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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.
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Buffett rescues teetering Canadian subprime mortgage lender (FT)
Marc Cohodes, a California-based short-seller with a big position in the stock, said on Wednesday evening that Home Capital had struck “a deal with the devil, with the equity in the tank”. He said he will not be closing his short, as the punitive terms of the Berkshire Hathaway financing — for Home Capital and its existing shareholders — indicated big problems beneath the surface.

Ackman set to cash in as Blackstone eyes chemical deal (NYP)
Stephen Schwarzman’s buyout firm Blackstone Group has formed a bidding consortium that could shell out more than $4 billion to buy half of chemicals giant Platform Specialty Products, whose biggest shareholder is Ackman, three sources told The Post. “There is a reasonable possibility a deal happens,” a source said.

Leaking information about corporate deals adds millions to their value (BI)
Leaking information about mergers and acquisitions boosts the value of a deal by an average of $21 million, according to new research carried out by content management company Intralinks and Cass Business School. A report from the pair analysed deals between 2009 and 2016, and found that the median takeover premium for leaked deals was 47%, compared with 27% for non-leaked deals.

In the New Bond Market, Bigger Is Better (WSJ)
What’s happening in bond markets would be similar to a retail sector in which wholesalers—a role played by banks in financial markets—were scaling back their business. Small retailers would struggle to stock up, but big-box stores with their mega warehouses and access to international producers would get by fine.

The Reverse Tepper Moment? (Macro Tourist)
What do I mean about an anti-Tepper moment? When Tepper called the bottom, he did so because he believed stocks would rise because either; the economy would improve, or the Fed would come in with QE. Either way would be positive for stocks. In the current environment, we have the opposite situation. Either the economy rolls over (which should be bad for stocks), or it bounces, at which point the Federal Reserve continues on its tightening path (which could also be bad for stocks).

Uber's bad week: Doomsday Scenario or Business Reset? (Aswath Damodaran)
For the moment, my story for Uber is mostly unchanged from September 2016 with two shifts: there is now a change, albeit a small one (5%), that the company could fail and I believe that these events have increased the likelihood that Uber will have to follow a more conventional business path of treating drivers as employees (lowering target operating margins).

Price manipulation in the Bitcoin ecosystem (VoxEU)
In recent work, we show that the first time Bitcoin reached an exchange rate of more than $1,000, the meteoric rise was driven by fraud. We leverage a unique and very detailed dataset to examine suspicious trading activity that occurred over a ten-month period in 2013 on Mt. Gox, the leading Bitcoin currency exchange at the time. We first quantify the extent of the suspicious/fraudulent trading activity and show that it constitutes a large fraction of trading on the days the activity occurred. We then show how this trading activity affected the exchange rates at Mt. Gox and other leading currency exchanges.

The Next Big Thing In Cycling Could Be Poop Doping (Deadspin)
Read one particular way, the history of cycling is a history of riders doing all they can to stretch past the natural limits of the human body. Cheating has been at the very heart of cycling since its inception and riders have tried, at various points throughout the sport’s history, strychnine, EPO, cocaine, wine, horse tranquilizers, blood bags, cortisol, and even tiny hidden motors. Now we come upon a new frontier: poop. The future of cycling is shit.

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Opening Bell: 5.8.17

Warren Buffett said some things; Goldman kicks the Volcker can a bit farther; Ukraine deems Steven Seagal a national security threat; and more.

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Opening Bell: 2.27.17

Warren Buffett wrote a thing; Silicon Valley is foisting creativity on everyone; getting hit in the balls is an art form; and more.

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Opening Bell: 8.23.17

Herbalife readies finishing move on Bill Ackman; Goldman plans finishing move on Volcker rule; firefighters feast on piglets they saved from fire; and more.

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Opening Bell: 10.26.17

Elon Musk can't predict the future too well; neither can Morningstar; Bill Ackman will gorge himself on Chipotle till the stock reacts; German parents attempt to name kid "Lucifer;" and more.

Opening Bell: 06.11.12

Nasdaq CEO Lost Touch Amid Facebook Chaos (WSJ) At the end of Facebook's disastrous first day of trading May 18, the phone in Robert Greifeld's New York office rang. It was Mary Schapiro, head of the Securities and Exchange Commission, wanting an explanation from the chief executive of Nasdaq OMX Group for the epidemic of glitches and delays in one of the most anticipated initial public offerings ever. Mr. Greifeld couldn't talk. Having monitored the rocky process from Silicon Valley, where he had gone to join Facebook executives in remotely ringing the market's opening bell, he concluded the worst problems were fixed and caught a noon flight back to the East Coast. So, marooned for almost five hours in business class with a phone he says didn't work, he didn't realize that continuing breakdowns at his exchange had left countless investors not knowing how many Facebook shares they had bought or sold and at what price, nor did he know the SEC chief wanted to reach him. Three weeks later, Mr. Greifeld still isn't sure why technology systems failed during the crucial IPO. Nasdaq's failure to see the problem coming is something its engineers are still dissecting. "You wake up, you turn around, and there's a black or dull spot," Mr. Greifeld said in an interview, sucking on Life Savers candy at a conference table in his office. "You can't get away from it." Spain’s Bailout Gives Rajoy Best Chance To Fix Banks (Bloomberg) Spain’s request for as much as 100 billion euros ($125 billion) of European bailout funds may provide the country with enough money to shore up its banking system after three failed attempts in as many years. “Now that they have this money, it will hopefully finally be possible to recognize all the hidden losses and clean up the system,” Luis Garicano, a professor at the London School of Economics, said in a phone interview. The amount sought is about 2.7 times the funds deemed necessary for Spanish banks by the International Monetary Fund in a report released June 8 and five times the total requested by the Bankia group, the country’s third-biggest lender, to cleanse its balance sheet. Spain's economic misery will get worse this year despite bailout request, prime minister says (NYP) A day after the country conceded it needed outside help following months of denying it would seek assistance, Rajoy said more Spaniards will lose their jobs in a country where one out of every four are already unemployed. "This year is going to be a bad one," Rajoy said Sunday in his first comments about the rescue since it was announced the previous evening by his economy minister. IPOs Dry Up Post Facebook (WSJ) In the aftermath of Facebook's botched trading debut, the IPO market has gone three weeks without an offering, the longest drought in five months. It is the slowest stretch in initial public offerings since a four-week span at the end of 2011 and the beginning of this year, according to data from Ipreo. Greece Threatens Wall Street Jobs In Third Trading Plunge (Bloomberg) For a third consecutive year, revenue from investment banking and trading at U.S. firms may fall at least 30 percent from the first quarter, Richard Ramsden, a Goldman Sachs analyst, said in a note last week. Greece, which gave English the word “cycle,” has been the main reason each year that the second quarter soured after a promising first three months. Nickelback Review Goes Viral (Poynter) Music critic Josh Gross has written hundreds of stories about bands, but none has brought him as much attention as the brief he wrote this week about Nickelback’s upcoming appearance in Idaho, where Gross writes for the Boise Weekly. He summarizes the response: "In the past day, I have been told that I am a genius, a king amongst men and a hack that could be easily outdone by a one-armed cat. I should alternately win the Pulitzer and forcibly insert 45 pickles into my bum. There has been little middle ground. Why? Because I had the audacity to point out that seeing Canadian “rock” band Nickelback at the Idaho Center may not be the best use of one’s $45." Gross wrote of the Nickelback: "You can spend $5 to go see Nickelback this week. Or you could buy 45 hammers from the dollar store, hang them from the ceiling at eye level and spend an evening banging the demons out of your dome...$45 is also enough to see Men In Black III five times, buy a dozen Big Macs, do 10 loads of laundry or so many other experiences as banal and meaningless as seeing Nickelback but come without actually having to hear Nickelback. But if you must, the band is playing The Idaho Center on Wednesday, June 13, at 6PM tickets start at $45." Dimon Faces Washington Grilling Over Trading Debacle (Reuters) The Senate Banking Committee has asked Dimon to come prepared Wednesday to provide "a thorough accounting of the trading losses," a committee aide said. Senators will also ask what he knew about the risks involved in the trading strategy. Fed Colleague Backs Dimon (WSJ) "I do not think he should step down," Lee Bollinger said in an interview with The Wall Street Journal. He said Mr. Dimon appears to have done nothing wrong, that critics attacking the Fed have a "false understanding" of how it works, and that it is "foolish" to say Mr. Dimon's presence on the New York Fed board creates an appearance of a conflict when the law requires bankers to serve on such boards. Private lunch with investor Warren Buffett sells for $3.5 million (WaPo) The previous four winning bids have all exceeded $2 million with records set every year. Last year’s winner, hedge fund manager Ted Weschler, paid $2,626,411. India Could Be First BRIC to Lose Investment Grade: S&P (Reuters) Standard & Poor's said on Monday that India could become the first of the so-called BRIC economies to lose its investment grade status, sending the rupee and stocks lower, less than two months after cutting its rating outlook for the country. "Slowing GDP growth and political roadblocks to economic policymaking are just some of the factors pushing up the risk that India could lose its investment-grade rating," the ratings agency said in a statement issued Monday on a report dated June 8. Town Considers Fines For Cursing (WSJ) Mimi Duphily was hanging baskets of pink geraniums on antique street lamps downtown for the Middleborough Beautification and Activities Group when she noticed something else that needed cleaning up—citizens' mouths. "The cursing has gotten very, very bad. I find it appalling and I won't tolerate it," said Ms. Duphily, a civic leader in the otherwise quiet New England community, which calls itself the Cranberry Capital of the World. "No person should be allowed to talk in that manner." Soon, Middleborough residents who do could risk a $20 fine. Ms. Duphily, 63 years old, tried scolding the cursers—whom she describes as young people shouting the "F word" back and forth—with a stern, "Hey kids, that's enough!" Then she conferred with the Beautification and Activities Group, which informed the Middleborough Business Coalition, which then called a summit with Middleborough Police Chief Bruce Gates, who now, in his sworn role, is trying to stomp out swears.

GundlachExplainsItAll

Opening Bell: 8.18.17

Truth Gundlach strikes again; Leon Cooperman has some strong words for Bill Ackman; Trump is worth $2 billion to Twitter; Marilyn Monroe sex dolls are not kosher; and more.

Snap founders Evan Spiegel and Bobby Murphy

Opening Bell: 4.4.17

Tech CEOs are ruining shareholding; how Mexican civil servants pulled off a $5 billion oil deal; get a taste of Warren Buffett; and more.

Goldman_Sachs-bitcoin

Opening Bell: 12.11.17

Bitcoin futures get off to a manic start; the tax bill is dumber than you could even imagine; Janet Yellen, “feminist icon”; Snap execs ordered sex on a company call; and more.