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Jan 8, 2016

DealBook P.M. Edition - January 8, 2016: Top story: In Insider Trading Settlement, Steven Cohen Free to Manage Outside Money in 2 Years

 
Friday, January 8, 2016
TOP STORY
Steven A. Cohen closed his hedge fund, SAC Capital Partners, as part of the firm's guilty plea. He now oversees a large family office.
In Insider Trading Settlement, Steven Cohen Free to Manage Outside Money in 2 Years The billionaire investor, who faced the prospect of a lifetime ban, will be barred until 2018, under a settlement with the S.E.C.

WSJ | Forex Closing on January 8, 2016.

The Wall Street Journal Forex Closing
Major Currencies
Friday, January 8, 2016

WSJ | Major Indexes Closing on January 8, 2016.

The Wall Street Journal Major Indexes Closing
Major Indexes 5:45 p.m. EST 01/08/16

GATA | THE GATA DISPATCH - January 8, 2016: China Faces Currency Issues Beyond U.S. Dollar.

China Faces Currency Issues Beyond US Dollar

Submitted by cpowell on  January 8, 2016By Roger Blitz
Financial Times, London
Friday, January 8, 2016

The renminbi's steep fall against the dollar, which has caused investors so much mayhem, has obscured its relative strength against the currencies of some of China's trading partners.

WSJ | Biggest Gainers Closing on January 8, 2016.

The Wall Street Journal Biggest Gainers Closing
Biggest Gainers
4:32 pm ET 01/08/2016
NYSE

WSJ | Most Actives Closing on January 8, 2016.

The Wall Street Journal Most Actives Closing
Most Active Stocks by Volume
4:31 pm ET 01/08/2016
NYSE

WSJ | Biggest Decliners Closing on January 8, 2016.

The Wall Street Journal Biggest Decliners Closing
Biggest Decliners
4:32 pm ET 01/08/2016
NYSE

FRB Notification | Statistical Release on January 8, 2016: Consumer Credit - G.19 Last Update.

 

Current Release (PDF)

www.federalreserve.govNovember 2015 Release Date*: January 8, 2016
In November, consumer credit increased at a seasonally adjusted annual rate of 4-3/4 percent. Revolving credit increased at an annual rate of 7-1/2 percent, while nonrevolving credit increased at an annual rate of 3-3/4 percent.

CMI Spot Prices as of Close of Trading in New York on January 8, 2016.

CMI Gold & Sliver

Spot Prices as of traditional New York closing times

Friday, January 08, 2016


 

Wall Street at Close Report by CNBC on January 8, 2015: Dow Closes Down Triple Digits as Stocks End One of The Worst First Weeks Ever.

cnbc.com
 
Evelyn Cheng
 
U.S. stocks closed lower Friday as concerns about China that weighed throughout the first trading week of the year persisted into the close.
The major indexes ended the week with losses of nearly 6 percent or more, one of their worst starts to a year in history.

The Guardian | Opinion | Germany - January 8, 2016: Let’s Not Shy Away From Asking Hard Questions About The Cologne Attacks by Gaby Hinsliff


FTC News and Events - January 8, 2015: FTC and State of Florida Sue Payment Processing Operation for Credit Card Laundering and Assisting Debt Relief Scam:


ESA | Monthly Wholesale Trade (November 2015 pdf) - January 8, 2016: November 2015 wholesale Inventories Were Down 0.3% From The Revised October Level..but Up 2.2% From November 2015..

ESA Overlay Banner

November 2015 wholesale inventories were $582.9 billion, down 0.3 percent from the revised October level but up 2.2 percent from November 2014.  Sales were $442.8 billion, down 1 percent from the revised October level and down 4.6 percent from November 2014.


Economics & Statistics Administration

European Markets at Close Report by CNBC on January 8, 2015: Europe Shares Close Lower; Down 6.5% on The week; Tesco up 5.8%.

cnbc.com
 
Arjun Kharpal, Holly Ellyatt, Katy Barnato, Alexandra Gibbs
European stocks finished in negative territory on Friday, in what has been a turbulent week for markets, as investors focused on China, oil prices and a strong monthly jobs report in the U.S.

The Guardian | Tech | Silicon Valley - January 8, 2016: Revealed: White House Seeks to Enlist Silicon Valley to 'Disrupt Radicalization'

theguardian.com

Danny Yadron

The White House will attempt to enlist Silicon Valley’s major technology firms in its efforts to combat terrorism on Friday when a delegation of the most senior intelligence officials fly to California to meet with executives from companies including Facebook, Twitter, Apple, Microsoft, YouTube and others.

BLS | Payroll Employment - January 8, 2016: Payroll Employment Rises by 292,000 in December; Unemployment Rate Unchanged at 5.0%.


RT Keiser Report: Moths to Economic Flames (E859) - Originally Published on January 7, 2016.


Keiser Report: Moths to Economic Flames (E859)

RT RT

RT News - January 8, 2016: Cologne NYE Assaults: 31 Suspects Identified, 18 of Them Refugees.


Cologne NYE Assaults: 31 suspects identified, 18 of them refugees

RT RT
Published on Jan 8, 2016
Just a week after mass assaults against women by a group of Arab and North African men in the German city of Cologne, the authorities are cracking down on hate speech against migrants. Germany has reached a deal with social media giants to remove any offensive comments deemed to be targeting asylum seekers.

Reuters | Deals - January 8, 2016: Goldman Fills Vacuum in Leveraged Buyout Market With $8 Billion Fund.

reuters.com

By Olivia Oran, Greg Roumeliotis and Kristen Haunss
 
Goldman Sachs Group Inc (GS.N) has cemented its dominance of a risky corner of the U.S. debt market, as traditional bank rivals retrench, by using a fund that it markets to investors to finance leveraged buyouts. In the past two years, banks have gradually scaled back their supply of the riskiest junk-rated loans used to purchase companies because of tougher U.S. regulations. And the conditions worsened dramatically in December when a selloff in junk bonds roiled the entire leveraged loan market, frightening away some lenders and squeezing the availability of such financing.

NYT First Draft on Politics - January 8, 2016: Obama and Trump Events Highlight a Central Divide on Guns

Friday, January 8, 2016

The New York Times

NYTimes.com/FirstDraft »

The New York Times

Friday, January 8, 2016

President Obama greeted a sheriff who asked a question during a town-hall-style meeting in Fairfax, Va., on Thursday.
President Obama greeted a sheriff who asked a question during a town-hall-style meeting in Fairfax, Va., on Thursday. Doug Mills/The New York Times
Obama and Trump Events Highlight a Central Divide on Guns
By MAGGIE HABERMAN
Good Friday morning. The attacks in Paris and San Bernardino, Calif., thrust terrorism into the forefront of the campaign as an issue that could reshape the race. But President Obamas executive actions intended to curb gun violence have introduced another potentially crucial issue, one that exposes stark differences between the political parties.

The Guardian | Business | Economics | Economic Growth: New UK Trade Deficit Figure Prompts Alarm as Exports Fall.

theguardian.com
 
Phillip Inman
 
Britain’s trade gap remained alarmingly high in November after exports fell to their lowest value since last July.
Official figures showed the deficit in goods and services narrowed to £3.2bn compared with £3.5bn in the previous month, but this was only after a drop in oil imports and a £2.4bn fall in the value of “unspecified goods”, mainly gold, brought into the country.

The Guardian | Opinion - January 8, 2016: George Osborne’s ‘Cocktail of Threats’ Will Leave Us With a Hangover by John McDonnell

theguardian.com
 
John McDonnell
 
George Osborne yesterday warned us about a “cocktail of threats” brewing in the world economy. All the ingredients are there for a noxious brew. The emerging markets debt bubble. The ongoing stock market turmoil in China. Recession in Brazil and Russia, and the slowdown in India. The collapse in global commodity prices.

NYT Now Friday Briefing - January 8, 2016.

The New York TimesThe New York TimesFriday, January 8, 2016

 Friday Briefing 

Here’s what you need to know:
• A reprieve in the markets?
Many global stock indexes crept into positive territory today after two days of routs, with Wall Street likely to open higher this morning.
But the fallout remains. The Dow Jones industrial average is 10 percent below last year’s record high.

DealBook Today's Top Headlines - January 8, 2016: Capping Week of Turmoil, Chinese Markets Rise | Saudi Aramco I.P.O. Is Weighed by Kingdom | Martin Shkreli Used $45 Million E-Trade Account to Secure Bond.

 
Friday, January 8, 2016
TODAY'S TOP HEADLINES
By AMIE TSANG
CAPPING WEEK OF TURMOIL, CHINESE MARKETS RISE After plunging and bringing trading to a halt for the day after a mere 29 minutes, Chinese markets rose on Friday, Amie Tsang reports in DealBook.

The rise came after the central bank slightly increased the trading range for the renminbi, strengthening the currency, and the stock market regulator suspended measures that were intended to stabilize stocks, but actually exacerbated volatility.

Share prices see-sawed early in the day, with the Shenzhen composite index down by as much as 4 percent, but rose and finished the day higher. The CSI 300 blue-chip index closed up 2 percent. The Euro Stoxx 50 index followed by opening up slightly higher.

Although markets looked more stable on Friday, the convulsions have come at an inopportune time. The Federal Reserve recently increased interest rates for the first time in nearly a decade, a move that appears to have intensified an exodus from riskier markets. There are also signs of weakness in the United States economy.

Some analysts and economists say they are less optimistic that the United States will remain unscathed by China's struggles, Peter Eavis reports in DealBook. Although China's official growth figures have long been questioned, investors are increasingly worried that the Chinese authorities' handling of the country's challenges could hurt other markets too.

Fears that the United States economy might sag could prompt investors to clamor for the Fed to hold off increasing interest rates, further stoking uncertainty.

The rout this week also sets up a challenge for China's president, Xi Jinping, who has positioned himself as the master of the economy. His efforts to manage the economy, market and currency have been undercut at every turn by global headwinds and haphazard policy-making, Keith Bradsher reports in The New York Times.

He cannot move forward on the bolder actions needed to ward off a more serious economic slump, like forcing hugely indebted state-owned enterprises to stop borrowing money and shut down, because he risks eroding short-term confidence and growth.

Mr. Xi is limited by the elevation of the renminbi to the ranks of the world's leading currencies by the International Monetary Fund. The status took away some control over the currency, allowing market forces to play a bigger role.

The central bank has been guiding the currency lower to bolster exports and make overseas investments seem more expensive, but the result has been chaotic. The decreasing value of the renminbi has spurred faster capital flight and worsened the turmoil.

It has also created more concerns for global investors with a potential wave of currency devaluations among South Korea, Singapore and Taiwan, Landon Thomas Jr. reports in DealBook. Devaluations by the so-called Asian tigers could dampen global growth even further, foreign exchange specialists say.

The dollar's recent strong run and plunging commodity prices have already damaged fragile emerging markets like Brazil and South Africa. But the currencies of fast-growing Asian countries, including India, have been insulated, thanks to the better-performing economies and their strong foreign currency reserve positions.

But a stronger currency at a time when the currencies of manufacturing competitors like Japan and China have weakened leads to a fall in exports. The fear is that a currency war in Southeast Asia, where the Asian financial crisis erupted in 1997, could hamper growth.
SAUDI ARAMCO I.P.O. IS WEIGHED BY KINGDOM If Saudi Arabia follows through on its plan to list the state-owned oil producer, as one of the kingdom's top officials told The Economist, it would certainly steal the limelight from the debuts made by Alibaba and Facebook, Michael J. de la Merced writes in DealBook.

It is difficult to understate how big Saudi Aramco is believed to be. Its stated oil reserves amount to 261 billion barrels, more than 10 times those of Exxon Mobil. It supplies roughly a tenth of the world's oil.

Just how much it would be valued on the market is up for debate. The Financial Times estimated in 2010 that it was worth about $7 trillion - roughly 12 Apples. But, as The Financial Times's Alphaville acknowledges, that estimate was born of heady times for state-owned energy producers.

The kingdom would almost certainly refuse to cede any control over the company if it is listed on a public exchange. Some companies with concentrated ownership have taken a hit on valuation, but the biggest market debutants, like Alibaba and Facebook, have escaped such a fate.

Discussions about Saudi Aramco's fate appear to be at an early stage. The Economist reports that Prince Mohammad has held two "high-level meetings" to discuss a potential stock sale. But the world's biggest banks are undoubtedly salivating at the chance to work on such a big, prestigious initial offering, Mr. de la Merced writes.
ON THE AGENDA The Labor Department will release employment numbers for December at 8:30 a.m.
MARTIN SHKRELI USED $45 MILLION E-TRADE ACCOUNT TO SECURE BOND Martin Shkreli is worth at least $45 million, Matthew Goldstein reports in The New York Times. Federal prosecutors in Brooklyn disclosed in a court filing that a brokerage account containing $45 million had been used to secure a $5 million bond posted by Mr. Shkreli after his arrest on securities fraud charges.

The brokerage account at E-Trade, the online securities firm, is the first public accounting of just how much money Mr. Shkreli has made over his brief career on Wall Street and in pharmaceuticals. It will also put to rest speculation on how he was able to come up with $2 million to buy the only known copy of an album by the Wu-Tang Clan.

Brash and outspoken, Mr. Shkreli has portrayed himself as a successful stock trader and a daring corporate executive. But the federal indictment suggests much of his early success was built on lies and misrepresentations.

The court filing by prosecutors accompanies a restraining order barring any financial institution, including E-Trade, from transferring or conveying any assets in the account. The action by prosecutors settles a lien that authorities had placed on Mr. Shkreli's account as security for the bond.
MERGERS & ACQUISITIONS »
Media General Agrees to Be Acquired by Nexstar, but Meredith Objects Media General is still bound by a previous deal to acquire the Meredith Corporation, which is reluctant to call off the engagement.
Michelle Peluso, chief executive of Gilt Groupe.
Saks Owner Clinches Deal for Gilt Groupe The online fashion retailer, once seen as revolutionary, is sold for $250 million in cash.
INVESTMENT BANKING »
Returns from Credit Suisse's 'Universal Bank' Outperform Group New figures released by Credit Suisse on Friday have revealed better returns at its 'Swiss universal bank,' which it wants to list next year, compared with the rest of the business.
HSBC and Standard Chartered Caught in Cross Hairs of China Slump The two Asia-focused banks face lower revenues, rising bad loans from volatile markets and slower growth.
Goldman Fills Vacuum in Leverage Buyout Market Goldman's GS Mezzanine Partners VI fund has been one of the most aggressive financiers of leveraged buyouts and is the biggest fund of its kind after raising about $8 billion last year.
E.C.B. Under Fire as Novo Banco Bondholders Hit by Losses Europe's new regime for winding up failing banks has made an inauspicious start, as investors criticized the European Central Bank for allowing Portugal to impose losses on almost 2 billion euros, or about $2.2 billion, of senior bondholders in Novo Banco.
  • THE FINANCIAL TIMES 
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    Law Firm Mergers Rose Again Last Year Leading the way was the multinational law firm Dentons, which will have 3,000 more lawyers than the next largest firm.
    In Puerto Rico's Debt Crisis, an Absence of Enforcers With high unemployment and rising departures by residents, Puerto Rico's decision to skip $37 million of interest and principal payments is probably only the beginning, Kevin Allison writes in Breakingviews.
    New York's Former Chief Judge Joins Latham & Watkins The former judge, Jonathan Lippman, is focusing his work on New York law and appellate matters as well as trying to expand access to legal services for the needy.
    Jeff Hirsch with his father, Yale Hirsch, who first published the Stock Trader's Almanac in 1968.
    For Stock Markets, January Is a Cloudy Crystal Ball The Stock Trader's Almanac first posited that January markets could foretell the direction of the trading year, but statistics experts say causation is impossible to prove - or disprove, James B. Stewart writes in the Common Sense column.
    Volkswagen's Chief Will Meet With E.P.A. Head Over Recall The global chief of Volkswagen, Matthias Müller, will meet Wednesday with the administrator of the Environmental Protection Agency, Gina McCarthy, the regulator said.
    China Anticorruption Agency Investigating Official Linked to Fosun The Chinese Communist Party's anticorruption agency said it was investigating an official linked to Fosun Group, a Shanghai conglomerate that attracted widespread attention last month when its chairman briefly disappeared. Separately, another private Shanghai business said that its high-profile founder could not be located.
     

U.S. Stock Market Future Indications by MarketWatch - January 8, 2016: Dow Eyes Triple-Digit Gain After China Ends Higher

marketwatch.com
 
Victor Reklaitis
 
U.S. stock futures pointed to a higher open, putting the market on track to erase part of the week’s losses.
A rally by Chinese stocks appeared to cheer investors, as they also brace for a key U.S. jobs report that’s due before the open.

Asian Markets at Close Report by MarketWatch on January 8, 2016: China Stocks Recover From Plunge as Nerves Settle.

marketwatch.com

Chao Deng, Robb M. Stewart
 
Chinese stocks rose and the yuan strengthened Friday, a respite from the early-year meltdown that wiped as much as $1.1 trillion from mainland markets, after authorities overnight removed a mechanism blamed for triggering more volatility.