Treasury Secretary Yellen says rates may have to rise somewhat to keep economy from overheating [CNBC]
“Even though the additional spending is relatively small relative to the size of the economy, it could cause some very modest increases in interest rates…”
“It’s not something I’m predicting or recommending,” Yellen told the Wall Street Journal’s CEO Council Summit. “If anybody appreciates the independence of the Fed, I think that person is me, and I note that the Fed can be counted on to do whatever is necessary to achieve their dual mandate objectives.”

Private payrolls show big gain in April but still short of lofty expectations, ADP says [CNBC]
Companies added 742,000 workers for the month, a jump from March’s upwardly revised 565,000 but a bit shy of the 800,000 forecast from economists surveyed by Dow Jones.
Leisure and hospitality, the sector hurt the most by pandemic-related business lockdowns, led growth with 237,000 new positions. The industry is still about 3 million shy of where it was before the pandemic….

The Paycheck Protection Program is out of money and closed to most new applications. [NYT]
Some money — around $8 billion — is still available through a set-aside for community financial institutions, which generally focus on lending to businesses run by women, minorities and other underserved communities…. Lawmakers in March extended the program’s deadline to May, but they have shown little enthusiasm for adding significantly more money to its coffers. With vaccination rates increasing and pandemic restrictions easing, Congress’s focus on large-scale relief effort for small businesses has waned.

CME Group to Close Most of Its Chicago Trading Pits Permanently [WSJ]
Some of the CME pits being shut down include pits for trading agricultural commodities, where traders had haggled over options on soybeans, wheat, cattle and hogs…. The only part of CME’s trading floor that will remain open is the Eurodollar options pit, which the exchange operator reopened in August with social-distancing requirements and other measures to protect traders from the coronavirus….
CME is also permanently closing its pit for the trading of futures and options on the S&P 500, the exchange operator said.

Jessica Alba-backed Honest Company IPO raises $412.8 mln [Reuters]
The company said late Tuesday that it sold 25.8 million shares at $16 each. Honest had previously indicated shares could be sold in the IPO at $14-$17 apiece.
The IPO values Honest at $1.44 billion…. The Los Angeles-based company plans to list its shares on the Nasdaq under the symbol "HNST" on Wednesday.

Even the CEO of Zoom Says He Has Zoom Fatigue [WSJ]
On one day last year, he said he had 19 Zoom meetings in a row.
“I’m so tired of that,” Mr. Yuan said, adding that he no longer books back-to-back Zoom calls. “I do have meeting fatigue.”
Like many companies, Zoom is planning an eventual return to its offices, Mr. Yuan said. Zoom’s employees will most likely be asked to come into an office two days a week, and work from home the rest of the time, he said.

Related

Jay Powell

Opening Bell: 6.3.20

Fed progam that hasn’t launched already a smashing success; PPP still less so; CQS even less so still; killer hand sanitzer; and more!

ever given

Opening Bell: 3.29.21

Suez ship slips free; Deliveroo just slips; Jay Clayton keeps busy; Leon Black less so; and more!

coronavirus

Opening Bell: 5.22.20

No PPP extension; no state adds jobs; no, billionaires didn’t get richer; no one’s sick here, we assure you; nothing is as tall as you think; and more!

nyse

Opening Bell: 5.7.21

Jobs? Less; unappealing; good news and bad for CoStar; Holmeslife; and more!

Courtesy Federal Reserve.

Opening Bell: 1.26.21

Yellen’s back; Tubman, too; irreconcilable reconciliation; UB-buying back; and more!

Opening Bell: 11.18.15

Yellen no fan of Fed oversight bill; Barclays faces (another) big forex fine; "Throughout the four to five hour trip, Taco Bell is encouraging fans to follow the historic relocation via a live webcam"; and more.

Opening Bell: 05.22.12

JPMorgan's Losses Are Rival's Boons (WSJ) A group of about a dozen banks, including Goldman Sachs Group and Bank of America have scored profits that collectively could total $500 million to $1 billion on trades that sometimes pit them directly against J.P. Morgan's Chief Investment Office, according to traders and people close to the matter. Facebook 11% Drop Means Morgan Stanley Gets Blame (Bloomberg) Some investors say they felt misled by the underwriters. According to one London-based fund manager who asked not to be named, bankers indicated demand was so strong that he placed a bigger order than he thought he would get, leaving him with 40 percent more Facebook shares than anticipated. He sold most of that stock on the first day of trading. Morgan Stanley Cut Facebook Estimates Just Before IPO (Reuters) In the run-up to Facebook's $16 billion IPO, Morgan Stanley, the lead underwriter on the deal, unexpectedly delivered some negative news to major clients: The bank's consumer Internet analyst, Scott Devitt, was reducing his revenue forecasts for the company. The sudden caution very close to the huge initial public offering, and while an investor roadshow was underway, was a big shock to some, said two investors who were advised of the revised forecast. They say it may have contributed to the weak performance of Facebook shares, which sank on Monday - their second day of trading - to end 10 percent below the IPO price. The $38 per share IPO price valued Facebook at $104 billion. Deutsche Bank: 'Geuro' an Alternative to Greek Euro Exit (CNBC) Greece’s best chance of survival may be to stay in the euro but opt for its own parallel currency or “Geuro,” according to Deutsche Bank’s head of research, Thomas Mayer. In a research piece, Mayer said the Geuro would help Greece balance its primary budget without financial support from the 'Troika' of international lenders (the International Monetary Fund, the European Union and the European Central Bank). This would allow the incoming Greek government to reject the strict austerity program on which aid is contingent. IMF Chief, OECD Call For More Euro Debt Sharing (WSJ) International Monetary Fund head Christine Lagarde Tuesday called on euro-zone governments to accept more common liability for each other's debts, saying that the region urgently needs to take further steps to contain the crisis. "We consider that more needs to be done, particularly by way of fiscal liability-sharing, and there are multiple ways to do that," Ms. Lagarde told a press conference in London to mark the completion of a regular review of U.K. finances. Greece Needs To Accept Bailout Terms, Says South Korea (CNBC) South Korea’s President Lee Myung-bak says Greece needs to accept the terms of a $130 billion international bailout agreed in March and there will be no disbursement of money from the International Monetary Fund (IMF), unless the country does so. Floating bales of marijuana a mystery (OCG) The floating bundles, weighing a total of 8,068 pounds, were first seen by a boater near the harbor around 12:01 p.m. Sunday, U.S. Coast Guard Petty Officer Seth Johnson said. The bales were reportedly floating at least 15 miles off shore. The Orange County Sheriff's Department sent three Harbor Patrol ships to aid in recovering the marijuana. A Coast Guard cutter was also sent to assist. Michael Jimenez, a Border Patrol spokesman, called Sunday's incident unusual. In most scenarios when marijuana bales are found dumped in the water it is because a vessel is trying to flee from authorities. "At other events, they've dumped the bales to get rid of weight if they're being chased," he said. "Generally in these cases we're aware they're being dumped. What's more unusual is that the bales were floating with no boat in sight." Fitch Downgrades Japan (WSJ) Fitch Ratings downgraded Japan's sovereign rating to A-plus and said it was maintaining a negative outlook due to the "leisurely" pace of the county's efforts to remedy its dire fiscal situation. The firm's long-term foreign-currency rating had been AA and its local currency issuer default rating had been AA-minus. JPMorgan Veered From Hedging Practices At Competing Banks (Bloomberg) JPMorgan's biggest U.S. competitors say their corporate investment offices avoid the use of derivatives that led to the bank’s $2 billion loss and buy fewer bonds exposed to credit risk. Bank of America, Citigroup, and Wells Fargo. say the offices don’t trade credit-default swaps on indexes linked to the health of companies. JPMorgan is said to have amassed positions in such indexes that were so large they drove price moves in the $10 trillion market. The loss has prompted shareholders to join regulators in scrutinizing how banks use their investment offices to hedge risks and manage deposits they aren’t using for loans. JPMorgan’s competitors confine corporate-level trading mostly to interest-rate and currency swaps -- the most common derivatives -- and put a greater percentage of funds into U.S. government- backed securities such as Treasury bonds. Blackstone Moves Into Motel 6 (WSJ) Blackstone Group LP is acquiring discount lodging chain Motel 6 in a deal valued at $1.9 billion, as the private-equity firm continues to invest aggressively through its $10 billion real estate war-chest. Jon Corzine Got $8.4 Million In Year Before MF Global Collapse (NYP) Corzine received a bonus of $1.25 million in addition to his salary of about $1.8 million last year. He also was awarded $5.35 million in now-worthless stock options. Other MF Global insiders, including Chief Operating Officer Bradley Abelow, also saw big pay days. Abelow, who is still working at the firm, was paid $2.7 million in cash, including a $1.25 million bonus, plus restricted stock valued at $1.5 million. Woman Claims She Was Fired For Being "Too Hot" (Reuters) A New Jersey woman said on Monday that she was dismissed from a temporary job at a New York lingerie warehouse because her male employers felt she was too busty and dressed too provocatively for the workplace. Wearing a form-fitting sequined black dress and black leather, sequin-studded boots, Lauren Odes, 29, said her Orthodox Jewish employers at Native Intimates told her that outfit and others like it were "too hot" for the warehouse. "We should not be judged by the size of our breasts or the shape of our body," Odes said. Odes's attorney, celebrity lawyer Gloria Allred, said she filed a gender and religious discrimination complaint with the U.S. Equal Employment Opportunity Commission in New York.

virginatlantic

Opening Bell: 7.1.20

PPP lives?; NAFTA dies; hedge funds, too; no such thing as a free facemask; and more!