Fed Chair Says Economic Recovery May ‘Stretch’ Through End of 2021 [NYT]
In his “60 Minutes” appearance, broadcast and streamed into millions of American homes, Mr. Powell reiterated that shepherding the economy through the darkest days of the coronavirus lockdown may require more policy action and suggested the recovery would not be seamless. Asked whether the economy could heal without an effective vaccine, Mr. Powell suggested that activity could restart before a treatment became available without making a complete rebound…. The Fed chair suggested that the worst economic readings were yet to come, even as states begin to gradually reopen. He said that he expected “a couple more months” of job losses and acknowledged that the unemployment rate, which hit 14.7 percent in April, could peak at 20 percent or even 25 percent. He said that as the economy contracts in the second quarter, it could “easily” fall by 20 percent or 30 percent on an annual basis.

U.S. industrial output collapses in April [MarketWatch]
Capacity utilization slumped to a record low 64.9% from 72.7% in March…. “Prospects for output remain weak, restrained by ongoing issues related to supply chain disruptions and weak demand, though a reopening of states and factories should boost output from low levels,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.

J.C. Penney Needs Quick Bankruptcy Exit to Avoid ‘Disastrous’ Result [WSJ]
Retailers and supermarkets that file for bankruptcy are more likely than other types of companies to simply liquidate rather than restructure as viable businesses…. Roughly 70% of Penney’s first-lien lenders have signed on to support a restructuring framework that would hand them a controlling stake in the company, subject to court approval. Their lawyer, Mr. Dunne, said they “committed real capital to provide the company with some breathing room.”

Jim Cramer Discusses the Tepper and Druckenmiller Dispute [TheStreet]
Tepper says the current recession is not as bad as 1999, while Druckenmiller says that it is already worse than 1999…. "Here's what you need to know about both of them," Jim Cramer told club members of the Action Alerts PLUS Charitable Trust. "They are straight shooters. They are honest people….”
So who should investors be listening to in this argument? Tepper, Druckenmiller or neither? Cramer believes it might be smart not to put too much thought into what either of these giants of the investing world is saying about how bad this is.

Hedge Fund Luminaries Are Lining Up Behind Gold Again
Hedge fund luminaries including Paul Singer, David Einhorn, and Crispin Odey are among those bullish on gold, according to recent letters to investors. So are large asset managers like Blackrock Inc. and Newton Investment Management…. “In recent months, gold has gone up in price to some degree, but we think that it is one of the most undervalued investable assets existing today,” Singer’s Elliott Management Corp. wrote in a letter to investors in April. He argued that low interest rates, mine disruptions and “fanatical debasement of money by all of the world’s central banks” would lead gold to rise to “literally multiples of its current price”.

Truce sorely wanted on proxy proposal championed by SEC [P&I]
Industry stakeholders are expecting the SEC to remove the pre-review section from its proposal and instead move forward with a contemporaneous review and "speed bump" concept…. Keith F. Higgins, Boston-based chairman of the securities and governance practice at Ropes & Gray LLP and former director of corporation finance at the SEC, referred to the speed bump idea as a "Solomonic solution."
The speed bump is a "step back to something more normal," Mr. Klein said. "If I had to accept that something is going to happen, which unfortunately I think I do, then this is an improvement over where we were."

Tesla’s Production Restart Could Ease Path to Inclusion in S&P 500 Index [WSJ]
Inclusion in the S&P 500 requires an accumulated profit over four consecutive quarters. With Tesla’s profit over its past three quarters—its longest run of profitability—it may be able to join the influential index if it can defy Wall Street’s expectation and eke out another this period.
The connection could help explain why Mr. Musk was so determined to reopen the plant, which had been idled since March 23 by local authorities trying to stem the spread of Covid-19, the disease caused by the new coronavirus.

SEC Order Finds Morningstar Mixed Analytical Functions With Sales and Marketing [WSJ]
The SEC order included examples of a Morningstar business-development director sending an analyst to an event in his place and an email exchange in which the same analyst touted Morningstar to the company’s chief executive…. A Morningstar analyst also wrote a commentary aimed at an issuer and sent it to the issuer with the purpose of conducting business with it, the SEC said. That issuer eventually became a Morningstar client, according to the order.

UK’s richest hedge fund manager sees fortune swell by £1bn [CityWire]
Michael Platt climbed 11 places to 24th as his fortune climbed £1.1bn to £4.8bn on the strong performance of his Bluecrest Capital hedge fund, which returned 50% in 2019…. Platt is one of the few people at the top end of the list to see their wealth grow in the pandemic crisis…. In April, with around 800 of the 1,000 entries complete, it was anticipated the billionaire count would rise to 160. Adjusting for the impact of the global shutdown, the number of billionaires fell by four to 147.

Elon Musk will need more than 10,000 missiles to nuke Mars — Roscosmos [TASS]
"If briefly analyzed, certain plans put forward by SpaceX simply cannot be implemented taking into account the short-term technological developments. For example, for a thermonuclear explosion on Mars’ pole, one of the plans of SpaceX, to have tangible results, more than 10,000 launches of missiles that can carry the largest payloads and are being developed now are needed….”

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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. 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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. 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