U.S. economy notches record growth in third quarter [Reuters]
Gross domestic product rebounded at a 33.1% annualized rate last quarter, the Commerce Department said in its advance estimate on Thursday. That was the fastest pace since the government started keeping records in 1947 and followed a historic shrinkage rate of 31.4% in the second quarter…. But U.S. output remains below its level in the fourth quarter of 2019, a fact Trump’s Democratic challenger Joe Biden is almost certain to highlight along with signs that the growth spurt is fast petering out.

U.S. weekly jobless claims fall to 751,000, their lowest level since March [CNBC]
“We had expected that the steep decline we saw in claims last week would be too big to repeat, but downside momentum in claims remains intact,” Thomas Simons, an economist at Jefferies, wrote in a note. “The question going forward is going to be whether a surge in COVID cases and renewed measures aimed at containing the virus will lead to another spike in claims in the coming weeks….”
Continuing jobless claims, which include those receiving unemployment benefits for at least two straight weeks, dropped by 709,000 to 7.75 million for during the week of Oct. 17. Data on continuing jobless claims is delayed by one week.

Pandemic's latest spread triggers surge in VIX 'fear gauge' for U.S. stocks [Reuters]
The Cboe Volatility Index surged on Wednesday to its highest level since June, ending at 40.28. At the same time, the benchmark S&P 500 stock index fell 3.5%.... The VIX is now pricing in daily moves of more than 2%.... The VIX itself is trading at a higher level than the futures, an indication that immediate concerns about the coronavirus have dwarfed worries further out on the calendar.

Apollo Earnings Fall as CEO Wrangles With Jeffrey Epstein Ties [WSJ]
The New York firm posted net income of $272.4 million, or $1.11 a share, down from earnings of $363.3 million, or $1.63 a share, a year earlier. The decline was primarily driven by a bigger loss attributable to noncontrolling interests.
Apollo’s financial performance may soon be overshadowed by what Mr. Black says about his relationship with Mr. Epstein during a conference call to discuss the firm’s results later Thursday.

Credit Suisse misses analyst expectations with a 38% fall in net profit [CNBC]
Thomas Gottstein, CEO of Credit Suisse, said it was a “decent quarter….”
Performance in Credit Suisse’s wealth management division disappointed, with strong transaction-based revenues being more than offset by lower fees and net interest income. Revenue at the closely-watched division fell 10% year-on-year.
The bank’s investment banking division fared better, however, with net revenues rising by 11% in the third quarter from a year ago, on “constructive” market conditions and higher client activity, mainly in Asia.

Tiffany Agrees to New Deal Terms With LVMH [WSJ]
The companies have come to an agreement on new deal terms with LVMH paying $131.50 a share for the iconic U.S. jewelry maker, the companies said, confirming reporting by The Wall Street Journal. That’s down from an original price of $135 a share, equating to savings of roughly $430 million for LVMH. Tiffany and LVMH have also agreed to settle their pending litigation in Delaware….
LVMH said in September it was backing out of the deal, using the novel justification of trade disputes between France and the Trump administration…. Tiffany sued LVMH in Delaware Chancery Court to enforce the agreement or obtain damages…. Some legal experts have said LVMH faced long odds of prevailing.

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Opening Bell: 1.8.21

SoFi SPACs; Wilbur Ross’ replacement; Credit Suisse undershot a bit; and more!

By World Economic Forum from Cologny, Switzerland [CC BY-SA 2.0], via Wikimedia Commons

Opening Bell: 9.2.20

TikTok tightrope; the Ackmanaissance accelerates; Swiss regulators to have a peek on Credit Suisse spying; Mick Mulvaney still awful; and more!

By Mike Cauldwell (https://www.casascius.com/photos.aspx) [Public domain], via Wikimedia Commons

Opening Bell: 4.14.21

Coinbase and ConsenSys; Credit Suisse still selling; TP tamp down; and more!

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Opening Bell: 6.5.20

Unemployment falls; bankruptcies rise; Slack ain’t Zoom; Musk v. Bezos; Ken Griffin buys a painting; and more!

fax

Opening Bell: 8.13.21

Better late than never at Credit Suisse; make sure to blow your whistle via fax; cryptoheists are fun; and more!

Opening Bell: 10.25.12

Credit Suisse Profit Falls (Reuters) The Swiss bank said on Thursday third-quarter net profit fell 63 percent to 254 million francs, missing analysts' average forecast of 370 million. The quarter was hit by 1.05 billion francs in charges, mainly linked to its own debt. Brady Dougan: More Tough Times Ahead For Financials (CNBC) More aggressive cost cutting will be necessary in the coming years, Credit Suisse CEO Brady Dougan told CNBC Thursday, adding that he expects the financial services industry to continue to operate in a volatile market environment. The bank is targeting cost savings of a billion Swiss francs ($1.07 billion) by next year with further cuts in the years after that. “We believe we should be in mode of driving business more efficiently. We have cut 2 billion Swiss francs in the last year and we can take another billion in 2013 and [we have] set further targets for 2014 and 2015. We want to drive that efficiency and we are in a volatile revenue environment and that’ll be the case for the industry for some time,” Dougan said. CEOs Call For Deficit Action (WSJ) Chief executives of more than 80 big-name U.S. corporations, from Aetna to Weyerhaeuser Co. are banding together to pressure Congress to reduce the federal deficit with tax-revenue increases as well as spending cuts. The CEOs, in a statement to be released on Thursday, say any fiscal plan "that can succeed both financially and politically" has to limit the growth of health-care spending, make Social Security solvent and "include comprehensive and pro-growth tax reform, which broadens the base, lowers rates, raises revenues and reduces the deficit." The CEOs who signed the manifesto deem tax increases inevitable no matter which party succeeds at the polls in November. "There is no possible way; you can do the arithmetic a million different ways" to avoid raising taxes, said Mark Bertolini, CEO of Aetna. "You can't tax your way to fix this problem, and you can't cut entitlements enough to fix this problem." Crew Of Argentine Ship Seized By Hedge Fund Elliot Associates Returns Home (AP) They were supposed to sail the Argentine military's signature tall ship into the port of Buenos Aires in full glory after a goodwill tour asserting the South American country's place in the world. Instead, hundreds of sailors had to abandon their frigate, evacuated on orders from President Cristina Fernandez, after the ARA Libertad was detained by a Ghanaian judge in a debt dispute. Frustrated and disheartened but determined to go back as soon as possible to retrieve their three-masted ship, the sailors arrived home early Thursday on an Air France charter. The Argentine government couldn't send one of its own planes, for fear that it, too, could be seized as collateral. China Surpasses US as Top Foreign Investment Venue (Reuters) China overtook the U.S. as the world's top destination for foreign direct investment in the first half of 2012, according to the United Nations Conference on Trade and Development. China absorbed $59.1 billion in foreign direct investment (FDI) in the first six months, down slightly from $60.9 billion a year earlier, the agency said in a report. The United States attracted $57.4 billion in 2012's first half, down 39 percent from a year earlier, it said. Stephen Colbert Makes Donald Trump An Offer (Mediaite) Reality star Donald Trump yesterday offered to donate $5 million to a charity of Barack Obama‘s choosing if the President “opens up and gives his college records and applications, and if he gives his passport applications and records.” Stephen Colbert, touched by Trump’s generosity, made an offer of his own last night. He is vowing to pledge $1 million from his Super PAC to any charity Trump wants if: “…you let me dip my balls in your mouth.” Fed Steady On Policy (WSJ) The Fed expanded bond purchasing at its September meeting and plans to do its next major evaluation of its bond-buying programs at its final meeting of the year on Dec. 11-12. Policy makers are still gathering evidence on whether their programs are working. "The Committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions," the Federal Open Market Committee, the Fed's policy-making committee, said in a statement issued at the end of its two-day meeting. Jobless Claims Show Moderate Labor Progress (Bloomberg) Jobless claims decreased by 23,000 to 369,000 in the week ended Oct. 20 from a revised 392,000 the prior period, the Labor Department reported today in Washington. Lazard Profit Drops As Merger-Advisory Revenue Falls (Bloomberg) Lazard, the largest independent merger-advisory firm, posted a 33 percent drop in third-quarter profit as revenue from advising on mergers declined. The firm said it would implement a cost-cutting plan. Earnings fell to $35.4 million, or 26 cents a share, from $52.9 million, or 39 cents, a year earlier, the Hamilton, Bermuda-based firm said today in a statement. The average estimate of 11 analysts surveyed by Bloomberg was for per-share profit of 21 cents. Japanese man pays $780K for virginity of 20-year-old Brazil woman, who’ll use money for charity housing project (NYDN) A Brazilian student is set to sell her virginity for a staggering $780,000 after she put it up for auction online. A man called Natsu, from Japan, fended off strong competition from American bidders Jack Miller and Jack Right, and a big-spender from India, Rudra Chatterjee, to secure a date with 20-year-old Catarina Migliorini. The auction ended at 4 a.m. EST this morning, and the physical education student — who said she will use the cash to build homes for poverty-stricken families — was the subject of 15 bids. “The auction is just business, I'm a romantic girl at heart and believe in love. But this will make a big difference to my area,” she told Folha newspaper. “If you only do it once in your life then you are not a prostitute, just like if you take one amazing photograph it does not automatically make you a photographer.

Opening Bell: 04.27.12

LightSquared Lenders Pressure Falcone (WSJ) If Mr. Falcone doesn't agree to eventually leave LightSquared's board and make way for new executives and directors at the wireless communications firm, lenders are likely to balk and the company could end up filing for bankruptcy protection, they said. Shareholders Rebuke Barclays, Credit Suisse on Pay (Reuters) More than a quarter of Barclays shareholders look set to vote against the British bank's controversial pay plan for bosses and Credit Suisse is also facing a backlash as investors seek a greater share of profits. Stormy annual shareholder meetings at both banks got underway on Friday with many attendees complaining executives are getting too big a slice of bank income at their expense...Barclays Chairman Marcus Agius apologized for badly communicating the bank's pay strategy and promised to "materially" increase the dividend shareholders receive, helping to lift the bank's shares more than 4 percent. But he was heckled during his speech to a packed hall of about 2,000 shareholders and his comments about pay were greeted with laughter in some quarters. Renowned short-seller bets against Fortescue (SMH) Hedge fund short-seller Jim Chanos has singled out Fortescue Metals as a "value trap" stock, telling a New York conference that shares in billionaire Andrew Forrest's company will fall "materially." In a presentation this month to Grant's Spring Conference, a private investment forum, Mr Chanos, the boss of Kynikos Associates, told investors he feared iron ore miner Fortescue has "a somewhat promotional management team." Goldman Banker Probed For Alleged Leaks To Galleon (WSJ) U.S. prosecutors and securities regulators are investigating whether a senior Goldman investment banker gave Galleon hedge-fund traders advance word of pending health-care deals, according to people familiar with the matter. The banker, whom the people identified as Matthew Korenberg, is a San Francisco-based managing director for Goldman, a senior post. Among the merger deals being scrutinized by Los Angeles federal prosecutors and the Securities and Exchange Commission is the 2009 acquisition by Abbott Laboratories of Advanced Medical Optics, a Santa Ana, Calif., medical-device maker—a deal in which Mr. Korenberg advised Advanced Medical Optics, the people say. Another is the acquisition of APP Pharmaceuticals Inc. by Fresenius, announced in July 2008, in which Goldman advised APP, they say. Unlikely Allies (NYP) Billionaire hedge-fund mogul and Republican stalwart Paul Singer is in an odd position of late — asking the Obama administration for help to keep troubled mortgage lender ResCap out of bankruptcy. Singer, whose Elliott Associates owns debt in the mortgage lender, a unit of Ally Financial, asked Treasury Secretary Tim Geithner in recent weeks to use the government’s 74-percent stake in Ally to press for an alternative financial cure. An out-of-bankruptcy solution would help Elliott, to be sure, but would also assist the White House by keeping a unit of one of its high-profit bailouts from outright failure. But Singer, so far, hasn’t gotten any satisfaction. Geithner, insiders said, doesn’t want to use Treasury’s muscle to stop the likely Chapter 11 filing because it could be interpreted as the government overstepping its bounds. Spain Urges Focus On Reforms After Downgrade (WSJ) The government has embarked on a plan of far-reaching reforms to overhaul the economy, including new labor laws and a cleanup of the banking sector. Mr. Jiménez Latorre said these reforms will pay dividends in the medium- to long-term. The S&P ratings action "just focuses on the immediate effects," which won't be positive, Mr. Jiménez Latorre said. Dream Stenographer / Lucid Dreaming Partner (Craigslist) "I possess the wonderful gift of regularly occuring and incredibly vivid lucid dreams. In these dreams I have written Pulitzer Prize winning novels, bioengineered the cure for HIV, and brokered a lasting Israeli-Palestinian peace agreement. I have also composed Grammy winning albums. The only problem is humanity hasn't and can't benefit from my accomplishments because I forget how I achieved them shortly after waking. As a modern Renaissance man and philosopher scientist, my conscience cannot be at peace knowing I'm not doing everything possible to save my fellow human beings. Therefore I would like to a hire a dream stenographer to write down my ideas so that I may share them with the world. You, the dream stenographer, will sleep within arm's reach of me on selected nights when I feel my mind is operating at its peak performance level. Sleeping is mandatory as I'm not able to reach my optimum dream state when someone is watching me sleep. Remaining within arm's reach at all times is also mandatory so that I may wake you as quickly as possible to begin recording my stream of consciousness.Qualified applicants will be excellent note takers with unrivaled penmanship." KKR Earnings Beat Expectations (WSJ) Economic net income, a measure of private-equity firms' profitability that analysts follow because it includes both realized and unrealized investment gains, was $727.2 million, or 99 cents a share, compared to $742.5 million, or 96 cents a share, in the year-earlier period. The earnings came in at the top end of analysts' estimates, with a consensus economic net income of $486.6 million, or 74 cents a share, according to Thompson Reuters. NYSE CEO 'very disappointed' to lose out on Facebook listing (DJ) Just so you know. Wells Fargo to Buy Merlin Securities Prime Brokerage (Bloomberg) The purchase is Wells Fargo’s first foray into prime brokerage services and the bank will use the business as a foundation to expand, said Christopher Bartlett, head of equity sales and trading at the San Francisco-based lender. Prime- brokerage includes services such as lending, clearing trades and record-keeping that help hedge fund managers run their firms. Bartlett wouldn’t say how much Wells Fargo paid and a statement set to be released later today didn’t disclose the terms. Bo Xilai's Son Ticketed in Porsche (WSJ) Disputing a notion common in China that he lives a lavish lifestyle, Mr. Bo wrote to the Harvard Crimson on Tuesday saying he wished to address "rumors and allegations about myself." Among other things, "I have never driven a Ferrari," he wrote. The Wall Street Journal reported in November, based on people familiar with the episode, that Mr. Bo, the grandson of an illustrious Communist leader of the Mao era, arrived at the U.S. ambassador's residence in Beijing in a red Ferrari last year to pick up the daughter of the then-ambassador...Massachusetts Department of Transportation records show Mr. Bo was stopped by police for allegedly running stop signs in December 2010 and May 2011, one of them at 2:20 a.m., and for speeding in February 2011. The license plate of the car, which the Journal learned from someone familiar with the matter, showed it was a black 2011 Porsche Panamera registered to someone at his address.

Photo: Getty Images.

Opening Bell: 6.20.16

Visium to shut funds amid probe; Gundlach fears Trump; Credit Suisse puts 5 on leave; Colorado company releases wine for cats; and more.