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Dec 7, 2012

NFA | Enforcement Actions (December 7, 2012): NFA takes emergency enforcement action New York forex dealer member, FX Direct Dealer, LLC (FXDD)

NYT | Politics (december 7, 2012): In Talks on a Budget Deal, Boehner and Obama Stand Alone

The New York Times

December 7, 2012

Politics


In Talks on a Budget Deal, Boehner and Obama Stand Alone

House Speaker John A. Boehner asked to exclude other leaders, leaving it to him and President Obama to reach an agreement.

Support for Gay Marriage Growing, but U.S. Remains Divided

Justices tend to say they are not influenced by public opinion, but they do sometimes take account of state-by-state trends.

More Politics

Boehner Doesn't Rule Out Raising Tax Rates

The House Speaker did not rule out a rise in the top income tax rate below the level President Obama wants, indicating that he has more room to compromise on taxes if the White House comes forward with flexibility in other aspects of deficit negotiations.
Jim DeMint

Tea Party Hero Is Leaving the Senate for a New Pulpit

Senator Jim DeMint, a Republican from South Carolina, will lead the Heritage Foundation: a platform and a payday that the United States Senate could never provide him.

The Caucus

Obama Will Accept Corporate Money to Finance Inauguration

President Obama will accept unlimited donations from corporations - but no money from lobbyists or political action committees - to finance his 2013 inaugural festivities, a spokeswoman for his inaugural committee said Friday.

Republicans Spent Big on Akin in Missouri, Only to Lose

Newly released documents show Senate Republicans transferred $760,000 to the Missouri State Republican Party in the first days of November.

Debt Reckoning

Jobs Report Unlikely to Change Debt Negotiations

The better-than-expected November jobs report released Friday seems unlikely to change the dynamics of the behind-the-scenes fiscal negotiations between President Obama and House Speaker John A. Boehner of Ohio.

Poll Shows Voters Want Compromise in Washington

A new national poll released Friday finds voters on both sides of the political aisle calling for compromise in Washington.
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The Debt Reckoning

This feature follows the talks between President Obama and Congressional leaders over the so-called fiscal cliff.
FiveThirtyEight
Two Senate Seats in South Carolina, but Few Democratic Prospects
The abundance of Republican elected officials in the state precludes Democrats from having much of a "bench" -- and may prevent them from making a strong run at either Senate seat in 2014.
Economix Blog
A Look at Taxing Marijuana
With some states beginning to relax their laws against marijuana, the notion of replacing prohibition with taxation is getting a look.

Multimedia

Interactive Feature: Following the Debt Talks
What both sides have offered in the negotiations over the nation's fiscal path.
Interactive Graphic: Presidential Exit Polls
A look at how different demographics voted in 2012.
Full Election Results
Results from the 2012 presidential, Senate and House Races.

DealBook P.M. Edition (December 7, 2012): Week in Review: Gatorade, Michael Jordan and Insider Trading

 
 
Friday, December 7, 2012
TOP STORY
Week in Review: Gatorade, Michael Jordan and Insider Trading The S.E.C. didn't like a Netflix post on Facebook. | Peter Lattman followed a trail of insider cases to SAC Capital Advisors. | Citigroup said it would cut 11,000 jobs. | Warren E. Buffett sat down for an interview with Andrew Ross Sorkin. | Five firms were charged over audits in China. | A trader at Morgan Stanley faces an inquiry on a possible manipulation. | UBS is reported to be near a deal on rate rigging.

What does all that have to do with Gatorade and Michael Jordan? Take a look back on our reporting of the past week's highs and lows in finance.
Mergers & Acquisitions
Freeport-McMoRan Deal Draws Investor Criticism Some investors took umbrage at the structure of the $9 billion transactions, which allows the mining giant to avoid a shareholder vote, Michael J. de la Merced reported.
HSBC Sells Stake in Chinese Insurer for $9.4 Billion The London bank "has been shedding assets to cut costs and streamline its business, and at the same time bolstering its balance sheet in the face of tighter global capital requirements for banks," Neil Gough reported.
If Delta can secure the 49 percent stake of Virgin owned by Singapore Airlines, it could expand flights serving Heathrow.
Delta, Seeking London Access, Ponders Stake in Virgin Atlantic Delta Air Lines is trying to bolster its international operations, particularly flights between New York and London, Jad Mouawad and Mr. de la Merced reported.
Investment Banking
Local Restaurateurs Feed Wall Street's Hungry Deal Makers A stable of local restaurateurs are being periodically invited to set up shop at financial firms like Goldman Sachs, Bank of America, Deutsche Bank and Credit Suisse, William Alden reported.
A Citibank branch in New York.
Citigroup to Cut 11,000 Jobs and Take $1 Billion Charge The bank's announcement underscores its major contraction since nearly collapsing during the financial crisis and its continuing battle against high operating costs and persistently sluggish markets, Jessica Silver-Greenberg reported.
Andrew Ross Sorkin.
For Buffett, the Long Run Still Trumps the Quick Return Andrew Ross Sorkin says that Warren E. Buffett, in New York to promote a new book about him, lamented Wall Street, which promotes a trading culture over an investing culture.
"If somebody bought Berkshire Hathaway in 1965 and they held it, they made a great investment - and their broker would have starved to death."
Hedge Funds
Diamondback to Close After Investors Pull Out $520 Million
Diamondback Capital to Close After Investors Withdraw $520 Million The firm, started by alumni of SAC Capital Advisors, was one of several hedge funds ensnared in the government's insider-trading investigations, Mr. de la Merced and Peter Lattman reported.
Some Funds May Hold Out for Higher Prices on Greek Bonds If the buyback fails, the 40 billion euro-plus lifeline that the country needs to remain solvent would be in jeopardy, Landon Thomas Jr. reported.
I.P.O./Offerings
Deal Professor: Hazards of Formula One Extend Beyond the Racecourse Steven M. Davidoff says that the British private equity firm CVC Capital Partners has been handsomely rewarded by its investment in Formula One, which has long been identified with Bernie Ecclestone, but lawsuits are now putting that investment in jeopardy.
As the investigations gather steam, it is unclear what will happen to the company. In large measure, Formula One is Mr. Ecclestone. It is a league dependent on race organizers, many of whom are Mr. Ecclestone's friends and peers. If he is not involved to orchestrate the league, there is no clear successor to manage these relationships.
Venture Capital
Brazil Steps Up Investments in Crucial, but Overlooked, Technology Start-Ups Because segments considered critical to transforming Brazil's economy have fallen by the wayside, the country has intensified its efforts to promote technology growth, reports Vinod Sreeharsha.
Stephen Bell, left, at Tsinghua University in Beijing with students and mentors for ChinaStars, a competition he hosts to find fledgling entrepreneurs.
Recruiting Young Talent in China to Find the Next Big Idea Stephen Bell of Trilogy VC tours China's top universities, seeking fledgling entrepreneurs and wagering that lots of small bets placed strategically can produce a few jackpots, reports Ron Gluckman.
Legal/Regulatory
S.E.C. Warns Netflix Over a Post on Facebook Regulators told Netflix it was considering taking action after its C.E.O. released information about the company's performance on Facebook, Mr. de la Merced reported.
Trail to a Hedge Fund, From a Cluster of Cases Federal investigators have charged many former employees of SAC Capital Advisors, the hedge fund owned by Steven A. Cohen, with trading on insider information, Mr. Lattman reported.
"None of this stuff is material to his returns and it's all just a lot of noise," said Ed Butowsky, managing partner of Chapwood Investments, a longtime SAC client. "Steve Cohen is the Michael Jordan of the hedge fund business. When people are successful everyone likes to take shots at them."
Trading Insider to Remain Free on Bail Rajat K. Gupta, a former Goldman Sachs director, will not have to report to prison until his appeal is heard, which could take a year, Mr. Lattman reported.
S.E.C. Charges 5 Firms Over Audits in China The agency claimed the firms failed to produce documents from their audits of several China-based companies under investigation for fraud, Edward Wyatt reported.
Protesters formed a giant fish during a rally last month in Zurich in front of the offices of UBS, center, and Credit Suisse, right.
UBS Is Reported to Be Near a Deal on Rate Rigging The Swiss banking giant is expected to pay more than $450 million to settle claims that some employees reported false rates to increase the bank's profit, Ben Protess and Mark Scott reported.
Glenn Hadden, a powerful trader in the Treasury market.
Morgan Stanley Trader Faces Inquiry on Possible Manipulation Glenn Hadden, one of the most powerful traders in the Treasury market, is under investigation over whether he tried to manipulate futures prices, Susanne Craig reported.
Current and former colleagues said Mr. Hadden, who has been known to drink copious amounts of Gatorade at work, was almost "machinelike" when he traded. "He gets this look in his eye," one former colleague said. "It is scary."


DEALBOOK HIGHLIGHTS
Goldman to Pay $1.5 Million for Failing to Supervise Trader Goldman Sachs has settled C.F.T.C. accusations that it failed to supervise a trader who has been accused of entering fabricated trades that concealed a $8.3 billion trading position.
A.I.G. in Talks to Sell Aircraft Leasing Unit A.I.G. said Friday that it was in talks to sell a majority stake in its big aircraft leasing unit to a group led by several Chinese institutions.
Blankfein's Bullish Bet on Hamptons Real Estate Lloyd Blankfein, the chief executive of Goldman Sachs, was identified as the buyer of a seven-bedroom estate in Bridgehampton, New York, according to reports in The New York Post and Bloomberg News.
Another View: How to Remove an 'Unfit' Director Michael Peregrine says that as the actions of corporate boards become more scrutinized, the boards themselves should consider adopting a "fitness to serve" protocol to easily remove board members facing allegations of professional or personal misconduct.
Glencore's Deal for Viterra Clears Final Regulatory Hurdle Chinese authorities approved the $6.2 billion purchase of Viterra, Canada's largest grain handler, by a consortium led by Glencore International.
Private Equity Firm to Buy Stake in Aston Martin The private equity fund Investindustrial of Italy has agreed to buy a 37.5 percent stake in the iconic British car manufacturer, Aston Martin, for $241 million.
Buzz Tracker
Insider Trading Persists, and Gets Stealthier The tactics and technologies available to inside traders today are more sophisticated and more difficult both to detect and to prove, writes James B. Stewart, the Common Sense columnist for The New York Times.
DealBook Video
Week in Verse The Fat Boys didn't make Rolling Stone's list of greatest hip hop songs, but they get this week's musical dedication to everyone who has ever been charged with insider trading.

MarketWatch | Wall Street at Close Report (December 7, 2012): U.S. stocks close higher; Apple drags on Nasdaq Nonfarm payrolls rise by 146,000, Dec. consumer sentiment falls

By Wallace Witkowski and Polya Lesova, MarketWatch 

SAN FRANCISCO (MarketWatch) — U.S. stocks closed higher Friday after gains from a better-than-expected November jobs report shook off a drop in December consumer sentiment. 

The Dow Jones Industrial Average DJIA +0.62% closed up 81.09 points, or 0.6%, to 13,155.13, near session highs, with 24 out of 30 components gaining, led by J.P. Morgan Chase & Co. JPM +2.63% and Bank of America Corp. BAC +1.72% . For the week, the Dow industrials climbed 1% for their third consecutive week of gains. 

The S&P 500 Index SPX +0.29% advanced 4.13 points, or 0.3%, to close at 1,418.07, after dipping into negative territory following the consumer-sentiment index. For the week, the index advanced 0.1% for its third week of gains. 



The U.S. added 146,000 jobs in November, and the unemployment rate fell to 7.7%.
Losses for Apple Inc. AAPL -0.33% , however, weighed on the tech-heavy Nasdaq Composite Index COMP -0.38% , which closed down 11.23 points, or 0.4%, to 2,978.04, a loss of 1.1% for the week. In contrast, Apple shares finished down 2.6% for the day and 8.9% for the week. 

Before the stock market opened, the Labor Department reported that nonfarm payrolls rose by 146,000 jobs last month, and the unemployment rate fell to 7.7% from 7.9%. The data topped forecasts as economists had projected an increase of 80,000 jobs and an unchanged unemployment rate. Read: U.S. creates 146,000 jobs in November. 
 
That initially boosted stocks into positive territory across the board, but gains were pared following the release of the University of Michigan-Thomson Reuters preliminary consumer-sentiment index for December that showed a decline to 74.5 from 82.7 in November. Read more on consumer sentiment. 

 
Week ahead: Awaiting the Fed The Federal Reserve will make a monetary-policy announcement next week. Plus, retail sales figures and consumer price data are released. 

nvestors also monitored developments in Washington. House Speaker John Boehner said Friday there has been no progress in negotiations with the White House to avoid the fiscal cliff, or hundreds of billions of dollars of automatic tax hikes and spending cuts due to take effect in the new year. 

On the other side of the aisle, House Minority Leader Nancy Pelosi called on Republicans to extend the Bush-era tax cuts for all but the top 2% of earners. Neither, however, appeared to have a pronounced effect on stocks. Read more on Boehner, Pelosi sparring over fiscal cliff. 
 
Investors likely expected no progress at this point, otherwise markets would be down much more on the apparent stalemate, said Mark Luschini, chief investment strategist at Janney Montgomery Scott. 

“They see it as more political posturing,” Luschini said. “The hope trade is alive and well.”
As for consumer sentiment, Luschini said continuous media coverage of the fiscal cliff is starting to weigh on consumers’ psyches, and people are beginning to worry how next year is going to impact their wallet. 

The consumer-sentiment number “added a little bit of a negative tone,” said Brad Sorensen, director of market and sector research at Charles Schwab. “The jobs numbers weren’t quite as good as maybe initially thought.” As for the fiscal-cliff negotiations, Sorensen said it’s still “up in the air” whether political leaders can get a deal done. 

Advancing stocks outnumbered decliners slightly on the New York Stock Exchange, where more than 606 million shares traded hands and composite volume topped 3.1 billion shares by the close. 

The U.S. dollar index DXY +0.21% , which tracks the performance of the greenback against a basket of other major currencies, rose to 80.433 from 80.250 in North American trade late Thursday. In the Treasury market, yields on 10-year notes 10_YEAR +2.07% rose nearly 4 basis points to 1.63%.
In Europe, markets closed higher following the U.S. jobs data, erasing losses that came after Germany’s Bundesbank sharply cut its forecast for 2013 growth. Read more on European stocks.
Wallace Witkowski is a MarketWatch news editor in San Francisco. 

Follow him on Twitter @wmwitkowski. Polya Lesova is MarketWatch's New York deputy bureau chief. Follow her on Twitter @PolyaLesova.

Business in Vancouver | BIV Today's Business News (December 7, 2012): Haisla quits Coastal First Nations alliance over LNG differences



Mining and Energy

Ellis Ross, Haisla chief councillor

Haisla quits Coastal First Nations alliance over LNG differences

The Haisla First Nation – a major player in B.C.’s nascent liquefied natural gas industry and Northern Gateway pipeline proposal – has ... READ MORE

Technology

 

QLT lays off nearly half its already-depleted workforce

Troubled Vancouver biotech QLT has laid off 42% of its workforce, the company ... READ MORE

Education and Research

 

CUPE accuses SFU of negotiating in bad faith

The Canadian Union of Public Employees has filed a bad faith bargaining complaint against Simon Fraser University, and a hearing... READ MORE

More News...

   

Telus lowers broadband caps for Internet

Province announces second phase of electric vehicle charging stations

B.C. unemployment increases slightly in November

MarketWatch | Personal Finance Daily (December 7, 2012): 8 scams to watch out for this holiday





By MarketWatch
Don’t miss these top stories:
While you’re doing your holiday shopping this year, scammers are banking on vulnerable consumers to do some “shopping” of their own. Learn about the eight scams they’ll use this year to separate you from your cash in a Consumer Confidential column by Jennifer Waters today.
Also in today’s Personal Finance pages, learn how to eliminate shoppers’ remorse this holiday season and discover why sometimes you can blame the building when your condo loan is denied.
Amy Hoak , assistant editor

8 scams to watch out for this holiday

How to protect yourself from this season’s crop of thieves.
8 scams to watch out for this holiday.

Even Santa can’t find a job

The saint beloved by children around the world is struggling in this economy.
Even Santa can’t find a job.

Eliminating holiday shoppers’ remorse

How bargain hunters can get a better price even after a purchase.
Eliminating holiday shoppers’ remorse.

Condo loan denied? Blame the building

Some lenders can make condo buyers with pristine credit feel like rejects. Blame it on the building.
Condo loan denied? Blame the building. 

ECONOMY AND POLITICS

Ignore November jobs data, hiring trend too slow

The November jobs report had some good news, but at this rate, it’ll take years to find jobs for everyone who wants one. Jobs are still our biggest problem.
Ignore November jobs data, hiring trend too slow.

Consumer sentiment nose-dives in December

Consumer sentiment took a giant step back in December, as the looming fiscal cliff made its first measurable dent on the public’s psyche.
Consumer sentiment nose-dives in December.

Breaking down the jobs report in charts

There was good and bad in the November employment report. See the data.
Breaking down the jobs report in charts.

U.S. creates 146,000 jobs in November

The vicious storm that slammed the Northeast at the end of October barely caused a ripple in how many people companies hired in November.
U.S. creates 146,000 jobs in November.

INVESTING

5 top stock funds raking in your money

Investors for several years have been pulling money out of stock mutual funds and piling into bond funds — but not all stock funds. These five solid stock performers have grabbed the spotlight from bonds.
5 top stock funds raking in your money.

Don’t let fear paralyze your stock portfolio

Based on the most recent market indicators, you have reason to feel good about the stock market. If you don’t believe the indicators, rather than being scared, be prepared. Michael Sincere offers five strategies to protect your portfolio.
Don’t let fear paralyze your stock portfolio.

Has gold lost its Midas touch for good?

Gold has gone nowhere in more than a year. Though gold is still up around 8% in 2012, this year’s rally is looking pretty shaky, writes Howard Gold.
Has gold lost its Midas touch for good?

Dividend stock ETFs teeter on the ‘fiscal cliff’

The tax rate on investment income from dividends is probably going higher, ‘fiscal cliff’ compromise or not, and dividend-stock exchange-traded funds have taken a hit as investors sell dividend payers.
Dividend stock ETFs teeter on the ‘fiscal cliff.’

McAfee’s wild and crazy ride leads back to Belize

Computer antivirus pioneer John McAfee has had a wild and crazy ride from a life of luxury to a jail in Central America, writes Al Lewis.
McAfee’s wild and crazy ride leads back to Belize.

This year’s worst stock could be 2013’s best

OK, all you independent thinkers: How many of you are jumping at the chance to buy Hewlett-Packard shares at close to an 18-year low?
This year’s worst stock could be 2013’s best.
 

NYT | Opinion Today (December 7, 2012): The Baby Boom Bump

The New York Times

December 7, 2012

Opinion Today



Op-Ed Contributors

The Baby Boom Bump

Policy makers need to acknowledge the monumental impact of the retirement of the baby boom generation on the budget and the economy.
The Great Gun Gag
Opinionator

The Great Gun Gag

As the Bob Costas episode reminds us, the gun lobby has strangled debate on even simple safety questions.
Have Treaties Gone Out of Style?
Room for Debate

Have Treaties Gone Out of Style?

Have treaties become more controversial, or are there just concerns about recent pacts like the Convention on the Rights of Persons With Disabilities?
Op-Ed Contributors

Going Beyond Carbon Dioxide

A short-term strategy to slow global warming is to reduce emissions of other pollutants.
Op-Ed Contributors

At Dawn We Sleep

Twice this year, the Senate failed to pass bipartisan cybersecurity legislation, with the United States Chamber of Commerce leading the opposition. The new Congress must not repeat this mistake.
Praising Andy Warhol
Opinionator | The Stone

Praising Andy Warhol

Perhaps anything, no matter how it looks, can be a work of art. But that does not mean that everything is.
A Surprise Attack in Arkansas
Opinionator

A Surprise Attack in Arkansas

Seventy-nine years to the day before Pearl Harbor, Union forces fought back an unexpected assault by Confederates at Prairie Grove.
Will Vote For Rupees
Latitude

Will Vote For Rupees

India's sweeping new cash-transfer program for the poor is being conceived poorly and implemented in a hurry - probably ahead of the 2014 general election.
ADVERTISEMENT
Editorial

Egypt's Agony

President Mohamed Morsi should delay the vote on the draft constitution as a step toward resolving the nation's latest crisis.
Editorial

Keep the State Tax Deduction

Citizens should not be penalized for choosing to pay for strong state and local governments.
Editorial

Two Important Steps for Women

The National Defense Authorization Act approved by the Senate promotes equitable treatment of women.

The Opinion Pages

Read the full opinion report, including editorials, columns, op-eds and Opinionator. Go to the Section »
Macro Trumps Micro
The Conscience of a Liberal

Macro Trumps Micro

Delusions about trade, and more.
A Liberal Take on Family and Opportunity
Evaluations

A Liberal Take on Family and Opportunity

Lane Kenworthy on the link between family structure and economic mobility.
Damning Review of Gas Study Prompts a Shakeup at the University of Texas
Dot Earth Blog

Damning Review of Gas Study Prompts a Shakeup at the University of Texas

A damning review of a shale gas study prompts big changes at the University of Texas Energy Institute.