Opening Bell: 11.3.17
Tesla hits bumps in pursuit of mass market (FT)
In multiple instances, the company shipped cars from the factory that lacked key parts such as computer modules, digital displays, or even seats. These parts were flown to Tesla-owned dealers, who then assembled them into the vehicle before completing the shipments to customers, according to several people familiar with the practice. “This goes back years,” says a former regional executive, who declined to be named. “It was common, common in every market — the seats, the displays were being flown in.”
Venezuela Will Seek to Restructure Its Debt (BBG)
Maduro made the announcement in a televised address in which he emphasized that Venezuela has always honored its obligations, and had the money to continue doing so, but was being hampered by the financial penalties the U.S. imposed. Throughout the broadcast, Maduro kept Wall Street viewers on the edge of their seats by teasing an upcoming “historic announcement on debt,” then spending a half hour touting new ambulances and public roads as he waited for the international media to tune in.
Goldman Retreats From Options as Stock Derivatives Trading Struggles (WSJ)
An extraordinary calm in markets has choked the trades that typically funnel through banks’ derivatives desks. Banks like Deutsche Bank, Barclays and J.P. Morgan blamed lower revenues on depressed volatility when recently reporting earnings. Goldman Sachs pulled back from U.S. options market-making on exchanges, a spokeswoman for the firm said Thursday. It’s the latest to withdraw from the business of continuously buying and selling contracts on venues using automated programs.
Joe Ricketts Shuts Down DNAinfo and Gothamist After Vote to Unionize (NYT)
For DNAinfo and Gothamist, the staff’s vote to join the Writers Guild of America East was just part of the decision to close the company. A spokeswoman for DNAinfo said in a statement, “The decision by the editorial team to unionize is simply another competitive obstacle making it harder for the business to be financially successful.”
Under Powell, Wall Street Can Expect Steady Wins on Regulation (BBG)
“For Wall Street, Powell is a solid choice,” said Ian Katz, an analyst with Capital Alpha Partners in Washington. “He supports deregulation but not to an extreme. He’s a known quantity and he’s regarded as a thoughtful consensus-seeker. The finance industry views him as safer choice than someone who would want to blow up the place and scrap all the Dodd-Frank rules.”
Yellen Retrospective (John Cochrane)
One could complain that Ms. Yellen didn't face any particular challenges. As presidents are tested in wartime, so Fed chairs are tested by events. Ms. Yellen didn't face a recession or financial crisis. In this quiet late summer of the business cycle, her job was largely to do nothing, and resist calls from people who wanted her to take big steps. The Fed's major tool is the federal funds rate, has barely moved. True, but she did not screw up either. So much of monetary history consists of unforced errors, that not making one is an accomplishment.
Powell Is Trump's Kind of Rich (BBG Gadfly)
Powell's investment in the fund is listed on the form as "over $1 million," and so most reports have valued the holding at the seven-figure mark. But Powell's disclosure also says he received as much as $1 million in income from the fund in the past year. The dividend yield of the Vanguard Total Stock Market index fund has been 1.71 percent over the past 12 months. For Powell's investment in the fund to generate that much income, it would have to be worth as much as $58.5 million, putting his total potential wealth at more than $112 million.
A Twitter employee deactivated Trump's account for 11 minutes (CNBC)
Twitter said President Donald Trump's personal account was deactivated on Thursday for 11 minutes because of the actions of a departing employee. The company sent out a tweet from its Twitter Government team saying that Trump's account has been restored. "We are continuing to investigate and are taking steps to prevent this from happening again," the tweet said.
