After Alibaba’s $400 Billion Stock Selloff, Investors Hope the Worst Is Over [WSJ]
The company’s shares rebounded partially this month, after a small publishing company chaired by Warren Buffett’s longtime partner Charlie Munger disclosed that it increased its stake in Alibaba. They jumped again after Jack Ma, Alibaba’s billionaire co-founder and the controlling shareholder of Ant, made a trip to Europe, indicating he was free to travel overseas and might no longer be under intense regulatory scrutiny at home…. The company’s market capitalization has also fallen significantly below that of its longtime rival and China’s other internet juggernaut, Tencent Holdings Ltd. , which earlier this year overtook Alibaba’s place as China’s most valuable listed company. The gap between the two has widened in recent months, and is now close to $140 billion.
BNP Plans $1 Billion Buyback as Equities, Domestic Unit Beat [Bloomberg]
BNP Paribas SA will start a 900 million-euro ($1 billion) stock buyback after posting a 79% jump in equities trading and adding twice as much revenue as expected at its domestic markets unit…. BNP benefited more than peers from a surge in equities trading in the third quarter. The biggest U.S. firms reported average increases of 35%, while Switzerland’s UBS Group AG saw a gain of 24%.
Alt Data Firms Face Heat From SEC, Clients After App Annie Case [Bloomberg Law]
The App Annie case—a first-of-its-kind case in which the Securities and Exchange Commission accused the company of violating securities law with misrepresentation—underscored emerging legal risks for data sellers and their hedge fund clients that use controversially-sourced information…. “We are not waiting for accidents to happen. We are trying to address emerging risks before they cause harm to investors,” [SEC Enforcement Director Gurbir] Grewal said in an Oct. 6 speech.
The Fight Between Texas and Wall Street Is About to Get Bigger [Bloomberg via Yahoo!]
Governor Greg Abbott signed a law banning state investments in firms that cut ties to oil and gas and another blocking local governments from working with banks that limit their lending to gun companies. That halted business for some top municipal-bond underwriters. JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Goldman Sachs Group Inc. have all stopped muni underwriting in the state, at least for now…. Interviews with more than a dozen bankers, traders and investors suggest that when Texas decides banks have gone too far, it presages a bigger struggle over corporate power and the reach of Wall Street’s influence.
Producers of Alec Baldwin Film Scrutinized After Shooting [NYT]
What the “Rust” producers did not secure is a completion bond — an often-expensive package that serves as a type of umbrella policy should anything horrific happen and the production can’t be completed….
To pay for “Rust,” which was expected to cost about $6.5 million to make, Mr. Baldwin and the various producers who joined him on the project began pulling the usual levers available to independent filmmakers: tapping wealthy outsiders with an interest in cinema, securing a loan from a film-financing company, preselling distribution rights…. Another pool of money came from BondIt Media Capital, which is backed by Revere Capital, a Texas hedge fund…. Additional “Rust” funding came from the sale of the film’s North American distribution rights, which was orchestrated by Creative Artists Agency. C.A.A. sold them to an offshoot of the Highland Film Group. Highland, known for its foreign film sales business, recently gained attention for handling “Me You Madness,” a campy thriller starring Louise Linton, the wife of Steven Mnuchin, the former Treasury secretary….
As investigators in New Mexico piece together what happened on the “Rust” set, the producers of the film are coming under increased scrutiny. On an independent film in particular, the producers are ultimately responsible for what happens on a set; for all intents and purposes, they are the employers.
Unlimited Sand and Money Still Won’t Save the Hamptons [Bloomberg]
Over the next three decades the U.S. will spend at least $1.5 billion to help shore up about 80 miles of Long Island waterfront as part of the ongoing Fire Island to Montauk Point project, or FIMP. Under the direction of the U.S. Army Corps of Engineers, hundreds of millions of dollars will be invested in dredges that pump offshore sand back onto beaches—much more efficient than the trucks, at hundreds of times the scale. Thousands of residences, many of them beachfront homes, will be lifted off their foundations onto stilts…. Some wealthy homeowners on the beach will join in the effort to thwart rising seas, paying small fortunes to install private sea walls.…
“Are we going to take this opportunity to reenvision the way we live with water, or are we just going to fight against it until we lose?” asks Alison Branco, coastal director for the Nature Conservancy in New York. “You can continue to pour sand and build beaches if your money is infinite and your sand is infinite. Of course, neither of those is true.”