Under investor pressure, Goldman to explain trading strategy (Reuters)
Executives including securities group co-head Pablo Salame have been meeting privately with investors and analysts to assuage concerns, the sources said. The executives have explained how Goldman is trying to get investment bankers and traders to generate more revenue by working more closely together, sources familiar with the conversations said.
Hedge Funds Near-Record Momentum Bets Keep Coming Up Winners (BBG)
“It’s like these things are like gold -- it’s almost like a safe haven,” said Mark Connors, the global head of risk advisory at Credit Suisse Group AG. “This resilient price action in equities is commensurate with the constructive positioning we see across hedge fund strategies and speaks to the persistent positive sentiment in 2017.”
It’s Official: Warren Buffett Made About $13 Billion on Bank of America Deal (WSJ)
Berkshire’s exercise of the warrants, along with dividends the company has received on Bank of America preferred stock, brings its paper gain on its investment in the bank to around $13 billion. “Berkshire is going to keep every share for a very long time,” Mr. Buffett said in an email to the Journal Tuesday.
Crypto-bailouts for struggling startups (FT Alphaville)
So what does a chief executive do when things grind to a halt? Well, she or he either kick-starts growth; pulls a dramatic pivot out of the hat; finds someone dumb enough to acquire the company; or prepares for the slow or fast decline of the business. But now there’s another option: an initial coin offering (ICO), which lets you raise money from the public without having to sell any equity and dilute your existing shareholders. One startup heading down this path is Kik, a messaging app that has raised $120m from investors like Tencent and Union Square Ventures since its launch in 2010.
The mysterious rise in shares of the Swiss National Bank (FT)
There is a more straightforward explanation, however, for why SNB shares have become more attractive, leading to a higher price. SNB shares should be regarded, not as equity stakes, but as an alternative to ultra-safe government bonds, says Alexander Koch, economist at Raiffeisen bank. Given central banks cannot go bankrupt — they control money creation — a share in the SNB is like a perpetual bond with a fixed coupon. At a price of around SFr3,000 the yield is only about 0.5 per cent — but that still compares favourably with the yield on a 10-year Swiss government bond, currently about minus 0.15 per cent.
Google Critic Ousted From Think Tank Funded by the Tech Giant (NYT)
“We are in the process of trying to expand our relationship with Google on some absolutely key points,” Ms. Slaughter wrote in an email to Mr. Lynn, urging him to “just THINK about how you are imperiling funding for others.”
Traders are no longer impressed by the biggest driver of stock market gains (BI)
In the second quarter, a company beating expectations only saw a 0.3% share-price gain over the following three days, according to data compiled by Morgan Stanley. The picture was even worse for companies that beat sales forecasts. Their stocks remained flat over that period.
Stocks Are Fundamentally Sound (Yardeni)
The Fundamental Stock Market Indicator (FSMI) rose to a new record high during the week of August 19. It has been very highly correlated with the S&P 500 since 2000. The FSMI isn’t a leading index of the S&P 500. Nothing leads the S&P 500, since it is a leading indicator itself, and is one of the 10 components of the Conference Board’s Index of Leading Economic Indicators. My indicator simply confirms or raises doubts about the underlying trend in the stock market. Its new high certainly confirms that the bullish trend in stocks remains intact.
CITI: Retail jobs will 'vanish' due to technology and it 'will affect every city and region' (BI)
The disappearance of factory jobs has led to the devastation of many communities in areas like the so-called "rust belt" of the US but Benedikt Frey says the decline of retail jobs is likely to felt much more widely. "Unlike manufacturing jobs which are highly concentrated, the downfall of retail employment will affect every city and region," Benedikt Frey writes.
Man on bicycle rides through Lincoln Tunnel, blames phone app (NJ.com)
The man, a 26-year-old Jersey City resident who was delivering food, was intercepted by Port Authority police on the New Jersey side of the tunnel around 7:30 p.m. He explained to officers how he came to be in the tunnel and showed them the app, "which supported his claim," Pentangelo said.