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U.S. weekly jobless claims total 207,000, higher than expected amid omicron spread [CNBC]
“Weekly unemployment claims only ticked up for the latest week, showing the surge in Omicron cases hasn’t increased layoffs,” said Robert Frick, corporate economist at Navy Federal Credit Union. “Given the surge is expected to drop significantly in the next month, and employers are clinging to the workers they have in the face of a record number of employees quitting, omicron may not affect layoffs at all.”

Hedge fund Senvest posts 85% return in 2021 riding GameStop meme, among Wall Street’s best [CNBC]
In the year through November, Senvest, with $3.2 billion in assets under management, stood as the best-performing hedge fund, according to figures tallied by HSBC…. Those who were on the opposite side of the GameStop trade had a harder time recovering. Melvin Capital, which met the ire of retail traders due to a publicly disclosed put position on the video-game retailer, posted losses of 39 percent in 2021, according to a person with knowledge of the figures.
However, after January, Melvin was firmly positive, with returns of 33 percent between Feb. 1 and Dec. 31, the person said.

U.S. Venture Capital Shattered Records in 2021 [II]
U.S. investments in venture capital exceeded $300 billion for the first time, nearly doubling 2020’s $166.6 billion figure…. “The way that [nontraditional investors] have jumped headfirst into venture…is driving many of the data trends we’re seeing,” [CAIA senior analyst Kyle] Stanford said. “Companies are able to raise these $100 million rounds much easier than they have in the past because there’s so much of this extra-large capital trying to get stakes in these companies before they go public.”

Despite Theranos and Other Disasters, Startup Founders Have More Power Than Ever [WSJ]
“Founders have as much or more control in the [Silicon] Valley ecosystem than they have ever had,” says Adam Epstein, an adviser on corporate governance to CEOs and their boards.
Why? For many in the startup world, Theranos and its ilk are the exceptions to what they see as a rule: that, in general, founder control is essential for the dynamism characteristic of American-style capitalism and innovation.

Crypto scammers took a record $14 billion in 2021 [CNBC]
Losses from crypto-related crime rose 79% from a year earlier, driven by a spike in theft and scams.
Scamming was the greatest form of cryptocurrency-based crime in 2021, followed by theft — most of which occurred through hacking of cryptocurrency businesses….
One problem with DeFi, according to Kim Grauer, Chainalysis’ head of research, is that many of the new protocols being launched have code vulnerabilities that hackers are able to exploit. Twenty-one percent of all hacks in 2021 took advantage of these code exploits.

Crypto Security Is Biggest Concern for Institutional Investors [Bloomberg]
The survey of institutional investors and wealth managers, who collectively manage around $108.4 billion, showed 79% see asset custody as the key consideration whether to invest in this space….
Respondents are also optimistic about the prospect of the U.S. Securities and Exchange Commission being empowered with more authority to regulate these assets…. “If the SEC is granted these extra powers, 73% of institutional investors and wealth managers believe this will have a positive impact on the price of crypto and digital assets and 32% believe it will have a very positive effect,” the report said. 

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djemog

Opening Bell: 7.23.20

Unemployment rises; Tesla surprises; Bryant bankrupt; herding east; and more!

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

Opening Bell: 5.26.21

MGM-azon; stonks stomp shorts; blue-chip birthday; a modest proposal re: cryptocurrencies; and more!

(Getty Images for New York Times)

Opening Bell: 2.8.17

Druckenmiller buys something shiny; hedge fund scams 9/11 heroes; Harambe-shaped cheeto attracts $100k; and more.

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

Opening Bell: 6.9.21

Cascade of cash; infrastructure talks buckle; NuBuffett; and more!

arod

Opening Bell: 2.5.21

Relief filibuster catches COVID; Giuliani’s guys catch SEC attention; Clover Health, too; A-Rod’s grand SPAC; and more!

Opening Bell: 02.28.13

EU Bonus Rules Meet Anger (WSJ) The new rules would prevent banks from promising bonuses that exceed an employee's salary—though, with shareholder approval, bonus payments could rise to double the salary. The rules, which are supposed to kick in at the beginning of next year and appear to be the world's toughest, still need to be approved by EU member states and the full European Parliament. European banking executives and trade groups say the rules—which are likely to apply to all European bank's employees around the world—will put the industry at a severe disadvantage relative to U.S. and Asian banks, and that it will provoke unintended consequences. Banks early Thursday weren't yet publicly commenting as they digested the news. But executives privately didn't hold back. "It's a disaster," said a senior investment-banking executive at a top European bank. "It's a crazy policy" that could jeopardize European banks' abilities to hire employees in the U.S. or Asia. Jockeying Stalls Deal On Spending Cuts (WSJ) With mandatory across-the-board spending cuts set to begin Friday, the White House and congressional Republicans are poised to let the deadline pass, each calculating that their hand in negotiations only grows stronger if they scorn a quick compromise. The first face-to-face meeting on the issue between President Barack Obama and congressional leaders won't happen until Friday—the deadline for Mr. Obama to set in motion $85 billion in broad spending cuts. None of the participants expect the morning meeting at the White House to produce a breakthrough. In the run-up, with no serious talks under way, each side is maneuvering to ensure the other catches the blame if the cuts kick in. Cuts Unlike To Deliver Promised US Budget Savings (Reuters) The $85 billion cut to budget authority amounts to about 2.4 percent of the $3.6 trillion the U.S. government is expected to spend in the fiscal year that ends on Sept. 30. The actual amount of savings is much less - $43 billion in the current fiscal year, according to the Congressional Budget Office. That's because federal agencies don't spend all of the money they are allocated in any given fiscal year. A $1 billion aircraft carrier, for example, may take years to build. Even at that lower level, the effects are likely to ripple across the world's largest economy in a way that will work against deficit-reduction efforts. Scrutiny Of Heinz Trades Grows (WSJ) The Financial Industry Regulatory Authority, a Wall Street self-regulator, and the Federal Bureau of Investigation are reviewing numerous trades in Heinz stock shortly before the buyout announcement sent the share price soaring Feb. 14, the people said. The inquiries add to an investigation the Securities and Exchange Commission disclosed Feb. 15 into what it called a "highly suspicious" $90,000 purchase of stock options the day before the deal, a position with a potential profit of $1.7 million. The FBI also has said it launched a criminal investigation into options activity ahead of the deal. Flowers Foods Set To Buy Wonderbread From Hostess (NYP) After no other bidders emerged to challenge it, Flowers Foods is set to snare Wonder and a slew of other bread brands being sold by bankrupt Hostess Brands for $360 million. How The Pope's Retirement Package Compares To Yours (CNBC) Let's start with the basics: The pope emeritus will receive a monthly pension of 2,500 euros, according to Italian newspaper La Stampa. That translates to almost $3,300, or close to the monthly maximum of $3,350 that Social Security will pay to an American who retires this year. Few people will actually qualify for that amount. For starters, you would have to wait until 70 to retire. You would also have to spend most of your working life earning Social Security's taxable maximum pay, which is set at $113,700 this year. "That's quite rare," said Richard Johnson, director of the program on retirement policy at the Urban Institute. He pointed out that the average Social Security check is about $1,200 a month — not enough to pay for the typical American retiree's expenses. "For most people, if you look at the median, Social Security counts for about 40 percent of their income. So it's important, but people rely a lot on other savings, like pensions or 401(k) savings," Johnson said. A big nest egg is not something the pope emeritus has to worry about. The Roman Catholic Church will cover his living expenses, provide him with a spacious home inside the Vatican and pay for everything from cooked meals to housekeepers, according to The Telegraph. Such services are not available to the typical American senior, unless he or she pays for an assisted living facility or resides in a nursing home, Johnson said...Health care costs are one of the big risks that older Americans face, and while Medicare pays for the bulk of their expenses, many things are left uncovered, Johnson said. Meanwhile, the pope emeritus will continue to be a member of the Vatican's generous private health care policy, the BBC reported. Blackstone Profits From Regulation With Citigroup Deal (Bloomberg) Blackstone has devised a way to profit from regulation: It’s helping banks meet tougher capital rules without the pain of selling assets or raising equity. The firm last year insured Citigroup against any initial losses on a $1.2 billion pool of shipping loans, said two people with knowledge of the transaction, who asked not to be identified because the matter is private. The regulatory capital trade, Blackstone’s first, will let Citigroup cut how much it setsaside to cover defaults by as much as 96 percent, while keeping the loans on its balance sheet, the people said. RBS Moves To Appease UK (WSJ) The 81%-state-owned bank unveiled a series of moves to ease government and regulatory pressure on the bank to become more U.K. focused and better capitalized. Chief Executive Stephen Hester confirmed that it would list around 25% of the U.S.-based RBS Citizens bank in the next two years "to highlight the valuable nature of the business." RBS also said it would further pare back its investment bank, shedding jobs and cutting risk-weighted assets to £80 billion ($121.3 billion), from £101.3 billion at the end of 2012. Unemployment aid claims fall by 22,000 last week (AP) The number of Americans seeking unemployment aid fell 22,000 last week to a seasonally adjusted 344,000, evidence that the job market may be picking up. The four-week average of applications dropped 6,750 to 355,000, the Labor Department said Thursday. That was the first drop in three weeks. Too Big To Fail Hurting Too Small To Compete Banks (Bloomberg) Investors such as Joshua Siegel, founder and managing principal at New York-based StoneCastle Partners LLC, see bigger changes at the other end of the spectrum. Small banks will seek mergers because their management teams are aging and new regulations are too costly to bear, he says. “If you need one major overriding theme of the industry in the next three, five, seven, 10 years: massive consolidation, thousands of banks,” says Siegel, whose firm managed $5.1 billion as of the end of last year and invests in small banks. In the U.S., “I do see probably anywhere from 2,000 to 4,000 banks being swallowed up, and what you’ll see then is a more- concentrated system.” Dennis Rodman Tells Kim Jong Un: You Have A Friend For Life (NYP) Rodman and Kim sat side by side at an exhibition game in Pyongyang on Thursday, chatting as they watched players from North Korea and the US play in mixed teams, Alex Detrick, a spokesman for the New York-based VICE media company, told The Associated Press. Rodman later addressed Kim before a crowd of thousands, telling him, "You have a friend for life," Detrick said. The encounter makes Rodman the most high-profile American to meet with the young North Korean leader, said to be a diehard basketball fan.

Opening Bell: 03.08.12

Greece Readies Record Debt Swap With 60% Commitments (Bloomberg) Greece moved closer to sealing the biggest sovereign restructuring in history as investors indicated they’ll participate in the nation’s debt swap. Holders of about 60 percent of the Greek bonds eligible for the deal, including Greece’s largest banks, most of the country’s pension funds and more than 30 European banks and insurers including BNP Paribas (BNP) SA and Commerzbank AG (CBK), have agreed to the offer so far. That brings the total to about 124 billion euros ($163 billion), based on data compiled by Bloomberg from company reports and government statements. Roubini: Private Sector’s Greece Deal Is ‘Sweet’ (FT) “The reality is that private creditors got a very sweet deal, while most actual and future losses have been transferred to the official creditors." Hedge Funds See Tax Break in Republican Bill (Bloomberg) ^^^An interesting way of putting this: Cantor told House members in a memo last month his plan would let “every” business with fewer than 500 employees deduct 20 percent of its profits. Labor Dept. Asks Nuclear Guardians for Help Keeping Jobs Data Secret (CNBC) The Department of Labor has asked Sandia National Laboratories — the organization that ensures the safety of the nation’s nuclear weapons stockpile — to scrutinize the security procedures surrounding the release of monthly jobs report data. Separately, officials at the U.S. Energy Information Administration tell CNBC they have taken steps to block computers operating from certain Internet protocol addresses from accessing the administration’s website, arguing that some users appear to have a “malicious intent” to slow down the website’s release of data for the general public while speeding it up for themselves. U.S. Initial Jobless Claims Rose 8,000 to 362,000 (BW) Applications for unemployment insurance payments increased by 8,000 in the week ended March 3, Labor Department figures showed today. Economists forecast 352,000 claims, according to the median estimate in a Bloomberg News survey. The average over the past four weeks held close to a four-year low. Solar Storm Races Towards Earth (AP) The storm started with a massive solar flare earlier in the week and grew as it raced outward from the sun, expanding like a giant soap bubble, scientists said. When it strikes, the particles will be moving at four million miles an hour. "It's hitting us right in the nose," said Joe Kunches, a scientist for the National Oceanic and Atmospheric Administration in Boulder, Colo. The massive cloud of charged particles could disrupt utility grids, airline flights, satellite networks and GPS services, especially in northern areas. But the same blast could also paint colorful auroras farther from the poles than normal. 'Sterilized' Bond Buying an Option in Fed Arsenal (WSJ) Under the new approach, the Fed would print new money to buy long-term mortgage or Treasury bonds but effectively tie up that money by borrowing it back for short periods at low rates. The aim of such an approach would be to relieve anxieties that money printing could fuel inflation later, a fear widely expressed by critics of the Fed's previous efforts to aid the recovery. Treasury to Sell $6 Billion Worth of A.I.G. Shares (Dealbook) The Treasury Department announced a plan on Wednesday to sell $6 billion of its American International Group shares, further whittling down the federal government’s holdings in the insurance giant it helped bail out during the financial crisis. As part of the offering, which is expected to be completed in a few days, A.I.G. will buy back up to $3 billion worth of the common stock that the Treasury Department is selling. A.I.G. will also repay $8.5 billion in other obligations to the Treasury Department, principally using proceeds gained from various asset sales. The plan is the latest effort by the federal government to unwind its $182 billion bailout of A.I.G. in 2008. Last spring, the Treasury Department sold off 200 million shares of the insurer in a highly awaited offering known as the “re-I.P.O.” of A.I.G. Yet that sale still left the government owning about 77 percent of the company, down from 92 percent. ‘Madam’s my$tery man ID’d (NYP) Sources say David Walker, 47, an ultra-successful investment manager for Morgan Stanley, is the money man who met with soccer-mom-turned-Upper East Side-madam Anna Gristina right before her Feb. 22 arrest. And prosecutors say the business meeting in Morgan Stanley’s West 52nd Street offices that day was all about helping Gristina bring her high-end hooker business to the Web. It was minutes after the pair left the office building near Fifth Avenue that Gristina was arrested, the culmination of what prosecutors have described as a five-year investigation into the alleged call-girl ring. Prosecutors, without naming Walker, said at Gristina’s Feb. 23 arraignment, “We picked her up yesterday with a Morgan Stanley [broker] who she counts a close friend, and she had been present at his office for a meeting in which she was trying to solicit money to fund what we believe is another business venture on the Internet that involves matching up male clients with female prostitutes.” Gristina was arrested on East 53rd Street and Madison Avenue at 11 a.m., just a few blocks away from Walker’s home, a high-rise, doorman building on 55th near Third Avenue. Walker was not arrested, nor has he been charged with any crime. “She’s known him for a while. He was a nice guy. He was a banker trying to get her investors for her Web site,” said Vinnie Parco, a private eye working for Gristina.

Bill ackman beach

Opening Bell: 11.19.20

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