Mnuchin and Powell Warn of Economic Scarring, and Offer Divergent Solutions [NYT]
“There is the risk of permanent damage” if states delay their reopenings, Mr. Mnuchin told lawmakers. While the Treasury secretary said job losses would get “worse before they get better,” he suggested that conditions would “improve in the third and fourth quarters” as states began reopening and business activity resumed.
Mr. Powell sounded a more cautious tone, saying that a full recovery would not take hold until the health crisis was resolved and people felt safe resuming normal activity. He suggested that Congress, the White House and the Fed itself might need to provide more help to carry states, households and businesses through the pandemic.

Fed’s Rosengren Warns Premature Reopening of Economy Carries Risk [WSJ]
“Unfortunately, in the United States we have so far not been able to fully halt community spread of the virus, and many states are now relaxing restrictions even while infections and deaths remain a major concern,” he said. “While allowing employers to reopen will enable some people to return to work, it is not a panacea for our economic challenges, which again are rooted in public health concerns….”
“Public health solutions are paramount—without them, it will be virtually impossible to return to full employment,” Mr. Rosengren said. “It is vital that the design and timing of reductions in business restrictions not result in worse health outcomes and higher unemployment over a longer period of time,” he said.

Trump orders agencies to cut regulations that 'inhibit economic recovery' [The Hill]
Trump announced the executive order at a cabinet meeting at the White House, telling Transportation Secretary Elaine Chao the order “gives you tremendous power to cut regulation.”
“And we want to leave it that way,” he said. “In some cases we won’t be able to but in other cases we will.”

Luckin to Resume Trading Wednesday After Delisting Notice [Bloomberg]
Shares of Luckin will resume trading on 7 a.m. Wednesday morning. They have been suspended since early April after the company launched an investigation into fabricated sales transactions…. On May 15, the Nasdaq cited concerns related to the fabricated transactions and past failure to publicly disclose material information, Luckin said in a regulatory filing. It will remain listed pending the outcome of an appeal hearing, which is expected to be scheduled within 45 days of a hearing request.

Hedge fund redemptions skyrocket in March as investors pull USD85bn amid Covid-19 pandemic fears, new data shows [HedgeWeek]
Investor redemptions skyrocketed from USD8.1 billion in February to USD85.6 billion the following month, with hedge funds in continental Europe the hardest hit, according to BarclayHedge’s Barclay Fund Flow Indicator…. A March trading loss of some USD229.1 billion reduced the total amount of hedge fund industry assets globally to USD2.86 trillion, down from USD3.21 trillion at the end of February.

John Paulson is still betting big on gold — here’s how he’s positioning during the historic turmoil [CNBC Pro]
Billionaire hedge fund manager John Paulson’s big bets on gold are paying off during the historic market turmoil, and a regulatory filing showed he picked up a few new stocks amid the chaotic first quarter.

CFTC Charges Danish Man in $1.5 Million Forex Fraud Scheme [CFTC]
According to the complaint, rather than using those funds for forex trading as promised, Mikkelsen instead misappropriated at least some clients’ funds…. Client funds were withdrawn from the U.S. bank accounts by Mikkelsen through his debit card, as well as transferred from the U.S. bank accounts to an overseas bank, and from there to a Bitcoin address for Mikkelsen’s benefit. Mikkelsen then used the money to pay certain clients purported forex trading profits as is typical in a Ponzi scheme.

Tesla Owners Try to Make Sense of Elon Musk’s ‘Red Pill’ Moment [NYT]
Owning a Tesla, the luxurious electric car, is a major liberal status symbol…. But the man behind the brand is crafting a very different persona online that may now prove to be a challenge for his fans.
Elon Musk, the bombastic head of Tesla and SpaceX, exhorted his 34 million Twitter followers on Sunday to “take the red pill.” The comment was quickly embraced by his followers, including Ivanka Trump, President Trump’s elder daughter….
“Honestly, Musk is becoming a liability and the Tesla board needs to seriously consider ousting him,” wrote Markos Moulitsas, author of “The Resistance Handbook: 45 Ways to Fight Trump.” “And I say that as a proud owner of a Tesla and a SpaceX fanatic who truly appreciates what he’s built.”

Related

powell

Opening Bell: 5.13.20

More money, (for) more (pandemic) problems; more negative oil prices; more power to Paul Singer; more steps for Tesla; more strip club bailouts; and more generally!

MarissaMayerTiara

Opening Bell: 4.25.17

Marissa Mayer will not be going hungry; Bernanke thinks we're all crazy; of course Elon's new celeb relationship is bullish for Tesla; and more.

guggenheim

Opening Bell: 10.6.17

Guggenheim continues to be shitshow; Trump's FDA is in rubber-stamp mode; Elon Musk is "full of crap"; some very, uh, suggestive wedding photos; and more.

Opening Bell: 04.23.12

IMF And World Bank Meetings End With Little Agreement (NYT) To be sure, the additional $430 billion in lending capacity contributed by developed economies like Japan, Britain, Saudi Arabia and South Korea was seen as a major achievement. The contributions came after I.M.F. economists determined that countries around the world might require up to $1 trillion in new loans because of the combined effects of the sovereign debt crisis in Europe and sluggish global economic growth. The I.M.F. agreed to raise about half that amount if Europe would raise the other half. But finance ministers are still at odds over the effect of debt reduction on economic growth. Geithner urges 'aggressive' action to fight financial crisis (DowJones) US Treasury secretary Timothy Geithner said Saturday that the eurozone needed stronger action from authorities, including the European Central Bank, to tame a potential deterioration in the debt crisis. "The success of the next phase of the crisis response will hinge on Europe's willingness and ability, together with the European Central Bank, to apply its tools and processes creatively, flexibly and aggressively to support countries as they implement reforms and stay ahead of markets," Geithner told the International Monetary Fund's policy steering committee. Hedge Fund Short-Sellers to Target Wal-Mart Mexico (Reuters) Hedge fund managers are bracing for selling pressure in shares of Wal-Mart Stores on Monday, but market experts said it is the retail giant's less visible Mexican unit that could be the more attractive target for short sellers. The New York Times reported on Saturday that Wal-Mart de Mexico, which is 69 percent owned by Wal-Mart Stories, had orchestrated a widespread bribery campaign in 2005 to win market dominance. The investigative article alleged that senior Wal-Mart executives knew about the matter and tried to cover it up. "I would not consider Wal-Mart shares expensive, but I definitely would not be a buyer at these levels in the 60s. I'm more interested in shorting the Mexico traded 'pure play,'" said private activist investor Daniel Yu, who has presciently shorted such stocks including Green Mountain Coffee Roasters and Sino-Forest. Wal-Mart said in a statement on Saturday that it was "deeply concerned" about the allegations in the Times report and began an investigation into its compliance with anti-bribery laws last autumn. MF Global Customers Press JPMorgan For Funds (WSJ) In a letter set to be sent to regulators and lawmakers on Monday, an MF Global customer group calls for J.P. Morgan to "return hundreds of millions of dollars in MF Global customer funds transferred" to J.P. Morgan in late October. The group, called the Commodity Customer Coalition, urged U.S. officials to "demand" that the New York bank "disgorge all MF Global customer property immediately." J.P. Morgan is cooperating with the ongoing investigation, has said it did nothing wrong and lost some of its own money in the Oct. 31 bankruptcy because it was a creditor of MF Global. Vietnam Funds Beat India, China in Attracting Investors (Bloomberg) Vietnam-focused stock funds became the only emerging market equity assets in Asia to lure investors every week this year as the nation’s benchmark index rose to an 11-month high, Emerging Portfolio Fund Research said. Table Hockey, on Ice Since Heyday in 1970s, Makes a Comeback (WSJ) Carter Campbell leaned over the stick-figure hockey players, loosening up his wrists and hopping from one foot to the other. The 14-year-old's cap was turned around. His iPod blared tunes from the classic-rock band Rush. Across from him, 35-year-old, No. 1 ranked table hockey champ Mark Sokolski hunched over his own players. "I'm gonna stomp this kid," Mr. Sokolski said. At stake was a slot in the elite eight of this year's Canadian Table Hockey Championships, the best-attended North American tournament that the game has seen in decades. Across the U.S. and Canada, a resurgence of table hockey is under way, drawing younger players and women to a sport that has long been the domain of older men in their basements reliving a game that hasn't been popular since they were kids. Global Crisis Not Over, China Reforms to Go On: Wen (Reuters) The global financial crisis is not over and technical innovation and investment will be key to sustaining what remains a "tortuous" recovery, Chinese Premier Wen Jiabao said on Sunday during a visit to Germany. Wen also said China, the world's biggest exporter and second largest economy, would press on with reforms aimed at creating better legal protection for foreign investors — a major concern for the growing number of German firms active in the country. Buffett Joined by 12 Families Pledging Wealth to Charity (Bloomberg) Twelve families promised to donate most of their wealth to philanthropy, joining the Giving Pledge initiative started by Warren Buffett and Bill and Melinda Gates. The families include hedge-fund manager Bill Ackman and his wife Karen, Tesla Motors Inc.’s billionaire owner Elon Musk and film producer Steve Bing, according to an e-mailed statement from the initiative. Arthur M. Blank, Edgar M. Bronfman, Glenn and Eva Dubin, Red and Charline McCombs, Michael Moritz and Harriet Heyman, John and Ginger Sall, Henry and Susan Samueli, John A. and Susan Sobrato, John Michael Sobrato, and Ted and Vada Stanley also signed the pledge. Aiming for Clarity, Fed Still Falls Short in Some Eyes (NYT) But as Mr. Bernanke prepares to meet the press for the fifth time Wednesday afternoon, after a scheduled meeting of the Fed’s policy-making committee on Tuesday and Wednesday, there are reasons to doubt that the efforts are increasing public understanding of monetary policy. Experts and investors have continued to disagree about the plain meaning of the Fed’s recent policy statements. Some say the increased volume of communication is creating cacophony rather than clarity. Political criticism of the Fed has continued unabated. Man's nightmare since NYPD labeled him ‘Gentleman Groper’ (NYP) A citywide manhunt ensued after four Manhattan women were fondled in tony neighborhoods in a 35-day stretch. On April 13, authorities paraded their main suspect past snapping cameras. He defied the conventional image of a creepy perv. He was young, handsome, well-dressed, affluent, educated, a churchgoer. A gentleman groper. That suspect, Karl Vanderwoude, says if the scene seemed implausible — that’s because it was. “I didn’t do it. I wasn’t even in the vicinity of these incidents,” he said in his first interview since his arrest. “It’s a case of mistaken identity.” The 26-year-old Bible-study leader’s nightmare began 10 days ago, when he left early from his job as an operations coordinator at a Flatiron District private equity firm because he felt sick. He was in his Park Slope apartment for about an hour when the doorbell rang. “I thought it was my roommate who had been locked out and forgot his keys, which has happened, so I go to answer the door,” he recalled. Instead, two NYPD detectives were standing in the threshold. “They’re like, ‘Are you Karl? May we speak with you?’"

By Gage Skidmore from Peoria, AZ, United States of America (Mike Pompeo) [CC BY-SA 2.0 ], via Wikimedia Commons

Holiday Bell: 10.8.18

Pompeo treated like a bull in a China; Tesla looking to hire Elon a daddy; Somebody is long GE; Banksy trolls the art world; and more!