Skip to main content

Credit Suisse Stock Seesaws on Concerns Over Financial Health [WSJ]
Chief Executive Ulrich Körner told employees late last week that the bank was at a critical moment before it presents a strategy update outlining plans for the investment bank on Oct. 27…. The stressed market prices indicate Credit Suisse could struggle to raise new shares to pay for a planned restructuring and that its funding costs could rise sharply.

U.N. Calls On Fed, Other Central Banks to Halt Interest-Rate Increases [WSJ]
The [U.N. Conference on Trade and Development] estimated that a percentage point rise in the Fed’s key interest rate lowers economic output in other rich countries by 0.5%, and economic output in poor countries by 0.8% over the subsequent three years…. “There’s still time to step back from the edge of recession,” UNCTAD Secretary-General Rebeca Grynspan said. “We have the tools to calm inflation and support all vulnerable groups. But the current course of action is hurting the most vulnerable, especially in developing countries and risks tipping the world into a global recession.”

Credit Suisse, Citi cut 2022 year-end target for S&P 500 [Reuters]
Credit Suisse cut its target for the benchmark index by about 10% to 3,850 points on Monday, citing the impact of rising interest rates and slowing economic growth on third-quarter earnings…. For 2023 year-end, however, Credit Suisse expects a near 13% upside from current levels in the index and has set a target of 4,050 points.

Hollywood’s Ari Emanuel Said to Seek Musk-Twitter Settlement [Bloomberg Law]
Emanuel contacted Twitter board member Egon Durban within the past few weeks and suggested the two sides find a solution to their dispute over the buyout ahead of upcoming court proceedings…. Whether Emanuel is operating at the behest of Musk or is trying to resolve a high-stakes dispute involving two allies is a question investors will likely pore over.

There Was One Person Who Didn’t Embarrass Himself in the Elon Musk Texts [Bloomberg]
[CEO Parag] Agrawal invites Musk to talk about his specific technical ideas for the long embattled social network, asking him to “treat me like an engineer” instead of a CEO and promising to evaluate his proposals neutrally. “I want to hear all the ideas—and I’ll tell you which ones ill make progress on vs not. And why,” Agrawal texts on April 7th. He also asks Musk to speak to Twitter staff and answer questions, including “some from people who are upset that you are involved and generally don’t like you for some reason….”
Agrawal doesn’t merit exaltation quite yet of course. Twitter under his relatively new leadership still faces massive challenges, including high employee turnover and a gutted stock price. But his professionalism and steadfast texts with Musk should be viewed in context of the others in last week’s haul…. Agrawal’s refusal to bend the knee—and his insistence on considering the ramifications of Musks’s aspirational yet detail-free plans for Twitter—is at the very least admirable.

Disney reaches deal with activist investor Third Point, will add former Meta executive to its board [CNBC]
As part of the deal, Third Point agreed to customary standstill and other provisions, including that it wouldn’t take a stake in Disney that’s larger than 2% and that it wouldn’t solicit proxies or present proposals. Third Point, which also won’t get involved in board nominations, has agreed to the stipulations through Disney’s 2024 annual shareholder meeting, according to the filing.

Related

yellen signature

Opening Bell: 12.1.22

Twitter to remain in app store (except maybe in Europe); Credit Suisse turnaround still going in the wrong direction; Janet Yellen taking penmanship classes; and more!

robinhood

Opening Bell: 7.29.21

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

djemog

Opening Bell: 11.8.21

Bad Berkshire; Credit Suisse backs BNP; Quarles quits; and more!

sofi-bacchanalia

Opening Bell: 1.8.21

SoFi SPACs; Wilbur Ross’ replacement; Credit Suisse undershot a bit; and more!

By World Economic Forum from Cologny, Switzerland [CC BY-SA 2.0], via Wikimedia Commons

Opening Bell: 9.2.20

TikTok tightrope; the Ackmanaissance accelerates; Swiss regulators to have a peek on Credit Suisse spying; Mick Mulvaney still awful; and more!

Opening Bell: 10.25.12

Credit Suisse Profit Falls (Reuters) The Swiss bank said on Thursday third-quarter net profit fell 63 percent to 254 million francs, missing analysts' average forecast of 370 million. The quarter was hit by 1.05 billion francs in charges, mainly linked to its own debt. Brady Dougan: More Tough Times Ahead For Financials (CNBC) More aggressive cost cutting will be necessary in the coming years, Credit Suisse CEO Brady Dougan told CNBC Thursday, adding that he expects the financial services industry to continue to operate in a volatile market environment. The bank is targeting cost savings of a billion Swiss francs ($1.07 billion) by next year with further cuts in the years after that. “We believe we should be in mode of driving business more efficiently. We have cut 2 billion Swiss francs in the last year and we can take another billion in 2013 and [we have] set further targets for 2014 and 2015. We want to drive that efficiency and we are in a volatile revenue environment and that’ll be the case for the industry for some time,” Dougan said. CEOs Call For Deficit Action (WSJ) Chief executives of more than 80 big-name U.S. corporations, from Aetna to Weyerhaeuser Co. are banding together to pressure Congress to reduce the federal deficit with tax-revenue increases as well as spending cuts. The CEOs, in a statement to be released on Thursday, say any fiscal plan "that can succeed both financially and politically" has to limit the growth of health-care spending, make Social Security solvent and "include comprehensive and pro-growth tax reform, which broadens the base, lowers rates, raises revenues and reduces the deficit." The CEOs who signed the manifesto deem tax increases inevitable no matter which party succeeds at the polls in November. "There is no possible way; you can do the arithmetic a million different ways" to avoid raising taxes, said Mark Bertolini, CEO of Aetna. "You can't tax your way to fix this problem, and you can't cut entitlements enough to fix this problem." Crew Of Argentine Ship Seized By Hedge Fund Elliot Associates Returns Home (AP) They were supposed to sail the Argentine military's signature tall ship into the port of Buenos Aires in full glory after a goodwill tour asserting the South American country's place in the world. Instead, hundreds of sailors had to abandon their frigate, evacuated on orders from President Cristina Fernandez, after the ARA Libertad was detained by a Ghanaian judge in a debt dispute. Frustrated and disheartened but determined to go back as soon as possible to retrieve their three-masted ship, the sailors arrived home early Thursday on an Air France charter. The Argentine government couldn't send one of its own planes, for fear that it, too, could be seized as collateral. China Surpasses US as Top Foreign Investment Venue (Reuters) China overtook the U.S. as the world's top destination for foreign direct investment in the first half of 2012, according to the United Nations Conference on Trade and Development. China absorbed $59.1 billion in foreign direct investment (FDI) in the first six months, down slightly from $60.9 billion a year earlier, the agency said in a report. The United States attracted $57.4 billion in 2012's first half, down 39 percent from a year earlier, it said. Stephen Colbert Makes Donald Trump An Offer (Mediaite) Reality star Donald Trump yesterday offered to donate $5 million to a charity of Barack Obama‘s choosing if the President “opens up and gives his college records and applications, and if he gives his passport applications and records.” Stephen Colbert, touched by Trump’s generosity, made an offer of his own last night. He is vowing to pledge $1 million from his Super PAC to any charity Trump wants if: “…you let me dip my balls in your mouth.” Fed Steady On Policy (WSJ) The Fed expanded bond purchasing at its September meeting and plans to do its next major evaluation of its bond-buying programs at its final meeting of the year on Dec. 11-12. Policy makers are still gathering evidence on whether their programs are working. "The Committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions," the Federal Open Market Committee, the Fed's policy-making committee, said in a statement issued at the end of its two-day meeting. Jobless Claims Show Moderate Labor Progress (Bloomberg) Jobless claims decreased by 23,000 to 369,000 in the week ended Oct. 20 from a revised 392,000 the prior period, the Labor Department reported today in Washington. Lazard Profit Drops As Merger-Advisory Revenue Falls (Bloomberg) Lazard, the largest independent merger-advisory firm, posted a 33 percent drop in third-quarter profit as revenue from advising on mergers declined. The firm said it would implement a cost-cutting plan. Earnings fell to $35.4 million, or 26 cents a share, from $52.9 million, or 39 cents, a year earlier, the Hamilton, Bermuda-based firm said today in a statement. The average estimate of 11 analysts surveyed by Bloomberg was for per-share profit of 21 cents. Japanese man pays $780K for virginity of 20-year-old Brazil woman, who’ll use money for charity housing project (NYDN) A Brazilian student is set to sell her virginity for a staggering $780,000 after she put it up for auction online. A man called Natsu, from Japan, fended off strong competition from American bidders Jack Miller and Jack Right, and a big-spender from India, Rudra Chatterjee, to secure a date with 20-year-old Catarina Migliorini. The auction ended at 4 a.m. EST this morning, and the physical education student — who said she will use the cash to build homes for poverty-stricken families — was the subject of 15 bids. “The auction is just business, I'm a romantic girl at heart and believe in love. But this will make a big difference to my area,” she told Folha newspaper. “If you only do it once in your life then you are not a prostitute, just like if you take one amazing photograph it does not automatically make you a photographer.

tiffany ring

Opening Bell: 10.29.20

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

Wharton: Strangely silent on the whole matter. By WestCoastivieS (Own work) [CC0], via Wikimedia Commons

Opening Bell: 11.2.22

Credit Suisse a tad risky these days; up and down Apollo; Gary Gensler raking it in; Wharton goes online; and more!