Archive for Wall Street
Treasury Has Wall Street Dreaming Up New Bond Ideas
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Borrowing committee’s list includes perpetuals, zero-coupons
- America’s financing needs to exceed $12 trillion over decade
The U.S. Treasury is beginning to think outside the box about ways to fund escalating borrowing needs that are on course to exceed $12 trillion over the next decade just as foreign demand for America’s debt is stagnating
Treasury Secretary Steven Mnuchin tapped his committee of external advisers on borrowing this month to assemble a list of potential new debt securities the government might use to expand its investor base. The brainstorming comes as the federal budget deficit is forecast to exceed $1 trillion in fiscal 2022 and as the nation’s debt burden has surged to $15.6 trillion, up more than $1 trillion from the end of 2017…
DealBook Briefing: The Fed’s Reversal Soothes Wall St.
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Jerome Powell, the Federal Reserve chairman.CreditCreditJim Lo Scalzo/EPA, via Shutterstock
A surprise shift from the Federal Reserve
In a sharp reversal of the stance it took just week ago, the Fed’s chairman, Jerome Powell, said yesterday it had “the luxury of patience” in deciding whether to raise rates again, writes the NYT’s Binyamin Appelbaum.
The news: The Fed left its benchmark interest rate unchanged, a decision that was widely expected. What surprised markets was the indication that rates, which are in a range of 2.25 percent to 2.5 percent, would stay put for some time…
What Wall Street Wants to Hear From Tesla’s Elon Musk
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Earnings report follows CEO’s warning about ‘difficult’ road
- Price drop, job cuts fuels concerns about profitability
Tesla Inc. had a turbulent 2018, and early 2019 hasn’t been any smoother. To get the shares back on track, Chief Executive Officer Elon Musk has to ease concerns that sales and profitability could be hitting a wall.
An across-the-board price drop, job cuts and Musk’s warning about a “very difficult” road ahead has investors on edge heading into Tesla’s release of quarterly earnings results Wednesday. The CEO has already warned preliminary results for the fourth quarter may come up short of the record earnings the Model 3 maker posted in the prior three months…
Wall Street’s Hopes for the New Congress Go From Not-So-Good to Oh Dear
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Representative Maxine Waters (D-Calif.) exits a Democratic caucus meeting to elect new leadership on Capitol Hill on Nov. 28, 2018, in Washington.
PHOTOGRAPHER: ZACH GIBSON/GETTY IMAGES
The House Financial Services Committee is now stacked with Democrats who eschew corporate donations.
The House Financial Services Committee has long been a coveted gig for any member of the U.S. Congress—Democrat or Republican. The panel helps shape major economic policies but, more important for members perpetually up for reelection, it virtually guarantees access to campaign cash from the banks, hedge funds, and other financial companies keen to keep them happy…
Wall Street Rallies for Squash in Harlem at Harvard Club Benefit
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StreetSquash celebrates 20th anniversary, raises $1.4 million
- ‘It’s playing chess while running,’ Samsung’s David Eun says
20th anniversary cake. Photographer: Amanda Gordon/Bloomberg
Not only were the squash courts busy Wednesday night at the Harvard Club in Manhattan, but about 600 guests filled the main halls with squash enthusiasm.
What does that look like? A lot of tall and lean people darting around, filling up on carbs and talking about the game as they raised $1.4 million for the nonprofit StreetSquash…
Wall Street Rallies for Squash in Harlem at Harvard Club Benefit
Wall Street Grows Antsy as Shutdown Threat to Stocks Intensifies
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Now a 40% chance it extends into February, Evercore ISI says
- The longer it lasts, the higher chance it leaks into markets
A growing group of analysts and investors is warning that the U.S. government shutdown could soon hurt stocks.
Already confronting an increase in volatility, an uncertain outlook for interest rates and a trade war that threatens to damp global growth, traders now have to factor in the economic effects of the partial closure, in its record 27th day…
Wall Street Grows Antsy as Shutdown Threat to Stocks Intensifies
Wall Street’s Earnings Week Bonanza Eases Investors’ 2018 Pain
Posted by: | CommentsBank investors were ready for some good news.
Shares of Goldman Sachs Group Inc. jumped the most for an earnings day since 2008, while Bank of America Corp.’s post-results climb was the steepest in more than seven years. For both firms, shareholders looked past bond-trading slumps and focused on bright spots like merger-advisory fees and lending income…
Wall Street’s Earnings Week Bonanza Eases Investors’ 2018 Pain
Wall Street’s Big Landlords Are So Hungry for Houses They’re Building Them
Posted by: | CommentsCompanies that once gobbled up foreclosed suburban homes are now acquiring new ones for the rental market
Millennials aren’t the only ones having a hard time finding houses to buy. So is Wall Street.
A shortage of houses in the entry-level price range where first-time buyers and big rental-home companies both shop is prompting some institutional landlords to start building new ones themselves…
Wall Street’s Big Landlords Are So Hungry for Houses They’re Building Them
Wall Street’s Mr. Fix-It Has $338 Million Riding on Fiserv Deal
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Frank Bisignano left JPMorgan to run debt-laden First Data
- He recieved $102.2 million in total compensation for 2017
First Data Corp. was Frank Bisignano’s big bet, rooted in the idea that waiting for Jamie Dimon to retire wasn’t worth it.
Five years after leaving one of Wall Street’s top jobs to lead the debt-laden payments processor, he helped engineer a deal with Fiserv Inc. that could be worth as much as $338 million for him…
Wall Street’s Mr. Fix-It Has $338 Million Riding on Fiserv Deal
Goldman Warns of Bear Market in Latest Wall Street Trade Alarm
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JPMorgan, UBS have also highlighted potential hit from dispute
- Wall Street’s cautious comments come as U.S. stocks outperform
While U.S. equity investors have kept their cool during this year’s escalation of trade tensions, the warnings from Wall Street are only getting louder.
Goldman Sachs Group Inc. and JPMorgan Chase & Co. are the latest to weigh in, highlighting the potential danger to Corporate America if a full-blown trade war erupts. In separate notes published this week, strategists at both firms issued estimates on the possible hit to earnings, with Goldman chief strategist David Kostin going as far as calling for a bear market under a scenario where the U.S. imposed 10 percent tariffs on all imports…
Wall Street Expats Angle for Piece of China’s Biotech Drug Boom
Posted by: | CommentsBankers, ex-pharma officials buy rights to sell drugs in China as the government loosens regulations.
A growing herd of former Wall Street bankers and drug industry veterans from the West are rushing to cash in on China’s embrace of biotechnology.
For years, China has been seen as a backwater in the pharmaceutical business. Despite its vast potential market, cumbersome regulations kept brand-name treatments from reaching patients for years after they became available elsewhere. Facing a bureaucratic gauntlet, many drugmakers either waited or didn’t bother to seek approval for blockbuster therapies in China at all…
Short Squeeze Roils Wall Street’s Favorite Bond Trade
Posted by: | CommentsThis month’s decline in 10-year yields stems from a host of factors, investors and portfolio managers say
Short Squeeze Roils Wall Street’s Favorite Bond Trade
The Wolf of Wall Street Agrees to Fork Over Some of His Book Royalties
Posted by: | CommentsIt’s a start: After a decade as a deadbeat who failed to repay victims of his boiler room fraud, Jordan Belfort agreed to fork over almost $19,500 in royalties from a sequel to his “Wolf of Wall Street” memoir, which was turned into a movie.
But, it’s a long way from the $97 million prosecutors say he still owes…
The Wolf of Wall Street Agrees to Fork Over Some of His Book Royalties
Wall Street Erases the Line Between Its Jocks and Nerds
Posted by: | CommentsThere used to be a strict hierarchy: Traders made money and won glory while programmers wrote code and stayed out of sight. Those days are over.
Wall Street Erases the Line Between Its Jocks and Nerds
Wall Street’s Bet on Global Currencies Is Bloodied With the Dollar Soaring
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TD Securities closes wagers on euro, kiwi, Swedish krona
- Morgan Stanley sees further EM currency downside versus dollar
Politics have foiled the best-laid plans of Wall Street’s currency strategists.
Turmoil in Turkey as well as strife between Italian leaders and the European Union have forced dollar bears to throw in the towel on bets that the rest of the world’s currencies would continue to play catch-up with the greenback in 2018. A continued flight to safety propelled the Bloomberg Dollar Spot Index to a 13-month high on Monday…
Wall Street’s Bet on Global Currencies Is Bloodied With the Dollar Soaring
Wall Street Salivates After Elon Musk Floats Taking Tesla Private
Posted by: | CommentsA day after Elon Musk declared that he might try to convert Tesla into a private company, Wall Street banks raced to figure out how such a transaction might work and how they might get a piece of the action.
Executives at banks including Goldman Sachs and Citigroup are discussing ways a deal could be structured, angling to land the potentially prestigious assignment of taking the maker of electric cars off public markets, according to people familiar with the discussions. Bankers and lawyers on Wall Street said any deal is likely to be valued at $10 billion to $20 billion…
Wall Street’s Biggest Bull Sees S&P 500 Rising 12% by Year’s End
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U.S. benchmark gauge will finish the year at 3,200: Canaccord
- Strong earnings growth and rising confidence will help rally
As U.S. equities flirt with a fresh all-time high, the most optimistic strategist on Wall Street is doubling down on his view that the S&P 500 Index will soar 12 percent in less than five months.
By the end of this year, the index will reach 3,200 points as the economy and earnings drive the next leg of the bull market, according to Canaccord Genuity LLC’s Tony Dwyer. Reset global expectations and a demographic tailwind will also fuel a second-half ramp-up, the strategist said, after the gauge climbed to within a percentage point of surpassing its January peak…
How Amy Hood Won Back Wall Street and Helped Reboot Microsoft
Posted by: | CommentsShe re-imagined the CFO job and played a key role in persuading employees, customers and investors to believe in the company again.
Clad in jeans and a gray sweatshirt, Amy Hood stands before a room of 140 Microsoft recruits. The feeling in the air is a bit like the first day of school, and new hires are taking selfies outside in front of a big Microsoft logo.
Wall Street Is Suddenly Bullish on Fintech Stocks
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Square, PayPal performance suggest e-payments expanding market
- Analysts see potential for growth, greater future returns
The financial technology sector has seen a slew of positive notes from Wall Street analysts this week as earnings season kicks off.
Once known for poor performance from high-profile initial public offerings at LendingClub Corp. and On Deck Capital Inc., payments companies like Jack Dorsey’s Square Inc. and PayPal Holdings Inc. are attracting support for the industry…
Broadcom Shares Sink as Latest Deal Puzzles Wall Street
Posted by: | CommentsCEO Hock Tan’s $18.9 billion purchase of software company CA is deviation from previous acquisitions
Broadcom Inc. shares fell nearly 14% on Thursday, showing the challenge Chief Executive Hock Tan faces in persuading investors that his $18.9 billion purchase of the software company CA Technologies makes sense for the chip giant.
The deal, announced late Wednesday, was a surprise even for observers familiar with Mr. Tan’s long history of acquisitions. The CEO built Broadcom into a chip powerhouse largely by acquiring companies. He keeps the parts he desires, wringing efficiencies out of the them, and sheds the rest..
Morgan Stanley Elevates CEO Contender
Posted by: | CommentsWall Street firm is giving trading executive Ted Pick an expanded role that includes investment banking
Morgan Stanley offered more clues into its slow-burning succession race, elevating a top trading executive seen as a favorite to eventually replace Chief Executive James Gorman.
Ted Pick, Morgan Stanley’s trading chief, will add oversight of investment banking, a move that puts him in charge of half of the firm’s revenue and cements his frontrunner status…
Morgan Stanley Elevates CEO Contender
Wall Street Left Reeling as 2018 Upends Almost Every Bet
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Favorite emerging-market stocks, bonds crumble under dollar
- ‘People woke up to a different world,’ says Aberdeen’s Athey
The half that began with “melt-up” euphoria ended with melt-down fear.
Investors breezed into 2018 expecting to pick up easy returns from steadily rising asset prices. Instead, they’re nursing losses on bets that had delivered the biggest gains from a decade’s worth of buoyant liquidity.
Emerging economies began the year as a market darling only to be toppled by a surge in the dollar and rising political risks. A brewing trade war has dashed expectations synchronized global growth would keep pumping up equities. China, long seen as the world’s growth engine, slipped into a bear market…
Fed Test Slaps Wall Street Titans While Unleashing Record Payout
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More than 20 banks announce higher dividends after stress test
- Goldman, Morgan Stanley freeze total payouts at earlier levels
Tougher Federal Reserve stress tests forced some of Wall Street’s top banks to rein in ambitious plans for pumping out cash to shareholders. But even those diminished returns spell a record payout to investors.
As the central bank’s annual stress tests ended Thursday, the nation’s four largest lenders — JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. — said they will distribute more than $110 billion through dividends and stock buybacks, sending their stocks higher in late trading. Even shares of Goldman Sachs Group Inc. and Morgan Stanley — which the Fed blocked from boosting total payouts — held steady…
From Wall Street to Williamsburg, It’s About Where to Party
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Ken Chenault opens Danny Meyer’s Bay Room at 28 Liberty Street
- Jed Walentas, Holy Ghost! at Domino Park with tacos, bocce
The preview party for Domino Park started with some tough choices: watch the sun dapple on the East River as a train chugged over the Williamsburg Bridge, or hustle over to the Roberta’s stand for pizza; play bocce near a row of black gum trees; or queue up for an L train Lemonade.
Then a friendly person pointed out the wine cart where rose was being poured from a tap…
Wall Street’s Newest Hot Commodity: The $185 Wagyu Steak Sandwich
Posted by: | CommentsIt’s the only place to find this beef in the U.S.
Don Wagyu, the first restaurant in New York devoted solely to Wagyu beef sandwiches, is located on South William Street in Manhattan’s Financial District, a five-minute walk from the New York Stock Exchange. When it opens on June 27, there will be three sandwiches (or sandos) on offer in the 1,000-square-foot space. Each is made from a different prized wagyu beef. The cheapest, made from a hybrid of Japanese and American cows, Washugyu, will cost about $25. On the other end of the spectrum is the A5 Ozaki, all sourced from a single farm in Japan. That sandwich will cost around $185.
DealBook Briefing: Wall Street Should Look to Hollywood for Equality Tips
Posted by: | CommentsHow inclusion riders could jump from Hollywood to finance
Women remain rare in the upper echelons of financial firms. So the biggest pension funds and university endowments — the financial equivalent of A-list movie actors — should consider imitating Hollywood’s “inclusion riders,” Andrew argues in his latest column. That means only backing investment firms that are working to address the diversity gap:
DealBook Briefing: Wall Street Should Look to Hollywood for Equality Tips
Will Argentina Be Upgraded to Emerging Market Status? Here’s What Wall Street Has to Say
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Analysts hedge their bets, but see 60%-70% chance of upgrade
- MSCI cut Argentina to frontier market status in 2009
It hasn’t been easy being an Argentine stock investor, but Wall Street analysts aren’t losing hope.
The country’s stocks are headed for the worst year in almost a decade after a currency rout, adding to the anticipation over a decision by index provider MSCI Inc, which tomorrow will announce if it will reclassify stocks to emerging market status. An upgrade will allow funds which track over $1 trillion to invest in the country’s equities, leading to about $3.8 billion of inflows to the local stock market, according to an estimate by JPMorgan Chase & Co…
An Investor Wants Wall Street to Get Serious About Gender Equality
Posted by: | CommentsVerger Capital asks hedge funds about policies on pay and harassment.
Your average hedge fund or venture capital shop might not care if it’s run like a boys’ club. But what if the funds’ biggest clients were to start paying attention?
Consider Verger Capital Management, which oversees $1.7 billion for nonprofit investors, most notably Wake Forest University’s endowment. It recently surveyed the 89 outside money managers it hires about their investment policies when it comes to environmental, social, and governance issues, or ESG. Think fracking or guns. Although Verger isn’t necessarily screening all such businesses out of its portfolio, it sees them as a potential source of risk. “We don’t want to be the moral police,” says Chief Executive Officer Jim Dunn. “We just want to understand what’s in the portfolio right now.’’
New York Fed Will Remain Focused on Bankers’ Ethics
Posted by: | CommentsWall Street’s front-line regulator intends to keep pushing big banks to improve their ethics.
The new president of the Federal Reserve Bank of New York, John C. Williams, on Monday gave his backing to his predecessor’s campaign to clean up bank culture. “I do commit to continue the New York Fed’s leadership on this in future years,” he said at a New York Fed conference on bank governance…
New York Fed Will Remain Focused on Bankers’ Ethics
Bitcoin Sees Wall Street Warm to Trading Virtual Currency
Posted by: | CommentsSAN FRANCISCO — Some of the biggest names on Wall Street are warming up to Bitcoin, a virtual currency that for nearly a decade has been consigned to the unregulated fringes of the financial world.
The parent company of the New York Stock Exchange has been working on an online trading platform that would allow large investors to buy and hold Bitcoin, according to emails and documents viewed by The New York Times and four people briefed on the effort who asked to remain anonymous because the plans were still confidential…
Bitcoin Sees Wall Street Warm to Trading Virtual Currency
How Wary Wall Street Is Sizing Up Trump’s Plan for Iran Decision
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Compass Point sees ‘untold repercussions’ from unwinding deal
- Withdrawal would test U.S.-Israel relations, Horizon says
President Donald Trump says he will announce his decision on Iran Tuesday at 2 p.m. Geopolitical jitters — along with the start of the summer driving season and positive jobs data — had helped push oil above $70 a barrel for the first time since November 2014. Stocks pared gains and oil futures dipped as investors weighed the forthcoming announcement. The U.K. and Israel are making their final pitches as Trump mulls an exit…
How Wary Wall Street Is Sizing Up Trump’s Plan for Iran Decision
YouTube Nerd Taunts Wall Street After Wild Tesla Call
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25-year-old has funded channel with $20,000 made from bitcoin
- Analysts should ‘step up’ with ‘better questions,’ he says
That’s how long he was in the spotlight during the bizarre Tesla Inc.earnings call last week, when a petulant Elon Musk cut off “boring” Wall Street analysts asking about the cash-burning company’s finances and declared: “We’re going to go to YouTube.”
If Elon Musk was trying to amuse himself at the expense of the analyst and investor community with his performance on Tesla’s Q1 call Wednesday evening, it’s mission accomplished to the extent he’s amused by befuddlement and frustration.
On the off chance you missed the call, you can read our full take here or you can just watch the following summary:
Warren Buffett’s Berkshire Is Now America’s Second Largest Real-Estate Broker
Posted by: | CommentsBerkshire Hathaway, often largely invisible, has an increasingly visible brand name as its real-estate business expands
Warren Buffett’s Berkshire Hathaway Inc. is a big name on Wall Street. Increasingly, it’s a fixture on Main Street too.
The Omaha conglomerate was the nation’s second-largest residential real-estate brokerage last year, making Berkshire Hathaway a presence on neighborhood yard signs from Los Angeles to New York. It has franchised the Berkshire Hathaway HomeServices name to 1,330 offices and more than 45,000 agents…
Warren Buffett’s Berkshire Is Now America’s Second Largest Real-Estate Broker
Even Wall Street Couldn’t Protect Toms Shoes From Retail’s Storm
Posted by: | CommentsBain Capital bought a 50 percent stake in the hip shoemaker, hoping to build on its success. It didn’t go as planned.
When popular footwear seller Toms Shoes LLC scored a $313 million investment from private equity giant Bain Capital back in 2014, the retailer was poised to grow in a serious way. Valued at more than $600 million, Toms was seen by Wall Street as a rising star.
Then everything went sideways…
Even Wall Street Couldn’t Protect Toms Shoes From Retail’s Storm
Seven Things Wall Street Wants to Know From Elon Musk
Posted by: | CommentsModel 3 production updates and cash burn are top of mind as Tesla reports earnings. But a lot of other questions are hanging.
Tesla Inc. reports first-quarter earnings Wednesday after the market closes. Between now and then, investors, customers, followers and doubters will be chattering about what Chief Executive Officer Elon Musk has in store come late afternoon. Given the tumult of recent weeks, the main focus will likely be on production of the Model 3, the key to Tesla’s plan to bring electric vehicles to the masses and eventually reach profitability. But there are a lot of other questions, too.
Wall Street Slaps Down NYC Again With AllianceBernstein’s Move to Nashville
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The asset manager is shifting about 1,050 jobs to Nashville
- It’s part of a trend as financial firms look to reduce costs
New York is losing more than a thousand financial-industry jobs — and Manhattan’s loss is Music City’s gain.
Wall Street Job Exodus Grows as AllianceBernstein Move Leaks
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More than 1,000 staff may go to Nashville, local report says
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It’s part of a trend as firms in New York look to lower costs
New York’s hold on finance and investing jobs keeps slipping.
Trump postpones decision on metals tariffs for Canada, EU, Mexico
Posted by: | CommentsWASHINGTON (Reuters) – U.S. President Donald Trump has postponed the imposition of steel and aluminum tariffs on Canada, the European Union and Mexico until June 1, and has reached agreements for permanent exemptions for Argentina, Australia and Brazil, the White House said on Monday…
Trump postpones decision on metals tariffs for Canada, EU, Mexico
Wells Fargo Shareholders Too Numb To Raise A Fuss
Posted by: | CommentsLast year, Wells Fargo investors were angry. How angry? Well, after the cavalcade of scandals that sullied the former banking Boy Scout’s name and abruptly cut short its CEO’s career, angry enough to withhold a whopping quarter of their votes from some of the board members who’d presided over the disaster. Take that!
Last year (and the early going of this year) have also been bad, but the nightmare of 2016 appears to have inured Wells’ bedraggled stockholders to pain. Plus, unlike in early 2017, there’s been some good news of late, although the bank can hardly take much credit for that windfall from the Treasury Department. No matter: Whatever the reason, Wells Fargo’s owners aren’t putting up a fight anymore…
Deutsche Bank Abandons Wall Street Ambitions, and Focuses on Europe
Posted by: | CommentsDeutsche Bank said on Thursday that it would shrink its operations in the United States and Asia and focus on Europe, effectively abandoning its ambition to be a member of Wall Street’s big leagues.
The decision, after years of losses, scandals, and management turmoil, ends a 20-year quest by Germany’s largest bank to compete eye to eye with the likes of Goldman Sachs and JPMorgan Chase…
Deutsche Bank Abandons Wall Street Ambitions, and Focuses on Europe
Three Reasons Deutsche Bank Didn’t Exit Wall Street Earlier: DealBook Briefing
Posted by: | CommentsGood Thursday. Here’s what we’re watching:
• Deutsche Bank is finally, and drastically, shrinking itself.
• Facebook can afford to clean up its act.
• Is the problem with I.P.O.s a ‘middle-market tax’?
• On today’s earnings calendar: Amazon, Microsoft, PepsiCo and Lazard…
Three Reasons Deutsche Bank Didn’t Exit Wall Street Earlier: DealBook Briefing