Tag Archives: Market

Paulson to Talk With BofA

Bank of America Corp.’s wealth-management arm will host a conference call Tuesday with Paulson & Co.’s John Paulson, offering some of its financial advisers and their clients a chance to grill the struggling hedge-fund manager, people familiar with the matter said.

According to David Benoit and gregory Zuckerman of the Wall Street Journal, the call comes within days of the decision by a major Paulson client, Citigroup Inc.’s private bank, to stop investing with Mr. Paulson’s firm. That move is expected to lead to withdrawals of about $410 million.

Bank of America’s wealth arm, which includes its Merrill Lynch retail brokerage and U.S. Trust private-client business, had arranged …

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Morgan Stanley Hedge-Fund Capital Raiser Barrett Said To Depart

Morgan  Stanley (MS)’s David Barrett oversaw a unit that raised money for hedge funds and private companies, is leaving after 22 years to look for a job outside banking, two people with knowledge of the matter said.

Barrett ran the New York-based firm’s private capital markets business, where he reported to client-solutions head Wylie Collins and equity capital markets co-heads John Moore and Paul Donahue. Barrett is considering positions at several hedge funds, said one of the people, who asked not to be identified because the information hasn’t been made public.

Since 2008, Barrett developed and led a new business at Morgan Stanley raising money for hedge funds in exchange for fees, the people said.

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Napoleon Vs Google. Where will be Google’s Waterloo?

Google has been fasinated by the richness in the consumer markets. Just like Napoleon, who was enchanted by the rich resources of Russian. Now, Google is about to entering the tablet arena, to compete directly with strong competitors such as Apple and Amazon. Gene Marks of the Forbes makes an interest comparison between Napoleon and Google, to explore the pros and cons of Google entering the tablet market.

Napoleon, ruler of France from 1803 to 1815,  rose to power by conquering most of Europe, creating an imperial monarchy and fashioning a set of laws that for the most part still stands in force today.  He formed alliances and partnerships with dozens of countries and established France as the empire of the era.  And then he made the mistake of invading Russia in 1812.  With supply lines stretched and his forces weakened, Napoleon suffered a humiliating series of defeats and was eventually forced to retreat.  His reputation broken and his enemies strengthened, Napoleon eventually found himself, at the age of 46, sentenced to exile.

Like Napoleon’s obsession with the resources of Russia, Google continues to fall in love with the potential riches of the consumer market.  They’ve been investing millions in their YouTube channels.  They recently expanded Google+ to take on FaceBook and announced a new version of their Google Hangouts services where users can broadcast their videos to unlimited viewers.  The other week they unveiled a re-design of their ads to allow for even more eyeballs.   At their last conference, they showed off a special pair of Internet friendly glasses.

But the Napoleonic moment is the latest announcement of the Nexus 7.  It’s a $200 tablet aimed directly at Apple’s iPad and Amazon’s Kindle Fire.  I can understand the temptation.  It’s a big market.  With a lot of potential.  But there’s too much risk.  If Napoleon had just settled down and focused on exploiting his core client countries he would likely have ruled for many more decades.   If Google were to focus on just the business market, they could do the same.

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Alcoa: 84 Percent Decline in Second-Quarter Earnings?

Photographer: Stephen Morton/Bloomberg

Alcoa Inc. (AA), the largest U.S. aluminum producer, is expected to report an 84 percent decline in second quarter earnings, as a result of eighth straight years of surplus global production that drives down the price of the metal. Sonja Elmquist of Business Week reported on this issue.

Profit excluding one-time items will be 5 cents a share, according to the average (AA) of 19 analysts’ estimates compiled by Bloomberg. Analysts have lowered their projections by 44 percent in the past 30 days as aluminum traded near a two-year low on the London Metal Exchange.

While its downstream fabricating business that supplies components to customers such as Ford Motor Co. and Boeing Co. (BA) is profitable, Alcoa’s aluminum-smelting unit is struggling because of lower metal prices. The New York-based company announced in January production-capacity cuts of 12 percent. The primary metals unit will post an $86 million after-tax operating loss, said Brian Yu, a Citigroup Inc. analyst.

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Wall Street shakes off factory data; S&P, Nasdaq rise

(Reuters) – Stocks edged higher on Monday, shaking off a surprise contraction in manufacturing, which some investors took as a signal the Federal Reserve will take more forceful actions to boost the economy.

The Institute for Supply Management’s manufacturing index came in at a lower reading than expected in June, registering a contraction in the sector for the first time since July 2009.

The S&P was lower for much of the session but closed slightly higher in late gains. Still, industrial shares were under pressure after the data, the latest in a string of indicators pointing to deteriorating economic conditions around the globe. Boeing Co (BA.N) lost 1.5 percent to $73.18 and Caterpillar Inc (CAT.N) was off 1.4 percent at $83.68.

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Barclays boss under pressure as bank inquiry launched

(Reuters) – Pressure grew on Barclays Plc Chief Executive Bob Diamond to quit as Britain launched an inquiry on Monday into a market-rigging scandal, saying a “culture that flourished in the age of irresponsibility” among bankers had to end.

Barclays Chairman Marcus Agius resigned on Monday, saying “the buck stops with me” as the scandal over manipulating Libor interest rates claimed its first major scalp.

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Euro Leaders Turn To Central Bank For Help To Tackle Crisis

European leaders turn to the European Central Bank this week, seeking assistance from monetary policy makers to reinforce gains following euro-area leaders’ moves to calm markets and accelerate the currency bloc’s integration.

The Frankfurt-based ECB may offer help on July 5, with economists expecting an interest rate cut. The bank has a track record of action following political progress, including bond purchases that followed bailout programs and unlimited three- year loans on the heels of pledges supporting fiscal discipline.

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