merlin Securities Prime Brokerage (Bloomberg) The purchase is Wells Fargo’s first foray into prime brokerage services and the bank will use the business as a foundation to expand, said Christopher Bartlett, head of equity sales and trading at the San Francisco-based lender. Prime- brokerage includes services such as lending, clearing trades and record-keeping that help hedge fund managers run their firms. Bartlett wouldn’t say how much Wells Fargo paid and a statement set to be released later today didn’t disclose the terms. Bo Xilai's Son Ticketed in Porsche (WSJ) Disputing a notion common in China that he lives a lavish lifestyle, Mr. Bo wrote to the Harvard Crimson on Tuesday saying he wished to address "rumors and allegations about myself." Among other things, "I have never driven a Ferrari," he wrote. The Wall Street Journal reported in November, based on people familiar with the episode, that Mr. Bo, the grandson of an illustrious Communist leader of the Mao era, arrived at the U.S. ambassador's residence in Beijing in a red Ferrari last year to pick up the daughter of the then-ambassador...Massachusetts Department of Transportation records show Mr. Bo was stopped by police for allegedly running stop signs in December 2010 and May 2011, one of them at 2:20 a.m., and for speeding in February 2011. The license plate of the car, which the Journal learned from someone familiar with the matter, showed it was a black 2011 Porsche Panamera registered to someone at his address.

Opening Bell: 05.22.12

JPMorgan's Losses Are Rival's Boons (WSJ) A group of about a dozen banks, including Goldman Sachs Group and Bank of America have scored profits that collectively could total $500 million to $1 billion on trades that sometimes pit them directly against J.P. Morgan's Chief Investment Office, according to traders and people close to the matter. Facebook 11% Drop Means Morgan Stanley Gets Blame (Bloomberg) Some investors say they felt misled by the underwriters. According to one London-based fund manager who asked not to be named, bankers indicated demand was so strong that he placed a bigger order than he thought he would get, leaving him with 40 percent more Facebook shares than anticipated. He sold most of that stock on the first day of trading. Morgan Stanley Cut Facebook Estimates Just Before IPO (Reuters) In the run-up to Facebook's $16 billion IPO, Morgan Stanley, the lead underwriter on the deal, unexpectedly delivered some negative news to major clients: The bank's consumer Internet analyst, Scott Devitt, was reducing his revenue forecasts for the company. The sudden caution very close to the huge initial public offering, and while an investor roadshow was underway, was a big shock to some, said two investors who were advised of the revised forecast. They say it may have contributed to the weak performance of Facebook shares, which sank on Monday - their second day of trading - to end 10 percent below the IPO price. The $38 per share IPO price valued Facebook at $104 billion. Deutsche Bank: 'Geuro' an Alternative to Greek Euro Exit (CNBC) Greece’s best chance of survival may be to stay in the euro but opt for its own parallel currency or “Geuro,” according to Deutsche Bank’s head of research, Thomas Mayer. In a research piece, Mayer said the Geuro would help Greece balance its primary budget without financial support from the 'Troika' of international lenders (the International Monetary Fund, the European Union and the European Central Bank). This would allow the incoming Greek government to reject the strict austerity program on which aid is contingent. IMF Chief, OECD Call For More Euro Debt Sharing (WSJ) International Monetary Fund head Christine Lagarde Tuesday called on euro-zone governments to accept more common liability for each other's debts, saying that the region urgently needs to take further steps to contain the crisis. "We consider that more needs to be done, particularly by way of fiscal liability-sharing, and there are multiple ways to do that," Ms. Lagarde told a press conference in London to mark the completion of a regular review of U.K. finances. Greece Needs To Accept Bailout Terms, Says South Korea (CNBC) South Korea’s President Lee Myung-bak says Greece needs to accept the terms of a $130 billion international bailout agreed in March and there will be no disbursement of money from the International Monetary Fund (IMF), unless the country does so. Floating bales of marijuana a mystery (OCG) The floating bundles, weighing a total of 8,068 pounds, were first seen by a boater near the harbor around 12:01 p.m. Sunday, U.S. Coast Guard Petty Officer Seth Johnson said. The bales were reportedly floating at least 15 miles off shore. The Orange County Sheriff's Department sent three Harbor Patrol ships to aid in recovering the marijuana. A Coast Guard cutter was also sent to assist. Michael Jimenez, a Border Patrol spokesman, called Sunday's incident unusual. In most scenarios when marijuana bales are found dumped in the water it is because a vessel is trying to flee from authorities. "At other events, they've dumped the bales to get rid of weight if they're being chased," he said. "Generally in these cases we're aware they're being dumped. What's more unusual is that the bales were floating with no boat in sight." Fitch Downgrades Japan (WSJ) Fitch Ratings downgraded Japan's sovereign rating to A-plus and said it was maintaining a negative outlook due to the "leisurely" pace of the county's efforts to remedy its dire fiscal situation. The firm's long-term foreign-currency rating had been AA and its local currency issuer default rating had been AA-minus. JPMorgan Veered From Hedging Practices At Competing Banks (Bloomberg) JPMorgan's biggest U.S. competitors say their corporate investment offices avoid the use of derivatives that led to the bank’s $2 billion loss and buy fewer bonds exposed to credit risk. Bank of America, Citigroup, and Wells Fargo. say the offices don’t trade credit-default swaps on indexes linked to the health of companies. JPMorgan is said to have amassed positions in such indexes that were so large they drove price moves in the $10 trillion market. The loss has prompted shareholders to join regulators in scrutinizing how banks use their investment offices to hedge risks and manage deposits they aren’t using for loans. JPMorgan’s competitors confine corporate-level trading mostly to interest-rate and currency swaps -- the most common derivatives -- and put a greater percentage of funds into U.S. government- backed securities such as Treasury bonds. Blackstone Moves Into Motel 6 (WSJ) Blackstone Group LP is acquiring discount lodging chain Motel 6 in a deal valued at $1.9 billion, as the private-equity firm continues to invest aggressively through its $10 billion real estate war-chest. Jon Corzine Got $8.4 Million In Year Before MF Global Collapse (NYP) Corzine received a bonus of $1.25 million in addition to his salary of about $1.8 million last year. He also was awarded $5.35 million in now-worthless stock options. Other MF Global insiders, including Chief Operating Officer Bradley Abelow, also saw big pay days. Abelow, who is still working at the firm, was paid $2.7 million in cash, including a $1.25 million bonus, plus restricted stock valued at $1.5 million. Woman Claims She Was Fired For Being "Too Hot" (Reuters) A New Jersey woman said on Monday that she was dismissed from a temporary job at a New York lingerie warehouse because her male employers felt she was too busty and dressed too provocatively for the workplace. Wearing a form-fitting sequined black dress and black leather, sequin-studded boots, Lauren Odes, 29, said her Orthodox Jewish employers at Native Intimates told her that outfit and others like it were "too hot" for the warehouse. "We should not be judged by the size of our breasts or the shape of our body," Odes said. Odes's attorney, celebrity lawyer Gloria Allred, said she filed a gender and religious discrimination complaint with the U.S. Equal Employment Opportunity Commission in New York.