The Wall Street Journal – Paul Vigna: No, Earnings Have Not Been ‘Good’ Call corporate profits what you like, just don’t call them “good.” A lot of numbers get thrown around during earnings season. Operating earnings, EBITDA, cash flow, earnings excluding “special items,” beat rates. You get the picture; there are so many numbers, it… Continue reading Earnings Update
The Wall Street Journal – Shale Threatens Saudi Economy, Warns Prince Alwaleed Investor Says Kingdom’s Economy Increasingly Vulnerable Saudi billionaire Prince Alwaleed bin Talal has warned that the kingdom’s oil-dependent economy is increasingly vulnerable to rising U.S. energy production, breaking ranks with oil officials in Riyadh who have played down its impact. In an open… Continue reading What Shale Oil Means For Saudi Arabia
MoneyBeat (WSJ Blog) – Judge: Greenberg Can Depose Bernanke A company run by American International Group Inc.’s former chief executive will be able to take sworn testimony from Federal Reserve Chairman Ben Bernanke about the government’s decision to bail out the insurer in 2008. A judge in the federal claims court in Washington, D.C., ruled… Continue reading Deposing Bernanke
<Click on chart for the larger image> Deal Book (NYT Blog) – Hedge Fund’s Suit on Fannie and Freddie May Spell Trouble for U.S. The lawsuit brought by the hedge fund Perry Capital against the federal government over the Fannie Mae and Freddie Mac bailout may be the case that finally subjects the government’s bailout… Continue reading Fannie/Freddie
<Click on chart for larger image> NBC – Companies sitting on cash pile of over $1 trillion Why is this happening? They seem uncomfortable spending the money. Why? The commentary seems to indicate they don’t have a lot of visibility or confidence in future growth. The good news is that with so much cash, companies… Continue reading Cash On The Sidelines
The Guardian (UK) – Alex Andreou: If you think you know what ‘debt’ is, read on| Few people understand what debt is. We may understand the scaled-down metaphors that politicians serve up – “household debt”, or “maxed-out credit cards”. But the core issues relating to debt on a larger scale – the interaction between public… Continue reading What Is Debt?
<Click on chart for the larger image> The Financial Times – US money market funds return to EU banks US money market funds have nearly doubled their allocations to European banks over the past 12 months, in a sign of improving investor sentiment towards the region. In the first half of the year, the 10… Continue reading Money Markets And European Banks
Bloomberg.com – Bank Revenues Surge on Trading Over What Fed Will Do Diverging monetary policies are creating ideal conditions for banks to make money from trading currencies as Credit Suisse Group AG (CSGN) to Goldman Sachs (GS) Group Inc. say rising volatility is boosting earnings. “If there’s higher volatility, there’s higher volume and higher opportunities… Continue reading Banking
Bloomberg – Caroline Baum: Those Not Named Summers or Yellen Can Still Apply Yellen or Summers? Bookmakers handicapping the selection of Ben Bernanke’s successor as Federal Reserve chairman have decided it’s a two-way race between the brilliant Larry Summers (“brilliant” seems to be permanently affixed to his name) and Janet Yellen, currently the Fed’s vice… Continue reading On The Next Federal Reserve Chief
MoneyBeat (WSJ Blog) – Keeping SAC Alive Is in Banks’ Interest As SAC Capital Advisors LP battles the fallout from criminal charges, it is receiving help from two unlikely quarters: Wall Street banks and the U.S. government. When Manhattan U.S. Attorney Preet Bharara leveled criminal insider-trading charges against SAC last week, the received wisdom was… Continue reading Why A “Criminal Enterprise” Will Continue On
Bloomberg.com – JPMorgan Accused of Gaming Energy Bids as FERC Deal Looms JPMorgan Chase & Co. (JPM) manipulated power markets in California and the Midwest, the U.S. Federal Energy Regulatory Commission claimed in a proceeding that sets up a settlement to be announced as early as today. A JPMorgan trading unit gamed wholesale electricity markets… Continue reading Sounds Like Enron
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