Jeff Gundlach sees trouble, says traders should raise cash ‘literally today’ (CNBC)
Short-term investors should sell stocks and get ready for a drop in the market this summer, Jeffrey Gundlach, CEO and CIO of DoubleLine, said Tuesday. "If you're a trader or a speculator I think you should be raising cash today, literally today. If you're an investor you can easily sit through a seasonally weak period," Gundlach said on a call discussing DoubleLine's Total Return Bond Fund.
Elizabeth Warren Calls for Targeted Deregulation of Community Banks (WSJ)
While House Republicans and the Trump administration have unveiled plans to unwind various postcrisis financial regulations, many of them require legislative actions that are only possible with the support of at least some Senate Democrats. That gives leverage to senators like Ms. Warren who lead debates on regulating banks. “We can work together when you are not changing the law,” she said.
Uber director David Bonderman resigns from board following comment about women (Reuters)
During Tuesday's meeting, Uber board member Arianna Huffington spoke to employees about the importance of adding more women to the board of directors. "There's a lot of data that shows when there's one woman on the board, it's much more likely that there will be a second woman on the board," Huffington said. In response, Bonderman said: "Actually, what it shows is that it's much more likely to be more talking."
Ex-Traders in Britain to Face Currency-Rigging Charges in U.S. (NYT)
According to a letter filed in their court case on Monday, the three defendants — Christopher Ashton, a former Barclays trader; Rohan Ramchandani, the former head of G-10 FX spot trading at Citigroup; and Richard Usher, a former JPMorgan Chase trader — have all agreed to waive extradition and appear next month in the Federal District Court in Manhattan.
Death of the human investor: Just 10% of trading is regular stock picking, JPMorgan estimates (CNBC)
"While fundamental narratives explaining the price action abound, the majority of equity investors today don't buy or sell stocks based on stock specific fundamentals," Marko Kolanovic, global head of quantitative and derivatives research at JPMorgan, said in a Tuesday note to clients. Kolanovic estimates "fundamental discretionary traders" account for only about 10 percent of trading volume in stocks. Passive and quantitative investing accounts for about 60 percent, more than double the share a decade ago, he said.
Reuters takes fresh swing at Bloomberg chat service with Symphony tie-up (FT)
Symphony, the start-up messaging platform, has teamed up with data and trading group Thomson Reuters in a move the two hope will finally topple Bloomberg’s position as the dominant network for chat in financial markets. From later this year the 200,000 licenced users of Symphony’s messaging network will be able to share charts, news and data found on Thomson Reuters’s Eikon terminals, if they are also Thomson Reuters users.
Barclays Upgrades and Downgrades Same Company -- On Same Day (BBG)
If only analysts at Barclays had measured twice, perhaps they wouldn’t have had to cut once. Analyst Christine Cho cut her rating on SemGroup Corp. to equal weight -- normally an unremarkable change for a $1.9 billion company whose stock plunged more than 15 percent over two days last week. But Cho’s downgrade Tuesday came just hours after she had told clients the prior week’s rout left the energy-transportation company at an attractive valuation, warranting an overweight rating.
Hidden in Plain Sight: A Powerful Way to Beat the Market (WSJ)
Harvard Business School economist Lauren Cohen and economists Christopher Malloy and Quoc Nguyen downloaded all the 10-K and 10-Q filings with the Securities and Exchange Commission from 1994 through 2014 and used textual-analysis software to create a similarity score showing how the language in corporate filings differed one period to the next. They then looked at stock performance following filings. The finding: Shares of companies that had significant changes did much worse than those of companies that didn’t. This was particularly true when it came to changes in the risk factors section of 10-Ks.
When a Bank Sells for One Euro, Who Gets the Euro? (WSJ)
Who gets that notional amount of €1 that Santander is paying? Theory suggests it would be holders of Banco Popular’s Tier 2 subordinated bonds. In fact, it was the Spanish regulator that ended up with it, getting an electronic bank transfer of the money from Santander. As overseer of the auction, the regulator has first rights to any proceeds to help cover its costs. Not surprisingly, they quickly exceeded €1.
Woman caught shoplifting said she was studying kleptomania (AP)
A Wyoming college student who told officers she was working on a term paper on kleptomania after she was caught shoplifting faces three felony charges. The Gillette News Record reports 23-year-old Lydia Marie Cormaney was arrested on June 5 after trying to leave Walmart with nearly $1,900 worth of merchandise.