Financial New Items

Financial and Economic News Items of Interest from Max Holmes

01 August

Investors sweat dets of DowDuPont deal

Some people are hard to please… Andrew Liveris, the CEO of Dow Chemical, has been busy… He is merging the company with DuPont, and then promptly splitting the company into three pieces, something activist investors have been advocating for years… But instead of being happy, the activists are carping about…

31 July

Big challenge looms for Republicans

President Trump and the Republican Congress have failed to pass any significant legislation over the past six months… Kate Davidson of the Wall Street Journal asks the next logical question: What if they cannot pass the debt ceiling increase in September: Next Up for GOP Congress: Raising the Debt Ceiling…

31 July

Utility help their customers compete

There is a growing trend for local electricity utilities to encourage local and residential power… It takes pressure off the grid, and the utility can still earn a reasonable rate of return… Diane Cardwell of the New York Times has an example: Utility Helps Wean Vermonters From the Electric Grid

31 July

Spain re-emerges

Spain is starting to grow again, from a very low base… The country is once more competitive in the world economy… It’s a reasonable place to do business again for two reasons: A decade of recession has made skilled labor and rents competitive in price… And the low euro has…

31 July

Reorg whispers dog tech giant

How the mighty have fallen… Anonymous “people involved in talks over the workout” have told the Wall Street Journal that Toshiba may file for bankruptcy: Toshiba Bankruptcy Filing Pushed by Some Involved in Workout… Rumors like this can become self-fulfilling prophecies…

31 July

Twitter has a simple problem

Twitter continues to have the same issues, an inadequate revenue model… Miriam Gottfried of the Wall Street Journal has the story: Investors Don’t Believe in Twitter’s Turnaround…

27 July

SPECIAL: Lessons learned in direct lending

Reuters’ Lawrence Delevingne has a long, thoughtful piece about the new extremes of the direct lending market.  The business of lending to middle market companies which are too small to issue syndicated loans or high yield bonds has exploded since 2010, with numerous new entrants.  Some of them are too…

27 July

Reasons to be nervous? Let Oaktree’s Marks count the ways

Bearish Howard Marks of Oaktree has issued another warning… As per his style, he has lots of excellent examples, including the enormous $100 billion fund raised by SoftBank on the back of one great investment (Alibaba)… And what he calls the “unfounded fad” of bitcoin… Devin Banerjee of Bloomberg has…

27 July

There’s hidden risk in Boeing’s cash hoard

Julie Johnsson of Bloomberg has a very thoughtful story today: Boeing’s ‘Monster’ Cash Haul Gives New Boost to Top Stock on Dow… The cThe hidden rompany has been building cash, and using it to buy back shares, which has been very good for the stock price… But there is a…

26 July

Greece is the word in sovereign market

After Argentina, now Greece returns to the world bond market… Liz Alderman of the New York Times has the story: In Sign of Progress for Greece, Investors Eagerly Snap Up New Bonds…

26 July

HUD is in hot water

The Office of Inspector General discloses that HUD sold $18 billion of mortgages without following its own rules… Another example of the dark side of federal involvement in the residential mortgage market… Matthew Goldstein of the New York Times has the story: HUD Ignored Procedures in Selling Distressed Mortgages, Report…

26 July

What’s it going to take to derail EM debt?

Emerging markets debt is close to its all-time tights, even as defaults are continuing… Ben Bartenstein of Bloomberg has the story: Distressed Debt Disappears and That Makes Greylock Nervous…

25 July

Why the Fed can’t goose inflation

The Fed continues to be unable to manufacture inflation… The New York Times’ Fed Watcher Binyamin Appelbaum describes the conundrum: U.S. Inflation Remains Low, and That’s a Problem…

25 July

‘Gray rhinos’ somehow persist

More news from the New York Times Shanghai bureau on the government crackdown on the “gray rhinos”: Anbang, Fosun, HNA and Dalian Wanda… When will one of them fall?… In China, Herd of ‘Gray Rhinos’ Threatens Economy…

25 July

Shorts capitulate

Ben Eisen of the Wall Street Journal reports new statistics, showing how lonely it is to be a bear in the current market… Short Sellers Give Up as Stocks Run to New Records…

25 July

Fear not the bots

Jerry Kaplan, a Stanford Business School professor, has an excellent piece about the hype and reality of artificial intelligence… The Wall Street Journal has run the piece: Don’t Fear the Robots…

24 July

High-profile SkyBridge deal hits delay

Reuters reports that the sale of SkyBridge Capital to the Chinese conglomerate HNA is still awaiting CFIUS approval… Scaramucci Awaits U.S. Approval for China Deal…

24 July

DoJ’s great white whale gives them the slip

The U.S. Justice Department New York Southern District’s case regarding JPMorgan and the London Whale has turned into a mess, and had now been dropped… The star witness wrote an unpublished memoir, launched a website, and contradicted the case in a civil deposition… Matthew Goldstein of the New York Times…

24 July
24 July

This Italian city got hooked on easy money

The New York Times has a very specific, detailed story about distortions created by governmental intervention in financial markets and the economy, in this case ECB quantitative easing… Jack Ewing tells the fascinating story: Easy Money Saved This Italian City. Soon, It Will Run Out

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RT @GoldmanSachs: Read in @WSJ about $GS' UIG investment to convert NJ Bell building in Newark into affordable housing and retail ...
RT @RayDalio: .@CharlieRose and I discuss the importance of learning and writing down principles and seeing each situation as "another one…
RT @WSJBankruptcy: Bentham IMF is adding a bankruptcy focus to the growing litigation finance market ...
RT @OneCarlyle: .@OneCarlyle hires Idris Mohammed as Managing Director on the Sub-Saharan Africa Fund. Based in Lagos, he will focus on We…
RT @PIMCO: Another weak #inflation report complicates the #Fed’s December dilemma. Read: ... ...
RT @elerianm: .@FT with tips on the use of #PowerPoint for more effective presentations. ... ...
RT @Citi: What do young people believe they need to succeed in today’s economy? New blog w/ @MFGateway ... #Pathways2Pr
RT @RiskReversal: @FT on @CNBCFastMoney @CreditSuisse Software banker James Disney detailed how CS is using #Blockchain in i-banking deals…
RT @MorganStanley: The world's fastest-growing economy? India is on track to grow GDP 10% a year in USD over the next decade. #MSIdeas http…