Opening Bell: 7.20.17

Goldman is losing ground to Morgan Stanley; John Cryan sees a hard Brexit coming; doctors found 27 contact lenses in some lady's eye; and more.
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Morgan Stanley, Goldman Earnings Highlight Firms’ Diverging Paths Since Crisis (WSJ)
Last year, Mr. Gorman and top lieutenant Colm Kelleher, a former trading chief, fired 25% of fixed-income traders and slashed the capital available to the unit for bets. Still, that division—which trades everything from corporate bonds to oil to interest-rate swaps—has kept revenue from falling sharply. It has made more than $1 billion in revenue for five straight quarters, hitting a goal Mr. Gorman set last year.

Goldman Partners Mark End of Era as Stock Holding Drops Below 5% (BBG)
After departures and personal stock sales, the stake held by bank’s most senior rank slipped to 4.79 percent as of July 3, according to a regulatory filing Wednesday. That’s down from 5.65 percent in late January -- and from more than 60 percent after the firm’s initial public offering in May 1999. Periodic filings have shown for years that their holding has been gradually shrinking, and as long as it’s below 5 percent, the bank isn’t required to provide updates.

Goldman Sachs is on a hiring spree to become the Google of Wall Street (BI)
The New York-based financial services giant is hiring for Marquee, a platform that provides clients access to the bank's analytics, data, content and execution capabilities via a browser or an API. The bank is looking for talent to fill positions in its New York office, spanning from associate developer to vice president. The bank has posted eight job ads for roles relating to Marquee in New York in the past month or so, and has also recently advertised a further 12 roles in Bengalaru and four in Warsaw.

Evan Spiegel is finally having sex with Miranda Kerr, and Snap investors are furious (PageSix)
One incensed Snap investor told Page Six, “Where are the shareholders’ yachts? Evan is chilling on the coast while Snap burns under Facebook competition. He’s feasting on Italian delicacies while shareholders starve. ‘Let them eat losses!’ ”

Deutsche Bank Preparing for Hard Brexit, CEO Cryan Tells Employees (BBG)
Deutsche Bank AG is preparing for a hard Brexit and will probably book the “vast majority” of its assets in Frankfurt, Chief Executive Officer John Cryan tells employees in a videotaped message. “There’s an awful lot of detail to be ironed out and agreed; depending on what the rules and regulations turn out to be, we will try to minimize disruption for our clients and for our own people,” Cryan says in the video. “But inevitably roles will need to be either moved or at least added in Frankfurt.”

Saudi Aramco IPO will leave fund industry with no place to hide (FT)
At the very least, investors will have to decide whether to buy Saudi Aramco in addition to energy groups BP and Shell, or instead. Anyone paid to pick stocks or manage money will be required to have a view on succession in the House of Saud, the effect exports of US shale oil have on prices, and where dividends to shareholders rank in the priorities of a nation state.

Former Employee Testifies Shkreli Threatened Him and His Family (NYT)
Mr. Pierotti joined Mr. Shkreli’s hedge fund, MSMB, in August 2011, to start a consumer fund. With Mr. Shkreli’s blessing, he testified, he put all of MSMB Consumer��s money into one stock, Rick’s Cabaret, a chain of strip clubs. “One day, Martin came in and said, I want it all sold today; I need the money,” Mr. Pierotti testified. Mr. Pierotti liquidated the fund, he said. Soon after, when Mr. Pierotti walked into the MSMB offices, he saw “guys were packing computers and the flat screens into, like, rolling suitcases,” he said. “The bills had not been paid.”

Return On Equity At Record Low (Ritholtz)
The all-time highs we are seeing in equity valuations is having a significant impact on corporates. One distinct feature of this rally is the steady decline in the return on equity, as seen in the flow of funds data. Return on equity in corporate America is currently at the lowest level since World War II.

Doctors Remove 27 Contact Lenses From Woman’s Eye (HuffPo)
As bad as it sounds to have 17 lenses stuck together in your eye, specialist trainee ophthalmologist Rupal Morjaria told the website that doctors eventually found an additional 10 individual contact lenses in the same eye. All of the lenses were monthly disposable contacts that the woman had forgotten about, Optometry Today reported. “We were really surprised that the patient didn’t notice it because it would cause quite a lot of irritation while it was sitting there,” Morjaria said.

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Opening Bell: 4.19.17

Morgan Stanley does victory lap around Goldman; Treasury Department wants your opinion on century bonds; which emoji makes the best sex toy?; and more.

Opening Bell: 06.15.12

Forthcoming Facebook Motion Said to Discuss Nasdaq’s Role in I.P.O. (NYT) Facebook is preparing for battle. One month after its botched initial public offering, the social network is set to file a motion to consolidate all the shareholder lawsuits against the company, according to a person with knowledge of the matter. The lead underwriters, Morgan Stanley, Goldman Sachs, and JPMorgan Chase, are expected to join the motion, which could be filed in the Federal District Court for the Southern District of New York as early as Friday. The motion will represent the first time Facebook has publicly addressed the lawsuits and the performance of its highly anticipated, but ultimately lackluster, IPO on May 18. Facebook Is Not The Worst IPO (Deal Journal) Thursday marked the 4-week anniversary of the pricing of the IPO at $38 and today marks the anniversary of the innocuous opening and subsequent turmoil. Through Thursday’s close the stock was down about 26%, losing some $27 billion in market capitalization. That is ugly, but not as bad as the Halloween 2007 debut of Giant Interactive Group. The Chinese online-gaming company raised just over $1 billion in an IPO that started out well, rising about 18% on day one, but then promptly tumbled 30% through its first month, according to Dealogic. Draghi Hints ECB Is Ready To Act (WSJ) Providing liquidity "is what we have done throughout the crisis, faithful to our mandate of maintaining price stability over the medium term, and this is what we will continue to do," Mr. Draghi said. The Eurosystem, the ECB and the 17 national central banks that use the single currency "will continue to supply liquidity to solvent banks where needed," he added. Greeks Return To Ballot Box As Crisis Nears Decisive Moment (Bloomberg) The June 17 vote will turn on whether Greeks, in a fifth year of recession, accept open-ended austerity to stay in the euro or reject the conditions of a bailout and risk the turmoil of becoming the first to exit the 17-member currency. World leaders have said they’d prefer a pro-euro result, underscoring concern over global repercussions. Moody's Downgrades Dutch Banks (WSJ) In a statement, Moody's said it had cut the ratings by two notches each of ABN Amro Bank NV and ING Bank NV to A2, LeasePlan Corp. NV to Baa2 and Rabobank Nederland to Aa2. It also cut the rating of SNS Bank NV by one notch to Baa2. Giselle Is World's Highest Paid Model (Forbes) Just like last year, the Brazilian bombshell Bündchen leads the pack with a stunning $45 million in earnings (all estimates from May 1st, 2011 to May 1st, 2012). Even in her early thirties, Bündchen remains an unparalleled force within the fashion world. As the world’s most powerful supermodel, she racks up modeling gigs, spokesperson deals, and independent licensing ventures at every turn...Bündchen’s success combining business with modeling is influencing young, ascendant models. “The ones that are coming up, their model for excellence is Gisele. They’re looking at her and saying ‘that’s what I want to shoot for,’” Razek said. Fed Loans Backing AIG, Bear Repaid (WSJ) On Thursday, the regional Federal Reserve bank said it has been repaid, with interest, on $53.1 billion in loans it made to two crisis-era vehicles that held complex subprime mortgage bonds, home loans, commercial-property loans and other unwanted assets from Bear and AIG. The New York Fed earlier recouped a separate $19.5 billion loan that financed the purchase of mortgage-backed securities from AIG. Warren Buffett fired Benjamin Moore CEO after Bermuda cruise (NYP) “[Abrams] kept asking what he’d done wrong,” according to an insider briefed on the ouster. “[Berkshire officials] told him to clear his stuff out while they stood and watched every move he made.” Gupta Hopes Family Guy Image Will Help (NYP) The 63-year-old former Goldman Sachs director — facing 25 years in prison on charges of leaking inside information to his hedge fund pal Raj Rajaratnam — has surrounded himself with family and friends throughout the four-week trial. Gupta’s four Ivy League-educated daughters, his wife, Anita, and sister, Kumkum, in-laws and colleagues — roughly a dozen daily attendees — were in the courtroom each day, taking up the first two rows of the gallery. As the jury today starts its second day of deliberations, the fallen Wall Street star hopes the family vibe helps push the panel toward an acquittal. In the Facebook Era, Reminders of Loss if Families Fracture (NYT) The Times just found out that one of the weird things about Facebook is that you can find out things about people you haven't spoken to in years: Not long ago, estrangements between family members, for all the anguish they can cause, could mean a fairly clean break. People would cut off contact, never to be heard from again unless they reconciled. But in a social network world, estrangement is being redefined, with new complications. Relatives can get vivid glimpses of one another’s lives through Facebook updates, Twitter feeds and Instagram pictures of a grandchild or a wedding rehearsal dinner. And those glimpses are often painful reminders of what they have lost.