Pound rises as Liz Truss announces resignation [BBC News]
"Although the resignation of Liz Truss as prime minister leaves the UK without a leader when it faces huge economic, fiscal and financial market challenges, the markets appear to be relieved," said Paul Dales, chief UK economist at Capital Economics…. "The problem we've got is that the last couple of weeks has really destroyed the image of political competency and that's one of the key elements to make any economy work," [Shard Capital’s Bill Blain] said.
After U.K. Market Blowout, American Officials Ask: Could It Happen Here? [NYT]
Officials at the Fed, Treasury and White House are among those trying to figure out whether the United States could experience its own market-shuddering meltdown, one that could prove costly for households while complicating America’s battle against rapid inflation…. “In the market, there is a lot of worry, and everyone is saying it feels like something is about to break,” said Roberto Perli, an economist at Piper Sandler who used to work at the Fed…. “It’s clear in the marketplace that liquidity is a concern,” [Barclays managing director Joseph Abate] said. “The regulators are moving to address that.”
Blackstone’s Profit Falters as Rising Rates Chill Dealmaking [Bloomberg via Yahoo]
Distributable earnings in the quarter ended Sept. 30 fell 16% to $1.37 billion, Blackstone reported on Thursday…. Blackstone’s net income fell by more than 99% to $2.3 million, reflecting writedowns on investments. One drag on profit was stock of public companies including insurer Corebridge Financial Inc….
The firm had net inflows of $32.2 billion in the third quarter, down from some $40 billion in the year-ago quarter. Its push to bring private equity beyond big pensions and institutions to smaller investors faces headwinds as retail investors seek more liquid investments.
Tesla Optimists Are in Retreat [DealBook]
Almost a year ago, Tesla raced into the exclusive trillion-dollar club…. On Wednesday, Tesla’s market cap closed at just below $700 billion. Investors continue to fret about recession fears and rising interest rates, which will make car-financing more pricey. Undaunted, Musk told investors that the company would return to those lofty valuations — and even become the world’s most valuable company, bigger than Apple and Saudi Aramco combined. “I will not let you down, no matter what it takes,” he added in a tweet.
Short Seller Chanos Who Exposed Enron Fraud Starts Hedge Fund With Daily Liquidity [Bloomberg]
The launch comes amid the most ferocious market selloff in more than a decade as central banks reverse years of quantitative easing to contain soaring inflation. Chanos aims to outperform by primarily betting on decline in shares, a tactic that he has followed for more than three decades…. Chanos’s long/short US offshore hedge fund was up about 0.6% through September this year….
Citadel Doubles Staff in Europe After Billionaire Ken Griffin’s Hiring Spree [Bloomberg]
Since the start of 2019, hedge fund Citadel and market maker Citadel Securities have doubled their combined headcount in the region to roughly 750, according to a spokesman. That makes it one of the region’s most significant recruiters in the world of asset management and trading in recent years…. London remains Citadel’s biggest hub in Europe with about 700 staff. Employees at centers such as Dublin and Zurich are also growing, with Paris the latest office actively scouting for talent.