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Flight departures resume across the United States after FAA system outage [CNN]
The agency put a ground stop order in place after its NOTAM -- or Notice to Air Missions -- system failed. The FAA lifted the order shortly before 9 a.m. ET, and the agency said normal air traffic operations were resuming across the country. It said it was still trying to determine the cause of the problem…. FlightAware, which tracks delays and cancellations, showed more than 6,100 flights to, from and within the United States as being delayed as of 10:50 a.m. ET, and more than 1,000 flights canceled so far.

Fed’s Bowman Says More Rate Hikes Needed to Curb Inflation [Bloomberg]
“In recent months, we’ve seen a decline in some measures of inflation but we have a lot more work to do, so I expect the FOMC will continue raising interest rates to tighten monetary policy, as we stated after our December meeting,” Bowman said Tuesday in prepared remarks for an event in Miami with the Florida Bankers Association…. Fresh economic projections released at the meeting showed that 17 out of 19 Fed officials see rates rising above 5% this year. No policymakers expect to cut interest rates in 2023.

As Institutional Investment in Private Equity Slows, Wealthy Investors Step In [Penta]
[There was] a nearly 42% drop in new investments to global private-equity funds through the third quarter last year from 2021, according to Preqin, a London-based data and analysis firm focused on private markets. The firm expects another 2.6% drop this year…. According to Hamilton Lane, only 29% of high-net-worth investors invest in private markets, but the firm expects that percentage to rise to 46% by 2024.

Hedge Fund Clients Seek Out Stock-Pickers After Tough 2022 [Bloomberg]
Hedge fund clients profited most by investing in macro and multi-strategy hedge funds last year — and many of them are betting the same strategies will be winners again in 2023…. Jon Caplis, head of hedge fund research firm PivotalPath, said managers and investors he’s spoken with are most enthusiastic about credit, global macro and some stock-pickers.
While some clients told him they expect technology-focused funds — last year’s worst performers — to continue to struggle, they’re more optimistic about other equity funds, including those focused on biotech and health care.

Biggest Ever Bear-Market Bounces Create Unending Pain for Shorts [Bloomberg via Yahoo!]
The hardships of being short were made vivid Tuesday as a Goldman Sachs Group Inc. basket of most-hated stocks climbed more than 4%, saddling bears with losses. While the S&P 500 have alternated between gains and losses into 2023, each up day overpowered the previous down session, resulting in an overall gain that marked the market’s best start to a year since 2019.
Such a bounce, landing right after hedge funds spent December raising bearish positions and retail traders dumped stocks in droves, has been a prescription for pain playing out over the past 12 months. Skeptics had their conviction tested by bear-market rallies on a scale almost without precedents.

Elliott Portfolio Manager De La Riviere Leaves Activist Firm [Bloomberg]
[Sebastien] De La Riviere, who worked in Elliott’s London office, left the firm earlier this month, the people said, asking not to be identified because the information is private. He helped run some of Elliott’s major health-care investments including its positions in German medical company Fresenius SE and British drugmaker GSK Plc…. Elliott’s global health-care team will continue to be overseen by senior portfolio manager Marc Steinberg, one person said. 

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By Evan-Amos (Own work) [CC0], via Wikimedia Commons

Opening Bell: 8.31.16

El-Erian sees September rate hike; The CIA has a venture capital firm; Paris targeting Brexit jobs; Police hunt for armed, naked candy bandit; and more.

Opening Bell: 4.7.16

April rate hike unlikely; Hedge funds vs. pirates; Man leads police on high-speed chase as Uber driver naps; and more.

Opening Bell: 11.30.15

Wells Fargo sales culture probed; Going public out, getting bought in; World's biggest pension fund loses $64 billion; "Brazilian police hunt Santa Claus who stole Sao Paulo helicopter"; and more.

Opening Bell: 12.3.15

Yahoo; Rate hike; Barclays wanted Blythe Masters to run its investment bank; "Mom Took Daughter Out On Egging Rampage, Police Say"; and more.

Opening Bell: 11.08.12

On Wall Street, Time To Mend Fences With Obama (NYT) Few industries have made such a one-sided bet as Wall Street did in opposing President Obama and supporting his Republican rival. The top five sources of contributions to Mr. Romney, a former top private equity executive, were big banks like Goldman Sachs and JPMorgan Chase, according to the Center for Responsive Politics. Wealthy financiers — led by hedge fund investors — were the biggest group of givers to the main “super PAC” backing Mr. Romney, providing almost $33 million, and gave generously to outside groups in races around the country. On Wednesday, Dan Loeb, who had supported Mr. Obama in 2008, was sanguine. “You win some, you lose some,” he said in an interview. “We can all disagree. I have friends and we have spirited discussions. Sure, I am not getting invited to the White House anytime soon, but as citizens of the country we are all friendly.” [...] “Wall Street is now going to have to figure out how to make this relationship work,” said Glenn Schorr, an analyst who follows the big banks for the investment bank Nomura. “It’s not impossible, but it’s not the starting point they had hoped for.” Morgan Stanley Reassures Its Bankers (WSJ) The New York bank said Monday that investment-banking chief Paul Taubman would leave the firm at year-end. Mr. Taubman was passed over for a new job overseeing both the trading and investment-banking operations, people involved in the process said. The position went to Colm Kelleher, who has overseen sales and trading. To calm nerves and soothe egos among the firms' bankers, Morgan Stanley gathered its new team of investment-banking leaders in New York this week. Mr. Kelleher and one of his new banking lieutenants, Franck Petitgas, traveled from their London office, and Mr. Petitgas spent much of the week meeting with managers in the investment-banking division and senior bankers, people familiar with the discussions said. Top executives reassured senior bankers Monday that the investment-banking business was a priority for Morgan Stanley. In a memo to employees, Chief Executive James Gorman said Morgan Stanley would "continue to build on our leadership position in investment banking and capital markets." The messages came as some rank-and-file bankers at Morgan Stanley privately expressed surprise and dismay at the news from Mr. Taubman, who announced his departure to colleagues in an emotional meeting Monday with Messrs. Kelleher and Gorman in attendance. Some Morgan Stanley bankers said they worried that the new chiefs of investment banking didn't have the stature of Mr. Taubman, who spent a significant amount of time as a mergers banker and was known internally for his staunch support of the firm's investment-banking franchise. "People are upset," one senior person inside the company said. Wall Street Trades Foiled Romney Dreams For Bowles Hopes (Bloomberg) Wall Street executives who lost a bet that Republican Mitt Romney would defeat President Barack Obama are bracing for tougher regulation and hoping a deal can be struck with Congress to cut the deficit. Obama’s choice to succeed Treasury Secretary Timothy F. Geithner will be watched closely for signs about the administration’s approach to business and the deficit, industry executives said. Erskine Bowles, who served as chief of staff under former President Bill Clinton, would be a sign that Obama is willing to endorse a bipartisan debt-reduction plan supported by many business leaders, they said. “With the appointment of the Treasury secretary, Obama will be sending an important message to the public and to the foreign governments who own a lot of Treasuries,” Curtis Arledge, chief executive officer of Bank of New York Mellon Corp.’s investment-management arm, which oversees $1.4 trillion, told journalists in New York yesterday. “If he goes with somebody like Erskine Bowles, then the message will be that he cares about the deficit and is serious about cutting it.” Focus Shifts To Fiscal Cliff (WSJ) Barry Knapp, head of U.S. equity portfolio strategy at Barclays, turned more bearish after seeing the election results, arguing that the risk of fiscal-cliff disaster increased to more than half, from about 30% before. "When I look at what happened, I see a government that grew farther apart, which might be worse than the status quo," Mr. Knapp said. "The risk of going off the cliff has just gotten huge." Jobless Claims Fall (WSJ) Initial jobless claims, which are a measure of layoffs, decreased by 8,000 to a seasonally adjusted 355,000 in the week ended Nov. 3, the Labor Department said Thursday. Economists surveyed by Dow Jones Newswires expected 365,000 new applications for jobless benefits. Greek Jobless Rate Hits New High (WSJ) Elstat, the Greek statistical agency, Thursday said the seasonally adjusted rate of unemployment increased to 25.4% from 24.8% in July and 18.4% in August 2011. That was just below the 25.5% unemployment rate recorded by Spain in the same month, the highest in the European Union. Herd of elephants go on drunken rampage after mammoth booze up (Metro) The trunk and disorderly mammals ransacked a shop, three houses and ruined crops in the eastern village of Dumurkota, India. Police say the gang of over-the-limit tuskers downed more than 500litres of moonshine alcohol, managing to drink the place dry in a matter of minutes. The unruly mob demolished dozens of houses in their desperate hunt for more booze after hoovering up the hard stuff in record time. Local police officer Asish Samanat said the drunken elephants were more 'aggressive' than usual after their mammoth drinking session. 'Unfortunately these animals live in close proximity to man and they recognised the smell of the drink,' he explained. 'They were like any other drunk - aggressive and unreasonable but much, much bigger.' ECB Stands Ready to Buy Bonds as Economy Weakens (Bloomberg) “We are ready to undertake” Outright Monetary Transactions, “which will help to avoid extreme scenarios,” Draghi said today at a press conference in Frankfurt after policy makers left the benchmark interest rate at a historic low of 0.75 percent. “The risks surrounding the economic outlook remain on the downside” and underlying inflation pressures “should remain moderate,” he said. SocGen CEO Blames ‘Stupid’ Accounting for Profit Drop (CNBC) “Exceptional items are related in particular to this stupid accounting thing which means that when you have a credit that is improving, your CDS is going down and you have to recognise negative revenues,” Frederic Oudea told CNBC in Paris. SocGen’s third-quarter net profit was 85 million euros, down by 86 percent on the same period in 2011, after losses on asset sales. That was lower than analysts’ mean estimate of 139.1 million euros. Blackstone Leads Hedge Funds Attracting Bond-Rally Bears (Bloomberg) Funds that bet on both gains and losses in credit attracted $12.6 billion of deposits in the three months ended Sept. 30, the most since the period ended Dec. 31, 2007, according to HFR. Blackstone Group LP raised $4.05 billion during the period for its debt unit, which includes so-called long-short funds. Panning Capital Management, which was founded by Kieran Goodwin this year, started such a fund on Nov. 1 with $500 million. Two-Tier Global Housing Market Could Lead to Bubble: Goldman (CNBC) In a report titled: “Just don’t look down some house markets are flying again” Goldman argues easy money policies by the world’s major central banks has had a ripple effect on countries which have avoided the worst of the global financial crisis, boosting their house prices. According to Goldman, there now exist housing “high-flyers” - countries that have experienced real house price increases and “low-lyers” - countries where the housing market downturn appears to be more protracted. “High flyers” include Germany, Finland, Norway, France, Switzerland and Israel as well as Canada and Australia. The “low lyers” include the U.S., and the euro zone periphery of Spain, Greece, Italy and Ireland- but also those places where prices fell in the post-crisis period but have since stabilized such as the U.K., Japan and Denmark. Judge throws Dallas attorney back in jail after his Design District office trashed, vandalized with obscene drawings (DN) Attorney Tom Corea was charged earlier this year with four felonies alleging he stole from his clients. He was arrested, posted bond and was released. Weeks later, he was evicted for not paying rent for his upscale office in the 2000 block of Farrington Street near Interstate 35E and Market Center Boulevard, according to testimony before state District Judge Mike Snipes. Corea was ordered out by Oct. 31. When the president of the real estate company that represents the building, Doug Molny, showed up the next day to check out the property, he found “complete destruction,” including “penis graffiti on every single wall throughout the building,” Molny said. Written next to some of the penises was the name Doug. Molny said it appeared someone took a sledgehammer to granite counters. Additionally, doors, light fixtures, cabinets and appliances were destroyed or removed.

Quit hiding behind the bench. By Phil Roeder (Flickr: Supreme Court of the United States) [CC BY 2.0], via Wikimedia Commons

Opening Bell: 1.14.22

Well, this is fun; Biden aims to fill up the Fed; Kyle Bass is feeling like Kyle Bass; and more!

Opening Bell: 11.6.15

Bill Gross 100% of rate hike in December; Goldman pulls out stops for junior bankers; Jim Cramer says he was a moron; "Battery Charge Dropped In Dildo Attack Case"; and more.

capitol3

Opening Bell: 9.28.21

Default dance; loose lips; pedestrian Petershill; hunting Huntsman; and more!