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Twitter shares sink in premarket trading after Elon Musk terminates $44 billion deal [CNBC]
Musk’s attorney notified Twitter’s board that he wants to cancel the deal. The billionaire has taken issue with the number of bots and fake accounts on Twitter and says the company isn’t being truthful about how much activity on the service is authentic…. Bret Taylor, Twitter’s board chair, said the company would pursue legal action in the Delaware Court of Chancery to enforce the agreement.

The Stock Market Faces Next Test as Inflation Looms Over Earnings Season [WSJ]
“It’s going to be a pretty bifurcated earnings season,” said Keith Lerner, co-chief investment officer and chief market strategist at Truist Advisory Services. “It’s going to be a story of who doesn’t have that pricing power, and there’s going to be more differentiation….”
Earnings among companies in the S&P 500 are projected to have risen 4.3% in the second quarter from a year earlier as of Friday, according to FactSet. That would mark the slowest pace of growth since the fourth quarter of 2020. For the year, profits are projected to rise 10%.

Businesses Urge SEC to Consider Mergers in Climate-Disclosure Rule [WSJ]
Having to disclose climate risks and emissions for acquired companies “adds another layer” to the M&A process, said Debra Gatison Hatter, a partner at law firm Norton Rose Fulbright US LLP.
Conducting due diligence on a target company can easily take between one and three months, depending on the type of deal, Ms. Hatter said. Figuring out whether or not a target collects the required information and potentially remediating that could extend the time frame by several weeks or more, Ms. Hatter said.

Gotterdammerung of the brokers [FT]
After a quarter of a century generating drama and headlines totally disproportionate to its market clout, the Russian broking roster in London finally went the way of the dodo and Leninist Marxism. The last remaining species of the genus, and its progenitor, Renaissance Capital, finally hung up its headsets and shut up shop last month…. Management of investment banks in the City is legendarily execrable but compared to the banditry regularly perpetrated by Russian brokers it seemed far-sighted and exemplary. I should know: I worked for the worst of them where management could not have resembled cowboys more closely had they worn chaps and ten-gallon hats….
Russian assets are untradeable. Russian counterparties are pariahs. GDRs will eventually delist in London. Russia sovereign bonds are now in default. Russian brokers have been forced to withdraw and repatriate. They’re going back. Back to the USSR.

The Economy Could Have a Long Case of Long Covid [WSJ]
Two years later there is still much that scientists and health professionals don’t know about what has come to be called long Covid, but they do know that it is a real problem—one that could place fresh burdens on the U.S. economy. Treating people with long Covid comes with a cost that will fall to some extent on patients and their families and to some extent on society…. Beyond healthcare costs, people with long Covid might in some cases be unable to work and require additional support or they might choose to retire early.

Financier Adam Levinson Sells Hamptons Home for $42 million [WSJ]
The roughly 10,000-square-foot, seven-bedroom home was built in 2012. It was the first black-cedar home of its kind built on the East End of Long Island and spawned a new trend in Hamptons home construction…. Mr. Levinson recently purchased a roughly 30,000-square-foot mansion in Los Angeles for $58.5 million, said a person familiar with that deal.

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fernandez

Opening Bell: 8.4.20

Alternative facts; start the countdown on the next Argentine default; Twitter shockingly expects privacy fine; and more!

Opening Bell: 01.16.13

Goldman Profit Soars (WSJ) "While economic conditions remained challenging for much of last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders," Chief Executive Lloyd C. Blankfein said. Overall, the investment-banking arm recorded revenue of $1.41 billion for the quarter, up from $857 million a year ago and $1.16 billion in the third quarter. Financial advisory revenue rose 8.1% from year ago. Debt underwriting revenue surged to $593 million from $196 million in the year ago and the $466 million reported in the third quarter. Equity underwriting revenue popped 59% from the year ago and 61% from the prior quarter to $304 million. Revenue from fixed income, currency and commodity trading totaled $2.04 billion, versus $1.36 billion a year earlier and $2.22 billion in the third quarter. Revenue from equities execution rose 45% from a year ago to $764 million but fell 10% from the third quarter. Overall profit for the fourth quarter totaled $2.89 billion, compared with a year-earlier profit of $1.01 billion. Earnings per share, reflecting the payment of preferred dividends, jumped to $5.60 from $1.84. Net revenue, including net interest income, surged 53% to $9.24 billion. JPMorgan Profit Tops Estimates (WSJ) JPMorgan's fourth-quarter earnings surged 53% on strong revenue and better credit, as the bank further detailed the fallout from more than $6 billion in trading losses last year. The outsized, complex trades on credit default swaps tied to corporate bonds became known as the "London Whale." On Wednesday, the bank made public an internal report outlining mistakes and oversights by executives who played a role in the matter, including Chief Investment Officer Ina Drew, who has since left the bank, and Douglas Braunstein, who was chief financial officer during the episode and has since become a vice chairman. It also said its Treasury and Chief Investment Office, where the "Whale" trades were made, recorded a loss of $157 million on the fourth quarter, compared to net income of $417 million in the year ago. J.P. Morgan also said it halved the 2012 compensation of Chief Executive James Dimon to $11.5 million. Additionally, he will have to wait up to another 18 months before he can start exercising two million options that were awarded to him five years ago. Overall, J.P. Morgan reported a profit of $5.69 billion, or $1.39 a share, for the fourth quarter, up from $3.73 billion, or 90 cents a share, a year ago. Bankers Get IOUs Instead Of Bonus Cash (WSJ) Several thousand Morgan Stanley traders, investment bankers and other employees will get IOUs instead of cash when bonus day arrives Thursday, a fundamental change in Wall Street pay triggered by the financial crisis. The New York company will pay its bonuses in four equal installments, according to people briefed on the plan, with the first chunk coming in May and the last in January 2016. Employees who quit or are laid off before the payments stand to lose their deferred compensation unless they negotiate a separate deal with the company. "I don't think there will be a lot of cheers on the trading floors of Morgan Stanley," said Mark Williams, a former Federal Reserve bank examiner who now teaches at Boston University. "Bonuses were used to buy houses and cars. They were savings vehicles." AIG Seeks Approval To File More Bank Suits (NYT) Since the summer of 2011, the insurance giant American International Group has been battling Bank of America over claims that the bank packaged and sold it defective mortgages that dealt A.I.G. billions of dollars in losses. Now A.I.G. wants to be able to sue other banks that sold it mortgage-backed securities that plunged in value during the financial crisis. It has not said which banks, but possibilities include Deutsche Bank, Goldman Sachs and JPMorgan Chase. But to sue, A.I.G. first must win a court fight with an entity controlled by the Federal Reserve Bank of New York, which the insurer says is blocking its efforts to pursue the banks that caused it financial harm. Hungary Attacks Roubini Over Currency 'Advice' (CNBC) Hungary's Ministry for National Economy said in a statement that the forint began to depreciate after economist Nouriel Roubini – dubbed Dr Doom for his pessimistic forecasts – said in a newsletter that failure to secure a deal with the International Monetary Fund was bad news for the currency. The forint has been in decline since last week hitting seven-month lows earlier this week but has since gained some ground. Hungarian officials rounded on Roubini saying; "On Thursday speculators seem to have taken Roubini's advice and attacked the forint." BofA Takes A Mortgage Mulligan (WSJ) Less than two years after embarking on a painful retreat from home lending, Bank of America Corp. is girding for a new run at the U.S. mortgage business. Whether that gamble pays off will depend in large measure on how long the mortgage market's run of record profits continues. The Charlotte, N.C., company aims to sell more mortgages through its 5,000-plus branches, executives said. The fourth-biggest U.S. mortgage lender, after Wells Fargo & Co., J.P. Morgan Chase & Co. and U.S. Bancorp, is intent on "growing that business," Chief Executive Brian Moynihan said at a December investor conference. Eurozone Plan May Be Watered Down (WSJ) One of the euro zone's most significant commitments last year aimed at containing its financial crisis—a plan to allow the bloc's bailout fund to directly boost the capital of banks in countries facing debt troubles—could be undermined by technical complications and second thoughts by some governments. Germany Repatriates Gold Reserves (WSJ) Germany's central bank said it would remove nearly a fifth of its total gold reserves from deposits at the New York Federal Reserve Bank and the Bank of France and bring them back to Germany, amid a debate in the country over the transparency of its global gold holdings. Inside Trader Sent To Kinnu-can (NYP) John Kinnucan, the former head of Portland, Ore.-based firm Broadband Research, was sentenced to four years and three months in prison after admitting to feeding illegal stock tips to his well-heeled hedge fund clients. Reporter fired for secret stripping job gets new journalism gig with same (NYDN) Tressler, 30, is now a reporter for the San Antonio Express-News, covering “cops, crime and general mayhem,” according to her Twitter account. In April, the gorgeous Tressler was fired from her job as a society reporter for the Houston Chronicle for failing to tell the newspaper about her after-hours gig as a stripper, which she chronicled in her blog, “Diary of an Angry Stripper.” Tressler then sued her former employer's parent company, the Hearst Corp., which also owns the Express-News, alleging that the firing was unfair. She hired celebrity lawyer Gloria Allred and filed a complaint with the U.S. Equal Employment Opportunity Commission, saying the paper’s reason for firing her -- failing to write on her application that she had been working part-time as a stripper -- was ridiculous. "I've worked at KB Toys. I've worked at a surf shop. I've worked at multiple coffee shops. I've worked at Taco Bell. I've worked as a line cook at a restaurant," Tressler told the Las Vegas Review-Journal in June. “Do you really want me to put every single one of those on my job application?" Over the summer, Tressler embarked on a national stripping tour and pushed a book, which shared the same title as her blog. She also picked up some freelance assignments for “Good Morning America.” After the suit and the tour, it seemed unlikely Tressler would re-enter Texas journalism, let alone for a newspaper owned by the same parent company that fired her. Some have suspected that her new job was part of a settlement she reached with the company.

tiffany ring

Opening Bell: 10.29.20

Economy rebounds; fear, too; Apollo, Credit Suisse fall; and more!

By Apavlo at English Wikipedia (Transferred from en.wikipedia to Commons.) [Public domain], via Wikimedia Commons

Opening Bell: 10.7.16

Pound flash crash; Twitter's no good very bad day; Qatari hearts Deutsche Bank; Vanilla Ice vows to ride out Hurricane Matthew; and more.

Opening Bell: 4.29.15

SEC to propose new rules re: executive pay; Elizabeth Warren gains a friend in fight to curb bailouts; Twitter CEO's no good very bad day; "Baseball Coach Suspended After Forcing Players To Spit In His Face"; and more.

robinhood

Opening Bell: 7.29.21

Meme stock minimum; Di-delisting; crunch time for Credit Suisse; Twitter, Google step back; 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!

Opening Bell: 4.9.15

Blankfein bet pays off; Activist food fight; HSBC faces (another!) criminal investigation; Bobcat vs shark; and more.