Opening Bell: 8.3.18

Jobs!; Trade war!; Tesla!; Vagina beer!; and more!
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Big jobs report Friday: Strong payrolls growth expected for July with unemployment rate set to fall to 3.9% [CNBC]
The unemployment rate is expected to improve to 3.9 percent from 4 percent, and average hourly wages are expected to grow by 0.3 percent, or 2.7 percent on a year-over-year basis, according to Thomson Reuters. In June, 213,000 nonfarm payrolls were created, and average wages grew by 0.2 percent or 2.7 percent year over year. The July report is expected at 8:30 a.m. ET Friday.

WilburRossChina

China Rejects U.S. Request to Cut Iran Oil Imports [Bloomberg]
Beijing has, however, agreed not to ramp up purchases of Iranian crude, according to the officials, who asked not to be identified because discussions with China and other countries continue. That would ease concerns that China would work to undermine U.S. efforts to isolate the Islamic Republic by purchasing excess oil.
Teams of U.S. officials have been visiting capitals around the world to try to choke off sales of Iranian oil by early November, when U.S. sanctions are due to snap back into effect. While the Trump administration has said it wants to cut Iranian oil exports to zero by Nov. 4, most analysts viewed that target as unlikely.

Tesla Shorts Stand Their Ground After $1.7 Billion Loss [WSJ]
Heading into the electric car maker’s earnings report Wednesday, investors who had placed wagers on Tesla shares falling had racked up about $10.5 billion in short interest—making Tesla the most shorted stock in the U.S. on a dollar basis, according to financial-analytics firm S3 Partners. Short sellers borrow shares and then sell them, hoping to buy back the shares at lower prices and then pocket the difference.
Those bets turned into a $1.7 billion loss Thursday after Tesla’s results showed it burned through less cash than investors expected. Tesla shares jumped 16% to $349.54, notching their biggest one-day gain since 2013 and wiping out all of short sellers’ profits for the year.

Italian government debt hit by fresh sell-off [FT]
The yield on Italy’s two-year bond, which moves in the opposite direction to its price, rose 40 basis points to 1.353 per cent in Friday morning trade, after having risen by 17 bps on Thursday. The yield on 10-year paper was up 16 bps in early trading to 3.06 per cent, after rising 12 bps the previous day.
The move in the two-year yield is the biggest one-day rise since the height of the previous Italian bond sell-off in late May, when concern rose over whether the new government would include advocates of leaving the eurozone.

Exclusive: Deutsche Bank reports show chinks in money laundering armor [Reuters]
In the 13-page June report, which was shared with the European Central Bank (ECB), Deutsche Bank found a pass rate of zero percent in countries such as Russia, Ireland, Spain, Italy and South Africa when it checked how client files had been processed.
The pass rate measures the percentage of files that meet the bank’s own “Know Your Customer” standards. Deutsche Bank strives for 95 percent, according to the documents.

Leslie Moonves Speaks on CBS Earnings Call but Not About Harassment Allegations [NYT]
With characteristic verve, Mr. Moonves spoke to Wall Street analysts on Thursday about the company’s second-quarter financial results, predicting the network would end the season in first place for the 11th year in a row.
“We’re as confident as ever that the strategy we have in place is setting us up for continued long-term success,” he said. “We feel very good about the future.”
Conspicuously absent was any discussion of allegations of sexual harassment by six women against Mr. Moonves, which were detailed last week by The New Yorker in an 8,000-word article.

Vagina beer made with 'essence of hot underwear models' goes on sale for first time [Mirror]
A beer made from the 'vaginal lactic acid of hot underwear models' has gone on sale in Poland.
The vagina beer has been launched by a brewery known as "The Order of Yoni" from the Polish capital city of Warsaw.
Yoni is the Sanskrit word for female genitals.

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Ex-Barclays CEO Diamond Is Named on Latest Libor-Lawsuit List (Bloomberg) Ex-Barclays Chief Executive Officer Robert Diamond and Former Chief Operating Officer Jerry Del Missier were among 25 bank employees anonymously referred to by regulators when the lender was fined for attempted interest rate rigging. Diamond and Del Missier were included on a second list released in a London court case linking Barclays staff to the London interbank offered rate. Judge Julian Flaux refused a request by some employees to prevent their names being published in connection to the case. Deutsche Bank Trader Fired Over Rate-Rigging Loses $53 Million (Bloomberg) Deutsche Bank's Christian Bittar, one of the firm’s best-paid traders, lost about 40 million euros ($53 million) in bonuses after he was fired for trying to rig interest rates, three people with knowledge of the move said. The lender dismissed Bittar in December 2011, claiming he colluded with a Barclays Plc (BARC) trader to manipulate rates and boost the value of his trades in 2006 and 2007, said the people, who requested anonymity because they weren’t authorized to speak publicly. His attempts to rig the euro interbank offered rate and similar efforts by derivatives trader Guillaume Adolph over yen Libor are the focus of the bank’s probe, the people said. Both traders declined to comment for this story. “Upon discovering that a limited number of employees acted inappropriately, we sanctioned or dismissed those involved and clawed back all of their unvested compensation,” Deutsche Bank spokesman Michael Golden said in a statement. “To date we have found no link between the inappropriate conduct of a limited number of employees and the profits generated by these trades.” Aleksey Vayner may have died of drug overdose (DM) The Yale student who catapulted to Internet infamy with a disastrous video resume he sent to a prospective employer died at his home in Queens, New York. 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The largest U.S. bank is seeking permission from the U.S. Securities and Exchange Commission to omit the proposal from the measures that shareholders vote on this spring,according to a letter sent to the agency on January 14. The proposal, from the AFL-CIO's Reserve Fund, a union fund that owns JPMorgan shares, calls on bank directors to form a committee that would explore "extraordinary transactions that could enhance stockholder value," including breaking off one or more of the company's businesses. As Cohen parties in Davos, legal eagles circle at home (NYP) Hedge-fund titan Steve Cohen took a break from battlinginvestor redemptions to hob-knob with other heavyweights at the World Economic Forum in Davos Switzerland. But Cohen, who runs $14 billion Stamford, Conn., hedge-fund giant SAC Capital, could be facing more trouble when he gets home. At least one class-action law firm is trying to rustle up investors to sue SAC for its ties to an alleged insider-trading scheme that led to the arrest of a former portfolio manager. Wilmington, Del.-based Chimicles & Tikellis posted a notice on its website saying it is seeking SAC investors and limited partners and is “actively investigating a proposed investor lawsuit against SAC Capital.” Any resulting lawsuit would be pegged to SAC’s “mismanagement of the limited partnership and certain hedge funds.” Wisconsin Man Wearing "Breathalyzer" T-Shirt Arrested For Sixth Time For Drunk Driving (TSG) The 30-year-old was arrested early Saturday morning for drunk driving after he was found passed out at the wheel of a Chevrolet Cavalier that was parked with its engine running in the middle of a Wisconsin road. Wendler, who reeked of intoxicants, failed a series of field sobriety tests and appeared “dazed and confused,” according to a Marathon County Sheriff’s Department report, which noted that a deputy spotted an unopened six-pack of beer on the vehicle’s passenger seat. A breath sample recorded Wendler’s blood alcohol content as .19, more than twice the legal limit. As a result, he was charged with operating a motor vehicle while intoxicated--the sixth time he has been busted for drunk driving. Wendler’s extensive DWI history, of course, makes his t-shirt choice a strange one. As seen in his mug shot, Wandler was nabbed while wearing a shirt referencing drinking and a “free Breathalyzer test.” The shirt also includes an arrow (beneath the words “blow here”) pointing downward toward Wendler’s crotch. Financial Job Losses Near Four-Year High as Europe Leads (Bloomberg) Financial-services firms are on track to cut the most jobs in January since the start of 2009 as Europe struggles to emerge from the debt crisis and regulators impose tougher capital rules. The 16,040 announced and expected reductions in the past three weeks are just short of the 16,389 cuts made in the industry during January 2009 after Lehman Brothers Holdings Inc. collapsed, according to data compiled by Bloomberg. Bankers and consultants expect the cuts to accelerate in coming months even as financial stocks gained 26 percent last year. Credit Bubble Seen in Davos as Cohn Warns of Repricing (Bloomberg) Goldman Sachs President Gary Cohn warned of a potential drop in fixed-income prices as bankers and policy makers in Davos celebrated surging demand for financial assets. 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