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Apr 16, 2014

Bloomberg | The Market Now - April 16, 2014: Koch Wealth Passes $100 Billion | Best Way to Mine Bitcoin: Own a Powerplant | IPOs Get Cheaper.

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THE MARKET NOW
The news that drives the U.S. and global markets.
April 16, 2014For more, visit Bloomberg.com/markets >>
Koch Brothers Net Worth Tops $100 Billion as TV Warfare EscalatesCharles and David Koch, the billionaire brothers who run Wichita, Kansas-based Koch Industries Inc., added $1.3 billion to their collective fortune yesterday on reports that U.S. industrial production gained more than forecast. The surge elevated their net worth to more than $100 billion, according to the Bloomberg Billionaires Index. Read the full storydavid-koch
High-Speed Traders Said to Be Subpoenaed in N.Y. ProbeNew York Attorney General Eric Schneiderman sent subpoenas to six high-frequency trading firms seeking information about special arrangements they have with exchanges and dark pools as well as their trading strategies, according to a person familiar with the matter. Read the full story
Technology Slump Fuels Concern Startup Values May FollowThe decline in publicly traded technology stocks is fueling concern that Silicon Valley startups will follow with plummeting valuations. Read the full story00twitter
Bitcoin Miner Taps Dad's Power Plant in Virtual-Money HuntIn the five years since bitcoin was created, the hunt for them has consumed enough electricity to keep the Eiffel Tower lit for 260 years. One man's way around the utility bills: the family power plant. Read the full story00bitcoin
Read more news at Bloomberg.com >>
The End of the IPO Cartel
by Mark Gimein
Leslie Picker, Zijing Wu and Fox Hu report that the Chinese commerce company Alibaba Group Holdings Ltd. plans to pay banks a 1.1 percent fee for managing its upcoming initial public offering in New York. That's what Facebook paid underwriters for its IPO, and a little more than 0.75 percent fee that General Motors reportedly paid. Alibaba will probably also pay an incentive fee based on the underwriters' performance.

Even with the incentives, the Alibaba offering is yet another signpost marking the end of what was once an almost unbreakable IPO cartel. For many years U.S. underwriting fees were a take-it-or-leave-it 7 percent of the offering. Now the average is down to 4.2 percent, and for the biggest offerings much less.  

00alibaba
This is the culmination of a process that in some ways started with Google's 2004 IPO. Then, Google insisted that banks follow an auction model to set the IPO price avoid leaving money on the table. That auction model didn't catch on -- frankly, many CEOs are probably less concerned about leaving money on the table than about maximizing the value of their own holdings in a quick pop. But in general issuers benefited from Google opening the door to negotiations, and now it's clear that underwriters have much less power to call the shots.
 
Bitcoin's Black Hole: Jason Clenfield and Pavel Alpeyev's story about Bitcoin mining is not to be missed. They track down miners who've gone very, very far afield to find cheap electricity for their mining rigs -- including one who has turned to his tiny family-owned hydroelectric plant . Notably, even miners are fed up with the costs of mining. One calls Bitcoin a "black hole of resources." That folks, is by design: Bitcoin works much like the gold standard -- right down to the incredible waste of resources that once went into pulling shiny metal from the ground.

And More Black Holes: Bank of America's total pricetag for mortgage-related legal costs and settlements have now passed the $50 billion milestone. And they're still growing (bloono surprise there...), as Bank of Americas continues to negotiate with the Justice Department about even more penalties.
THE MARKET NOW is brought to you from the desk of:
GimeinHeadshotsmall-80x80

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Mark Gimein
Companies and Markets Editor, Bloomberg.com
Twitter: @markgimein

Mining and Energy: Goldcorp loses hostile bid battle for Osisko Mining to Yamana Gold and Agnico Eagle: BIV | Today's Business News -April 16, 2014-.



Mining and Energy

Goldcorp loses hostile bid battle for Osisko Mining to Yamana Gold and Agnico Eagle

Yamana Gold and Agnico Eagle will acquire 100% of Osisko Mining Corporation (TSX:OSK) for $3.9 billion, thwarting Vancouver-based Goldcorp’s ... READ MORE
 

Walter Energy to idle two B.C. coal mines, temporarily lay off 700 employees

Alabama-based Walter Energy, Inc. (TSX:WLT) will be idling its Canadian operations, which include two coal mines in British Columbia, leading to ... READ MORE

Economy and Finance

 

Bank of Canada overnight rate remains steady at 1%

The overnight rate will remain at 1%, the Bank of Canada announced April 16, keeping it at ... READ MORE

Sports and Leisure

 

Whitecaps snag sponsor Harbour Air Seaplanes to attract fans across southwest B.C.

The Vancouver Whitecaps announced April 15 that they have snagged an airline sponsor that will make... READ MORE

More News...

  

Opinion: LNG to bring big benefits to B.C.

Agriculture Minister Gerry Ritz leading trade mission in Korea

This Week's Issue

 

Aerospace firms throttle back on B.C. aviation plan

The province will spend $5 million to help B.C. firms tap “unprecedented” air traffic growth predicted for ... READ MORE

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CMI Gold & Silver | Spot Prices as of close of trading in New York on April 16, 2014


Spot Prices as of close of trading in New York
Wednesday, April 16, 2014
Updated 4/16/2014TodayChangeWeek AgoMonth AgoYear Ago
GOLD$1,303.90+$3.50$1,306.20$1,373.60$1,384.10
SILVER$19.65+$0.15$19.79$21.29$23.44
PLATINUM$1,441.50-$5.30$1,442.70$1,472.30$1,438.10
PALLADIUM$805.00+$5.60$784.10$778.20$665.60
GOLD/SILVER RATIO66.36

FTC | Competition Matters - April 16, 2014: Promoting procedural fairness through the ICN.

Competition Matters Banner

By Paul O’Brien, Office of International Affairs
April 16, 2014 
Engagement in multilateral dialogue and consensus building is a cornerstone of the FTC’s international antitrust program, and our active involvement in the International Competition Network (ICN), a collaborative network of antitrust agencies from 111 jurisdictions around the world, is at the heart of this work. The FTC is a founding member of the ICN and serves on the ICN’s Steering Group. In past years, we have chaired the ICN’s work on merger notification and procedures as well as its initial work related to the analysis of unilateral conduct. In both instances, the FTC led ICN efforts to create international best practices on merger notification rules and the assessment of dominance. Currently, I co-chair the Agency Effectiveness Working Group (AEWG), one of the ICN’s five substantive work streams. The AEWG is devoted to the study of agency strategy, planning, operations, and investigative tools and procedures.
On March 25, the International Competition Network held a one-day Roundtable on Investigative Process at the FTC, and organized under the auspices of the AEWG. The FTC and the DOJ’s Antitrust Division hosted the event. The Roundtable focused on discussion of how different investigative practices can enhance the effectiveness of agencies’ decision-making and ensure the protection of procedural rights. 115 agency and private sector participants from 35 jurisdictions attended the Roundtable. FTC Chairwoman Edith Ramirez and Bureau of Competition Director Deborah Feinstein addressed the Roundtable. Chairwoman Ramirez stressed the benefits that investigative transparency and engagement can bring to agencies in the form of more informed and efficient investigations. Director Feinstein outlined FTC investigative practices that help to ensure effective decision making.

The Roundtable was a part of the ongoing ICN’s Investigative Process Project, co-led by the FTC and the European Commission’s DG-Competition. The premise of the Project is that effective competition enforcement depends on investigative procedures that promote fair and informed enforcement actions. The Roundtable covered the transparency of agencies’ investigations, opportunities for parties to engage with the agency, and protection of confidential information across all enforcement areas. The Roundtable featured sessions that used a sample investigative timeline to frame the discussion of investigative practices that promote transparency and predictability, facilitating effective engagement and interaction between agencies, parties, and third parties.
Such exchanges among competition agencies and between agencies and the private sector are important to fostering understanding about effective investigative practices. When competition investigations are fair – and perceived to be fair – and provide for the information necessary to analyze the conduct at issue, they bolster the legitimacy and impact of enforcement as well as ensuring the rights of parties. Through this ICN project and in other relevant international fora, the FTC is a leading voice for strong procedural fairness standards that serve as models of good practice for all competition agencies.
Later this month, the ICN will hold its thirteenth annual conference, hosted this year by the Moroccan Competition Council. Chairwoman Ramirez will attend the conference and will be a panelist in the plenary discussion of international cooperation on merger review. Effective competition agency investigative process and procedural fairness also will be key topics of discussion at the conference during the AEWG’s showcase panel and group breakout discussions, organized and led by the FTC. More broadly, the conference will highlight a range of ICN accomplishments over the past year embodied in new ICN work product on topics such as international merger enforcement cooperation, confidentiality protections during investigations, competition advocacy, leniency waivers, and recommendations related to predatory pricing analysis. More information about the 2014 ICN annual conference is available at the conference website.

YouTube | Al Jazeera English has uploaded News Bulletin - 21:00 GMT update -April 16, 2014-.



Al Jazeera English has uploaded News Bulletin - 21:00 GMT update
News Bulletin - 21:00 GMT update
Al Jazeera English
The main headlines on Al Jazeera English, featuring the latest news and reports from around the world.

YouTube | OfficialAnonymousTV1 has uploaded Anonymous - Message To The APD -April 16, 2014-.


OfficialAnonymousTV1 has uploaded Anonymous - Message To The APD
Anonymous - Message To The APD
OfficialAnonymousTV1
Recently, a video has been released to the public which shows Albuquerque Police Officers murdering a man in cold blood for 'illegally camping'. This man, which was schizophrenic, obviously had no intention of hurting these police officers, on the contrary, this man looks as if he is simply attempting to protect himself from visually fierce militarized thugs. Whether this man had a history of crime is irrelevant. We drastically need to address the growing police state that has occupied the United States.

To the citizens of Albuquerque, and to the Albuquerque Police Department, we are anonymous.

After the abnormally high number of fatal shootings by the Albuquerque Police Department since 2010, our attention and support for the citizens of Albuquerque has peaked. We are here in solidarity with the Albuquerque's citizens and to help bring justice that is long overdue. Members of the Albuquerque community, families of APD victims, and community organizations formulated the followin...

DealBook P.M. Edition - April 16, 2014: Steven Cohen Gets to Trade for 90 Days Before Paying Penalty

For the latest updates, go to dealbook.nytimes.com »
WEDNESDAY, APRIL 16, 2014
TOP STORY
Point72 Asset Management, the successor firm to SAC Capital Advisors, will have another 90 days to trade with the $1.2 billion in penalties it owes the government.
Steven Cohen Gets to Trade for 90 Days Before Paying Penalty Overlooked in the judge's approval of the guilty plea entered by Steven Cohen's hedge fund SAC Capital Advisors to insider trading charges is that SAC was given 90 days to pay a $1.2 billion penalty.
For the latest updates, go to dealbook.nytimes.com »
DEALBOOK HIGHLIGHTS
A Bank of American branch in New York.
Bank of America Swings to Quarterly Loss on Legal Costs Bank of America reported a first-quarter loss of $276 million on Wednesday, as litigation costs increased to $6 billion in the quarter.
Bank of America, led by Brian Moynihan, surprised shareholders on Wednesday by adding $2.4 billion to its reserves.
Reuters Breakingviews: Bank of America Not Alone in Reporting Anemic Results Bank of America's $276 million loss provides some valuable perspective on the difficulties in running a big bank these days, Antony Currie writes.
Mark Karpeles, Mt. Gox's chief, has
Lacking Revival Plan, Bitcoin Exchange Mt. Gox Likely to Be Liquidated In a statement posted on its website, the Tokyo-based company said a local court had dismissed its request that it be allowed to try to rehabilitate its business.
Michael Foods, a food processing and distribution company.
Post Holdings Said to Reach $2.5 Billion Deal for Michael Foods The deal, which could be announced as soon as Thursday, would allow Post, known for brands like Raisin Brain and Honey Bunches of Oats, to expand into egg whites and potatoes.
Ken Moelis, center, chief executive of Moelis & Company, on the floor of the New York Stock Exchange on Wednesday.
Moelis & Co. Rises After Smaller-Than-Expected I.P.O. Shares in Moelis & Company were trading 5.6 percent above its initial public offering price by midday on Wednesday, after the firm cut both the price of its I.P.O. and the amount of shares it sold amid the volatile stock market.
Elior, the French catering and support services provider.
French Caterer Elior Considering an I.P.O. This Summer Elior, one of Europe's largest catering companies, is said to be considering raising up to 750 million euros, or slightly more than $1 billion, in an initial public offering.
Chang Zhenming, the chairman of both Citic and Citic Pacific.
Citic Group Seeks $36.5 Billion in Hong Kong ListingThe cash-and-stock deal calls for Citic to sell almost all of its operating assets to its Hong Kong-listed unit, Citic Pacific.
A heating unit at GEA's Wiegand Beckum works.
German Firm Sells Heat Exchanger Operations to Funds Advised by Triton GEA Group said the deal valued the unit at about $1.8 billion and was part of its strategy to focus on supplying systems to the food industry.
Headquarters of the engineering company Metso in Helsinki.
Metso Board Rejects Merger Approach by Scottish Rival The Finnish engineering company, which provides services for the mining, construction and energy sectors, said its board decided a proposal by the Weir Group was not in the interest of shareholders.
Offices of Credit Suisse in Zurich.
Credit Suisse Profit Falls 34% in First Quarter The bank reported quarterly earnings of 859 million Swiss francs, or about $976 million, compared with profit of 1.3 billion francs in the year-earlier period.
A branch of SoftBank in Tokyo.
SoftBank Shares Rise on Alibaba Profit Report Shares in SoftBank rose as much as 8 percent after Alibaba, in which SoftBank holds a stake of about 37 percent, reported $1.4 billion in profit for the fourth quarter of 2013.
LOOKING AHEAD
More Banks to Report First-Quarter Earnings Several of the nation's biggest banks will report first-quarter earnings this week. Citigroup reported a 4% rise on Monday and will be followed later in the week by Morgan Stanley and Goldman Sachs. JPMorgan Chase opened the earnings season last week with a sharp decline in profit, an indication that the first quarter may have been a weak one for Wall Street's biggest banks.
Data Is Due on Retail Sales and Consumer Prices Among economic reports coming out this week are the Consumer Price Index for March, on Tuesday; housing starts and building permits and industrial production and capacity utilization, all for March, on Wednesday; and initial applications for unemployment benefits for the latest week, on Thursday. The stock market will be closed to observe Good Friday.
For the latest updates, go to dealbook.nytimes.com »

WSJ | Most Actives Closing April 16, 2014.

Most Actives Closing
Most Active Stocks by Volume
4:32 pm ET 04/16/2014
NYSE
ISSUEVOLUMEPRICECHG% CHG
Bank of America (BAC)160,422,437$16.13-0.26-1.59
Alcoa (AA)36,786,34913.420.372.84
General Electric (GE)33,156,90226.120.301.16
Pfizer (PFE)29,107,17930.090.200.67
Rite Aid (RAD)26,257,8107.120.060.85
AT&T (T)23,858,40436.100.421.18
Citigroup (C)23,369,03648.18-0.13-0.27
Cemex ADS (CX)22,997,34113.020.372.92
Nokia ADS (NOK)22,077,2517.300.152.10
Coca-Cola (KO)21,741,00040.590.411.02
Weatherford International (WFT)21,669,20718.201.166.81
Ford Motor (F)21,648,58216.070.231.45
JPMorgan Chase (JPM)20,994,08755.260.460.84
Alcatel-Lucent ADS (ALU)20,933,5643.700.123.35
EMC (EMC)19,649,44226.70-0.22-0.82
Verizon Communications (VZ)18,620,95547.100.180.38
Advanced Micro Devices (AMD)17,999,0833.76-0.03-0.79
General Motors (GM)17,971,30533.970.611.83
Petroleo Brasileiro ADS (PBR)17,585,72713.490.161.20
Wells Fargo (WFC)17,514,30249.090.310.64
CSX (CSX)16,448,04027.79-0.50-1.77
Halcon Resources (HK)15,505,0045.310.152.91
U.S. Bancorp (USB)15,383,03140.47-0.54-1.32
Taiwan Semiconductor Manufacturing ADS (TSM)15,024,27620.15-0.36-1.76
Vale ADS (VALE)14,160,22313.87-0.03-0.22
 
Nasdaq
ISSUEVOLUMEPRICECHG% CHG
Facebook Cl A (FB)77,171,836$59.720.631.07
Yahoo! (YHOO)61,182,09836.352.146.26
Intel (INTC)52,571,40126.930.160.60
Sirius XM Holdings (SIRI)49,747,8003.170.082.59
PowerShares QQQ Trust Series 1 (QQQ)40,344,03186.181.131.33
Cisco Systems (CSCO)30,917,39123.030.140.61
Microsoft (MSFT)29,586,67440.400.651.64
Zynga (ZNGA)26,067,0164.110.102.49
Micron Technology (MU)21,360,44722.480.311.40
Huntington Bancshares (HBAN)20,350,8019.31-0.16-1.69
Comcast Cl A (CMCSA)19,990,02249.170.761.57
NewLead Holdings (NEWL)17,042,5130.25-0.15-37.52
Gilead Sciences (GILD)16,955,10769.281.111.63
Applied Materials (AMAT)16,870,15018.920.060.32
Frontier Communications (FTR)15,863,0255.860.213.72
AMR (AAL)15,355,94035.511.795.31
VelocityShares Daily 2x VIX Short Term ETN (TVIX)12,515,3936.69-0.45-6.30
21st Century Fox Cl A (FOXA)11,896,69632.280.631.99
Mondelez International Cl A (MDLZ)11,669,77034.770.511.49
Windstream Holdings (WIN)11,521,1728.940.151.71
RF Micro Devices (RFMD)11,123,5027.950.020.25
Groupon (GRPN)10,794,5847.100.020.28
ON Semiconductor (ONNN)10,548,8319.51-0.20-2.06
Himax Technologies ADS (HIMX)9,472,3519.30-0.02-0.21
Texas Instruments (TXN)8,691,01145.21-0.60-1.31
 
NYSE Arca
ISSUEVOLUMEPRICECHG% CHG
SPDR S&P 500 ETF Trust (SPY)95,078,333$186.131.931.05
iShares MSCI Emerging Markets ETF (EEM)61,853,97741.630.521.26
iShares Russell 2000 ETF (IWM)45,308,412112.361.211.09
iShares MSCI Japan ETF (EWJ)39,849,16311.150.211.92
Select Sector SPDR-Financial (XLF)39,436,79121.820.170.79
Barclays Bank iPath S&P 500 VIX Short Term Futures ETN (VXX)32,914,68742.35-1.57-3.57
Select Sector SPDR-Health Care (XLV)29,566,64056.900.280.49
Direxion Daily Small Cap Bear 3x Shares (TZA)25,605,59217.09-0.56-3.17
Market Vectors ETF Trust Market Vectors Gold Miners (GDX)21,678,26223.80-0.22-0.92
iShares China Large-Cap ETF (FXI)21,576,44035.730.441.25
iShares MSCI EAFE ETF (EFA)18,704,72767.180.821.24
iShares MSCI Brazil Capped ETF (EWZ)17,538,84446.610.671.46
Select Sector SPDR-Technology (XLK)13,974,89636.080.350.98
Select Sector SPDR-Energy (XLE)12,900,15491.951.091.20
Select Sector SPDR-Utilities (XLU)12,340,24042.830.310.73
Vanguard FTSE Emerging Markets ETF (VWO)12,059,87041.070.421.03
Direxion Daily Small Cap Bull 3x Shares (TNA)10,136,52469.652.113.12
ProShares UltraShort S&P500 (SDS)9,400,46628.52-0.61-2.10
iShares U.S. Real Estate ETF (IYR)9,217,97268.900.410.60
Select Sector SPDR-Industrial (XLI)9,065,76252.340.791.53
ProShares UltraShort QQQ (QID)8,710,68460.12-1.61-2.61
iShares MSCI Taiwan ETF (EWT)7,735,07014.820.050.34
Market Vectors Russia ETF Trust SBI (RSX)6,785,97822.620.502.26
Direxion Daily Financial Bear 3x Shares (FAZ)5,975,94920.54-0.60-2.84
iShares MSCI EMU ETF (EZU)5,779,79142.140.591.42
 
Composite
ISSUEVOLUMEPRICECHG% CHG
Bank of America (BAC)160,422,437$16.13-0.26-1.59
SPDR S&P 500 ETF Trust (SPY)95,074,548186.131.931.05
Facebook Cl A (FB)77,171,83659.720.631.07
iShares MSCI Emerging Markets ETF (EEM)61,854,18441.630.521.26
Yahoo! (YHOO)61,182,09836.352.146.26
Intel (INTC)52,571,40126.930.160.60
Sirius XM Holdings (SIRI)49,747,8003.170.082.59
iShares Russell 2000 ETF (IWM)45,308,396112.361.211.09
PowerShares QQQ Trust Series 1 (QQQ)40,344,03186.181.131.33
iShares MSCI Japan ETF (EWJ)39,849,09611.150.211.92
Select Sector SPDR-Financial (XLF)39,435,46221.820.170.79
Alcoa (AA)36,786,34913.420.372.84
General Electric (GE)33,156,90226.120.301.16
Barclays Bank iPath S&P 500 VIX Short Term Futures ETN (VXX)32,914,68742.35-1.57-3.57
Cisco Systems (CSCO)30,917,39123.030.140.61
Microsoft (MSFT)29,586,67440.400.651.64
Select Sector SPDR-Health Care (XLV)29,566,63956.900.280.49
Pfizer (PFE)29,107,17930.090.200.67
Rite Aid (RAD)26,257,8107.120.060.85
Zynga (ZNGA)26,067,0164.110.102.49
Direxion Daily Small Cap Bear 3x Shares (TZA)25,605,59217.09-0.56-3.17
AT&T (T)23,858,40436.100.421.18
Citigroup (C)23,369,03648.18-0.13-0.27
Cemex ADS (CX)22,997,34113.020.372.92
Nokia ADS (NOK)22,077,2517.300.152.10
 
See All Most Actives
 
Footnotes
Includes common, closed end funds, ETFs, ETNs and REITS
x - stock is trading ex-dividend
Source: WSJ Market Data Group