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Dow plunges more than 1,000 points, erasing ‘rally’ over Fed plans [N.Y. Post]
The brutal selloff occurred just one day after stocks had rallied, with the Dow finishing more than 900 points higher over the Federal Reserve’s move to hike interest rates by a half-percentage point, with Fed Chair Jerome Powell indicated the central bank was not considering an interest rate hike of 75 basis points, or 0.75%.... “Interest rates are higher, there’s still a war going on in Europe, there’s still global supply chain disruptions — which is all affecting inflation. The question is, can the Fed bring inflation to a halt without destroying the economy? Right now, there’s a lot of people on the fence,” [Longbow Asset Management CEO Jake] Dollarhide added.

Elon Musk raises an additional $7 billion in financing for Twitter deal [CNN]
The new investors include Oracle founder Larry Ellison, cryptocurrency platform Binance and venture capital firm Sequoia Capital…. The additional $7.14 billion in equity financing means that the margin loan Musk had secured from Morgan Stanley for the deal has been reduced from $12.5 billion to $6.25 billion, lowering the burden of the deal on the Tesla CEO himself. The new investors also include venture capital firm Andreessen Horowitz, Fidelity, Witkoff Capital and Qatar's sovereign wealth fund. Meanwhile, Saudi Prince Alwaleed Bin Talal will commit roughly 35 million shares of Twitter to stay invested in the company after the deal goes through, according to the filing.

SEC Questions Companies About Financial Impact of Russian War on Ukraine [WSJ]
The regulator on Tuesday urged companies to provide detailed disclosure on their exposure to Russia, Belarus and Ukraine, from business relationships to supply-chain disruptions to their investments.
The SEC published a list of requests that its staff has been sending to corporate executives, an effort to compel them to provide more information to their investors…. The requests center on the impact on companies’ finances stemming from sanctions, import or export bans, and reactions from investors or customers to their actions, such as, for example, continuing to pay taxes to the Russian government.
Questions could also cover the role of corporate boards in overseeing war-related risks, heightened danger of cyberattacks or the nature of adjustments companies have made to expenses—for example, for compensation, bad debt or others tied to operations in the relevant countries.

JD.com, Pinduoduo Added to Chinese Companies Facing Delisting in U.S. [Bloomberg]
U.S. regulators added more than 80 companies, including JD.com Inc., Pinduoduo Inc. and Bilibili Inc., to an expanding list of firms that face possible expulsion from American exchanges because of Beijing’s refusal to allow access to the businesses’ financial audits…. Some of the largest Chinese companies traded on U.S. exchanges, including China Petroleum & Chemical Corp., JinkoSolar Holding Co., NetEase Inc., and NIO Inc. were also added.

New York City pension funds sue Activision Blizzard, seeking records on CEO Bobby Kotick [CNN]
Thanks to the Microsoft deal, the complaint alleged, "Kotick will be able to escape liability and accountability entirely, and will instead continue to serve as an executive after the Merger closes. Worse, despite his potential liability for breaches of fiduciary duty, the Board allowed Kotick himself to negotiate the transaction with Microsoft. The Board's decision to entrust Kotick with the negotiation process is inexcusable for the additional reason that Kotick stands to personally receive substantial material benefits whose value is not directly aligned with the Merger price."

Elon Musk and Cathie Wood knock passive index investing, saying it’s gone too far [CNBC]
"Decisions are being made on behalf of actual shareholders that are contrary to their interests! Major problem with index/passive funds,” Musk tweeted….
“In my view, history will deem the accelerated shift toward passive funds during the last 20 years as a massive misallocation of capital,” Wood added…. [Wood’s] flagship Ark Innovation ETF, with Tesla as its biggest holding, has suffered a brutal year so far amid rising rates, dropping nearly 45%.

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By Heisenberg Media (Flickr: Elon Musk - The Summit 2013) [CC BY 2.0], via Wikimedia Commons

Opening Bell: 8.16.16

Investors dip toes back in Iraq; Elon Musk can't top setting lofty goals, failing to achieve them; Cops say woman repeatedly kicked boyfriend in face after he refused to have sex with her; and more.

chinese flag

Opening Bell: 4.29.22

Rueful Robinhood; China trouble; Cathie Wood’s latest catastrophe; and more!

(Getty Images)

Opening Bell: 2.8.22

Softbank loses and wins (barely); KKR kills it; Cathie Wood cuts Twitter; Manafort’s banker follows him to prison; and more!

peloton

Opening Bell: 4.13.22

Fed number two, take two; HSBC hiring; Peloton putsch; cackling at Cathie Wood; and more!

st pete

Opening Bell: 10.7.21

Deal on default; inflation spreads to Blighty; Cathie Wood moving to… St. Petersburg? And more!

dogecoin 2

Opening Bell: 5.10.21

Vice stocks; Wood’s regrets; the sooner the crypto trance fades the better; and more!

By Heisenberg Media (Flickr: Elon Musk - The Summit 2013) [CC BY 2.0], via Wikimedia Commons

Opening Bell: 4.25.22

So we guess this is happening; bad news for Donald Trump all around; central banks have no guts; and more!

Opening Bell: 03.21.13

ECB Threatens To Cut Off Cypriot Banks (WSJ) The European Central Bank ramped up pressure on Cyprus to seal a bailout agreement with the European Union and the International Monetary Fund by Monday, making further funding for the island's ailing banks contingent on a deal. The ECB said it would extend emergency funding that has kept the island's banks in operation while the bailout plan was being negotiated in recent months only until Monday. "Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an European Union/International Monetary Fund program is in place that would ensure the solvency of the concerned banks," the ECB said in a statement. Italy's Five-Star Party Reiterates Demand for Euro Referendum (WSJ) Representatives of Italy's Five-Star Movement reiterated their anti-establishment party's demands for a referendum on the country's membership of the euro, and insisted that they should form the country's next government. Italian President Giorgio Napolitano is consulting political leaders on forming a government after last month's inconclusive election result. Deustche Bank Legal Bill Mounts (WSJ) Deustche Bank revised fourth-quarter earnings downward, setting aside about €600 million ($773 million) in legal provisions for U.S. mortgage litigation in another sign that mounting legal liabilities are cutting into investment -bank profits. The bank updated its fourth-quarter net loss to 2.54 billion euros, wider than the originally reported loss of €2.17 billion. This compared with a profit of €147 million a year earlier. The bank also reiterated that it would make first-quarter targets for a key measure of the bank's health known as the capital ratio, indicating a strong first quarter, analysts said. Deutsche Bank has now set aside €2.4 billion for litigation, with additional identified non-provisioned legal risks of €1.5 billion. The bank's legal provisions were nearly 10 times net profit of €237 million for 2012, compared with a profit of €4.1 billion in 2011. Total legal risk is likely much higher than what the bank has publicly identified, analysts said. Lululemon Sees Sheerness Issue Hitting Profits (WSJ) Lululemon Athletica said Thursday its fourth-quarter profit climbed 48%, but said it expects the transparency issue related to some of its yoga pants to reduce first-quarter earnings by 11 to 12 cents a share. Bernanke Saying He’s Dispensable Suggests Tenure Ending (Bloomberg) Federal Reserve Chairman Ben S. Bernanke said he’s “spoken to the president a bit” about his future and that he feels no personal responsibility to stay at the helm until the Fed winds down its unprecedented policies to stimulate the economy. “I don’t think that I’m the only person in the world who can manage the exit,” Bernanke said when asked at a news conference in Washington if he’s discussed his plans with President Barack Obama. His term expires at the end of January. Personal assistant pleads guilty to embezzling 821G from hedge funder Todd Meister (NYP) After a year of denials, glamorous Ukranian embezzler Renata Shamrakova admitted in Manhattan Supreme Court yesterday that she stole nearly $1 million while working as the personal assistant to hedge funder Todd Meister. Under the plea deal, she will serve no jail time but must repay what she took within two years. “Yes, your honor,” Shamrakova told the judge, when asked if she had committed grand larceny in the second degree by stealing from Meister, 42, a Harvard-educated money man who famously married Nicky Hilton for just six weeks in 2004. Shamrakova, 28, wore a gray cashmere sweater over a short, floral-print skirt and spoke in a quiet, girlish voice as she sat at the defense table and admitted her crimes. In addition to ripping off Meister, she tried to dodge a search warrant by hiding financial records. Dell Walks Fine Line in Pitch for Buyout (WSJ) Mr. Dell needs to persuade Dell Inc. investors that the prospects for the company he founded in his dorm room in 1984 and has been running for the past six years are anything but rosy if he is to succeed with his plan to take the computer maker private. Friday marks the end of a 45-day window to flush out alternative offers to the $24.4 billion buyout deal that Mr. Dell and private-equity firm Silver Lake Partners reached last month. The $13.65-a-share offer has sparked derision from some shareholders who believe the price undervalues the Round Rock, Texas, company. No alternative bid has been offered, but late Wednesday Blackstone Group LP was working on a few scenarios for a potential bid that would see the private-equity giant team with a partner to buy all or part of the computer maker, according to people familiar with the matter. JPMorgan To Return Money To MF Global Customers (AP) JPMorgan Chase has agreed to a deal that will return $546 million to former customers of trading firm MF Global Holdings Ltd., which collapsed in 2011 with $1.6 billion missing from its accounts. Initial Jobless Claims in U.S. Rise Less Than Forecast (Bloomberg) Applications for jobless benefits increased by 2,000 to 336,000 in the week ended March 16, Labor Department figures showed today. Economists projected 340,000 claims, according to the median estimate in a Bloomberg survey. The monthly average, which smoothes the week-to-week volatility, dropped to the lowest level since February 2008. Regulator finds flaws in Deutsche Bank's Libor supervision (Reuters) German markets watchdog Bafin is set to tell Deutsche Bank of "organizational flaws" in how it supervised its contribution to the setting of inter-bank lending rates at the heart of the international rate-rigging scandal, sources familiar with the watchdog's investigation said. Wis. limits use of nude beach to reduce sex, drugs (AP) Wisconsin authorities announced Tuesday they will shut down one of nation's most popular nude beaches on weekdays after struggling for years to curtail sex and drugs on the sandbar and surrounding woods. Nudists from around the country have been traveling to the public beach on the Wisconsin River near Mazomanie, about 25 miles northwest of Madison, for decades as word spread that prosecutors in ultra-liberal Dane County wouldn't go after anyone for showing skin. But visitors haven't stopped at just stripping down. They've been slipping off into the woods for trysts and drugs. Authorities say that's crossing the line, but they haven't been able to stop the shenanigans. Their frustration reached a tipping point Tuesday, when the state Department of Natural Resources announced it will close the beach, the islands immediately off it and the surrounding woods to the public on weekdays, when wardens say troublemakers tend to operate unseen. The closures begin immediately. The area will remain open on weekends, though. Bob Morton, executive director of the Austin, Tex.-based Naturist Action Committee, which lobbies on behalf of nudists, has visited the beach several times. He criticized the DNR for not consulting with beachgoers before closing the area. "Honestly, we're on their side when it comes to enforcing things that are lewd and lascivious," Morton said. "There's something to be said about consulting the users of the place. There's got to be more to this somewhere."