Gasoline Surges, Oil Trades Near $48 as Harvey Shuts Refineries (BBG)
Gasoline surged to the highest in two years and oil declined as flooding from Tropical Storm Harvey inundated refining centers along the Texas coast, shutting more than 10 percent of U.S. fuel-making capacity. Motor fuel prices rose as much as 6.8 percent, while New York oil futures slipped 0.9 percent. Harvey, the strongest storm to hit the U.S. since 2004, made landfall as a hurricane Friday, flooding cities and shutting plants able to process some 2.26 million barrels of oil a day. Pipelines were closed, potentially stranding crude in West Texas and interrupting gasoline supply.
Wall St’s top bankers sell own groups’ shares as Trump rally reverses (FT)
Insiders at the big six banks by assets — JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs and Morgan Stanley — have in total sold a net 9.32m shares on the open market since the turn of the year. Even excluding Warren Buffett’s big dumping of shares in Wells in April, to avoid tripping over rules capping ownership by a non-bank, sales by insiders outnumber purchases by about 14 to one. That is an unusually long streak of net sales, across each of the big six. Last year, for example, insiders at JPMorgan, Citigroup and Bank of America bought more shares than they sold.
Uber Selects Expedia CEO Dara Khosrowshahi to Lead Company (WSJ)
Mr. Khosrowshahi, an Iranian-American who has run Expedia for more than a decade, stands to potentially make a fortune at Uber if he can steer the company to a successful public offering. It isn’t clear when Uber, valued last year by investors at around $68 billion, may file for an IPO—but it is first working to shore up its finances to appeal to potential investors. In 2015, Mr. Khosrowshahi was one of the most highly compensated chief executives in the S&P 500, receiving a pay package valued as much as $94.6 million in mostly long-term stock options designed to get him to stay for several years.
Trump vents in Oval Office, "I want tariffs. Bring me some tariffs!" (Axios)
Trump, addressing Kelly, said, "John, you haven't been in a trade discussion before, so I want to share with you my views. For the last six months, this same group of geniuses comes in here all the time and I tell them, 'Tariffs. I want tariffs.' And what do they do? They bring me IP. I can't put a tariff on IP." (Most in the room understood that the president can, in fact, use tariffs to combat Chinese IP theft.) "China is laughing at us," Trump added. "Laughing." Kelly responded: "Yes sir, I understand, you want tariffs." Gary Cohn, who opposes tariffs and the protectionist trade measures pushed by the Bannonites, had his shoulders slumped and was clearly appalled by the situation.
Sleepaway camp is trendy for savvy professionals (NYP)
Adam Tichauer originally created Camp No Counselors to disconnect from work and reconnect with his best friend. Now he has sites throughout the US and Canada and about 250 campers paying up to $699 each for a four-day event, which run throughout the year. The camp enables adults to create genuine friendships through shared experiences. “Do we like the same activities? Do we have a shared experience with tug of war? If you can start a relationship from genuine fundamentals, it’s so much easier creating a business relationship out of that rather than ‘Oh, he works in X, he can probably help me,’ ” says Tichauer.
Who is the sucker when robot trades against robot? (FT)
Unfortunately, the performance has atrophied in tandem with their trendiness. The average equity hedge fund has gained 7.7 per cent this year, according to HFR, while quant equity funds have gained only 4.9 per cent. Quant “macro” funds, which invest across markets, have lost 1.4 per cent. “There have been some unison screams this year,” says Wesley Chan, a quantitative fund manager at Acadian Asset Management.
In a Blast From a Financial Crisis Past, Synthetic CDOs Are Back (WSJ)
Desperate for something that pays better than basic government bonds, insurance companies, asset managers and high-net worth investors are scooping up investments like synthetic CDOs, bankers say, which had largely become the preserve of hedge funds after 2008. Investment banks, which create and sell CDOs, are happy to oblige. Placid markets have made trading revenue weak this year, and such structured products are an increasingly important business line. Synthetic CDOs got “bad press,” says Renaud Champion, head of credit strategies at Paris-based hedge fund La Française Investment Solutions. But “that market has never ceased to fully function,” he added.
Houstonians refuse to buy Dallas Cowboys coolers during Hurricane Harvey (Fox 13)
Even as a life-threatening hurricane barreled toward Texas, Houstonians refused to purchase Dallas Cowboys coolers. A photo posted to Twitter by Amjad Ismail showed the cooler section in a Walmart completely emptied except for Dallas Cowboys coolers. "Even in a hurricane no one is taking the Cowboys coolers," Ismail wrote.