U.S. Stock Futures Rally Following Sharp Selloff [WSJ]
Futures tied to the Dow Jones Industrial Average gained 2%, suggesting that the blue-chips index will recover some of its losses from Thursday’s 6.9% tumble. The pan-continental Stoxx Europe 600 climbed 1%.... “We can’t discount the fact that there is a lot of money sitting on the sidelines,” said Brian O’Reilly, head of market strategy for Mediolanum International Funds. “It’s a trading market at the moment—more than a long-term fundamentals market—so on any setback like yesterday, you’re likely to see people come in and bid the market higher.”

Trump Says Fed’s Forecasts Are Too Gloomy [WSJ]
“The Federal Reserve is wrong so often,” Mr. Trump said on Twitter. “I see the numbers also, and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021….”
Mr. Trump also said on Twitter that “We will also soon have a Vaccine & Therapeutics/Cure” for the new coronavirus. “That’s my opinion. WATCH!”

Pershing Square’s Ackman eyes $1 billion-plus ‘blank-check’ company, sources say [Reuters via CNBC]
Ackman’s new vehicle could eclipse dealmaker and former Citigroup executive Michael Klein’s Churchill Capital as the largest U.S. SPAC IPO ever. Churchill III raised $1.1 billion earlier this year….
Ackman, best known as an activist shareholder who calls for changes at companies, was also a co-sponsor of Justice Holding, a SPAC which acquired restaurant chain Burger King for $1.4 billion in cash in 2012.
Justice Holdings is now called Restaurant Brands International, and has been a big contributor to Pershing Square’s recent investment gains.

Third Point Hedge Fund Seeks to Raise More Than $500 Million [Bloomberg]
The Third Point Structured Credit Opportunities Fund started fund raising on June 1 and has collected about $380 million, according to an investor update seen by Bloomberg…. The new fund will mainly invest in residential mortgages, consumer credit, consumer real estate and collateralized loan obligations. Investors’ cash is locked in for one year and the fund is aiming to return as much as 20% annually.

Bankrupt Hertz Pops 51% In Pre-Market On $1 Billion Share Sale Plan [Yahoo! News]
“The recent market prices and the trading volumes in Hertz’s common stock potentially present a unique opportunity for the debtors to raise capital on terms that are far superior to any debtor-in-possession financing,” the company said, referring to a traditional bankruptcy loan….
Hertz said it would warn any potential buyers “the common stock could ultimately be worthless.”

Just Eat Takeaway to Acquire Grubhub for $7.3 Billion [NYT]
Just Eat Takeaway said it would value Grubhub at $75.15 per share, a 27 percent premium to Grubhub’s closing price of $59.05…. Uber had been in talks to buy Grubhub, but those discussions foundered over price and regulatory concerns, said people with knowledge of the discussions, who were not authorized to speak publicly.

Quicken Loans, the largest U.S. mortgage lender, is planning an IPO, sources say [CNBC]
The targeted valuation is still being decided, but it is likely in the tens of billions of dollars, one of the people said. That would imply a multi-billion-dollar IPO, one of the largest – if not the largest – this year…. Quicken Loans CEO Jay Farner said on CNBC in mid-April that March was the “biggest closing month in our company’s history -- nearly $21 billion in mortgages closed.” He said on CNBC that the company was estimating nearly $75 billion in mortgage applications in the second quarter, compared with almost $53 billion in the first quarter.

A Mossad Agent, an International Hedge Fund and the Mysterious Death of an Argentinian Prosecutor [Haaretz]
Argentinian federal prosecutor Alberto Nisman… was fatally shot in his apartment in January 2015, hours before he was set to present serious allegations in congress against then-President Cristina Fernandez de Kirchner….
[Former Mossad agent Uzi] Shaya says in the interview: “I brought a certain type of information to his attention, which could be what caused his death … material which apparently had to do with all sorts of monetary transfers by senior Argentinians that tie them to Iran….” Dayan asks if the information pertains to bank accounts belonging to Kirchner and her son. Shaya answers in the affirmative. 

Related

This makes us a quant, right? By No machine-readable author provided. Skies assumed (based on copyright claims). [Public domain], via Wikimedia Commons

Opening Bell: 1.5.21

The good and bad for banks; Icahn agonistes; Ackman and Andurand not so much; Slack sucks; and more!

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Opening Bell: 11.19.20

A SPAC-tacular scam; funding for Christmas; AQR’s crash diet; negative rates in China; and more!

haikouairport

Opening Bell: 7.9.20

Capital-raising easier than ever, but no one wants the Fed’s Main Street money; and more!

Opening Bell: 3.1.16

Barclays loses; Valeant under investigation; Mystery Malaysian high roller at center of global money-laundering probe; Canadian banned from owning turtles after smuggling 38 in pants; and more.

Opening Bell: 10.7.15

Fantasy sports probe; Ackman says GE was too expensive; TPG raises real estate fund; Steve Cohen is loving life; "College bro arrested over mac-and-cheese rant at food court"; and more.

Opening Bell: 3.6.15

Stress tests; The next Silicon Valley; Why you should lease a Rolls-Royce ; Emu on the loose; AND MORE.

Opening Bell: 05.31.12

At Core Of Greek Chaos, A Reviled Tax (WSJ) So despised is the property tax that its critics—which is to say, most of Greece—refer to it as the haratsi, after a per capita tax imposed by the occupying Ottomans. About three-quarters of Greece's households own their homes. Like many other European countries, Greece already has some property taxes. But those have been aimed mostly at higher-value properties and raised little revenue. JPMorgan To Spin Out 'Special Investments' (FT) The unit, whose investments include LightSquared, the wireless internet provider, will be moved to the bank’s corporate division and prevented from seeking fresh investment opportunities, bankers were told on Wednesday. Woman Who Wouldn't Be Intimidated By Citigroup Wins $31 Million (Bloomberg Markets) Sherry Hunt never expected to be a senior manager at a Wall Street bank. She was a country girl, raised in rural Michigan by a dad who taught her to fish and a mom who showed her how to find wild mushrooms. She listened to Marty Robbins and Buck Owens on the radio and came to believe that God has a bigger plan, that everything happens for a reason. She got married at 16 and didn’t go to college. After she had her first child at 17, she needed a job. A friend helped her find one in 1975, processing home loans at a small bank in Alaska. Sherry Hunt never expected to be a senior manager at a Wall Street bank. She was a country girl, raised in rural Michigan by a dad who taught her to fish and a mom who showed her how to find wild mushrooms. She listened to Marty Robbins and Buck Owens on the radio and came to believe that God has a bigger plan, that everything happens for a reason. She got married at 16 and didn’t go to college. After she had her first child at 17, she needed a job. A friend helped her find one in 1975, processing home loans at a small bank in Alaska...In March 2011, more than two years after Citigroup took $45 billion in bailouts from the U.S. government and billions more from the Federal Reserve -- more in total than any other U.S. bank -- Jeffery Polkinghorne, an O’Fallon executive in charge of loan quality, asked Hunt and a colleague to stay in a conference room after a meeting. The encounter with Polkinghorne was brief and tense, Hunt says. The number of loans classified as defective would have to fall, he told them, or it would be “your asses on the line.” Hunt says it was clear what Polkinghorne was asking -- and she wanted no part of it. Jobless Claims Increased Last Week (Bloomberg) First-time claims for jobless benefits increased by 10,000 to 383,000 in the week ended May 26 from a revised 373,000 the prior week, the Labor Department said today. The initial claims exceeded the median estimate of 370,000 in a Bloomberg News survey of economists. The number of people on unemployment benefit rolls dropped. For French CEO's, Politics Means Big Pay Cuts (WSJ) Top managers at France's state-owned companies are expected to face significant pay cuts next month, when Socialist President François Hollande plans to begin enforcing salary caps as part of his broader electoral pledge to get tough on the rich. During the presidential campaign, Mr. Hollande vowed to curb "excessive" remunerations at France's 52 state-controlled or partially state-owned companies by ordering that executive pay not exceed 20 times the salary of the lowest-ranking employees. New York Plans to Ban Sale of Big Sizes of Sugary Drinks (NYT) The proposed ban would affect virtually the entire menu of popular sugary drinks found in delis, fast-food franchises and even sports arenas, from energy drinks to pre-sweetened iced teas. The sale of any cup or bottle of sweetened drink larger than 16 fluid ounces — about the size of a medium coffee, and smaller than a common soda bottle — would be prohibited under the first-in-the-nation plan, which could take effect as soon as next March. Gorman, Greifeld ‘Face’ off (NYP) Morgan Stanley is prepared to take Nasdaq to court to recoup money it believes it lost in the flubbed Facebook initial public offering. CEO James Gorman’s investment bank, which led the now-notorious, snafu-ridden Facebook IPO, believes Bob Greifeld’s Nasdaq owes it roughly $10 million, sources said. The investment bank, which quarterbacked the $16 billion Facebook offering, had to shell out to clients a seven-figure sum to resolve a litany of Nasdaq trading glitches. Morgan Stanley's Facebook Analyst: Sober Man in World of Hype (Reuters) Scott Devitt was one of a number of analysts to lower his revenue and earnings expectations for the social media giant after the company informed analysts that it was dropping its quarterly and annual revenue guidance. Facebook also issued an amended prospectus cautioning that the shift of its users to mobile platforms could have a negative impact on revenue growth. Such a move was highly unusual because it occurred just days before Facebook's highly anticipated IPO, whose lead underwriter was Morgan Stanley, Devitt's employer. The investment bank not only had control over the process, but over 38 percent of Facebook shares being sold. Devitt's and other analysts' revised revenue forecasts were shared via phone calls with institutional investors, but not with retail investors, before the stock began trading publicly. That in turn raised questions over whether the playing field was skewed against Main Street investors from the start and sparked lawsuits. Citigroup Debt Viewed As Risky (WSJ) Gimme Credit, a fixed-income research company based in New York, said it expects debt issued by the third-biggest U.S. bank by assets to perform less well over the next six months than bonds issued by the company's peers. Russian Zuckerberg Throws Money Paper Planes At Passersby (MSN) Russian millionaire Pavel Durov reportedly spent last weekend flying paper airplanes made from 5,000-ruble notes (equal to about $160) out the window of his office in St. Petersburg. The 27-year-old gave away around $2,000 before he stopped because "people turned into animals" grabbing the cash. Durov is the CEO of Russia's largest social network Vkontakte, which sort of makes him the Russki Mark Zuckerberg. Scarf-Wearing Pig Stuns Motorists (UPI) Pennsylvania State Police said a baby pig wearing a scarf crossed rush hour traffic in Pittsburgh and disappeared into the woods. Police said the fashionable swine was spotted crossing the inbound lanes of Parkway West near the Green Tree exit around 8:30 a.m. Wednesday, and many motorists pulled off the parkway and stopped to take pictures of the unusual pedestrian. Troopers said the pig had crossed over a guardrail and into the woods by the time they arrived, and they were unable to locate the animal.

Opening Bell: 5.10.16

U.S. investigating Citadel, KCG; ; BofA says U.S. stocks headed straight to hell; The Dan Loeb of Japan; Kid finds Mayan settlement while messing around on Google Maps; and more.