Opening Bell: 2.22.18 - Dealbreaker

Opening Bell: 2.22.18

Connecticut gypsy foretells of a looming recession; The Oracle will speak today; Brexit still a sh!tshow; Chinese government frowns on "Funeral Strippers" fad; and more!
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Fed Officials Say Economy Is Ready for Higher Rates [NYTimes]
The Fed did not raise its benchmark interest rate at the meeting on Jan. 30 and 31, but the account reinforced investor expectations the Fed would raise rates at its next meeting in March.
The account said Fed officials have upgraded their economic outlooks since the beginning of the year and listed three main reasons: The strength of recent economic data, accommodative financial conditions and the expected impact of the $1.5 trillion tax cut that took effect in January.

Bridgewater's Dalio sees 70 percent chance of recession before 2020 [Reuters]
Dalio said the U.S. economy is not currently in a bubble. But he reasoned that it might not take long to get there and then to move on to a “bust” phase.
”I think we are in a pre-bubble stage that could go into a bubble stage ... The probability of a recession prior to the next presidential election would be relatively high, maybe 70 percent, Dalio said during an appearance at the Harvard Kennedy School’s Institute of Politics.

Ford North America President Raj Nair to step down due to 'inappropriate behavior' [CNBC]
The announcement follows an internal investigation into reports of inappropriate behavior, Ford said Wednesday. The inquiry determined "certain behavior by Nair was inconsistent with the company's code of conduct."
"We made this decision after a thorough review and careful consideration," said Ford President and CEO Jim Hackett. "Ford is deeply committed to providing and nurturing a safe and respectful culture and we expect our leaders to fully uphold these values."

Berkshire’s CEO Succession Heightens Interest in Buffett Letter [Bloomberg]
Themes Buffett may address, along with the company’s future leadership, include the recent U.S. tax overhaul, underwriting challenges affecting the insurance business, and the widely watched health initiative teaming Berkshire with JPMorgan Chase & Co. and Amazon.com Inc.

UK economy lags behind G7 after 2017 growth rate cut [Reuters]
The downgrade of the full-year and fourth-quarter growth rates also raised questions about the strength of the economy as the Bank of England prepares to raise interest rates.
Gross domestic product growth slowed to a quarterly 0.4 percent from a previous estimate of 0.5 percent, wrong-footing economists and reducing 2017 growth as a whole to 1.7 percent, its lowest since 2012.

Companies Could Get More Flexibility to Start IPOs [WSJ]
Securities regulators hoping to spur more initial public offerings are weighing a deregulatory move that would allow all companies—not just smaller firms—to stage private talks with investors before announcing they will sell stock, according to people familiar with the matter.
Congress in 2012 gave smaller companies and some startups the freedom to “test the waters” for an IPO through the Jumpstart Our Business Startups Act. A decision by the Securities and Exchange Commission to expand that benefit to all companies regardless of size could help advance SEC Chairman Jay Clayton’s goal to boost the number of public companies.

Goldman Has a $500 Million Army of Little Guys to Buff Its Image [Bloomberg]
So in 2009, Goldman Sachs, facing blowback over the almost $17 billion it set aside for employee compensation, launched the 10,000 Small Businesses program. It pledged $300 million for financing to small firms through community lenders, and another $200 million for training and education. More than 6,700 entrepreneurs have since passed through the program.
It capped off that progress with last week’s event, which it called the largest-ever gathering of small business owners in the nation’s capital. It was an evangelical-like revival that showed the lengths the firm will go for positive publicity.

China cracks down on funeral strippers [NYPost]
As part of the new crackdown, a special “hotline” will be set up for the public to report any “funeral misdeeds” in exchange for a monetary reward, according to news outlet.
It has been a longtime tradition in rural China for residents to hire strippers to partake in bawdy performances at funerals in order to attract a larger attendance of mourners.

Related

By Rlevente [CC BY-SA 4.0], via Wikimedia Commons

Opening Bell: 6.27.16

EU leaders hope Brits will reconsider; London bets screwed bookies; Goldman predicts UK recession; Sarah Palin compares Brexit to Declaration of Independence; and more.

Opening Bell: 12.05.12

Global Banking Under Siege as Nations Tighten Local Rules (Bloomberg) Regulators want to curtail risks exposed after global banks such as New York-based Citigroup, Edinburgh-based Royal Bank of Scotland and Zurich-based UBS took bailouts in the biggest financial crisis since the Great Depression. Forcing lenders to dedicate capital and liquidity to multiple local subsidiaries, rather than a single parent, may undermine the business logic of a multinational structure. “Being big and spread out all over the world isn’t what it used to be,” said Mayra Rodriguez Valladares, managing principal at New York-based MRV Associates, which trains bank examiners and executives at financial firms. “You’ll see global banks jettison divisions abroad and at home.” Paulson Said to Blame Bet Against Europe for Most of Loss (Bloomberg) John Paulson, manager of $20 billion in hedge funds, told investors that the bulk of his losses this year came on bets that the European sovereign-debt crisis would worsen, according to a person familiar with the matter. Paulson, speaking to clients at his firm’s annual meeting yesterday in New York, said he has reduced those positions following European Central Bank President Mario Draghi’s comments in July that the ECB was committed to preserving the euro, said the person, who asked not to be identified because the meeting was private. Paulson said in a February letter to investors that the euro was “structurally flawed” and would eventually fall apart. In April, the founder of New York-based Paulson & Co. told clients he was wagering against European sovereign bonds and buying credit-default swaps on European debt, or protection against the chance of default. No Payback For Singer This Year (NYP) Paul Singer’s last-ditch attempt to get cash from Argentina this year has failed. A motion by Singer’s hedge fund, Elliott Management, requesting that the South American country put up a security deposit of $250 million by Dec. 10 was denied by a federal appeals court yesterday. “Since we will not have a big payment for ages (if ever), this looks like a huge blow to [Elliott’s] strategy,” said sovereign-debt expert Anna Gelpern. In Tax Fight, G.O.P. Seeks a Position to Fall Back On (NYT) Senator Olympia J. Snowe of Maine, who is retiring, joined a handful of other Republicans on Tuesday suggesting that Congress should pass the middle-class tax cut extensions now, then leave the fight over taxes and spending until later. Americans, she said, "should not even be questioning that we will ultimately raise taxes on low- to middle-income people." Congress could take that off the table "while you're grappling with tax cuts for the wealthy," she said. But any move toward compromise with Democrats on fiscal issues quickly comes under attack from conservatives as a surrender and unsettles the rank-and-file. It is a dynamic that has haunted Speaker John A. Boehner throughout the 112th Congress, as he has repeatedly been caught between the imperative to govern and the need to satisfy the restive right. Mr. Boehner, of Ohio, has drawn fire this week for removing a handful of House Republicans who have defied the leadership from their preferred committee seats, a step he took to enforce party discipline. Fed to launch fresh bond buying to help economy (Reuters) The Federal Reserve is set to announce a fresh round of Treasury bond purchases when it meets next week, avoiding monetary policy tightening to maintain support for the weak U.S. economy amid uncertainty over the looming year-end "fiscal cliff." Many economists think the U.S. central bank will announce monthly bond purchases of $45 billion after its policy gathering on December 11-12, signaling it will continue to pump money into the U.S. economy during 2013 in a bid to bring down unemployment. Merkel Wins Party Reelection, Eyes Third Term (Reuters) Merkel, at the height of her popularity, was returned unopposed as CDU chairwoman with 97.9 percent of votes from delegates who stood and applauded her for nearly eight minutes after she lauded Germany's economic resilience in the euro crisis and promised to fight for jobs and prosperity. McAfee Emerges From Hiding in Guatemala (FT) John McAfee, the antivirus software entrepreneur, has revealed that he has fled to Guatemala from Belize where he is wanted for questioning in relation to a murder. Posting on his website on Tuesday, the US citizen and multimillionaire said: "I apologize for all of the misdirections over the past few days . . . I am in Guatemala." His emergence closes one chapter in a bizarre chain of events that started last month when police in Belize, where Mr McAfee has lived for the past four years, discovered the dead body of Gregory Faull, the owner of a house close to Mr McAfee's main property on the island of Ambergris Caye. Mr McAfee - who Belize considers "a person of interest" in the murder investigation - fled, going into hiding and insisting on his innocence. He said he ran from the police because he believed that the Belize authorities were out to kill him. In response, Dean Barrow, the prime minister, said: "I don't want to be unkind to the gentleman, but I believe he is extremely paranoid". Mr McAfee revealed his location on Tuesday after a hacker called Simple Nomad disclosed his whereabouts by analyzing a mobile-phone photograph taken of McAfee on Monday that was posted on the internet. In a second blog post late Tuesday titled "the new fight", Mr McAfee said he had asked Telsforo Guerra, a former attorney-general of Guatemala, to help uncover what he claims is deep-rooted corruption in Belize. Separately, he told Reuters that Mr Guerra was trying to help him obtain political asylum in Guatemala, even though Belizean authorities have not charged him. EU Banks To Repay Cheap Loans (WSJ) Nearly a year ago, hundreds of European banks borrowed a total of more than €1 trillion ($1.3 trillion) from the European Central Bank as it scrambled to defuse an escalating crisis. Today, in a sign of the industry's partial healing, some of Europe's biggest banks are preparing to repay those loans. The push to repay the loans, however, has generated concerns that banks are moving prematurely and could be vulnerable if the euro-zone crisis intensifies again. The ECB activated the emergency loan program—known as the long-term refinancing operation, or LTRO—late last year, doling out two batches of inexpensive loans that are good for three years. Banks are permitted to repay them starting next month. Euro Crisis Feeds Corruption as Greece Slides in Rankings (Bloomberg) The European debt crisis has given way to a new wave of corruption as some of the most hard-hit countries in the turmoil have tumbled in an annual graft ranking, watchdog group Transparency International said. Greece, in its fifth year of recession and crippled by rounds of austerity, fell to 94th place from 80th -- ranking it below Colombia and Liberia, according to the group’s Corruption Perceptions Index. Ireland, Austria, Malta and Italy were also among member states in the single currency to slide. Moynihan: No Stress (Bloomberg) Bank of America CEO Brian T. Moynihan said the firm has plenty of capital and he’s confident it will pass the next US stress tests. “The question will be what to ask for and when, because we’re not going to fail this,” Moynihan said yesterday at a New York investor conference sponsored by Goldman Sachs. Moynihan, 53, is renewing efforts to win approval to raise the company’s dividend or repurchase shares after the Federal Reserve blocked an earlier request. Fed Filcher Gets Timeout (NYP) Bo Zhang, a Chinese-citizen computer programmer who worked for a contractor at the New York Fed, was sentenced to six months of home confinement for stealing Treasury Department software. Snake on a plane forces emergency landing (CNN) ...the incident forced the pilot to make an emergency landing in the Egyptian resort town of Al Ghardaqa on the Red Sea, according to The Jordan Times. An Egypt Air official told the paper an investigation revealed that a 48-year-old passenger, who owns a reptile shop in Kuwait, had hidden the Egyptian cobra in a carry-on bag. The passenger was trying to control the snake after it bit his hand and started slithering under the seats. The Egyptian daily al-Masry al-Youm reported that the man refused medical treatment, claiming his wound was only superficial. The plane resumed its flight to Kuwait after local authorities confiscated the snake. Doctors told the passenger he should spend 24 hours in a hospital for observation, but the man refused, the Egyptian Air official said, according to The Jordan Times.

ZuckerBadger

Opening Bell: 3.21.18

Congress stuck; Zuck to speak; Pete Peterson dead at 91; Marlon Bundo love story revolutionizes publishing; and more!

Opening Bell: 4.16.15

Goldman and Citi beat estimates; Ben Bernanke works for Ken Griffin now; Schwarzman describes Blackstone as "earnings machine"; Stripper School shutdown; and more.

Opening Bell: 03.26.13

Bailout Strains European Ties (WSJ) Several officials familiar with talks in Nicosia and Brussels over the €10 billion ($13 billion) rescue for the island described more than a week of chaotic negotiations. European officials cited Cypriot foot-dragging, reversals and dropped communications, a situation one European Union official called "terrifying." Cypriot officials described their European opposites as demanding and inflexible. Big Cypriot Bank Depositors Could Lose 40%: Minister (Reuters) "It could be in that neighborhood but I do not want to anticipate it," Sarris told BBC radio, adding the exact figure was yet to be decided. "But what I have seen suggests a number in that neighborhood." Sheik Spars With UBS Over $20 Million Fee (WSJ) A Kuwaiti sheik alleges that a senior executive at Switzerland's UBS offered $20 million to get the bank an advisory role on one of the biggest-ever acquisitions in the Middle East, but the bank later backed out of the deal, according to the sheik's testimony in a Dubai court case. Sheik Meshal Jarah Al Sabah said in sworn testimony that UBS offered the commission in 2009 to derail a bid by the French media group Vivendi SA for the African telecommunications assets of Zain, Kuwait's biggest mobile-phone company, and to get UBS a lead role finding a different buyer. Sheik Meshal sued UBS last year in the Dubai International Financial Centre courts, where UBS has offices, claiming he wasn't paid his fee. The written submission, which was reviewed by The Wall Street Journal, is his first direct testimony in the case. UBS denies the allegations and said in a statement that it is "vigorously defending this claim." Spain's Deficit Woes Seen Lingering (WSJ) In a report Tuesday, including economic projections for the next two years, the Bank of Spain said the economy will remain in recession, on average, this year, and contract around 1.5%—three times bigger than the government's own official projection. The discrepancy is because an economic uptick expected later this year is likely to be weaker than hoped. Atlantic City's Revel Casino Files for Bankruptcy (Reuters) Morgan Stanley originally owned most of Revel Entertainment Group, which began building the casino, but sold its stake at a $932 million loss in February 2011 to investors led by Kevin DeSanctis. The new owners then obtained a tax package of roughly $261 million from New Jersey and lined up $1.15 billion of financing to help complete the project. DeSanctis resigned earlier this month as Revel's chief executive. Hartmann, the interim chief executive, is a former chief executive of the Mohegan Sun casino in eastern Connecticut and has more than 20 years of experience in the gaming industry. Backers had hoped Revel would become the next Borgata, a joint venture between Boyd Gaming and MGM Resorts International that opened in 2003 and became Atlantic City's top-grossing casino. UBS: $62 million from Nasdaq is paltry compensation for Facebook IPO debacle (NYP) Nasdaq got approval from regulators yesterday to pay out $62 million to trading firms hurt by Facebook’s botched share sale — but UBS is having none of it. The Swiss bank giant has already filed an arbitration demand against Nasdaq, saying the payout doesn’t begin to cover the $356 million it lost because of the exchange’s “gross mishandling” of the IPO. Blackstone Ups Heat On Dell (WSJ) On Monday, a special committee of Dell board members said it viewed a Blackstone proposal as potentially superior to the $24.4 billion take-private offer from Silver Lake Partners and founder and Chief Executive Michael Dell. Investor Carl Icahn, who separately is pursuing the Round Rock, Texas, company, said on Monday he would review Blackstone's offer and may attempt to join forces with the New York firm. Fed Banker Backs Dialing Down Easy Money (WSJ) William Dudley, president of the Federal Reserve Bank of New York, said in a speech the Fed "should calibrate" how much U.S. debt and mortgage-backed securities it buys each month "by allowing the flow rate of purchases to respond to material changes in the labor market outlook." 'Stripper' in Jensen Beach arrested (TCPalm) St. Lucie County Sheriff's deputies March 10 went to the area of the 100 block of North El Mar Drive in Jensen Beach after a report of a woman in her underwear yelling profanities at a neighbor. They found Lisa Marie Paras, 29, in an "underwear like or bikini dress" drinking a Michelob Ultra at the end of a driveway, an affidavit states. A deputy told her to put down the beer. She said she was wearing a bikini. She also said she'd been yelling across the street because the folks there are "(rectal orifices)," an affidavit states. When a deputy tried to get more information, Paras said she's a "stripper and wanted to make me her witness," the affidavit states. Paras put her hands on the deputy's shoulders, and he told her she shouldn't touch him. Described as "obviously intoxicated," Paras tried to explain she faces trespassing charges because of her neighbors. She also thought her landlord stole cash from her bedroom. Meanwhile, the neighbors told investigators Paras came out to the road and started yelling obscenities at them as they cooked steaks on the grill. Paras, they said, was in her undies and drinking beer. Paras reportedly told a deputy she'd had eight to 12 beers. She said the people across the street are "(rectal orifices)" and are "(fornicated) up," an affidavit states. Paras, whose occupation is listed as a dancer, tried to hug a deputy when he asked her to confirm some contact information.

GaryCohnHamlet

Opening Bell: 9.7.17

The Gary Cohn Story is turning from comedy to tragedy; don't sleep on Milan post-Brexit; Dennis Rodman is going to straighten out this whole North Korea thing; and more.

Getty Images

Opening Bell: 6.24.16

Brexit, Brexit, Brexit; Banks pass stress tests; Lindsay Lohan live tweets rant on European Union referendum, attacks 'Brexit' voters; and more.

By M.Minderhoud (Own work) [GFDL or CC-BY-SA-3.0], via Wikimedia Commons

Opening Bell: 6.22.16

Puerto Rico vs bondholders; Brexit, Brexit, Brexit; Man creates smoothie made of McDonald's burgers; and more.