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Opening Bell: 7.27.17

As of 7:55 a.m., Anthony Scaramucci is having a pretty rough day; Deutsche Bank whiffs; Libor going bye-bye; Ray Dalio poetry; and more.
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Scaramucci still stands to profit from SkyBridge from the White House (Politico)
The incoming White House communications director earned $4.9 million from his ownership stake in SkyBridge in addition to more than $5 million in salary between Jan. 1, 2016, and the end of June, when he joined the Export-Import Bank, according to a financial disclosure filed with the Office of Government Ethics. The SkyBridge website continues to advertise Scaramucci as the firm's managing director, despite the fact that he has been a government employee for more than a month. AND THEN: Anthony Scaramucci threatens to contact FBI over disclosure of his financial info (CBS) ... ALSO: ‘Relax, Scaramucci isn’t touching your money’ (FT) ... ALSO: Whatever this is


Deutsche Bank Q2 revenues disappoint after drop in prime brokerage (FT)
Deutsche Bank chief executive John Cryan said the bank’s revenues were “not as universally strong as we would have liked, in large measure because of muted client activity in many of the capital markets”. Deutsche said the fall in equities revenues was “predominantly driven by a decline in prime finance revenues” while the fixed income fall was attributed to lower market activity.

Libor, Scandal-Plagued Interest Rate, Could Disappear by 2021 (NYT)
The FCA would like the industry to shift to reference rates more closely tied to actual loan transactions within four to five years, rather than the current system of using the best guess of the participating submitting banks. In his speech, Mr. Bailey cited what he called a “extreme example” in which about a dozen banks submitted a rate every day for a particular currency and maturity rate in which only 15 transactions of potentially qualifying size for that currency and maturity had been executed in 2016.

State Street Pushed 400 Companies to Put Women on Boards. Most Shrugged (WSJ)
Index-fund giant State Street Global Advisors, which oversees more than $2.5 trillion in assets, had pledged in March to throw its weight behind the issue this year. The company found 468 companies it owns shares of in the U.S. lacked a single female board member. Of that group, the Boston-based firm said about 400 companies failed to address gender diversity in any meaningful way.

There They Go Again...Again (Howard Marks)
Since I’m convinced “they” are at it again – engaging in willing risk-taking, funding risky deals and creating risky market conditions – it’s time for yet another cautionary memo. Too soon? I hope so; we’d rather make money for our clients in the next year or two than see the kind of bust that gives rise to bargains. (We all want there to be bargains, but no one’s eager to endure the price declines that create them.) Since we never know when risky behavior will bring on a market correction, I’m going to issue a warning today rather than wait until one is upon us.

SEC Chairman Puts in a Good Word for Active Investing (WSJ)
“Index investing has been great for me, but my best returning investments were actively managed funds,” he told an audience at the U.S. Chamber of Commerce. “So from personal experience, I certainly would not want to get rid of those.”

How to Make a Fortune Drinking, Gambling and Napping (BBG)
“It was effectively a ‘pub lock-in,’” Blue said. “Mr. Ashley challenged a young Polish analyst in my team, Pawel Pawlowski, to a drinking competition: Mr. Ashley and Pawel would drink pints of lager, with vodka “chasers” between each pint, and the first to leave the bar area for whatever reason was declared the loser. After approximately twelve pints and chasers, Pawel apologised profusely and had to excuse himself. Mr. Ashley then vomited into the fireplace located in the center of the bar, to huge applause from his senior management team.”

Bitcoin Exchange Was a Nexus of Crime, Indictment Says (NYT)
The indictment may offer an explanation for a shock to the digital coin market in 2014. Mr. Vinnik and his partners are accused of stealing funds from the Tokyo-based Bitcoin exchange Mt. Gox, which declared bankruptcy in 2014 after disclosing a hacker intrusion. The indictment unsealed on Wednesday said that hundreds of thousands of Bitcoins moved from Mt. Gox into accounts at BTC-E that were directly controlled by Mr. Vinnik.

Principles as poetry, kind of (Alexandra Scaggs)
So, I used a random number generator to choose five pages from Ray Dalio’s book version of “Principles” (due out in September). Then I picked out passages from each page, and turned them into poems. Emphasis and formatting are the only things changed. It is not entirely clear why I thought this was a good idea.

Adrian Beltre Told To Move To On-Deck Circle, Moves On-Deck Circle To Him, Gets Ejected (Deadspin)
Adrian Beltre is unarguably among baseball’s purest sources of joy and delight. But umpire Gerry Davis was not too delighted by Beltre’s response tonight when he told the veteran to get in the on-deck circle while he was, uh, on deck. Beltre simply dragged the on-deck circle to where he was already standing—a few feet away—and Davis reacted by ejecting him.



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