Opening Bell: 10.4.17

Trump gets Fed chair shortlist and Gundlach thinks Kashkari should be on it; Uber and SoftBank this much closer to making it official; 'love' not actually ingredient, per FDA; and more.
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Trump Aides Deliver Him a Shortlist of Fed Candidates (BBG)
Only a small handful of the president’s closest advisers have seen the final list of names, several of the people said. Two senior administration officials who have been involved in the discussions say that in addition to Yellen, Trump is considering Cohn, former Fed board governor Kevin Warsh and current governor Jerome Powell. There’s no frontrunner at the moment, several people said.

Jeffrey Gundlach believes Neel Kashkari will be next Fed chief because he's an 'easy money guy' (CNBC)
The term for current chair, Janet Yellen, expires in February. Wall Street believes there's still a chance Trump may pick her to continue and that she possibly would accept. Gundlach isn't buying that. "I think there is no chance that she wants to be chairwoman, nor do I think the president wants her to be," said the manager of $109 billion.

Uber board truce paves way for SoftBank deal (FT)
The changes, which represent a compromise among deeply divided board members, stopped short of barring Mr Kalanick from ever returning to lead the company, a condition that some members had discussed. However, the board agreed to strip all “super-voting” shareholders of their extra votes, a change that will shift voting power to more recent investors. These changes will take effect only if the SoftBank deal closes. The board also agreed to make Uber a public company by the end of 2019, the most definitive declaration yet of how soon the company might move towards an initial public offering

JPMorgan: Central bank normalisation may spark next financial crisis (FT)
“Such outflows (or lack of new inflows) could lead to asset declines and liquidity disruptions, and potentially cause a financial crisis,” said Mr Kolanovic (who, it is worth noting, has issued such warnings before). “The timing will largely be determined by the pace of central bank normalisation, business cycle dynamics and various idiosyncratic events, and hence cannot be known accurately.”

Ivanka and Donald Trump Jr. Were Close to Being Charged With Felony Fraud (ProPublica)
In one email, the Trumps discussed how to coordinate false information they had given to prospective buyers. In another, according to a person who read the emails, they worried that a reporter might be onto them. In yet another, Donald Jr. spoke reassuringly to a broker who was concerned about the false statements, saying that nobody would ever find out, because only people on the email chain or in the Trump Organization knew about the deception, according to a person who saw the email. There was “no doubt” that the Trump children “approved, knew of, agreed to, and intentionally inflated the numbers to make more sales,” one person who saw the emails told us. “They knew it was wrong.”

Goldman Sachs: No Signs of Recession (PragCap)
I’ve spent a lot of time in my career toying with regime change strategies. That is, strategies that operate one way in one regime environment and change in another. So if you knew when a recession was going to occur you might downshift your portfolio to something less aggressive. Then, the other 90% of the time when the economy is expanding you’re just super aggressive. So I found these charts from Goldman pretty eye opening. In essence, no signs of recession.

How the Elderly Lose Their Rights (New Yorker)
Guardians can sell the assets and control the lives of senior citizens without their consent—and reap a profit from it.

The FDA Concludes 'Love,' Despite Being Extremely Toxic, Is Not an Ingredient (Gizmodo)
In a letter to Nashoba Brook Bakery, the FDA wrote that it had seen “serious violations” of manufacturing standards for products during a tour, with “insanitary conditions in your facility at the time of the inspection” including cross-contamination of allergens, debris caked on surfaces and insects in the production facility. But Nashoba CEO John Gates told Bloomberg those observations were helpful, whereas said the agency’s intervention on the matter of love “just felt so George Orwell.” “I really like that we list ‘love’ in the granola,” Gates said.

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