Opening Bell: 10.1.20 - Dealbreaker

Goldman Sachs resumes job cuts after halting them during the pandemic [CNN Business]
The bank confirmed that it plans to eliminate less than 1% of its workforce — about 400 positions. The job cuts will take place across the firm, the company said, which totaled 39,100 employees as of July. Goldman says no specific positions will be affected more than others.
"At the outbreak of the pandemic, the firm announced that it would suspend any job reductions," the company said. "The firm has made a decision to move forward with a modest number of layoffs."

U.S. Banks Pull More Assets From London Ahead of Crucial Brexit Deadline [WSJ]
Accounting firm Ernst & Young estimates £1.2 trillion ($1.5 trillion) in bank assets are heading to continental Europe from the U.K., up from a projection of $1.3 trillion at the end of 2019. JPMorgan is moving around $230 billion in assets from the U.K. to its German operation, to support its trading and European client servicing there. U.S. banks in London say they are also transferring European clients on to new EU contracts one by one…. Earlier plans at some banks to have salespeople and bankers commute from London to European offices have become a logistical challenge amid quarantines and other restrictive measures imposed by governments. Another topic still being debated is to what extent EU regulators should tolerate “back-to-back booking,” in which banks process a transaction within the EU and then book it to their U.K. arm.

Hedge Funds May Escape Fed Blame Over Market Mayhem in March [Bloomberg]
“Our view is that was not a significant source of the pressure that we were seeing in the Treasury market,” Quarles, who also heads the Financial Stability Board of global regulators, said Tuesday during a University of Maryland webinar. Still, he added that market watchdogs lack the “granular data” to fully substantiate that assessment…. Hedge funds have feared that regulators would clamp down on them since June when the Bank for International Settlements called the firms’ rapid unwinding of so-called basis trades “a key driver” of the March turmoil. The transactions involve buying Treasury securities using leverage via repurchase pacts while simultaneously selling futures contracts.

Playboy to Go Public Again in Deal With SPAC [WSJ]
Playboy, which was taken private in 2011 by founder Hugh Hefner and private-equity firm Rizvi Traverse, will return to the public markets by merging with Mountain Crest Acquisition Corp., a special acquisition company, or SPAC, set up earlier this year that trades on the Nasdaq exchange…. Since [founder Hugh] Hefner’s death in 2017 at age 91, Playboy has moved away from publishing to become more of a brand licensing and commerce business. The Hefner family sold its 35% stake in the company to Rizvi Traverse in 2018 for $35 million.

Wall Street is 'doomsday prepping' for the election. It might not be necessary [CNN]
"It was chaos," Kristina Hooper, chief investment strategist at Invesco, said of the debate. "I walked away from last night thinking there is an even greater chance of a contested election…."
Charlie McElligott, a cross-asset macro strategist at Nomura Securities, argued in a Tuesday afternoon report that the scenario that is "underpriced" by volatility markets is "one where this 'extended chaos' scenario does NOT realize."
He pointed to the potential for an earlier-than-expected conclusion to the election or a "large, clear-cut Biden electoral win."

Former Airbnb Marketing Chief Jonathan Mildenhall Joins Banking Startup Dave [WSJ]
Dave has raised $186 million from investors including Mark Cuban and Norwest Venture Partners, and will likely raise more funds through an eventual initial public offering, Mr. Mildenhall said…. Dave caters to people who have not had bank accounts and people who don’t want to pay expensive bank fees or overdraft penalties. People who sign up for Dave pay $1 a month for access to financial planning and job-finding services, as well as overdraft notifications for their bank accounts outside Dave. The company, which is part of an emerging financial services category called fintech due to its technology offerings, also offers a separate banking option with a debit card.

Amazon’s Alexa Boss on What Users Are Asking During Covid-19 [WSJ]
WSJ: As people stay home, which consumer habits evolved the fastest?
[Toni] Reid: Meditation skills! We’ve seen an increase in things around cooking and recipes. You’re seeing people use reminders and timers to help them with home schooling.

Ireland court rules that Subway's sandwich bread is not legally bread [ABC News]
The case was brought before the court by Subway franchisee Bookfinders Ltd. which claimed that the bread Subway served qualified as a “staple food,” which, in Ireland, means that the bread would be exempt from value-added tax (VAT), thereby saving Subway money.
The ruling, which was handed down on Sept. 29 by the five-judge Irish Supreme Court, said that the bread’s sugar content -- which is five times higher than what was set out in Ireland’s Value-Added Tax Act of 1972 -- is too sugary to meet the legal definition of bread and therefore cannot be called a staple food.

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Photo: Getty Images.

Opening Bell: 2.14.17

Credit Suisse piles on more job cuts; Morgan Stanley goes all-in on China; Playboy prints nudes again; and more.

Opening Bell: 12.10.12

U.S. authorities probe SAC for Weight Watchers (Reuters) U.S. authorities are investigating Steven A. Cohen's SAC Capital Advisors hedge fund for possible insider trading in the shares of the popular diet company Weight Watchers International Inc, according to people familiar with the matter. The investigation focuses on trading in Weight Watchers shares in the first half of 2011, when SAC Capital had taken a sizeable position in the stock, and potentially could implicate the billionaire hedge fund manager, the sources said on Friday. Regulatory filings show that Cohen's $14 billion fund briefly held 2.1 million shares in Weight Watchers during the period under scrutiny by authorities - at which time the diet company's stock price roughly doubled. The inquiry is in its early stages and it is not clear whether anything improper was done either by SAC Capital or Cohen himself, said the people familiar with the matter, who requested anonymity. The trading in Weight Watchers would be permissible as long as it was based on fundamental research or derived from individuals who did not have access to non-public corporate information. Big Money Bets On Housing Rebound (NYT) A flurry of private-equity giants and hedge funds have spent billions of dollars to buy thousands of foreclosed single-family homes. They are purchasing them on the cheap through bank auctions, multiple listing services, short sales and bulk purchases from local investors in need of cash, with plans to fix up the properties, rent them out and watch their values soar as the industry rebounds. They have raised as much as $8 billion to invest, according to Jade Rahmani, an analyst at Keefe Bruyette & Woods. The Blackstone Group, the New York private-equity firm run by Stephen A. Schwarzman, has spent more than $1 billion to buy 6,500 single-family homes so far this year. The Colony Capital Group, headed by the Los Angeles billionaire Thomas J. Barrack Jr., has bought 4,000. Wall Street workers expecting worst bonus season since 2008 (NYP) State Comptroller Thomas DiNapoli estimates that the average bonus this year will be $101,000 — a 16.5 percent decline from last year and almost a 50 percent decline since 2006, when the average was $191,360. ‘‘I don’t think this year’s bonuses are going to be very good,’’ said Dan Shaffer, CEO of Shaffer Asset Management. ‘‘I don’t believe the typical bonuses, as we used to know them, exist anymore.’’ Obama Meets with Boehner Privately at White House (Bloomberg) The meeting was the first known face-to-face conversation between the two leaders since Nov. 16, when Boehner and other congressional leaders sat down with Obama at the White House. They have talked on the telephone since then. Obama met with Nancy Pelosi, the House Democratic minority leader, on Dec. 7. Investors offer about $38.8 billion in Greek debt buyback (Reuters) Greece is set to purchase back about half of its debt owned by private investors, broadly succeeding in a bond buyback that is key to the country's international bailout, a Greek government official said on Saturday. Hefner Husband Takes Insider Trading Into Playboy Bedroom (Bloomberg) Christie Hefner, [daughter of Hugh and] former chief executive officer of Playboy Enterprises Inc., said she was shocked as her husband of 15 years, William Marovitz, confessed to her that he was being investigated for suspicious trading in Playboy shares. They were in their apartment atop a 42-story Lincoln Park tower overlooking the glittering Chicago skyline and Lake Michigan on a March evening in 2010. “He told me he had been contacted by the SEC,” Hefner said later in testimony before the U.S. Securities and Exchange Commission, which didn’t accuse her of any wrongdoing. “And when did you learn your husband owned shares of Playboy?” she was asked. “In that conversation,” she replied. Hefner's husband is just one of more than 400 persons the SEC and the U.S. Department of Justice have accused of insider trading in a crackdown in the last five years, according to data compiled by Bloomberg. All involved betrayal -- of clients, employers, relatives or friends. The Hefner episode and a handful of cases like it include an especially cruel breach of trust: betrayal of a wife by a husband. Tennis star Novak buys up world's supply of donkey cheese at £400 a pound for new restaurant chain (DM) The cheese, known as pule, will be one of the key attractions at a chain of restaurants the Wimbledon champion and world number one is opening in his Serbian homeland...The Zasavica farm, which lies 50 miles west of the Serbian capital Belgrade, boasts a herd of 130 and is said to be the only place in the world where donkeys are milked for cheese. Banking Industry Squirms Over European Rate Probe (WSJ) The scandal over banks' attempted manipulation of interest rates has mostly centered on the London interbank offered rate. But Libor's lesser known cousin, the euro interbank offered rate, or Euribor, is facing mounting attacks. The European Union is expected soon to accuse multiple banks of attempted collusion in the setting of Euribor, according to people briefed on the probe. Barclays has already acknowledged trying to rig the rate, and other banks are likely to be pressed by regulators in the U.S., U.K. and elsewhere into similar admissions, according to industry and regulatory officials. Mortgage Crisis Presents a New Reckoning to Banks (NYT) Regulators, prosecutors, investors and insurers have filed dozens of new claims against Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and others, related to more than $1 trillion worth of securities backed by residential mortgages. Estimates of potential costs from these cases vary widely, but some in the banking industry fear they could reach $300 billion if the institutions lose all of the litigation. Depending on the final price tag, the costs could lower profits and slow the economic recovery by weakening the banks’ ability to lend just as the housing market is showing signs of life. Crisis Measure Nears End (WSJ) Barring action by Congress, the FDIC on Dec. 31 will stop providing an unlimited guarantee on zero-interest bank accounts used by businesses and municipalities for payroll and other services. The guarantee would then revert to the normal $250,000 in insurance per depositor at any given bank. If the guarantee isn't extended, FBR Capital Markets estimates as much as $250 billion in deposits could flow out of smaller banks to large banks or big money-market mutual funds. Stylish primate charms Toronto shoppers (The Star) A North York Ikea store attracted an unusual customer Sunday afternoon, when a tiny monkey dressed in a fitted faux shearling coat and diapers appeared in the store’s upper parking garage around 2 p.m. “It was just running around screaming,” said shopper Bronwyn Page...“It was really cute,” said Lisa Lin, another shopper. “It was smaller than a cat.” But if the monkey had hoped to stock up on Billy bookcases or Swedish meatballs, its plans were thwarted. The diminutive shopper never made it into the store, said manager Alvaro Carmona. No one was hurt in the incident, which lasted no more than half an hour, he added. Animal Services identified the monkey as a rhesus macaque, an Asian species that is prohibited in Ontario. The monkeys are known for their ability to live in diverse habitats – although Canadian winters obviously require a warm coat. The owner of the primate turned himself in to Animal Services just after 5 p.m. He was charged with owning a prohibited animal, an offence that carries a $200 fine. The seven-month-old monkey has somehow managed to escape his owner’s car in the Ikea parking lot, said animal control officer David Behan.

lake mead

Opening Bell: 9.23.20

September stutter; SPAC strikes; water woes; Elon equivocates; and more!

By AntanaCoins (Own work) [CC BY-SA 3.0], via Wikimedia Commons

Opening Bell: 10.13.20

Fodder for China virus conspiracy theories; not-so-Perfect Home for sale; SPACs SPACs SPACs SPACs; and more!

Opening Bell: 11.08.12

On Wall Street, Time To Mend Fences With Obama (NYT) Few industries have made such a one-sided bet as Wall Street did in opposing President Obama and supporting his Republican rival. The top five sources of contributions to Mr. Romney, a former top private equity executive, were big banks like Goldman Sachs and JPMorgan Chase, according to the Center for Responsive Politics. Wealthy financiers — led by hedge fund investors — were the biggest group of givers to the main “super PAC” backing Mr. Romney, providing almost $33 million, and gave generously to outside groups in races around the country. On Wednesday, Dan Loeb, who had supported Mr. Obama in 2008, was sanguine. “You win some, you lose some,” he said in an interview. “We can all disagree. I have friends and we have spirited discussions. Sure, I am not getting invited to the White House anytime soon, but as citizens of the country we are all friendly.” [...] “Wall Street is now going to have to figure out how to make this relationship work,” said Glenn Schorr, an analyst who follows the big banks for the investment bank Nomura. “It’s not impossible, but it’s not the starting point they had hoped for.” Morgan Stanley Reassures Its Bankers (WSJ) The New York bank said Monday that investment-banking chief Paul Taubman would leave the firm at year-end. Mr. Taubman was passed over for a new job overseeing both the trading and investment-banking operations, people involved in the process said. The position went to Colm Kelleher, who has overseen sales and trading. To calm nerves and soothe egos among the firms' bankers, Morgan Stanley gathered its new team of investment-banking leaders in New York this week. Mr. Kelleher and one of his new banking lieutenants, Franck Petitgas, traveled from their London office, and Mr. Petitgas spent much of the week meeting with managers in the investment-banking division and senior bankers, people familiar with the discussions said. Top executives reassured senior bankers Monday that the investment-banking business was a priority for Morgan Stanley. In a memo to employees, Chief Executive James Gorman said Morgan Stanley would "continue to build on our leadership position in investment banking and capital markets." The messages came as some rank-and-file bankers at Morgan Stanley privately expressed surprise and dismay at the news from Mr. Taubman, who announced his departure to colleagues in an emotional meeting Monday with Messrs. Kelleher and Gorman in attendance. Some Morgan Stanley bankers said they worried that the new chiefs of investment banking didn't have the stature of Mr. Taubman, who spent a significant amount of time as a mergers banker and was known internally for his staunch support of the firm's investment-banking franchise. "People are upset," one senior person inside the company said. Wall Street Trades Foiled Romney Dreams For Bowles Hopes (Bloomberg) Wall Street executives who lost a bet that Republican Mitt Romney would defeat President Barack Obama are bracing for tougher regulation and hoping a deal can be struck with Congress to cut the deficit. Obama’s choice to succeed Treasury Secretary Timothy F. Geithner will be watched closely for signs about the administration’s approach to business and the deficit, industry executives said. Erskine Bowles, who served as chief of staff under former President Bill Clinton, would be a sign that Obama is willing to endorse a bipartisan debt-reduction plan supported by many business leaders, they said. “With the appointment of the Treasury secretary, Obama will be sending an important message to the public and to the foreign governments who own a lot of Treasuries,” Curtis Arledge, chief executive officer of Bank of New York Mellon Corp.’s investment-management arm, which oversees $1.4 trillion, told journalists in New York yesterday. “If he goes with somebody like Erskine Bowles, then the message will be that he cares about the deficit and is serious about cutting it.” Focus Shifts To Fiscal Cliff (WSJ) Barry Knapp, head of U.S. equity portfolio strategy at Barclays, turned more bearish after seeing the election results, arguing that the risk of fiscal-cliff disaster increased to more than half, from about 30% before. "When I look at what happened, I see a government that grew farther apart, which might be worse than the status quo," Mr. Knapp said. "The risk of going off the cliff has just gotten huge." Jobless Claims Fall (WSJ) Initial jobless claims, which are a measure of layoffs, decreased by 8,000 to a seasonally adjusted 355,000 in the week ended Nov. 3, the Labor Department said Thursday. Economists surveyed by Dow Jones Newswires expected 365,000 new applications for jobless benefits. Greek Jobless Rate Hits New High (WSJ) Elstat, the Greek statistical agency, Thursday said the seasonally adjusted rate of unemployment increased to 25.4% from 24.8% in July and 18.4% in August 2011. That was just below the 25.5% unemployment rate recorded by Spain in the same month, the highest in the European Union. Herd of elephants go on drunken rampage after mammoth booze up (Metro) The trunk and disorderly mammals ransacked a shop, three houses and ruined crops in the eastern village of Dumurkota, India. Police say the gang of over-the-limit tuskers downed more than 500litres of moonshine alcohol, managing to drink the place dry in a matter of minutes. The unruly mob demolished dozens of houses in their desperate hunt for more booze after hoovering up the hard stuff in record time. Local police officer Asish Samanat said the drunken elephants were more 'aggressive' than usual after their mammoth drinking session. 'Unfortunately these animals live in close proximity to man and they recognised the smell of the drink,' he explained. 'They were like any other drunk - aggressive and unreasonable but much, much bigger.' ECB Stands Ready to Buy Bonds as Economy Weakens (Bloomberg) “We are ready to undertake” Outright Monetary Transactions, “which will help to avoid extreme scenarios,” Draghi said today at a press conference in Frankfurt after policy makers left the benchmark interest rate at a historic low of 0.75 percent. “The risks surrounding the economic outlook remain on the downside” and underlying inflation pressures “should remain moderate,” he said. SocGen CEO Blames ‘Stupid’ Accounting for Profit Drop (CNBC) “Exceptional items are related in particular to this stupid accounting thing which means that when you have a credit that is improving, your CDS is going down and you have to recognise negative revenues,” Frederic Oudea told CNBC in Paris. SocGen’s third-quarter net profit was 85 million euros, down by 86 percent on the same period in 2011, after losses on asset sales. That was lower than analysts’ mean estimate of 139.1 million euros. Blackstone Leads Hedge Funds Attracting Bond-Rally Bears (Bloomberg) Funds that bet on both gains and losses in credit attracted $12.6 billion of deposits in the three months ended Sept. 30, the most since the period ended Dec. 31, 2007, according to HFR. Blackstone Group LP raised $4.05 billion during the period for its debt unit, which includes so-called long-short funds. Panning Capital Management, which was founded by Kieran Goodwin this year, started such a fund on Nov. 1 with $500 million. Two-Tier Global Housing Market Could Lead to Bubble: Goldman (CNBC) In a report titled: “Just don’t look down some house markets are flying again” Goldman argues easy money policies by the world’s major central banks has had a ripple effect on countries which have avoided the worst of the global financial crisis, boosting their house prices. According to Goldman, there now exist housing “high-flyers” - countries that have experienced real house price increases and “low-lyers” - countries where the housing market downturn appears to be more protracted. “High flyers” include Germany, Finland, Norway, France, Switzerland and Israel as well as Canada and Australia. The “low lyers” include the U.S., and the euro zone periphery of Spain, Greece, Italy and Ireland- but also those places where prices fell in the post-crisis period but have since stabilized such as the U.K., Japan and Denmark. Judge throws Dallas attorney back in jail after his Design District office trashed, vandalized with obscene drawings (DN) Attorney Tom Corea was charged earlier this year with four felonies alleging he stole from his clients. He was arrested, posted bond and was released. Weeks later, he was evicted for not paying rent for his upscale office in the 2000 block of Farrington Street near Interstate 35E and Market Center Boulevard, according to testimony before state District Judge Mike Snipes. Corea was ordered out by Oct. 31. When the president of the real estate company that represents the building, Doug Molny, showed up the next day to check out the property, he found “complete destruction,” including “penis graffiti on every single wall throughout the building,” Molny said. Written next to some of the penises was the name Doug. Molny said it appeared someone took a sledgehammer to granite counters. Additionally, doors, light fixtures, cabinets and appliances were destroyed or removed.

Opening Bell: 11.09.12

RBS, UBS Traders Said to Face Arrest in Libor Probe (Bloomberg) U.K. prosecutors are poised to arrest former traders and rate setters at UBS, Royal Bank of Scotland Group and Barclays within a month for questioning over their role in the Libor scandal, a person with knowledge of the probe said. The arrests will be made by police under the direction of prosecutors at the Serious Fraud Office within the next month, said the person, who declined to be identified because the matter isn’t public. Arrests in the U.K. are made at an early stage of the investigation, allowing police and prosecutors to question people under caution and may not lead to charges. The SFO has 40 people working on the probe into manipulation of the London interbank bank offered rate, a benchmark for financial products valued at $360 trillion worldwide, and has involved the City of London Police, said David Green, the agency’s director. “Significant developments” in the case are coming “in the near future,” Green said yesterday in an interview at his office in London without giving further details and declining to comment on any possible arrests. Pressure Mounts On Fiscal Crisis (WSJ) The CBO on Thursday detailed its view that if Washington policy makers don't act before the end of the year, the economy would contract by 0.5% in 2013. The unemployment rate would jump from 7.9% to 9.1% by the end of 2013, according to the CBO—a nonpartisan arm of Congress. Ex-Goldman Bankers See Crisis Opportunity in Greek Insurance (Bloomberg) Alexis Pantazis and Emilios Markou are on a three-year odyssey to become next-generation car insurance executives in Greece that’s a million miles from their previous incarnation as bankers for Goldman Sachs. “One of our investors says you cannot wipe out a country,” said Pantazis, 36, a consultant at Boston Consulting Group before working as an executive director at Goldman Sachs from 2005 to 2008. “A country like Greece has 11 million people and these people need basic services. They need bread, they need milk, they need car insurance.” As French banks Credit Agricole and Societe Generale sell their Greek units to exit the only euro area country that’s in need of a second rescue package, Pantazis and Markou see an opportunity. After swapping business-class lounges and sushi for budget flights and sandwiches, the pair began pitching their Internet-based vehicle policies to Greeks two months ago. SEC Left Computers Vulnerable to Cyberattacks (Reuters) Staffers at the U.S. Securities and Exchange Commission failed to encrypt some of their computers containing highly sensitive information from stock exchanges, leaving the data vulnerable to cyberattacks, according to people familiar with the matter. While the computers were unprotected, there was no evidence that hacking or spying on the SEC's computers took place, these people said. The computers and other electronic devices in question belonged to a handful of employees in an office within the SEC's Trading and Markets Division. That office is responsible for making sure exchanges follow certain guidelines to protect the markets from potential cyber threats and systems problems, one of those people said...The security lapses in the Trading and Markets Division are laid out in a yet-to-be-released report that by the SEC's Interim Inspector General Jon Rymer. The Last Days Of Romneyland (NBC) From the moment Mitt Romney stepped off stage Tuesday night, having just delivered a brief concession speech he wrote only that evening, the massive infrastructure surrounding his campaign quickly began to disassemble itself. Aides taking cabs home late that night got rude awakenings when they found the credit cards linked to the campaign no longer worked. "Fiscally conservative," sighed one aide the next day. In conversations on Wednesday, aides were generally wistful, not angry, at how the campaign ended. Most, like their boss, truly believed the campaign's now almost comically inaccurate models, and that a victory was well within their grasp. (Outside Republicans and donors are another story. Some are angry over what they felt was an overly rosy picture painted by the campaign, and at what amounts to the loss of their investment.) New York Subway Repairs Border ‘on the Edge of Magic’ (NYT) There were some hiccups. At West Fourth Street, unexpected third-rail and switch problems delayed the return of the D, F and M trains. As the authority prepared to bring the G train back this week, a transformer blew, keeping the train offline for the morning rush hour on Wednesday. There were still service gaps on the N train, the A train in Far Rockaway and the R line, among others. On Thursday morning, inside his office, Joseph Lhota, the chairman of the transportation authority, checked his BlackBerry often, hoping for an update on the L train. Moments later, he placed a call to Howard B. Glaser, Mr. Cuomo’s director of state operations, whom he wanted to brief on the Queens-Midtown Tunnel. The tunnel could open Friday, he told Mr. Glaser, remarking that Mr. Bloomberg, “like an idiot,” had predicted publicly that the tunnel might open over the weekend. “He’s making it up,” he said, after a brief hail of profanity in which Mr. Lhota wondered aloud who, exactly, Mr. Bloomberg had been talking to. “It’s wrong,” he told Mr. Glaser. “It’s just wrong.” Mr. Lhota also spoke of the L line’s importance, as if his audience needed convincing. “You know who knows where the L train goes?” he barked into the phone. “All the hipsters in Williamsburg.” The BlackBerry buzzed on the table in front of him. He grabbed it quickly, then put it back. No good news yet on the L, he said. Hours later, that would change. “Ladies and Gentlemen,” he wrote on Twitter. “The L train is back. Enjoy your trip home tonight.” Whistleblower To Get Big Payment In Bank Of New York-Virginia Deal (WSJ) Bank of New York Mellon Corp. has reached an agreement with the state of Virginia to resolve accusations the bank charged hidden markups on currency transactions to Virginia's employee pension fund, in a deal that will also involve a $1.1 million payment to a whistleblower group, according to a person familiar with the negotiations. The whistleblower group includes Grant Wilson, who spent two years as a secret informant while sitting on the bank's Pittsburgh trading desk. Mr. Wilson's identity was disclosed in a page-one article in The Wall Street Journal last year. As part of the agreement, Virginia won't pursue litigation against BNY Mellon, and the bank will offer reduced fees in the future under a new custodial deal, according to people familiar with the negotiations. Nearly Half Of Britons Want EU Exit (Reuters) Nearly half of Britons would vote in a referendum to leave the European Union and less than a third to stay in, according to a poll highlighting divisions facing Prime Minister David Cameron. Polling company YouGov said on Thursday 49 percent favoured leaving the EU, 28 percent would vote to stay in the 27-nation bloc, 17 percent were undecided and the rest would not vote. Crédit Agricole Posts Record Loss After Greek Sale (WSJ) The Paris-based lender, France's third-largest bank by market value, posted a third-quarter net loss of €2.85 billion ($3.63 billion), well below analyst forecasts of a €1.76 billion net loss. The bank reported a €258 million profit in the same quarter a year earlier. Rochdale Traders Await Rescue (NYP) Sixteen days after a rogue trader rocked Stamford, Conn.-based Rochdale Securities, the broker-dealer, still hasn’t reached a deal with a deep-pocketed investor, sources said. Fla. principal resigns after offering promotions for sex (WPBF) A Florida high school principal who offered teachers' promotions in exchange for sex has resigned from his position. Steve Van Gorden's resignation comes after a 300-page investigative report by Pasco County school officials into allegations of sexual harassment. Several teachers claim Van Gorden, who is also the mayor of Zephyrhills, sent text messages offering career boosts in exchange for sex and threatened them if they refused. Van Gorden said he's sorry. "The bottom line is I'm truly sorry for what occurred, and it's not going to happen again," Van Gorden said. Van Gorden has a year and a half left on his term as mayor.

Opening Bell: 10.31.12

Questions Cloud Market Reopening (WSJ) The New York Stock Exchange said Tuesday that it plans to open as usual at 9:30 a.m. and that its trading floor and headquarters in lower Manhattan were "fully operational" despite widespread blackouts and flooding in that part of the city. The Nasdaq Stock Market and other exchanges will open as well. Bond markets will follow suit. While investors and industry officials breathed a sigh of relief, critics argued that the storm exposed how ill-prepared exchanges and their Wall Street customers are for such an event. Regulators on Tuesday said they plan to probe whether more needs to be done to get exchanges and the trading community ready for such disasters. After Hurricane, Wall Street Back To Work (Dealbook) On Tuesday, the scene around Wall Street was desolate. While the New York Exchange’s building appeared to be unscathed, many other offices in the vicinity were flooded. After an underground parking garage two blocks from the exchange was inundated with water, several cars floated to street level. Two Citigroup buildings were without power. The bank told employees in a memo on Tuesday that one of the buildings, 111 Wall Street, sustained “severe flooding and will be out of commission for several weeks.” Some JPMorgan Chase employees outside New York City were working in central New Jersey. At the bank’s main trading floor in Midtown Manhattan, employees, many in jeans, shirts and rain boots, booked hotels for the night and discussed strategy. The bank, which sustained minimal damages at a building downtown, expected to resume normal operations in Midtown. Credit Suisse also planned to open for business on Wednesday, with its main offices by Madison Square Park running on backup power. In downtown New York, Goldman Sachs was one of the few buildings with power. The firm has a generator in the event of outages, allowing its trading floors to continue to run. On Tuesday, televisions sets and lights inside the building were on, although few employees were there...In a memo to staff, Goldman announced its headquarters would be open on Wednesday. The firm also booked hotels in various locations to make sure employees could get to work. Deutsche Bank Rides Debt-Market Wave (WSJ) Deutsche Bank reported a surge in investment-banking revenues in the third quarter as a rebound in client activity fueled the best quarter ever for its fixed-income division. Deutsche Bank, Europe's largest lender by assets, reported group revenues of €8.7 billion ($11.5 billion), up 19% from the third quarter last year. The result was better than analysts expected, but the bank's legal problems and restructuring efforts nearly flattened net income. At €747 million, the total was up 3% from €725 million a year earlier. The bank's revenue increase was driven in part by bond-buying initiatives announced by the U.S. Federal Reserve and the European Central Bank in recent months. The moves have fueled a resurgence in client activity, including in fixed-income trading—an area where UBS AG and other competitors have announced significant cut backs, allowing Deutsche Bank to gain market share. UBS Moves Quickly On Job Cuts, Revamp (WSJ) Scores of traders at UBS were locked out of the Swiss bank's London offices Tuesday as the institution moved quickly to implement the first of thousands of job cuts in a strategic restructuring. The revamp effectively brings an end to UBS's attempts over the past two decades to build a world-class investment bank, which brought the institution to the brink of collapse in 2008 when it incurred more than $50 billion in losses from the fixed-income business that it is now exiting. Instead, UBS's strategy will center on its private bank, the world's second-largest in assets after Bank of America and a mainstay of the group's earnings. UBS confirmed Tuesday that it will cut risk-weighted assets by around 100 billion Swiss francs ($107 billion) by the end of 2017, eliminate about 10,000 jobs across the bank and reorganize its investment bank to deliver more products and services to ultra-wealthy clients at the private bank. The bank also said Tuesday that charges related to the moves, which come in response to a tougher regulatory and economic climate, helped push it into the red in the third quarter. UBS Chief Executive Sergio Ermotti said that London would bear the brunt of the cuts as the bank attempts to exit almost completely from fixed-income activities and move back to its wealth-management roots. Storm Cripples US East Coast, Death and Damage Toll Climb (CNBC) The U.S. death toll climbed to 50, according to The Associated Press, with many of the victims killed by falling trees. Damage estimates reached into the tens of billions, while the storm disrupted campaigning and early voting ahead of the November 6 presidential election. More than 8.2 million households were without power in 17 states as far west as Michigan. Nearly 2 million of those were in New York, where large swaths of lower Manhattan lost electricity and entire streets ended up under water. New York Subway System Faces Weeks to Recover From Storm (Bloomberg) If you laid the New York City subway system in a line, it would stretch from New York to Detroit. Now imagine inspecting every inch of that track. That’s the job ahead for Metropolitan Transit Administration officials, who must examine 600 miles of track and the electrical systems with it before they can fully reopen the largest U.S. transit system, which took a direct hit by Hurricane Sandy. Seven subway tunnels under New York’s East River flooded, MTA officials said. Pumping them out could take days, and a 2011 state study said it could take three weeks after hurricane- driven flooding to get back to 90 percent of normal operations. That study forecast damages of $50 billion to $55 billion to transportation infrastructure including the subways. How CEOs Improvised In The Wake Of Sandy (WSJ) When the approach of Hurricane Sandy left Lands' End Chief Executive Edgar Huber stranded on a business trip, he retreated to an impromptu backup headquarters—in his mother-in-law's apartment complex...Foot Locker CEO Ken Hicks disregarded the shutdown of his New York headquarters on Monday and worked at his office until 3 p.m. Then he picked up the work again six blocks away at his home in Manhattan's Murray Hill neighborhood. When the power went out, he put on iTunes, lit a lantern and did paperwork for another 2½ hours. "You can be reasonably self-sufficient with a cellphone and a lantern," the CEO says. Celebrities React To Northeast Hurricane (NYDN) “WHY is everyone in SUCH a panic about hurricane (i’m calling Sally)...?” Lindsay Lohan tweeted Sunday night. “Stop projecting negativity! Think positive and pray for peace.” A Year Later, All Eyes Still On 'Edie' (WSJ) Who broke the law by raiding customer accounts at MF Global Holdings? Investigators seem no closer to the answer than they were when the New York brokerage firm filed for bankruptcy exactly a year ago Wednesday, owing thousands of farmers and ranchers, hedge funds and other investors an estimated $1.6 billion. Their money was supposed to be stashed safely at MF Global, but company officials used much of it for margin calls and other obligations. The last, best hope for a breakthrough in the probe is Edith O'Brien, the former assistant treasurer at MF Global. Working in the company's Chicago office, she was the go-to person for emergency money transfers as MF Global flailed for its life. MBA's Rethink Wall Street (WSJ) Many of the nation's top M.B.A. programs, including Harvard Business School and Stanford Graduate School of Business, reported declines in the share of students who took jobs in finance this year. And even those that posted some gains, such as University of Pennsylvania's Wharton School, are still well below their prefinancial crisis levels...A Wall Street gig "isn't as prestigious as it used to be" because the future—promotion opportunities, salary gains, even basic job security— is so unclear, says Mark Brostoff, associate dean and director of the career center at the Olin Business School at Washington University in St. Louis. Though the share of Olin students going into finance increased to 22% of job seekers this year from 15% in 2011, many of those gains came at boutique and regional Midwestern financial firms rather than on Wall Street. One factor affecting student demand: Banks expect young staffers to pick up the slack left by masses of laid-off midlevel employees, without necessarily offering more generous pay packages in return for the long hours. At Harvard Business School, for example, students heading into investment banking—7% of job seekers who accepted jobs, down from 10% in 2011—reported median salaries and signing bonuses were flat with last year, at $100,000 and $40,000, respectively, while other guaranteed compensation fell to $8,750 from $40,000. Disney $4 Billion ‘Star Wars’ Deal Spotlights Content Bet (Bloomberg) Walt Disney agreed to buy George Lucas’s Lucasfilm Ltd. for $4.05 billion, pressing Chief Executive Officer Robert Iger’s $15 billion bet on creative franchises by adding “Star Wars” and “Indiana Jones.” Lucas, 68, the sole owner, will get half in cash and the rest in stock, making him a major investor in the film, theme park and TV company, according to a statement yesterday from Burbank, California-based Disney. The first of a new trilogy of “Star Wars” films will be released in 2015, Disney said. France Can’t Compete With Rest of Europe: WTO Chief (CNBC) France is uncompetitive not only versus China, but against the rest of Europe, according to Pascal Lamy, director general of the World Trade Organization. “The competitiveness of France on foreign markets has been damaged for the last 10 years. This is nowhere more obvious than in Europe, where France has lost market share for the last 10 years,” said Lamy in an exclusive interview with CNBC in Paris. Cop Tasers 10 Year-Old For Refusing To Clean His Car (CN) A New Mexico policeman Tasered a 10-year-old child on a playground because the boy refused to clean his patrol car, the boy claims in court. Guardian ad litem Rachel Higgins sued the New Mexico Department of Public Safety and Motor Transportation Police Officer Chris Webb on behalf of the child, in Santa Fe County Court. Higgins claims Webb used his Taser on the boy, R.D., during a May 4 "career day" visit to Tularosa New Mexico Intermediate School. "Defendant Webb asked the boy, R.D., in a group of boys, who would like to clean his patrol unit," the complaint states. "A number of boys said that they would. R.D., joking, said that he did not want to clean the patrol unit. "Defendant Webb responded by pointing his Taser at R.D. and saying, 'Let me show you what happens to people who do not listen to the police.'" Webb then shot "two barbs into R.D.'s chest," the complaint states. "Both barbs penetrated the boy's shirt, causing the device to deliver 50,000 volts into the boy's body.

Opening Bell: 11.16.12

JPMorgan Faces US Action (WSJ) Regulators are expected to serve J.P. Morgan Chase with a formal action alleging weaknesses in the bank's antimoney-laundering systems, said people close to the situation. The cease-and-desist order from the Office of the Comptroller of the Currency is part of a broader crackdown on the nation's largest banks, the people said. The OCC is expected to require J.P. Morgan to beef up its procedures and examine past transactions, these people said...The unusually blunt tone of the OCC's meetings with large banks on Nov. 8-9 spread quickly among bank executives. Some viewed the meeting as an attempt by the OCC to counter the perception that it had been too cozy with the banking industry and to step out of the shadows of the year-old Consumer Financial Protection Bureau, which has been aggressive about publicizing enforcement actions and fines levied on banks. "It was a spanking," said one senior bank executive who didn't attend the meeting but heard about it from colleagues. "The message was, 'You are living in a world of zero tolerance,'" said another bank executive briefed on the meeting. FHA To Exhaust Capital Reserves (WSJ) The Federal Housing Administration's projected losses hit $16.3 billion at the end of September, according to an independent annual audit to be released Friday, a much larger figure than had been forecast earlier. The report suggests the FHA will require taxpayer funding for the first time in its 78 years, though that won't be decided until early next year. Citigroup Seeing FX Signals of Early End to Stimulus (Bloomberg) “Does the market really believe that the 2015 Fed is going to be constrained by the 2012 Fed?” Steven Englander, Citigroup’s New York-based global head of G-10 strategy, said in a telephone interview from New York. “The answer is ‘no.’” UK Bank Bailout Money ‘May Never Be Recovered’: Report (CNBC) “There is a risk that the 66 billion pounds invested in RBS and Lloyds may never be recovered,” Margaret Hodge, chair of the Committee of Public Accounts, warned in a report into the sale of taxpayer-backed Northern Rock. Banks Seen Shrinking for Good as Layoffs Near 160,000 (Reuters) Major banks have announced some 160,000 job cuts since early last year and with more layoffs to come as the industry restructures, many will leave the shrinking sector for good as redundancies outpace new hires by roughly 2-to-1...Well-paid investment bankers are bearing the brunt of cost cuts as deals dry up and trading income falls. That is particularly the case in some activities such as stock trading, where low volumes and thin margins are squeezing banks. "When I let go tons of people in cash equities this year, I knew most would be finished in this business. It is pretty dead. Some will just have to find something completely different to do," said one top executive at an international bank in London, on condition of anonymity. Twinkies Maker to Liquidate, Lay Off 18,500 (Reuters) Hostess Brands, the bankrupt maker of Twinkies and Wonder Bread, said it had sought court permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers...Irving, Texas-based Hostess has 565 distribution centers and 570 bakery outlet stores, as well as the 33 bakeries. Its brands include Wonder, Nature's Pride, Dolly Madison, Drake's, Butternut, Home Pride, and Merita, but it is probably best known for Twinkies — basically a cream-filled sponge cake. Lagarde on Greece: 'Not Over Till the Fat Lady Sings' (Reuters) "It is a question of working hard, putting our mind to it, making sure that we focus on the same objective which is that the country in particular, Greece, can operate on a sustainable basis, can recover, can get back on its feet, can reaccess markets as early as possible," Lagarde said when asked about the possibility of a Greek deal next week. "It is not over until the fat lady sings as the saying goes." Alabama secessionist says working people must unite to save America, Bring Back His Topless Carwash (AL) “Derrick B.,” the man who started a petition seeking Alabama’s withdrawal from the U.S., is a truck driving, knife collecting former owner of a topless car wash who describes himself as “an absolute Libertarian.” Derrick Belcher, 45, of Chunchula, said in an interview late Monday that secession may be the only way to save working Americans from crushing debt, burdensome federal regulations and rising taxes. “I don’t want to live in Russia. I don’t believe in socialism,” said Belcher, an operations manager for a Mobile trucking company. “America is supposed to be free.” Belcher blamed the government for shutting down his former business. Belcher said his Euro Details car wash, which featured topless women, was successful for a decade on Halls Mill Road in Mobile. But he said he was arrested and charged with obscenity by city officials in 2001. “The government ripped my business away, and now they’re choking America to death with rules and regulations,” he said. Belcher said he fully expects the petition to reach 25,000 signatures -– in fact, he’s aiming far higher, saying he’d like to double that number to ensure that it is recognized by the White House. He said the petition got a jump start at a gun and knife show held at the Greater Gulf State Fairgrounds last weekend. Tiger Global To Give Investors (Some Of) Their Money Back (NYP) Hedge-fund honchos rarely return capital voluntarily. Recently, Moore Capital’s Louis Bacon gave money back to investors, but it was because the poorly performing fund couldn’t find enough investing opportunities. That’s clearly not the case for Tiger Global, which has gained 25.5 percent so far this year. “We continue to believe that managing a smaller asset base gives us the best chance to generate strong returns over the long-term,” the managers wrote in a Nov. 9 letter to investors Journalist To Be Tried Again Over Swiss Bank List (Reuters) Greek journalist who published the names of more than 2,000 Greeks with Swiss bank accounts will stand trial again after a prosecutor appealed a decision to acquit him of breaking data privacy laws, court officials said on Friday. The speedy arrest, trial and acquittal of magazine editor Costas Vaxevanis for publishing the so-called "Lagarde List" had aroused international concern and captivated recession-weary Greeks angry at the privileges of the elite. The Athens Public Prosecutor's office said the November 1 acquittal was faulty and that Vaxevanis must be tried again by a higher misdemeanor court on the same charges. If found guilty, Vaxevanis could be jailed for up to two years or face a fine. T-Mobile customer stabbed while disputing bill (Philly) A customer who went to an Upper Darby T-Mobile store Tuesday to complain about his bill left with a stab wound to his abdomen that police said had been inflicted by an employee. Upper Darby Police Superintendent Michael Chitwood said the 59-year-old victim went to the store on State Road near Lansdowne Avenue about 1:15 p.m. to complain about being double-billed. What started out as a conversation between the customer and employee Darnell Schoolfield devolved into a physical confrontation, police said. During the fight, the customer ripped Schoolfield's name tag from his shirt and took the tag to the Upper Darby police station to file an assault complaint. "During the course of filing the complaint, he realizes he's bleeding profusely from the left side of the stomach," Chitwood said. "He'd thought he was just punched." The victim was taken to the Hospital of the University of Pennsylvania, where he had surgery and was listed in serious condition. It's unknown what Schoolfield used to allegedly stab the victim or how their interaction went so awry.