Opening Bell: 11.13.17

Bitcoin is doing the opposite of going up; Goldman bankers hit the hinterlands; Bill Miller wants you to know he's not senile; angry people smash Keurigs; and more.
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Bitcoin Plunge Exposes a Fundamental Flaw (Businessweek)
Regardless of which side has more merit, investors will no doubt be scratching their heads at a far more fundamental question. If every developmental fork in the road for Bitcoin leads to a new currency branching off, how sustainable can its price boom be? True believers who think it to be as rare and precious as a digital version of gold may soon face the grim reality that it's just one flawed crypto-currency among many. A commoditized technology, in other words, rather than a technological commodity.

Goldman's Dealmakers Pack Suitcases to Chase Down Smaller Game (BBG)
Goldman Sachs hasn’t always chased those clients because they tend to do smaller deals with correspondingly lower fees, and they often don’t engage in related derivative transactions that can make the relationship more rewarding for the bank. This time, the firm is betting it can find derivatives or other transactions that appeal to them.

At the SEC, Whistleblowers Blow Whistle on Watchdog (WSJ)
Carl Hoecker, the SEC inspector general, is tasked with rooting out malpractice at the agency. At least two employees working for Mr. Hoecker have filed complaints to a different federal whistleblower-protection agency, alleging that he and his senior staff retaliated against them for calling out misconduct within the inspector general’s office, according to people familiar with the matter and documents reviewed by The Wall Street Journal.

Uber’s Driver Dilemma: Fare Hikes and Cuts Don’t Change Pay (WSJ)
When there is a fare cut, drivers’ pay per trip falls but riders flood the service, offering more business. A price hike eventually lures more drivers than Uber needs and scares away riders. The changes are short-lived as an equilibrium is reached after about eight weeks, and drivers’ average pay comes out the same. “The overwhelming story is that it doesn’t seem to matter what Uber does with fares.” ALSO: Uber Reaches Deal to Sell Stake to SoftBank

Bill Miller is staging one of Wall Street’s most closely watched comebacks (WaPo)
So far, the largest fund, the Opportunity Trust, is outperforming the S&P, though Miller says he is not trying to re-create the streak. To beat the markets for 15 years, he said, “it was like 1 in 20 million. My point being I don’t think there’s much to prove except I’m not senile, maybe.”

Your Politics are Hurting Your Investments (PragCap)
The reality is, while politicians are important, most of what they’re doing is not actually that important to the broader macro trends that are at work. For instance, year over year operating earnings are up 10% for the S&P 500. Does anyone really think that Donald Trump was the sole driver of that performance? Did Donald Trump make you get up and go to work everyday? You would have done it whether Trump won or not. And corporate earnings would be up 10% whether Trump won or not.

We're All Short Gamma (Behavioral Macro)
But there is only one thing worse than lagging all year and then missing the end of year push higher: lagging all year and loading up for the end of year push just before the market finally corrects. If this has never happened to you have no idea how mercilessly savage this can be. And since we haven’t had a correction in so long, if one were to come it’s easy to imagine it being larger than the garden variety sort.

Angry Sean Hannity Fans are Smashing Keurigs on Twitter Because 2017 Is Dumb as Heck (Gizmodo)
Social media users getting real mad and posting videos of themselves destroying things they already own is just one of the many dumb political stunts that have increasingly become a staple of (mostly far-right) Twitter. This video, in which a dude tosses one of the machines from a second-story balcony before shouting “Hope you’re happy, Keurig,” is a particularly good reminder that humans evolved from primates.

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Opening Bell: 11.30.17

Grandma wants bitcoin; hedge funds are betting on cheese; get ready for the end of the credit rally; even rats don't like to go to midtown, says science; and more.

munch-scream-bitcoin2

Opening Bell: 12.22.17

Michael Milken has a sixth sense for donating bad stocks; banks are already changing their 2018 forecasts; Dalio on tax reform: meh; get fucked by bitcoin (literally); and more.

munch-scream-bitcoin2

Opening Bell: 9.26.17

Bitcoin is a bubble, says top crypto fund manager; congressional aides have a nice insider-trading sideline; good managers hold fewer stocks; why Yoda appears in Saudi history textbooks; and more.

By kloniwotski (Flickr) [CC BY-SA 2.0], via Wikimedia Commons

Opening Bell: 9.11.17

Goldman wants to conquer U.K. retail; China is done tolerating bitcoin; Jamie Dimon's fondness for D.C. grows; don't shoot guns at the hurricane; and more.

Opening Bell: 11.09.12

RBS, UBS Traders Said to Face Arrest in Libor Probe (Bloomberg) U.K. prosecutors are poised to arrest former traders and rate setters at UBS, Royal Bank of Scotland Group and Barclays within a month for questioning over their role in the Libor scandal, a person with knowledge of the probe said. The arrests will be made by police under the direction of prosecutors at the Serious Fraud Office within the next month, said the person, who declined to be identified because the matter isn’t public. Arrests in the U.K. are made at an early stage of the investigation, allowing police and prosecutors to question people under caution and may not lead to charges. The SFO has 40 people working on the probe into manipulation of the London interbank bank offered rate, a benchmark for financial products valued at $360 trillion worldwide, and has involved the City of London Police, said David Green, the agency’s director. “Significant developments” in the case are coming “in the near future,” Green said yesterday in an interview at his office in London without giving further details and declining to comment on any possible arrests. Pressure Mounts On Fiscal Crisis (WSJ) The CBO on Thursday detailed its view that if Washington policy makers don't act before the end of the year, the economy would contract by 0.5% in 2013. The unemployment rate would jump from 7.9% to 9.1% by the end of 2013, according to the CBO—a nonpartisan arm of Congress. Ex-Goldman Bankers See Crisis Opportunity in Greek Insurance (Bloomberg) Alexis Pantazis and Emilios Markou are on a three-year odyssey to become next-generation car insurance executives in Greece that’s a million miles from their previous incarnation as bankers for Goldman Sachs. “One of our investors says you cannot wipe out a country,” said Pantazis, 36, a consultant at Boston Consulting Group before working as an executive director at Goldman Sachs from 2005 to 2008. “A country like Greece has 11 million people and these people need basic services. They need bread, they need milk, they need car insurance.” As French banks Credit Agricole and Societe Generale sell their Greek units to exit the only euro area country that’s in need of a second rescue package, Pantazis and Markou see an opportunity. After swapping business-class lounges and sushi for budget flights and sandwiches, the pair began pitching their Internet-based vehicle policies to Greeks two months ago. SEC Left Computers Vulnerable to Cyberattacks (Reuters) Staffers at the U.S. Securities and Exchange Commission failed to encrypt some of their computers containing highly sensitive information from stock exchanges, leaving the data vulnerable to cyberattacks, according to people familiar with the matter. While the computers were unprotected, there was no evidence that hacking or spying on the SEC's computers took place, these people said. The computers and other electronic devices in question belonged to a handful of employees in an office within the SEC's Trading and Markets Division. That office is responsible for making sure exchanges follow certain guidelines to protect the markets from potential cyber threats and systems problems, one of those people said...The security lapses in the Trading and Markets Division are laid out in a yet-to-be-released report that by the SEC's Interim Inspector General Jon Rymer. The Last Days Of Romneyland (NBC) From the moment Mitt Romney stepped off stage Tuesday night, having just delivered a brief concession speech he wrote only that evening, the massive infrastructure surrounding his campaign quickly began to disassemble itself. Aides taking cabs home late that night got rude awakenings when they found the credit cards linked to the campaign no longer worked. "Fiscally conservative," sighed one aide the next day. In conversations on Wednesday, aides were generally wistful, not angry, at how the campaign ended. Most, like their boss, truly believed the campaign's now almost comically inaccurate models, and that a victory was well within their grasp. (Outside Republicans and donors are another story. Some are angry over what they felt was an overly rosy picture painted by the campaign, and at what amounts to the loss of their investment.) New York Subway Repairs Border ‘on the Edge of Magic’ (NYT) There were some hiccups. At West Fourth Street, unexpected third-rail and switch problems delayed the return of the D, F and M trains. As the authority prepared to bring the G train back this week, a transformer blew, keeping the train offline for the morning rush hour on Wednesday. There were still service gaps on the N train, the A train in Far Rockaway and the R line, among others. On Thursday morning, inside his office, Joseph Lhota, the chairman of the transportation authority, checked his BlackBerry often, hoping for an update on the L train. Moments later, he placed a call to Howard B. Glaser, Mr. Cuomo’s director of state operations, whom he wanted to brief on the Queens-Midtown Tunnel. The tunnel could open Friday, he told Mr. Glaser, remarking that Mr. Bloomberg, “like an idiot,” had predicted publicly that the tunnel might open over the weekend. “He’s making it up,” he said, after a brief hail of profanity in which Mr. Lhota wondered aloud who, exactly, Mr. Bloomberg had been talking to. “It’s wrong,” he told Mr. Glaser. “It’s just wrong.” Mr. Lhota also spoke of the L line’s importance, as if his audience needed convincing. “You know who knows where the L train goes?” he barked into the phone. “All the hipsters in Williamsburg.” The BlackBerry buzzed on the table in front of him. He grabbed it quickly, then put it back. No good news yet on the L, he said. Hours later, that would change. “Ladies and Gentlemen,” he wrote on Twitter. “The L train is back. Enjoy your trip home tonight.” Whistleblower To Get Big Payment In Bank Of New York-Virginia Deal (WSJ) Bank of New York Mellon Corp. has reached an agreement with the state of Virginia to resolve accusations the bank charged hidden markups on currency transactions to Virginia's employee pension fund, in a deal that will also involve a $1.1 million payment to a whistleblower group, according to a person familiar with the negotiations. The whistleblower group includes Grant Wilson, who spent two years as a secret informant while sitting on the bank's Pittsburgh trading desk. Mr. Wilson's identity was disclosed in a page-one article in The Wall Street Journal last year. As part of the agreement, Virginia won't pursue litigation against BNY Mellon, and the bank will offer reduced fees in the future under a new custodial deal, according to people familiar with the negotiations. Nearly Half Of Britons Want EU Exit (Reuters) Nearly half of Britons would vote in a referendum to leave the European Union and less than a third to stay in, according to a poll highlighting divisions facing Prime Minister David Cameron. Polling company YouGov said on Thursday 49 percent favoured leaving the EU, 28 percent would vote to stay in the 27-nation bloc, 17 percent were undecided and the rest would not vote. Crédit Agricole Posts Record Loss After Greek Sale (WSJ) The Paris-based lender, France's third-largest bank by market value, posted a third-quarter net loss of €2.85 billion ($3.63 billion), well below analyst forecasts of a €1.76 billion net loss. The bank reported a €258 million profit in the same quarter a year earlier. Rochdale Traders Await Rescue (NYP) Sixteen days after a rogue trader rocked Stamford, Conn.-based Rochdale Securities, the broker-dealer, still hasn’t reached a deal with a deep-pocketed investor, sources said. Fla. principal resigns after offering promotions for sex (WPBF) A Florida high school principal who offered teachers' promotions in exchange for sex has resigned from his position. Steve Van Gorden's resignation comes after a 300-page investigative report by Pasco County school officials into allegations of sexual harassment. Several teachers claim Van Gorden, who is also the mayor of Zephyrhills, sent text messages offering career boosts in exchange for sex and threatened them if they refused. Van Gorden said he's sorry. "The bottom line is I'm truly sorry for what occurred, and it's not going to happen again," Van Gorden said. Van Gorden has a year and a half left on his term as mayor.

Opening Bell: 11.13.12

Wall Street Damps Pay Expectations After 2011 Bonus Shock (Bloomberg) Almost 20 percent of employees won’t get year-end bonuses, according to Options Group, an executive-search company that advises banks on pay. Those collecting awards may see payouts unchanged from last year or boosted by as much as 10 percent, compensation consultant Johnson Associates Inc. estimates. Decisions are being made as banks cut costs and firms including UBS AG (UBSN) and Nomura Holdings Inc. (8604) fire investment-bank staff. Some employees were surprised as companies chopped average 2011 bonuses by as much as 30 percent and capped how much could be paid in cash. That experience, along with public statements from top executives, low trading volumes in the first half and a dearth of hiring has employees bracing for another lackluster year, consultants and recruiters said. “A lot of senior managers won’t have to pay up because they’re saying, ‘Where are these guys going to go?’” said Michael Karp, chief executive officer of New York-based Options Group. “We’re in an environment where a lot of people are just happy to have a job. Expectations have been managed so low that people will be happy with what they get.” Goldman Pares Back Partner Picks (WSJ) The New York company is expected to announce this week the promotion of about 70 employees to partner, said people familiar with the situation. The likely total is roughly one-third smaller than the 110 employees named partner by Goldman in 2010...As of Monday, the Goldman partnership committee hadn't finished the list of new partners, said people familiar with the matter. Greece Avoids Defaults (WSJ) Cash-strapped Greece on Tuesday raised the money it needs to avoid default when a Treasury bill matures later this week, but investor nerves are unlikely to be calmed as negotiations for the next slice of much-needed aid continue. The rift among Greece's official lenders over how to pare the country's growing debt pile spilled into the open late Monday, complicating efforts for an agreement that will free up a long-delayed aid payment to the country. The European Central Bank's reluctance to provide additional money to Greek banks poses a risk to the government, which in order to keep afloat has depended on support from local banks to sell its debt. Greece Needs Another 80 Billion Euros: Goldman Sachs (CNBC) The authors of the report, economists Themistoklis Fiotakis, Lasse Holboell Nielsen and Antoine Demongeot, note that the IMF’s target is “unlikely” without such a “drastic debt stock reduction.” “To increase the likelihood that the Greek debt-to-GDP ratio approaches its 120 percent by 2020 target under realistic assumptions, a much more drastic debt stock reduction (possibly north of 80 billion euros in total) will be required,” the report states. Japan Lawmakers Agree To Avert 'Fiscal Cliff' (Reuters) Japan's ruling and opposition parties agreed on Tuesday to quickly pass a deficit funding bill in parliament, in a move that will keep the country from falling off its version of a 'fiscal cliff' as the prime minister eyes elections as early as next month. The bill is needed to borrow some $480 billion and fund roughly 40 percent of this fiscal year's budget. Without it, the government could run out of money by the end of this month and would have to stop debt auctions next month, just as the economy teeters on the brink of a recession. Marc Faber: Prepare For A Massive Market Meltdown (CNBC) “I don’t think markets are going down because of Greece, I don’t think markets are going down because of the “fiscal cliff” – because there won’t be a “fiscal cliff,” Faber told CNBC’s “Squawk Box.” “The market is going down because corporate profits will begin to disappoint, the global economy will hardly grow next year or even contract, and that is the reason why stocks, from the highs of September of 1,470 on the S&P, will drop at least 20 percent, in my view.” FBI Agent in Petraeus Case Under Scrutiny (WSJ) A federal agent who launched the investigation that ultimately led to the resignation of Central Intelligence Agency chief David Petraeus was barred from taking part in the case over the summer due to superiors' concerns that he was personally involved in the case, according to officials familiar with the probe. After being blocked from the case, the agent continued to press the matter, relaying his concerns to a member of Congress, the officials said. New details about how the Federal Bureau of Investigation handled the case suggest that even as the bureau delved into Mr. Petraeus's personal life, the agency had to address conduct by its own agent—who allegedly sent shirtless photos of himself to a woman involved in the case prior to the investigation. Trial to Open in $68 Million Insider Trading Case (Dealbook) On Tuesday, Mr. Chiasson, 39, a co-founder of the now-defunct Level Global Investors, and Mr. Newman, 47, a former portfolio manager at Diamondback Capital Management, are set to stand trial in Federal District Court in Manhattan. Prosecutors say they were part of a conspiracy that made about $68 million illegally trading the computer company Dell and the chip maker Nvidia. MF Report Coming (Reuters) A US House of Representatives panel will release a long-awaited report that will dissect the collapse of failed commodities brokerage MF Global. The House Financial Services Committee said its Subcommittee on Oversight and Investigations will post the report online Thursday. A Dose of Realism for the Chief of J.C. Penney (NYT) Andrew Ross Sorkin: "You should know you have a problem when sales at your stores fall 26.1 percent in one quarter. That was the surprising decline J.C. Penney reported last week, when it disclosed that it had lost $123 million in the previous three months...Here's the good news: In the stores that have been transformed, J.C. Penney is making $269 in sales a square foot, versus $134 in sales a square foot in the older stores. So the model itself is working. And Mr. Johnson has the support of the company's largest shareholder, Pershing Square's Bill Ackman, who personally recruited Mr. Johnson. If Mr. Johnson were starting with a blank slate, it might be a great business." China Banker Sees Lower Bar for Yuan Globalization (WSJ) "Renminbi internationalization can be realized based on a partial opening of the capital-account and partial convertibility of the currency," said Mr. Li, a delegate to the 18th Communist Party Congress and longtime advocate of a greater global role for the yuan. The Eximbank is a major arm of the Chinese government for financing trade and investment overseas. Finally, a Place in Brazil Where Dogs Can Go for Discreet Sex (NYT) Heart-shaped ceiling mirror: check. Curtains drawn against the bright day: check. Red mattress: check. The establishment that opened here this year has features that demanding clients naturally expect from a love motel. Brazil, after all, is a world leader in these short-stay pleasure palaces, which beckon couples for trysts away from prying eyes with names like Swing, Absinthe and Alibi, and design motifs like medieval castles or of the American Wild West. But Belo Horizonte’s newest love motel stands apart from the crowd in one crucial aspect. It is for dogs. “I adore the romantic feel of this place,” said Andreia Kfoury, 43, a manager at a technology company who peeked inside the Motel Pet one recent morning while she and her husband were on a clothes-buying spree for their Yorkshire terrier, Harley. The couple, who are motorcycle enthusiasts, bought about $500 worth of imported Harley-Davidson brand items for their dog. “I’m definitely bringing Harley back here when it’s time for him to breed,” a smiling Ms. Kfoury said. “He is very macho, and would be a hit in this place.” Whether dogs like Harley actually need a romantic curtained-off suite to breed seems beside the point. Some dog owners simply like the concept of a love motel for their amorous pets and are willing to pay about $50 for each session, which Animalle will happily arrange.

Opening Bell: 03.14.12

Why I Am Leaving Goldman Sachs (NYT) It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as “muppets,” sometimes over internal e-mail. Even after the S.E.C., Fabulous Fab, Abacus, God’s work, Carl Levin, Vampire Squids? No humility? I mean, come on. Integrity? It is eroding. I don’t know of any illegal behavior, but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client’s goals? Absolutely. Every day, in fact. Stress Tests Buoy US Banks (WSJ) Stock prices reacted positively amid a spate of other upbeat economic news, including a robust retail-sales report and optimistic comments by Fed officials on the overall state of the U.S. economy. The Dow Jones Industrial Average ended the day up 1.7%, its highest close since December 2007. Asian markets opened trading on Wednesday higher, with Tokyo up 1.9%. The Fed's stress tests were designed to see whether banks would have enough capital on hand to keep lending even if another deep economic slump or financial crisis were to strike. It's the third round of stress tests: The first took place in 2009, in the immediate aftermath of the financial crisis. At that time, banks fared much more poorly. JPMorgan Dividend Surprises Investors, Irks Fed (Bloomberg) The bank’s disclosure prompted other lenders, including Wells Fargo & Co. (WFC), U.S. Bancorp and PNC Financial Services Group Inc. (PNC), to accelerate the disclosure of their dividend plans. It also irritated some staff at the Fed, which had planned to release the test results ahead of the industry, said one person familiar with the central bank’s operations who declined to be identified because the discussions were private. Pandit Repeats Moynihan’s Misstep as Citigroup Request Backfires (Bloomberg) Citigroup was the biggest U.S. lender yesterday to fail the regulator’s exam of capital levels in a hypothetical economic downturn because of the New York-based firm’s plan to boost dividends or stock repurchases. Bank of America, which had its payout request rejected last year, passed the 2012 test after Moynihan decided to keep his company’s dividend at 1 cent. “Pandit misread the situation badly, you just don’t ask for something if you don’t know you can get it,” said Greg Donaldson, chairman of Evansville, Indiana-based Donaldson Capital Management LLC, which oversees $540 million including Bank of America shares. “Moynihan was chastened by what happened last year, he absolutely wasn’t going to take any chances of getting rebuffed again.” Stress Tests Results Can't Be Trusted, Says Strategist (CNBC) "I think a lot of banks are still overstating assets and they haven't recognized problem loans, to the extent that they should have done and it's very difficult to trust numbers," Peter Elston, Asia Strategist at Aberdeen Asset Management told CNBC on Wednesday. Merkel Says Europe Is ‘Good Way’ Up Mountain, Not Over Yet (Bloomberg) “We’ve come a good way along the mountain path, but we’re not completely over the mountain,” Merkel told reporters in Rome late yesterday after talks with Italian Prime Minister Mario Monti. “I suspect that in the next few years there will continue to be new mountains -- there won’t be a celebratory event in which we say we’re over the mountain and now we can sit among the trees and say that we’ve done it.” Eurogroup Approves Second Greek Bailout (WSJ) The euro-zone countries Wednesday finally signed off on Greece's second bailout program, ending a protracted and dramatic negotiating process that started last July. The hope is that the €130 billion ($170.1 billion) package—funded mostly by euro-zone countries and the International Monetary Fund—will be enough to keep Greece funded until 2014-2015. But talk of a third Greek bailout has already started with the ink still wet on the second one, especially following a report by European Union experts highlighting the risks to structural-reform implementation and predicting "at best stagnation" for 2013. Greece has been in a recession for five consecutive years. Ex-Lehman Executive Jack’s $35 Million Estate Faces Tax Auction (BW) The $35 million estate of Bradley H. Jack, the former Lehman Brothers Holdings Inc. (LEHMQ) managing director who was arrested twice for allegedly forging drug prescriptions, may be sold at a municipal auction after he failed to pay property taxes since July. Jack owes $271,923 on his 20-acre (8-hectare), waterfront compound in Fairfield, Connecticut, according to town tax collector Stanley Gorzelany. It’s the town’s biggest overdue tax bill on a residence. A Public Exit From Goldman Sachs Hits at a Wounded Wall Street (NYT) To be sure, longtime bankers say it is not like short-term greed was absent in the past. It has been around since traders gathered under a buttonwood tree and founded the New York Stock Exchange in 1792. But the astounding size of Wall Street’s biggest firms — and the fortunes to be made — have altered the calculus. “I think there was plenty of skullduggery going on,” said Jerome Kohlberg Jr., who worked at Bear Stearns for 21 years before leaving to found Kohlberg Kravis Roberts in 1976 with Henry R. Kravis and George R. Roberts. Still, the trend has accelerated in recent years, according to Mr. Kohlberg. “When I first started on Wall Street, it was a small group and everyone knew everyone else,” he said. “If you stepped out of line, people would not do business with you.”

Opening Bell: 02.25.13

Current Employees Star In S&P Suit (WSJ) As ammunition against Standard & Poor's Ratings Services, the Justice Department packed its fraud lawsuit with vivid details about more than 25 employees who allegedly put triple-A ratings on shaky bundles of subprime mortgages—or dithered on downgrading the securities as the housing market was collapsing. David Tesher, an S&P managing director in charge of one of the firm's two collateralized-debt-obligation groups, let analysts who reported to him put the highest possible ratings on deals S&P "knew did not accurately reflect the true credit risks," the U.S. government alleged in the suit filed Feb. 4. When a different group of analysts warned that more and more borrowers were falling behind on their payments, Mr. Tesher didn't tell his analysts, federal prosecutors claim. They put his name in the 128-page lawsuit a total of 59 times. Fresh Front In Budget Battle (WSJ) A White House official said the administration wouldn't go along with such a plan to extend the lower spending levels. And Democrats are insisting that the House GOP bill also give new latitude to domestic agencies as well as the Pentagon. But an aide to Senate Democratic leaders said such a measure might be politically difficult for the lawmakers to oppose, lest they bear the blame for shutting down the government. "There's an emerging consensus that it would be a difficult battle to have," said the Senate leadership aide. "I don't think we could force a shutdown." Dimon: Let’s put ‘London Whale’ on ice (NYP) That’s the message Jamie Dimon hopes to deliver at JPMorgan Chase’s annual investor day in New York tomorrow, some nine months after the infamous “London Whale” blew a $6 billion hole in the bank’s balance sheet. Dimon will stress that the nation’s biggest bank has been growing its business and taking market share in a bid to convince investors and analysts that there will be no further whale sightings. JPMorgan, for instance, has boosted its private banker ranks to better cater to wealthy investors, adding some 650 bankers since 2008, according to people familiar with the matter. Dimon is also expected to tout the bank’s ability to ring up record profits in good times and bad. JPMorgan reaped $21.3 billion in profits in 2012, a record year despite rocky markets that shook rivals here and abroad. Knight Capital to Sell Credit Brokerage Unit to Stifel: Report (Reuters) Knight Capital Group, which recently agreed to be bought for $1.4 billion by Getco Holding, has struck a deal to sell its credit-brokerage unit to Stifel Financial, a person familiar with the matter told Reuters. The terms of the deal were not known. But Stifel will be picking up investment-grade, high-yield, asset-backed and mortgage-backed debt brokers in the U.S. and Europe through the deal the source said. Foreign Money Is Revisiting Greece (WSJ) A steady trickle of foreign money pumped €109 million ($143.8 million) into Greek stocks in the last six months of 2012, followed by an additional €27.6 million in January, according to the Athens Stock Exchange. That money helped lift Greece's major stock index 33.4% last year, making it—bizarrely—the best-performing stock market in the European Union. It is up an additional 10.51% this year, to 1003.32, although it remains well off its high of 6355 reached more than 12 years ago. IKEA Meatballs Pulled After Horse-Meat Traces Found (WSJ) IKEA on Monday became the latest company to be drawn into Europe's snowballing horse-meat scandal, as the Swedish furniture giant said it has recalled a batch of meatballs that had been distributed to 13 European countries. The move comes after Czech food inspectors found traces of horse meat in IKEA's meatballs. The company also said it is withdrawing meatball products from sale in Sweden. Japan Picks BOJ Critic to Be Its Next Chief (WSJ) Prime Minister Shinzo Abe plans to nominate former finance-ministry official Haruhiko Kuroda, 68 years old, as the next Bank of Japan governor, according to government officials. Mr. Kuroda, currently chief of the Asian Development Bank, ran the Japanese finance ministry's currency policy for four years in the early 2000s. There, among other things, he oversaw an extended effort to drive down the yen's value in order to make Japanese exports more affordable on the world market. Barnes & Noble Chairman to Bid for Company's Retail Assets (Reuters) Barnes & Noble Chairman Leonard Riggio has told the board he plans to buy all the retail assets of the company. The retail business includes, among other things, Barnes & Noble Booksellers and barnesandnoble.com but excludes Nook Media, Riggio said in a regulatory filing on Monday. Mets Expect To Lose Money And Fans This Year (NYP) The team is expecting to lose more than $10 million this year, after bleeding red the past two seasons, while attendance is projected to fall for a fifth straight year. Monti Gets Investors’ Approval as Bonds Cast Doubt on Berlusconi (Bloomberg) Monti “is the first leader to make it clear you have to look out for future generations and not just tomorrow’s vote,” said Fabrizio Fiorini, chief investment officer at Aletti Gestielle SGR SpA. “This concept of looking out for future generations is absolutely new for Italy.” Angry moms condemn Geico’s cellphone app commercial they claim promotes bestiality (NYDN) One Million Moms wants auto insurance firm Geico to pull its latest TV campaign in which a woman appears to be flirting with a pig. The conservative Christian group that monitors children’s programming issued a statement to condemn the clip. “The Geico marketing team may have thought this would be humorous, but it is disgusting to see how the company takes lightly the act of bestiality,” One Million Moms said in a statement. The press release, which urges members to email their disgust to the firm, added that the advert was “repulsive” and “unnecessary.” It was also a “horrible commercial for families to see,” the group said. The commercial starts with Maxwell the Geico pig and the woman in a parked car on what appears to be a lover’s lane. Not knowing the car has broken down, the woman seems keen to make out with the pig. But he is uninterested and instead shows her the Geico app and the game Fruit Ninjas on his cellphone. Geico has not commented on the complaint.